Ethena founder clarifies no ADL privilege agreement with exchanges

PANews February 1 News, in response to community concerns about Ethena’s undisclosed ADL (Auto Deleveraging) special arrangements, Ethena’s founder issued a statement clarifying that Ethena has never reached any so-called no-ADL privilege agreement with any exchange. The related ADL risks have been publicly disclosed since Ethena’s documentation was launched. The trigger sequence of ADL usually depends on the account leverage ratio and unrealized profit levels, but Ethena adopts a daily settlement profit and zero leverage strategy, therefore it ranks at the bottom of the ADL priority.