According to @AveryChing, public-source ADL code on decentralized perpetuals exchanges lets traders know exactly how forced deleveraging will execute, with code-as-documentation and formal verification enabling solvency proofs that centralized exchanges cannot match. Source: https://twitter.com/AveryChing/status/1999009962941632833 Tarun Chitra stated that decentralized perpetuals exchanges should publish verifiable ADL policies and said Hyperliquid’s ADL is not public. Source: https://x.com/tarunchitra/status/1998985138789838914 This transparency directly reduces uncertainty around liquidation events and solvency for perp DEX participants, making ADL policy disclosure a trading-relevant exchange selection factor, per @AveryChing. Source: https://twitter.com/AveryChing/status/1999009962941632833

According to @cas_abbe, some exchanges relied on ADL and even seized user deposits after liquidations, underscoring counterparty and liquidation-policy risk for derivatives traders (source: @cas_abbe on X, Oct 13, 2025). According to @cas_abbe, Binance covered $283 million of user losses with its own funds, indicating a user-protection stance over loss socialization (source: @cas_abbe on X, Oct 13, 2025). According to @cas_abbe, this user-first approach underpins Binance’s growth and industry leadership, a factor traders may weigh when allocating leverage and managing ADL exposure across venues (source: @cas_abbe on X, Oct 13, 2025).

According to @RhythmicAnalyst, some exchanges used Auto-Deleveraging to close profitable short positions and he calls ADL market manipulation that should be banned; he distinguishes normal liquidations as lender protection versus ADL impacting counterparties, source: @RhythmicAnalyst on X (Oct 11, 2025). In crypto perpetual futures, ADL is triggered when the insurance fund cannot absorb bankrupt losses, and opposing traders’ positions are forcibly reduced based on a priority metric tied to leverage and profit, source: Binance Futures Auto-Deleveraging documentation and Bybit ADL guide. High-leverage, highly profitable positions in crowded markets face the highest ADL ranking and are more likely to be reduced during extreme volatility or thin liquidity when insurance funds are stressed, source: Binance Futures ADL explanation and Bybit Risk Limits documentation. Trading actions that reduce ADL exposure include monitoring the ADL indicator or queue on each position, lowering effective leverage, trimming position size, and using hedges or stops to manage forced reductions, source: Binance Futures and Bybit Help Center guidance on ADL indicators, liquidation, and risk limits. Because ADL orders execute at market price, traders can experience slippage and realized PnL variance across major perpetual markets including BTC and ETH; staying alert to rising ADL indicators is critical during stress events, source: Binance Futures ADL notes and Bybit ADL documentation.

According to @ThinkingUSD, the crypto industry unites against external threats like North Korea's hack on Bybit, but shows divisiveness when internal exchange manipulations are addressed, such as Jeff's alleged closure of malicious trading via ADL.