PANews February 1st news: In response to community concerns about Ethena possibly having undisclosed ADL (Auto Deleveraging) special arrangements, Ethena's founder issued a clarification stating that Ethena has never entered into any so-called ADL-exempt agreements with any exchanges. The ADL risk has been publicly disclosed since the launch of Ethena's documentation. The order in which ADL is triggered typically depends on the account's leverage ratio and unrealized profit or loss levels. Ethena employs a daily profit liquidation and zero-leverage strategy, which places it at the lowest priority in ADL sequences.
Ethena Founder Clarifies No ADL Privilege Agreements with Exchanges
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Summary
Ethena's founder confirmed that there are no special ADL (Auto-Deleveraging) privilege arrangements with exchanges, addressing concerns regarding leveraged trading. ADL risks have been disclosed from the beginning, with liquidation priority determined by leverage levels and unrealized profits. Ethena's strategy of daily profit liquidation and maintaining zero leverage ensures that it ranks lowest in triggering ADL events. Traders should focus on identifying and managing support and resistance levels when handling leveraged positions.
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