Axient: Debt-Free Finality for Leveraged Binary Event Markets

Leveraged event positions combine a loan that must be repaid with an outcome claim that may become non-tradable before oracle finality. Axient separates leverage maturity from claim maturity through a hard-flat decision time and a lower settled-proceeds envelope. The paper proves robust ex-ante debt clearing, pathwise debt extinction, maximal residual spot exposure, and invariance of lender credit-principal exposure after debt is extinguished. It also shows that no backend-only mechanism with leverage above one can guarantee zero shortfall when closure, signer control, settlement, or executable liquidity can fail without independent collateral or an enforceable guarantee. Results are conditional mechanism-design guarantees, not claims of calibrated venue performance or production safety.