# Lack of liquidity: Automated Deleveraging (ADL) In the rare event that LP pools are **100% reserved**, opening positions that further exacerbate the open interest imbalance are **disallowed**. However, closing or liquidating positions is **permitted**, even if it amplifies the imbalance. The **ADL (Auto-Deleveraging)** mechanism comes into play. **Counterparty** positions are **forcibly** closed to provide liquidity. These positions are closed in a sequence where **the most profitable** ones are terminated **first**. * Take the BTCUSD pair as an example: if open interests are skewed towards the long side and all WBTC are reserved, and Alice's short position triggers liquidation due to a price increase, a buy-to-close order must be placed. This action reduces the short open interest. Given that market imbalance is calculated as the difference between long and short open interests, a decrease in short open interest worsens the market imbalance. * Since more WBTC needs to be reserved for this trade and none is available, the ADL mechanism activates, closing the most profitable long positions. This reduction in long open interest enables Alice's position to be liquidated without requiring any additional WBTC to be reserved. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://myxfinance.gitbook.io/myx/protocol/risk-management-mechanisms/lack-of-liquidity-automated-deleveraging-adl.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.