Hyperliquid founder clarifies ADL mechanism: drop risk to achieve a win-win situation

[Coin World] Hyperliquid founder Jeff stated that the rumors about the platform “prioritizing protocol revenue” are purely fear, uncertainty and doubt (FUD). He pointed out that the automatic reduction event on October 10 brought users a net profit of hundreds of millions of dollars; if a bottom liquidation mechanism were adopted, the platform HLP could indeed gain more profit but at a higher risk. Jeff emphasized that the ADL mechanism aims to transfer potential profits to users, reduce system risk, and achieve a “win-win” situation. He added that Hyperliquid's ADL queue logic is similar to that of mainstream centralized exchanges, calculated based on leverage and unrealized PNL. Currently, the team is studying more complex algorithms, but they believe that “keeping the mechanism simple, robust, and easy to understand” is a better solution.