In the cryptocurrency perpetual futures market, Auto-Deleveraging (ADL) serves as the ultimate safety mechanism during extreme volatility and liquidity crises. Its core operational logic is as follows: Market Nature: The perpetual futures market is inherently a zero-sum game. The system consists only of a cash pool, simulating asset price fluctuations through rules, with long and short positions always maintaining balance. Liquidation Mechanism: When sharp price movements deplete one party's ...
