The MoonXBT liquidation system will be taken over positions when the trader's position triggers a forced liquidation. If the liquidity of the current futures market is insufficient to fill the liquidated order, the system will initiate ADL (Auto-Deleverage).
The system calculates priority for ADL by profit and leverage and deleverages traders with more profit and higher leverage first. Meanwhile, systematically sorts all long and short positions from high to low as follows:
Priority = Profit% * Actual Leverage
Actual leverage = Cumulative Open value / Margin
(Long Position) Profit% = Mark Value / Cumulative Open Value
(Short Position) Profit% = Cumulative Open Value / Mark Value
Mark Value = Position Quantity * Mark Price
Note: The system sorts long and short positions separately
You can use the ADL indicator to know your priority order in the ADL queue. The indicator light divides into 5 gears, and each time a new one lights up, it indicates your priority in the queue has increased by 20%. The brighter the indicator, the higher your queue position, meaning the system will reduce your leverage soon.
According to your rank in the ADL queue, you can reduce the risk by reducing the leverage or closing a part of your PNL.