> ## Documentation Index
> Fetch the complete documentation index at: https://help.arcus.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# What is auto-deleveraging (ADL)?

ADLs provide a last-line solvency mechanism that closes unhealthy positions against traders with winning positions on the opposite side of a trade.

ADLs may occur when book liquidity and backstop liquidity are insufficient to close out unhealthy positions.

As long as funds are available in the insurance fund, the insurance fund will continue to cover any shortfalls in account margin, even in the case of ADLs.