Worked example
Imagine holding a profitable short of 2 BTC during a sharp fall. If the venue's ADL rules are triggered by distressed longs and your position is selected, it might close 0.5 BTC against those longs, leaving a 1.5 BTC short. This illustrates a reduction in exposure, not a forecast of the settlement price or queue order. The exchange determines those under its contract rules.
Using Swolecharts
The live liquidations page supplies context on forced closures across exchanges. It does not show your private ADL queue rank or prove that a liquidation spike is an ADL event. Check the venue's position indicator and notices for that information.
Common confusion
ADL is not simply liquidation of your own under-margined trade. A profitable opposing position can be reduced. Triggers need not wait for the whole insurance fund to reach zero: Bybit also documents drawdown thresholds and separate fund pools.
Checked against exchange documentation on 13 October 2026: Bybit: auto-deleveraging mechanism. Examples are illustrative, not live market readings.