# ADL Trigger Thresholds ⎊ Definition

**Published:** 2026-06-05
**Author:** Greeks.live
**Categories:** Definition

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## ADL Trigger Thresholds

ADL trigger thresholds are the specific conditions under which the auto-deleveraging mechanism is activated. These thresholds are linked to the state of the insurance fund; when the fund's balance falls below a critical level, the system prepares to initiate ADL.

The triggers are designed to be dynamic, responding to market volatility and the size of the outstanding bankrupt positions. By setting these thresholds, the protocol ensures that ADL is only used as a last resort, preserving market confidence.

Traders monitor these thresholds to gauge the platform's stability and the likelihood of their positions being closed. It is a vital component of the risk management framework for any derivatives exchange.

- [Symbolic Value Propagation](https://term.greeks.live/definition/symbolic-value-propagation/)

- [Data Feed Poisoning](https://term.greeks.live/definition/data-feed-poisoning/)

- [Cryptographic Thresholds](https://term.greeks.live/definition/cryptographic-thresholds/)

- [Cryptographic Security Parameters](https://term.greeks.live/definition/cryptographic-security-parameters/)

- [Heat Dissipation Engineering](https://term.greeks.live/definition/heat-dissipation-engineering/)

- [Emergency Response Protocol](https://term.greeks.live/definition/emergency-response-protocol/)

- [Safety Constraint Modeling](https://term.greeks.live/definition/safety-constraint-modeling/)

- [Threshold Monitoring](https://term.greeks.live/definition/threshold-monitoring/)

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