> For the complete documentation index, see [llms.txt](https://fx100.gitbook.io/fx100-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fx100.gitbook.io/fx100-docs/how-the-system-works/adl.md).

# Auto-deleveraging

A last-resort solvency mechanism that can close a profitable position early.

ADL is a last-resort mechanism and intentionally rare. It exists to keep the vault solvent when pending profits across a market grow large relative to the collateral backing them.

{% hint style="warning" %}
ADL can affect a position that is winning. It is the mechanism most likely to produce an unexpected outcome on a large, deeply profitable position during a violent one-sided move.
{% endhint %}

## When it triggers

Only when pending profits across a market approach a safety threshold relative to the collateral backing that market. In practice this means extreme volatility, heavily one-sided open interest, or both.

## What it does

The protocol ranks open positions in the affected market by unrealized profit, then partially or fully closes the highest-profit positions at the prevailing oracle price — continuing until pending profit falls back below the threshold.

## What you receive

The realized PnL on any portion closed.

ADL is not a penalty and does not confiscate profit. It realizes profit early, at the oracle price, whether or not you wanted to close. If your position is closed in part, the remainder continues to run.

## What it cannot do

* ADL never produces a negative balance.
* It never affects a user with no open position.
* It does not touch losing positions — ranking is by unrealized profit, highest first.
* **It never touches a position inside its 15-minute** [**liquidation protection**](/fx100-docs/start-here/liquidation-protection.md) **window.** Protected positions are exempt from ADL as well as from liquidation.

## Reducing your exposure to it

* **Size relative to the vault**, not just relative to your own balance. Available liquidity figures give you a sense of the ratio. See [available liquidity](/fx100-docs/how-the-system-works/available-liquidity.md).
* **Take partial profit** during extended one-sided moves rather than holding the full position into the tail.
* **Watch open interest skew.** ADL is far likelier when a market is heavily one-sided.