ADL Rankings by Exchange

Cross-Exchange Comparison

This compares how different exchanges would handle the same ADL scenario. Enter the volume that needs to be deleveraged to see which traders would be affected on each platform.

ADL Event Simulation

Simulate an ADL event on a specific exchange. This shows which positions would be deleveraged and in what order.

Live ADL Comparison Demo

Watch in real-time as market price moves and see how different exchanges' ADL rankings change dynamically. This simulation shows which positions get prioritized for ADL on each exchange as conditions evolve.
Current Market Price
$100,000
Time Elapsed
0s

Exchange ADL Formulas

Binance

PNL% = Unrealized Profit / |Position Notional| Effective Leverage = |Position Notional| / (Account Balance + Unrealized Profit) Ranking: If PNL% ≥ 0: Ranking = PNL% × Effective Leverage Else: Ranking = PNL% / Effective Leverage

Bybit

Price Change = (Mark Price / Entry Price) - 1 Leveraged P&L: If Profitable: Leveraged P&L = Price Change × Leverage Else: Leveraged P&L = Price Change / Leverage Ranking = Leveraged P&L

OKX

Return Rate = Unrealized PnL / Account Balance Margin Ratio = Account Balance / Position Notional Ranking = Return Rate / Margin Ratio

BitMEX

Profit% = Unrealized PnL / |Cost Basis| where: Cost Basis = Position Size × Entry Price Effective Leverage = Position Value / (Margin Balance + Unrealized PnL) Ranking: If Profit% ≥ 0: Ranking = Profit% × Effective Leverage Else: Ranking = Profit% / Effective Leverage Note: BitMEX pioneered ADL in crypto derivatives

MEXC

Profit % = (Unrealized PnL / Account Balance) × 100 Effective Leverage = Position Notional / Account Balance Priority: If Profitable: Priority = Profit % × Effective Leverage Else: Priority = Profit % / Effective Leverage

KuCoin

PNL% = Unrealized Profit / |Position Notional| Effective Leverage = |Position Notional| / (Account Balance + Unrealized Profit) Ranking: If PNL% ≥ 0: Ranking = PNL% × Effective Leverage Else: Ranking = PNL% / Effective Leverage

Gate.io

PNL% = (Unrealized PnL / Position Notional) × 100 Effective Leverage = Position Notional / Account Balance Ranking = PNL% × Effective Leverage

Bitget

PNL% = Unrealized Profit / |Position Notional| Effective Leverage = |Position Notional| / (Account Balance + Unrealized Profit) Ranking: If PNL% ≥ 0: Ranking = PNL% × Effective Leverage Else: Ranking = PNL% / Effective Leverage Note: Similar to Binance and KuCoin approach

Perpetual DEXs

Hyperliquid

ADL Sorting Index = (Mark Price / Entry Price) × (Notional Position / Account Value) where: Account Value = Account Balance + Unrealized PnL Ranking = ADL Sorting Index

Aster

🌟 Multi-step ranking system: Step 1: PnL% = max(0, Unrealized Profit) / max(1, Wallet Balance) Step 2: Margin Ratio If (Wallet Balance + Unrealized PnL) ≤ 0: Margin Ratio = 0 Else: Margin Ratio = Maintenance Margin / (Wallet Balance + Unrealized PnL) Step 3: Leverage PnL = PnL% × Margin Ratio Step 4: Leverage PnL Quantile = User's rank / Total users Higher quantile = Higher ADL risk

Lighter Protocol

PNL% = Unrealized Profit / |Position Notional| Effective Leverage = |Position Notional| / (Account Balance + Unrealized Profit) Ranking: If PNL% ≥ 0: Ranking = PNL% × Effective Leverage Else: Ranking = PNL% / Effective Leverage

EdgeX

Profit % = (Unrealized PnL / Account Balance) × 100 Effective Leverage = Position Notional / Account Balance Priority: If Profitable: Priority = Profit % × Effective Leverage Else: Priority = Profit % / Effective Leverage

Drift Protocol (Socialized Loss)

⚠️ Different from traditional ADL - uses socialized loss mechanism Ranking = Position Notional Size Loss Distribution = (Position Size / Total Size) × Total Loss Note: Losses distributed pro-rata across ALL positions based on size, not profit/leverage

Jupiter Perpetuals (JLP Pool)

⚠️ Uses Liquidity Pool Model - ADL rarely needed JLP Pool acts as counterparty to all trades with oracle-based pricing Fallback ADL formula: Ranking = PNL% × Effective Leverage

📚 How to Use the ADL Simulator

This guide will help you understand and use the ADL Simulator to compare auto-deleveraging algorithms across different crypto exchanges.

🎯 What is ADL?

Auto-Deleveraging (ADL) is a risk management mechanism used by crypto exchanges to close profitable positions when there isn't enough liquidity to cover losses from liquidated positions. When the insurance fund is depleted, exchanges use ADL to forcibly close the most profitable positions on the opposite side of the market.

