**[Hyperliquid Activates Auto-Deleveraging System to Optimize Risk Management]** Decentralized perpetual contract exchange Hyperliquid has announced the full implementation of its Auto-Deleveraging (ADL) system, introducing a higher level of risk management mechanism to its perpetual contract market. The ADL system is triggered when the insurance fund cannot fully cover losses, partially or fully reducing positions with high leverage and high unrealized profits to balance market losses and prevent market imbalances caused by cascading liquidations. Hyperliquid stated that ADL is only activated under extreme market volatility and has undergone internal stress testing and simulations to verify its effectiveness. This upgrade also optimizes margin checks, bankruptcy handling, and real-time risk assessment functions, while adding new dashboard metrics to help users monitor their ADL risk levels and adjust leverage accordingly. Hyperliquid plans to expand its insurance fund, increase data sources, and introduce market risk mitigation incentives in the future.