About the infamous 'ADL' that everyone hates, check out this article. It systematically explains why this seemingly unfair and money-draining mechanism is a necessary part of the risk control system in the perpetual contract market. 'This is the last resort when there’s no other option. Such situations are relatively rare because it involves forced liquidation rather than normal settlement. It can be compared to the case of overbooked flights: airlines will first use market mechanisms to resolve the overbooking issue, continuously increasing compensation to find passengers willing to switch to a later flight. But if no one responds, they ultimately have no choice but to forcibly ask the next passenger to step off.'