Axient: On-Chain Credit and Loss Allocation for Leveraged Event Markets: A Venue-Agnostic Protocol for Traders, Credit Providers, Market Makers, and Liquidation Backstops

A physically backed leveraged event position requires explicit credit and an ordered allocation of losses. This paper develops a venue-agnostic on-chain architecture for traders, Senior Credit LPs, market makers, liquidators, and Liquidation Backstop Providers. Formal results establish settlement-confirmed debt priority, replay-safe partial settlement, deterministic waterfall conservation, junior-before-Senior impairment, non-reuse of shared protection capital, and a rationed utilization equilibrium. The analysis is formal and illustrative only; it is not a forecast of yield, defaults, venue liquidity, or production safety.