Hyperliquid Launches Cross-Margin Auto-Deleveraging Mechanism

News Flash 2025-10-15 12:30

Hyperliquid has introduced its cross-margin auto-deleveraging (ADL) mechanism, designed as a safeguard for the trading system. ADL acts as a last-resort measure to stabilize the market rather than penalize successful traders. When a trader's position incurs significant losses and is liquidated, the system attempts to sell or buy the position on the market. However, during extreme market conditions, there may not be enough counterparties available. In such cases, Hyperliquid's HLP steps in to assume the remaining collateral of the losing position, holding it until market conditions improve. This mechanism prioritizes high-resource users, akin to "bumping first-class passengers," due to their larger resource consumption and associated risks.

Share to:

This content is for informational purposes only and does not constitute investment advice.

Curated Series

SuperEx Popular Science Articles Column

SuperEx Popular Science Articles Column

This collection features informative articles about SuperEx, aiming to simplify complex cryptocurrency concepts for a wider audience. It covers the basics of trading, blockchain technology, and the features of the SuperEx platform. Through easy-to-understand content, it helps users navigate the world of digital assets with confidence and clarity.

How do beginners trade options?How does option trading work?

How do beginners trade options?How does option trading work?

This special feature introduces the fundamentals of options trading for beginners, explaining how options work, their main types, and the mechanics behind trading them. It also explores key strategies, potential risks, and practical tips, helping readers build a clear foundation to approach the options market with confidence.

What are the risks of investing in cryptocurrency?

What are the risks of investing in cryptocurrency?

This special feature covers the risks of investing in cryptocurrency, explaining common challenges such as market volatility, security vulnerabilities, regulatory uncertainties, and potential scams. It also provides analysis of risk management strategies and mitigation techniques, helping readers gain a clear understanding of how to navigate the crypto market safely.

Bitcoin historical price data and trends

Bitcoin historical price data and trends

This special feature gathers multiple articles on Bitcoin’s historical price data, analyzing past trends, market cycles, and key events that shaped its value. It also explores factors influencing price movements, providing readers with insights into Bitcoin’s long-term performance and market patterns.

Detailed Illustrated Guide to Contract Trading

Detailed Illustrated Guide to Contract Trading

This collection, "Detailed Illustrated Guide to Contract Trading," explains the fundamentals of contract trading, including futures and margin trading. It uses clear illustrations to simplify key concepts, risk management strategies, and order types, making it accessible for both beginners and experienced traders.