
EnHeng嗯哼|Aug 06, 2025 13:57
This morning, my contract doubled, but due to not reducing leverage, I was forced to reduce my position by Binance's ADL mechanism. Although the highest was over three times, it was forced to close the position when it was twice as high
My friend said, 'Hey, I've doubled my earnings.' But I think that's already good. I was very casual because I was sleeping at that time and couldn't control the market no matter how it went. If there is no liquidation and you can still make money, it is already a good result
What is ADL? ADL (Auto Deleveraging) is an automatic reduction mechanism of Binance
When others lose too much due to liquidation or insufficient insurance funds, the system will cut off the positions of people like you who make a lot of money and have high leverage to make up for the shortfall
You didn't do anything wrong, but the system can only borrow some profit from you to protect the market
Why trigger ADL? When there is an extreme market situation, some people sell out their positions → Strong liquidation fails → Account becomes negative → Insurance funds cannot save it → ADL is launched, and the system will select the most profitable and highly leveraged users from the opposite direction to cut off a portion of their positions
The last large-scale ADL was when LUNA collapsed. Today I also stepped on it, the first time I heard @ dotyyds1234 post on Weibo
🧮 Who is the easiest to be hacked? The system is not randomly selected, but queued according to this formula:
Unrealized profit ratio x current leverage ratio
The result is:
Those with high leverage are ranked ahead
Those who earn more are also ranked higher
Those with high leverage and high profits cannot escape
How to check if you will be hacked?
On the Binance contract trading interface, click on the small light bulb on the right side of the position to see the ADL ranking indicator light
🟢🟢🟢🟢🟢: very safe
🔴🔴🔴🔴🔴: High risk, may be cut at any time
This light will adjust in real-time according to your profit and leverage changes. It is recommended that you watch it regularly
✅ How to avoid ADL?
Reduce leverage: Don't be greedy, more stable within 10x
Pay attention to the insurance fund page:
Binance insurance fund balance, seeing a sharp drop in balance indicates a dangerous market situation. ADL ranks high, reducing leverage or taking profits proactively
https://www. (binance.com)/zh-CN/futures/funding-history/perpetual/insurance-fund-history
ADL is not due to your operational error, but the system had to find someone to draw some blood in order to put out the fire
But the prerequisite for being accepted into ADL is that you have made a profit, which is already much stronger than those who sell out
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