ADL Further Information

Sat.is utilizes an Auto-Deleveraging (ADL) system instead of the traditional “Socialized Loss” system.

Comparison of the two systems:

ADL

• Resolve loss uncertainty

• Allow traders to take immediate actions right after a deleveraging event

• Inform deleveraged traders of their closeout price and size, and allow them to re-enter the market

Socialized Loss System

• One risky trader can cause large losses to other traders, including low-risk traders

• Profit is locked until rebalance or settlement in case of loss