What is Auto-Deleverage (ADL) on Pluang Crypto Futures?

Auto-Deleverage (ADL) is the last-resort risk mechanism on Pluang Crypto Futures that automatically closes an open position to settle another trader's liquidation the market could not absorb. It only activates after a liquidated position fails to find a match in the order book and the losses have already used up every protective layer ahead of it. Crypto Futures on Pluang trades on the Central Finansial X (CFX) exchange and clears through Kliring Komoditi Indonesia (KKI), and ADL belongs to CFX's exchange-level risk engine rather than being a Pluang feature. If ADL affects your position, it is closed automatically at a set Auto-Deleverage Price, you receive a notification, and the closed amount appears in your transaction history. There is no action to take, no way to opt out, and no way to reverse it — but ADL is designed to be rare.

• What ADL actually does: it unwinds both sides of a trade at once. The liquidated position — by then held by the clearing liquidation account — and a matching position held by a trader who is not in liquidation are both closed at exactly the same Auto-Deleverage Price, which squares the trade off without leaving an unpaid loss in the system.
• Where ADL sits in the sequence: it is the fourth and final step. Losses are absorbed first by the liquidated trader's own maintenance margin, then by the broker's security deposit, then by the communal insurance fund. Only when all three are exhausted does ADL trigger.
• What the Auto-Deleverage Price is: a fixed price point below the bankruptcy price, calculated per position. On a position opened at 100 with 5x leverage, the liquidation price sits at 85, the bankruptcy price at 80, and the Auto-Deleverage Price at 75 — the point at which the loss has exceeded the protection budget available for that position.
• It can be partial: ADL closes only as much of a position as is needed to settle the shortfall, so you may find your position reduced in size rather than closed entirely.
• Why it exists, and how often it happens: without ADL, an unsettled liquidation would leave a loss no one has paid for. The insurance fund exists precisely to settle liquidations before that point, so ADL is a backstop rather than a routine part of trading and is uncommon in practice. There is no published frequency figure for it — how often it occurs varies with market conditions and with how actively a particular contract is traded.

Related questions:

Q: Is ADL the same thing as my position being liquidated?
No. Liquidation happens to your position because your own margin ran out. ADL happens to your position because someone else's liquidation could not be settled, and yours was selected on the opposite side of that trade. Your own margin health may have been perfectly fine at the moment ADL closed your position, which is what makes it feel so different from an ordinary liquidation.

Q: Does ADL close my whole position or just part of it?
Either is possible. ADL reduces positions only by the amount needed to settle the outstanding liquidation, so a small shortfall may take only a fraction of your position while a large one can close it entirely. Check your transaction history for the exact quantity closed and the realised P&L attached to it, since the remaining balance stays open as a live position.

Q: Can I turn ADL off or opt out of it?
No. ADL is built into the CFX exchange risk engine and applies to every open Crypto Futures position on the platform. There is no setting in the Pluang app or on Web Trading to disable it, and no account type that is exempt. What you can influence is how likely your position is to be selected, which depends on your leverage and unrealised profit.

Q: How do I know if my position was closed by Auto-Deleverage?
You receive a notification when it happens, and the closing transaction is recorded in your Crypto Futures transaction history with its quantity, executed price, and realised P&L. If a position disappeared or shrank without you closing it and without a margin call sequence beforehand, ADL is one of the possible explanations worth checking against your history. If the history still does not make it clear, Pluang customer support can confirm what closed the position from the order ID.

Q: Does Auto-Deleverage happen on Pluang crypto spot as well?
No. ADL only exists in leveraged derivatives markets, so it applies to Crypto Futures and not to crypto spot. When you buy crypto spot on Pluang you own the asset outright with no borrowed exposure, no counterparty position to unwind, and therefore no liquidation or ADL mechanism attached to your holding. A spot holding can fall in value, but nothing closes it for you — it stays yours until you decide to sell.