🚀 Getting Started

Step 1: Add Positions

Use the Add Position form in the left sidebar to create trading positions. You can either:

  • Quick Examples: Click preset buttons like "💰 Profit Long" or "⚡ High Leverage" for instant examples
  • Manual Entry: Fill in the form with your own values:
    • Entry Price: The price where you entered the position
    • Mark Price: Current market price (determines profit/loss)
    • Position Size: Amount of BTC in the position
    • Leverage: Multiplier (1x-125x)
    • Account Balance: Total account equity

Step 2: Try Quick Scenarios

The Quick Scenarios section provides pre-built market situations:

  • ⚖️ Balanced Market: Even mix of long and short positions
  • 📈 87% Long Bias: Heavily long-skewed market
  • 🛡️ Hedge Portfolio: Positions with hedging strategies
  • 🎯 Differential ADL: Shows how different exchanges rank the same positions differently
  • 🐋 Whale vs Retail: Large vs small position dynamics
  • ⚠️ Safe vs Risky: Range of risk profiles

📊 Understanding the Tabs

📊 Rankings Tab

View how a specific exchange ranks all positions for ADL priority. Higher rankings = higher risk of being deleveraged. Select an exchange and direction (long/short) to see the complete ranking table.

🔄 Compare Exchanges Tab

Compare how different exchanges would handle the same ADL event. Enter a volume to deleverage (e.g., $100,000) and see which traders would be affected on each platform. This reveals major differences in ADL algorithms.

⚡ Simulate ADL Tab

Run a detailed ADL simulation on a specific exchange. This shows exactly which positions would be deleveraged, in what order, and whether they'd be fully or partially closed.

🎬 Live Demo Tab

Watch in real-time as market prices change and see how ADL rankings shift dynamically across multiple exchanges. Adjust simulation speed and price movement direction (bullish/bearish/volatile).

📐 Formulas Tab

View the exact mathematical formulas used by each exchange to calculate ADL rankings. Understand the key differences between exchanges' approaches.

💡 Key Concepts

PnL% (Profit and Loss Percentage)

The percentage profit or loss on your position. Calculated as unrealized PnL divided by position size or account balance, depending on the exchange.

Effective Leverage

The actual leverage of your position considering current PnL. It's calculated as position notional divided by account equity (balance + unrealized PnL).

ADL Ranking Score

A numerical score (higher = more at risk) that combines profit, leverage, and sometimes position size. Each exchange uses different formulas to calculate this score.

⚖️ Exchange Comparison

Different exchanges prioritize different factors when ranking positions for ADL:

Centralized Exchanges (CEX)

  • Binance, KuCoin: Multiply PnL% by effective leverage when profitable - rewards high profit + high leverage combinations
  • Bybit: Similar to Binance but uses price change % multiplied by leverage - focuses on price movement
  • OKX: Return rate divided by margin ratio - prioritizes return on investment (ROI) efficiency
  • BitMEX: Profit% based on cost basis × effective leverage - pioneered ADL in crypto derivatives with a focus on realized profitability
  • MEXC: Profit % × effective leverage - similar to Binance with slightly different calculation methods
  • Gate.io: Straightforward PnL% × effective leverage formula with position notional basis
  • Bitget: PnL% × leverage when profitable - similar to Binance and KuCoin approach

Perpetual DEXs

  • Hyperliquid: Factors in mark/entry price ratio and position size relative to account value - considers both profitability and size
  • Aster: Complex quantile-based system considering PnL%, margin ratio, and relative ranking - most sophisticated algorithm
  • Lighter: Binance-style formula with LLP (Lighter Liquidity Pool) insurance backing before ADL triggers
  • EdgeX: High-performance L2 blockchain with profit % × leverage ranking
  • Drift: Unique socialized loss model - ranks by position size only, distributes losses proportionally across ALL positions regardless of profit/leverage
  • Jupiter: JLP pool model where liquidity pool acts as counterparty - ADL rarely needed, fallback uses PnL% × leverage

🎓 Example Use Case

Scenario: You're trading on Binance with 10x leverage, up 20% profit. Should you be worried about ADL?

  1. Add your position using the form (entry price, current price, size, leverage)
  2. Go to "Rankings" tab and select Binance
  3. Check where your position ranks - top 20% = high ADL risk
  4. Go to "Compare Exchanges" to see if other exchanges rank you differently
  5. Consider reducing leverage or taking profits if you're high on the ADL list

🔧 Tips & Best Practices

  • Start with Quick Scenarios to understand how ADL works
  • Use the Live Demo to see how rankings change with price movement
  • Compare the same position across multiple exchanges - rankings can vary dramatically
  • High leverage + high profit = highest ADL risk on most exchanges
  • Larger positions may be prioritized on some DEXs (like Drift)
  • Lower leverage and smaller profits = safer from ADL

❓ FAQ

Q: What happens during an ADL event?

A: Your position is forcibly closed at the bankruptcy price of the liquidated position. You keep your profits up to that point, but lose the position and any potential future gains.

Q: Can I avoid being ADL'd?

A: Reduce leverage, take profits regularly, or close positions when they become highly profitable. Lower rankings = lower ADL risk.

Q: Why do exchanges use different formulas?

A: Each exchange optimizes for different goals - some prioritize fairness (Drift's socialized loss), others target the most profitable/risky positions (Binance/Bybit), and some balance multiple factors (Aster).

Q: Is this simulator accurate?

A: The formulas are based on official exchange documentation and verified implementations. However, actual ADL events may involve additional factors like market conditions and timing.

📖 Further Reading

For a comprehensive deep-dive into perpetual DEX risks and mechanisms, check out this article series:

Perpetual DEX Risk Series