Hyperliquid enables cross-margin automatic deleveraging (ADL) liquidation system

Hyperliquid has enabled a cross-margin automatic deleveraging (ADL) liquidation system across all its major perpetual contract markets, introducing deeper risk management in the face of rising open contract volumes and fluctuating funding rates. After a series of internal stress tests and simulations conducted over the past month, ADL is now officially live to ensure orderly market operations during periods of extreme volatility, especially when liquidity tightens or large positions approach liquidation.

When the insurance fund cannot fully absorb the losses from liquidated positions, ADL (automatic liquidation mechanism) serves as a backup liquidation method. In this scenario, positions of profitable traders with high leverage and high unrealized gains may be partially or fully reduced to cover the funding gap. Hyperliquid emphasizes that ADL will only be triggered in exceptional circumstances, and its design aims to maintain market integrity by preventing potential cascading defaults that could disrupt the entire ecosystem.