Auto Deleveraging ADL Queue and Priority Ranking in Perpetual Futures
Auto deleveraging - ADL - is an exchange’s last-resort mechanism when a liquidation cannot be fully absorbed by the insurance fund. It is not the same as standard liquidation. Standard liquidation closes a position when the margin ratio falls below the maintenance threshold. ADL only triggers after that liquidation has already happened and the resulting loss exceeds what the insurance fund can cover.
When that shortfall occurs, the exchange must reduce the positions of profitable traders to offset the debt. The system does not select these traders at random. It uses a priority ranking that targets the most profitable, highest-borrowing positions first. The logic is straightforward: traders who have earned the most from a price move, and who used the most borrowed capital to get there, are the first to have their positions force-closed by the ADL engine.
How the priority ranking works
Every position on an exchange that uses ADL is assigned a rank. This rank is calculated from two inputs: the unrealised profit of the position and the amount of borrowed capital used. A position that is deeply in profit and running high borrowing will sit near the top of the queue. A position that is barely profitable, or one that uses low borrowing, will sit near the bottom.
The ranking is dynamic. It changes as the mark price moves and as traders adjust their borrowing or close parts of their positions. A trader who was at the top of the queue five minutes ago may have dropped several places if the price has moved against their position or if another trader opened a more extreme position.
ADL Queue Indicators on Binance and Bybit
Both Binance and Bybit display ADL queue indicators directly in their trading interfaces. These indicators show a percentile rank. A trader sees a number like 1% or 20%. The lower the number, the closer that position is to the front of the ADL queue. A 1% indicator means that position is among the top 1% of positions most likely to be selected if ADL is triggered. A 50% indicator means the position is in the middle of the queue. A 99% indicator means the position is near the back and is unlikely to be selected unless a very large number of positions are deleveraged.
These indicators update in real time. They are not static warnings. They reflect the current state of the order book and the funding market. A trader who sees their ADL queue indicator climbing - that is, the number getting smaller - should understand that their position is becoming more exposed.
Distinction from standard liquidation
Standard liquidation is mechanical and predictable. It occurs at a known price level based on the position’s entry price, borrowing multiple, and maintenance margin. A trader can calculate their liquidation price in advance. ADL is different. It has no fixed trigger price. It depends on the size of the shortfall, the state of the insurance fund, and the ranking of every other profitable position on the exchange.
A trader can be nowhere near their liquidation price and still have their position force-closed by ADL. That is the key risk. ADL is not a margin event. It is a settlement event that happens after the margin system has already failed for someone else.
Practical steps to reduce ADL risk
There is no way to guarantee you will never be selected, but there are steps that lower the probability.
Reduce your borrowing. A position using 2x borrowing will sit far lower in the ADL queue than an otherwise identical position using 50x. The ranking formula weights borrowing heavily.
Take partial profits. A position that is deeply in profit is more likely to be near the front of the queue. Closing part of the position reduces the unrealised profit and moves the position down the ranking.
Monitor the ADL indicator. On Binance and Bybit, the indicator is visible. If it shows a low percentile, consider reducing the position size or lowering the borrowing. The indicator is a direct measure of your current exposure.
Avoid holding large, highly borrowed positions during periods of extreme volatility. When the mark price moves sharply, many liquidations can occur in a short window. If the insurance fund is depleted by those liquidations, ADL is more likely to be triggered, and the queue will be processed in order.
What the queue does not tell you
The ADL queue indicator shows your rank. It does not show the total size of the queue or the likelihood that ADL will actually be triggered on a given day. ADL events are rare on major exchanges because the insurance fund is typically large enough to absorb most shortfalls. But rare is not never. The mechanism exists for a reason, and when it activates, it acts on the ranking without negotiation.
No exchange publishes the exact formula for the priority ranking. The general logic is known from documentation and from observing how positions are selected during actual ADL events. The ranking uses profit and borrowing. The exact weighting and any additional factors are proprietary.
As of August 31, 2026, no on-chain pair matching "myrowifhatsol" was found on the blockchain queries attempted. The information on this page describes the standard ADL mechanism used by exchanges such as Binance and Bybit. It is not specific to any token or project.
The ADL queue is a feature of the perpetual futures market structure. It exists to protect the solvency of the exchange and to ensure that all profitable traders are treated equally when losses must be distributed. Understanding where your position sits in that queue is part of managing risk in borrowed trading.
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