Hyperliquid overcomes market challenges: First activation of cross-margin ADL mechanism

2026-01-15 22:16:27

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According to PANews, on October 12th, Hyperliquid founder Jeff announced an important update regarding the platform’s recent performance. Specifically, Hyperliquid maintained 100% uptime without any bad debts, even during periods of significant market volatility.

Notably, this marks the first appearance of the ADL (Auto-Reduce Positions) cross-margin mechanism since Hyperliquid launched over two years ago. This is a practical step to manage systemic risk in extreme market conditions.

According to the announcement, the ADL mechanism does not affect the financial results of liquidated traders. Although some ADL orders were executed with relatively low profits, the overall impact is positive: traders have the opportunity to close positions at more favorable temporary prices, allowing them to minimize losses or protect existing profits.

This event reflects Hyperliquid’s risk management capabilities and stability amid the ongoing volatility in the cryptocurrency market.

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