In microgrids, the short-circuit current magnitude is significantly limited by more than an order of magnitude due to the relatively small inverter-based resources. Commercially available protective devices for distribution cannot reliably protect a microgrid due to their dependence on the magnitude of the fault current. Moreover, overcurrent relays typically cannot function properly for a microgrid because they are incapable of detecting faults and/or performing the coordination between the relays in inverter-based microgrids operated in the islanded mode. This paper proposes a model-adaptive relay designed to adjust the relay curves based on the available generation and the network topology. The proposed method runs a real-time model of the microgrid, which gathers information from the network to calculate the available short-circuit current in the specified node. The fault current from the model is then used for the adaptive algorithm to calculate the relay settings, considering coordination with the downstream fuses and upstream reclosers. This work presents the validation of the proposed method in Hardware-in-the-Loop, in a hardware testbed as well as field deployed in a real microgrid in East-Tennessee.