AppLovin SDK, like most advertisement SDKs, uses the Identifier for Advertisers (IDFA) with compliance to the Apple terms and conditions.
When you upload a new app to the Apple Store, you should respond YES to Apple’s question about whether your app is using the IDFA.
As long as you are not using AppLovin to advertise your app, the AppLovin SDK does not use the IDFA to attribute installs or in-app actions to a previously served advertisement, and you can answer with NO if asked about it.