### Overview of Forced-Deleveraging (FDL)

When a trader’s position is liquidated, the position is taken over by the ZT liquidation engine. If the liquidation cannot be filled by the time the mark price reaches the bankruptcy price. The price at which a traders’ positions are closed out is the bankruptcy price of the initial liquidated order.

### FDL Priority Deleveraging Ranking

At all times, your position in the queue is shown by an indicator. This indicator represents your priority in the queue in 20% increments:

In the above example, all “lights” are lit, which would mean your position is in the top percentile. In the case of a liquidation that is not able to be caught in the market, you may be deleveraged.

*Priority Ranking Calculation*

Deleveraging priority is calculated by profit and leverage. More profitable and higher leveraged traders are deleveraged first.

*The ranking calculation is as follows:*

*Ranking = PNL Percentage * Effective Leverage (if PNL percentage > 0)*

* = PNL Percentage / Effective Leverage (if PNL percentage < 0)*

*where*

* Effective Leverage = abs(Mark Value) / (Mark Value - Bankrupt Value)*

* PNL percentage = (Mark Value - Avg Entry Value) / abs(Avg Entry Value)*

* Mark Value = Position Value at Mark Price*

* Bankrupt Value = Position Value at Bankruptcy Price*

* Avg Entry Value = Position Value at Average Entry Price*

The system splits these positions by longs and shorts and ranks the positions from highest to lowest.

The English manuscripts are all translations of Chinese manuscripts. All of them are subject to the Chinese version. Thank you.