
Foresight News|Oct 19, 2025 01:15
[Hyperliquid Founder: Claims of Platform Prioritizing Protocol Revenue Are False, ADL Mechanism Generated Hundreds of Millions in Net Profit for Users During Crash]
Foresight News reports that Hyperliquid founder Jeff responded on Twitter to claims that 'Hyperliquid prioritizes protocol revenue over traders,' stating, 'On October 10, Hyperliquid's Automatic Deleveraging (ADL) mechanism generated hundreds of millions of dollars in net profit for users by closing profitable short positions at favorable prices during the market crash. If more positions had been forcibly liquidated, HLP (Hyperliquid Protocol) could have earned hundreds of millions more through profit and loss, but this would have exposed HLP to irresponsibly high risks. ADL transferred HLP's potential profit and loss to users while reducing HLP's risk exposure, achieving a win-win situation.
As a reminder, Hyperliquid's ADL queue has always used a formula similar to that of most centralized exchanges (CEX), taking into account leverage used and unrealized profit and loss. Lastly, thank you all for your feedback on ADL. A simpler mechanism is more robust and easier for users to understand. That said, Hyperliquid is exploring whether significant improvements can be introduced to justify the added complexity.'
Share To
Timeline
HotFlash
APP
X
Telegram
CopyLink