> ## Documentation Index
> Fetch the complete documentation index at: https://docs.axient.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Event finality

> How a leveraged position is converted into a debt-free event claim before resolution.

# Debt is cleared before claim finality.

An event market can stop trading before its resolution is final. It can then enter a proposal, delay, challenge, override, void, cancellation, or redemption process. Axient’s design objective is to remove borrowed exposure before this interval begins, while leaving the user with any residual fully funded outcome tokens.

## Two distinct maturities

* **Leverage maturity (`σ`)** is reached only when debt has been repaid with confirmed settled proceeds.
* **Claim maturity (`τf`)** is when the venue makes the outcome payout vector final and redemption is permitted.

The intended order is: decision → match → settlement-confirmed debt-free spot → venue becomes non-tradable → provisional result → final payout → redemption. An early venue closure that breaks this order is a named failure mode, not an implicit success case.

## Lifecycle

### 1. Live

The position can be opened, reduced, or closed while the venue market remains active.

### 2. Reduce only

As venue close approaches, new borrowing stops while existing exposure may still be reduced or closed.

### 3. Auto-deleverage

At hard-flat, the system tests the quantities permitted by venue lot and balance rules. It chooses the smallest sale quantity certified by a conservative settled-proceeds envelope to cover the debt horizon and buffer. The remaining balance becomes debt-free spot only after actual cash settlement is confirmed and applied to the ledger.

If even selling the full position cannot be certified, or execution later leaves the operating set, the position enters an explicit exception state. The paper does not present this as a successful conversion.

### 4. Finality

After confirmation that debt is zero, the remaining underlying position is fully funded. It may wait through delay, dispute, void, cancellation, or resolution without active leverage.

## What finality does—and does not—mean

When hard-flat succeeds under the stated execution and settlement assumptions, later changes in the payout vector and the duration of a dispute do not create a remaining loan obligation for that position. The user still bears the value of the residual event claim.

Axient does not replace the connected venue’s resolution, oracle, custody, or redemption rails. Final redemption follows the venue’s authoritative payout vector rather than a hardcoded assumption about YES, NO, or void.