PANews reported on October 19th that Hyperliquid founder Jeff published a post on the X platform to dispel rumors that Hyperliquid prioritizes protocol profits over traders. He stated, "On October 10th, Hyperliquid's Auto-Deleveraging (ADL) system generated hundreds of millions of dollars in net profits for users by closing profitable short positions at favorable prices. Had more positions been forced to liquidate at the time, HLP's profit and loss could have increased by hundreds of millions of dollars, while also incurring irresponsible risk. ADL shifts HLP's potential profit and loss to users while reducing HLP's risk exposure, creating a win-win situation. The ADL queue on Hyperliquid consistently follows a formula similar to that of most CEXs, taking into account leverage used and unrealized profit and loss on open positions. I'm not aware of other major exchanges using more complex logic for their ADL queues. However, a simpler formula is more robust and easier for users to understand. Nevertheless, the team is still exploring whether substantial improvements can be made to increase the complexity."PANews reported on October 19th that Hyperliquid founder Jeff published a post on the X platform to dispel rumors that Hyperliquid prioritizes protocol profits over traders. He stated, "On October 10th, Hyperliquid's Auto-Deleveraging (ADL) system generated hundreds of millions of dollars in net profits for users by closing profitable short positions at favorable prices. Had more positions been forced to liquidate at the time, HLP's profit and loss could have increased by hundreds of millions of dollars, while also incurring irresponsible risk. ADL shifts HLP's potential profit and loss to users while reducing HLP's risk exposure, creating a win-win situation. The ADL queue on Hyperliquid consistently follows a formula similar to that of most CEXs, taking into account leverage used and unrealized profit and loss on open positions. I'm not aware of other major exchanges using more complex logic for their ADL queues. However, a simpler formula is more robust and easier for users to understand. Nevertheless, the team is still exploring whether substantial improvements can be made to increase the complexity."

Hyperliquid founder clarifies protocol prioritizing revenue over trader FUD

2025/10/19 08:58
1 min read

PANews reported on October 19th that Hyperliquid founder Jeff published a post on the X platform to dispel rumors that Hyperliquid prioritizes protocol profits over traders. He stated, "On October 10th, Hyperliquid's Auto-Deleveraging (ADL) system generated hundreds of millions of dollars in net profits for users by closing profitable short positions at favorable prices. Had more positions been forced to liquidate at the time, HLP's profit and loss could have increased by hundreds of millions of dollars, while also incurring irresponsible risk. ADL shifts HLP's potential profit and loss to users while reducing HLP's risk exposure, creating a win-win situation. The ADL queue on Hyperliquid consistently follows a formula similar to that of most CEXs, taking into account leverage used and unrealized profit and loss on open positions. I'm not aware of other major exchanges using more complex logic for their ADL queues. However, a simpler formula is more robust and easier for users to understand. Nevertheless, the team is still exploring whether substantial improvements can be made to increase the complexity."

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