ADL System

Refer to the previous part, and consider a short position that has been liquidated with size 20 and has a bankruptcy price of 650 USDC.
The traders in the top percentile, which are Accounts 2 and 5, will be deleveraged at the bankruptcy price of 650 USDC. A total of 20 contracts will be closed, starting from Account 2. All of the 10 contracts that belong to Account 2 are closed. The remaining 10 is deducted from account 5, see Table 4
The position of Account 5, which has only 10 contracts left, will be calculated again. Account 5 will not necessarily remain in the lowest percentile after recalculation. Both Account 2 and 5 will be notified and allowed to re-enter their positions.