[Hyperliquid Co-Founder: ADL Does Not Transfer Profits and Losses to HLP, Its Handling of Users and HLP is Completely Symmetrical] BlockBeats News, December 10, Hyperliquid co-founder Jeff published an article refuting the claim that 'ADL (Auto-Deleveraging Mechanism) transfers profits and losses to HLP.' Jeff stated that the ADL mechanism does not transfer profits and losses to HLP (Hyperliquidity Provider), and its handling of users and HLP is completely symmetrical. ADL also does not destroy $653 million in profits. On November 28, Hyperliquid enabled the cross-margin auto-deleveraging (ADL) liquidation system across all its major perpetual contract markets to ensure orderly market operations during periods of extreme volatility, especially when liquidity tightens or large positions approach liquidation. When the insurance fund cannot fully absorb the losses from liquidated positions, ADL (Auto-Deleveraging Mechanism) acts as a backup liquidation method. In such cases, positions of highly leveraged, high unrealized profit traders may be partially or fully reduced to cover the funding gap. Hyperliquid emphasized that ADL is only triggered under exceptional circumstances and is designed to maintain market integrity by preventing a chain reaction of defaults that could disrupt the entire ecosystem.