How Auto-Deleveraging Works on Crypto Perp Platforms and Why It Can Cut Winning Trades
Auto-deleveraging is the emergency brake in crypto perpetuals that cuts part of winning positions when bankrupt liquidations overwhelm market depth and a venue’s remaining buffers, as Ambient Finance Founder Doug Colkitt explains in a new X thread. Perpetual futures — “perps” in trading shorthand — are cash-settled contracts with no expiry that mirror spot via…