In 2025, as altcoin contracts become more popular and the frequency of attacks on insurance funds at various exchanges increases, ADL mechanisms have started integrating risk control logic. So, for quantitative traders, the era of simply relying on insurance fund balances > 0 is long gone. ADL (Auto-Deleveraging) involves settlement between long and short positions without touching the insurance fund. It’s likely that this contract or an account within this contract triggered the risk control logic. I’ve been meaning to write about this for a while now—insurance fund & ADL logic has become increasingly complex, and this algorithm is worth a deep dive for every quantitative trader. Let me share some of my research findings from trading: 1) **Bybit** Built-in absolute value directly triggers ADL, and this value adjusts based on the specific contract. From testing, it seems that contracts with higher volatility and lower market cap have lower absolute values. 2) **OKX** ADL can be triggered by either a percentage threshold or an absolute threshold, whichever is met first. 3) **Binance** ADL is triggered when the risk control model identifies abnormal contracts, followed by the “available balance” threshold. According to the documentation, this is based on a risk control model using a 99% confidence interval, which can be understood as a 99% confidence interval threshold. 4) **Hyperliquid** Even more complex logic, with four dimensions to identify malicious accounts or manipulated contracts, enabling early ADL activation to protect the insurance fund. As for other exchanges, I haven’t tried arbitrage between them yet—I usually stick to these four.