ADL

When the insurance fund is unable to take over the positions of the users, the positions will be automatically reduced.

 

For users, the ADL indicator in the position can be used to judge whether the risk of ADL will occur.

 

When an ADL occurs, Coin8 will immediately notify the affected users. At this time, the user's position will be closed at the bankruptcy price. If the user has an unsolicited order, these orders will be cancelled. When the ADL is completed, the user can re-open the position at any time.

 

Note that the bankruptcy price may not be within the range of the price in the contract market. Therefore, we recommend that users always pay attention to the ADL indicator light to avoid automatic position reduction.

 

The ranking of users in priority is based on the unrealized profit amount of users' positions. Usually, users who have not made the most profits will be given priority to ADL.

 

Steps of ADL:

1. Calculate the amount of subsidy for through position and calculate the amount of ADL.
2. According to the amount, calculate the number of users and positions that need to be execute ADL.
3. The platform will take overuser's position with the entryprice of ADL user, and close the position with the bankruptcy price. The realized profit and loss is used to subsidize the customers who was through position.