logo

Hyperliquid Officially Launches Cross-Margin Auto-Deleveraging (ADL) Liquidation System

By: theblockbeats.news|2025/11/28 16:15:56
0
Share
copy

BlockBeats News, November 28th, Hyperliquid has enabled its Cross-Margin Auto Deleveraging (ADL) liquidation system across all its major perpetual contract markets, introducing a deeper level of risk management as open interest climbs and funding rates fluctuate. Following a series of internal stress tests and simulations over the past month, ADL is now live to ensure orderly operation of the market during periods of intense volatility, particularly in times of liquidity strain or near liquidation of large positions.

When the insurance fund is unable to fully absorb the loss from a liquidated position, ADL (Auto Deleveraging Mechanism) serves as a backup liquidation method. In such cases, positions of highly leveraged traders with unrealized profits may be partially or entirely deleveraged to cover the shortfall. Hyperliquid emphasizes that ADL will only be triggered under special circumstances, with its design intended to maintain market integrity by preventing cascading defaults that could potentially disrupt the entire ecosystem.

-- Price

--

You may also like

How to balance risk and return in DeFi yields?

Have these yields ever been reasonable? Have we ever received the compensation we deserve for the risks taken in DeFi, and where should the future spreads be set?

Tom Lee's Ethereum Thesis: Why the Man Who Called the Last Cycle Is Doubling Down on Bitmine

Tom Lee is emerging as one of Ethereum’s most influential supporters. From Fundstrat to Bitmine, his Ethereum thesis combines staking yield, treasury accumulation, and long-term network value. Here is why “Tom Lee Ethereum” has become one of crypto’s most watched narratives.

Naval personally takes the stage: The historic collision between ordinary people and venture capital

Naval personally stepped in as the chairman of the USVC Investment Committee. This SEC-registered fund launched by AngelList attempts to bring top private tech assets like OpenAI, Anthropic, and xAI to the general public with a $500 entry threshold. It is not just a new fund, but a structural experi...

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

Contents

Popular coins

Latest Crypto News

Read more