Lighter

Liquidation and auto-deleveraging 11/20

How positions are picked for auto-deleveraging

Published, without the formuladocs.lighter.xyz (opens in a new tab) · 3 November 2026

Partial liquidation

Yesdocs.lighter.xyz (opens in a new tab) · 3 November 2026

Auto-deleveraging in the last 24 months

Large, over $100M or over 1% of open interestLighter's own thread says that on 2026-02-26 ADL moved the liquidated ARC long to the LLP as 200M ARC worth $14.7M, then the LLP was ADL'd against healthy shorts at 0.071123; the $14.7M is above 1% of the roughly $522M total open interest (about $5.2M), and no other Lighter ADL event was found.x.com (opens in a new tab) · 26 February 2026

Risky markets isolated or capped

Yescointelegraph.com (opens in a new tab) · 26 February 2026

Insurance fund and who absorbs losses 15/15

Backstop balance readable on-chain

YesThe LLP is a public-pool account in the zk-rollup state, whose data L2BEAT shows is posted to Ethereum blobs, and the official API also exposes the account's total_asset_value.l2beat.com (opens in a new tab) · 3 November 2026

Backstop against total open interest

18.8%LLP $98.3M (DefiLlama TVL API) divided by Lighter Perps open interest of $522.0M (DefiLlama open-interest API); the separate Robinhood deployment ($183.5M OI) is excluded.api.llama.fi (opens in a new tab) · 3 November 2026

Order of loss absorption published

Yesdocs.lighter.xyz (opens in a new tab) · 3 November 2026

Price oracle 12/15

Independent sources in the liquidation price

Three or moreThe docs name Chainlink, Stork and Pyth for the index price.docs.lighter.xyz (opens in a new tab) · 3 November 2026

Price update interval

Not disclosedThe fair-price-marking page names the oracles but gives no update frequency.docs.lighter.xyz (opens in a new tab) · 3 November 2026

Who signs prices

Many partiesThe inputs come from three decentralized oracle networks, but the docs do not say how the operator combines them or whether the result is verified on-chain.docs.lighter.xyz (opens in a new tab) · 3 November 2026

Oracle failure with user losses, last 24 months

None foundCoverage of the October 2025 outage, the ARC ADL event and L2BEAT's event log shows no oracle-caused user loss since November 2024.docs.lighter.xyz (opens in a new tab) · 3 November 2026

Custody and withdrawal 8/15

Users hold their own funds

Yesl2beat.com (opens in a new tab) · 3 November 2026

Contract-level exit if the operator stops

Yesl2beat.com (opens in a new tab) · 3 November 2026

Withdrawals can be frozen without a delayed vote

Yesl2beat.com (opens in a new tab) · 17 October 2026

Delay before upgrades apply

None: upgrades can apply at oncel2beat.com (opens in a new tab) · 3 November 2026

Incidents in the last 24 months 11/15

• 10 October 2025Outage over 4 hours−4

  A database-growth issue during the crash caused about 4.5 hours of downtime; over 2,000 users were compensated in stablecoins and points.

  ambcrypto.com (opens in a new tab)

Reviewed and not counted

• 26 February 2026Not counted: an open-interest cap is a risk control, not an intervention.

  After an $8.2M ARC whale liquidation and ADL of profitable shorts, Lighter imposed a $40M open-interest cap on ARC.

  cointelegraph.com (opens in a new tab)

• 17 October 2026Not counted: a 2-hour pause is below the 4-hour outage threshold.

  A Pause Guardian paused the Lighter contracts for 2 hours.

  l2beat.com (opens in a new tab)

Liquidity 6/10

A $100,000 market order in BTC or ETH, buying and selling, moved the price by 0.43 basis points on average (2 readings, 3 November 2026). The median across the venues we measure was 1.00.

Who provides the liquidity

Not disclosedThe docs do not publish who provides liquidity or how much of it each provider or vault supplies.docs.lighter.xyz (opens in a new tab) · 3 November 2026

Transparency and operations 8/10

Public audits of core code, last 24 months

2reports.zksecurity.xyz (opens in a new tab) · 5 November 2025

Core code public

Nol2beat.com (opens in a new tab) · 3 November 2026

Public status page

YesA Better Stack status page titled 'lighter status' is live and shows components as operational.status.lighter.xyz (opens in a new tab) · 3 November 2026

Operating company named in the terms

Yeslighter.xyz (opens in a new tab) · 3 November 2026