Auto-deleveraging
The last-resort mechanism that closes opposite positions when a liquidation cannot be covered.
Auto-deleveraging only happens when a liquidation cannot be absorbed by the order book and the insurance fund cannot cover it.
How it works
- Positions on the opposite side of the liquidated one are reduced to take it over.
- They are ranked by profitability, relative to their size and account, and the highest ranked are reduced first.
- Deleveraging fills carry no fee.
What gets recorded
Every deleveraging fill is committed as an event leaf in the history of each account involved, so you can see exactly when and why a position of yours was reduced.