All Fractal Audio products use floating-point processing. In fact the Axe-Fx III uses 64-bit floating-point in many places. It's impossible to clip internally. The AX-8 and Axe-Fx II use 40-bit in many places and are also impossible to clip internally. If you are clipping the output, which is the final fixed-point signal to the converters (all audio converters use fixed-point), then your internal signals are far too high. If you use the VU meters and set your output to 0 dB you are guaranteed 12 dB of headroom at the converters with the output level knob all the way up. I've never witnessed a palm mute that was more than a few dB hotter than nominal. Go into the Layout menu and press the Zoom hotkey. This will display VU meters for the two main outputs. Adjust the level of the Amp block (using the Block Level knob with the Amp block selected) so that the signal hovers around the 0 dB marker. If you do this it's impossible to clip the outputs. The factory presets are all adjusted for roughly 0 dB on the VU meters. Even with the output level knob all the way up I never get anywhere even close to clipping. We could've taken a conservative approach and built in a lot of headroom so that clipping the converters was impossible but then you lose dynamic range. The approach taken optimizes the dynamic range of the converters (so you aren't wasting bits) thereby ensuring maximum fidelity and lowest noise. It does require that the user adjust their presets correctly to avoid overflowing the converters but the VU meters make this task trivially easy.