No ADL

What ADL is

On many perp venues, when a losing position can't be covered, the venue force-closes profitable positions on the other side to make up the difference. That is auto-deleveraging.

Moorix doesn't do it

No auto-deleveraging, ever. Winners are never pulled under to plug someone else's hole.

What stands behind it

The whitepaper doesn't detail the mechanism beyond these design points:

• A defined-risk position can't lose more than its posted margin, and closes at mark when that margin runs dry.
• The tail is held by the vault, which is paid a risk premium for it.
• Staked $MORX stands behind the vault as the junior tranche (Tranches).