Auto-deleveraging is a method used to liquidate positions when 1 side of the position cannot be effectively closed before a trader’s equity in the position moves negative. Generally, the system will attempt to only close out the side of the position where the trader is unable to provide additional collateral using mechanisms like Liquidation. Unfortunately, cryptocurrency markets can experience periods of high volatility where it is not possible to close out only 1 side of the position. When this occurs, the system will turn to the ADL mechanism. This method will close out both sides of the position based on pre-determined logic that attempts to limit the amount of position that needs closed starting with positions identified with the most risk.