If a liquidation order cannot be filled on the Liquidation Platform or the public order book and the Liquidation Reserve is not able to absorb any additional risk, then the positions that need liquidation must be closed out against other open positions on EQONEX. This process is called auto-deleveraging (ADL).
EQONEX has taken a market standard approach to ADL based on profitability and leverage. Positions are ranked based on their P&L percentage and effective leverage. In the case that EQONEX needs to liquidate portfolios through ADL, higher leveraged and more profitable positions are matched first. This process continues until all liquidation orders are filled.
For further assistance or more information, please contact our Customer Support team via firstname.lastname@example.org or click on the chat widget at the bottom right-hand side of the EQONEX page.