Binance stated that even if customer assets are backed by reserves, its Futures Auto-Deleveraging (ADL) rules may still cut profitable Bitcoin hedge positions. Binance's Proof of Reserves (PoR) is for spot assets based on a snapshot taken at 00:00 UTC on October 31, while futures hedges are subject to separate ADL rules. The ADL mechanism may be triggered when the futures insurance fund cannot absorb bankrupt positions, selectively cutting profitable positions based on profitability and leverage, even if these positions are intended to hedge spot holdings.