# Automatic Deleveraging
If the insurance vault is insufficient to cover liquidation losses, the Automatic Deleveraging System (ADL) will automatically reduce the positions of traders holding opposite positions.
The ADL prioritizes traders based on profit and leverage — those with higher profit and greater leverage are prioritized for deleveraging.
Traders can monitor their priority ranking for automatic position reduction via the “ADL Ranking” indicator in the user interface. Each light represents a 20% priority ranking; when all lights are illuminated, the position is at risk of being reduced in the event of forced liquidation.
The ADL ranking is calculated using the following metrics:
#### ADL ranking calculation method
Where:
* `Effective leverage` is `mark value / (mark value - bankruptcy value)`
* `% profit` is `(mark value - average open value) / average opening value`
* `Mark value` is the value of the position at the mark price
* `Bankruptcy value` is the value of position at the bankruptcy price
* `Average opening value` is the the value of position at average opening price
This structured approach helps ensure a fair and transparent liquidation process while protecting the integrity of the trading platform.
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