> ## 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.

# Research basis and limits

> The paper behind the current mechanism specification and the limits on its interpretation.

# A formal specification, not production evidence.

These docs are grounded in *Axient: Debt-Free Finality for Leveraged Binary Event Markets*, r0.3.0 (Maksym Nechepurenko, July 13, 2026). The paper defines the accounting model, an ex-ante hard-flat operator, conditional safety results, reference architecture, and a deterministic verification suite for the mechanism.

## What the paper establishes

Under its explicit execution and settlement assumptions, the paper formalizes:

* the feasibility and minimum-sale construction for debt-clearing deleveraging;
* the separation between quoted, matched, settled, and redeemed economic states;
* conservative planned sales under a settled-proceeds envelope and debt horizon;
* aggregate shared-book liquidity limits rather than per-position reuse of top-of-book depth;
* debt extinction after confirmed hard-flat completion;
* the separation between leverage maturity and claim maturity;
* lender-credit invariance to later payout and dispute duration after successful conversion; and
* failure boundaries when debt remains outstanding, a venue closes prematurely, or executable liquidity disappears.

## What it does not establish

The paper does not provide production-venue evidence for future executable depth, spread and slippage by event type, closure frequency, order rejection, settlement-latency tails, fee schedules, capital costs, or correlated stress events.

It also does not control external dependencies: venue listing and matching, trading suspension, outcome-token contracts, oracle resolution, custody, or chain availability. Any production limit must be calibrated from partner data or a representative archive and validated operationally.

## Scope of the current design

The base specification is intentionally narrow: binary markets, physically backed YES/NO exposure where the venue’s payout relation is valid, isolated margin, and no portfolio offsets. Extensions such as multi-outcome markets, cross-margin, or a synthetic interface need their own accounting, execution, and settlement analysis.

<Warning>
  Research results describe conditional properties of the specified mechanism. They are not a guarantee of availability, an assurance of loss avoidance, or a representation that any connected venue will support the required controls.
</Warning>