BlockBeats News, November 28th, Hyperliquid has enabled its cross-margin Automatic Deleveraging (ADL) liquidation system on all its major perpetual contract markets, introducing a deeper level of risk management in the face of rising open interest and funding rate fluctuations. After a series of internal stress tests and simulations conducted over the past month, ADL has now been officially launched to ensure that the market can operate orderly during periods of intense market volatility, especially when facing liquidity crunch or nearing liquidation of large positions.
When the insurance fund is unable to fully absorb the loss of a liquidated position, ADL (Automatic Deleveraging) serves as a backup liquidation method. In this scenario, positions of highly leveraged traders with unrealized profits may be partially or fully deleveraged to plug the funding gap. Hyperliquid emphasizes that ADL will only be triggered under special circumstances, with its design aimed at maintaining market integrity by preventing a chain default that could potentially disrupt the entire ecosystem.
