When contracting 3-month floating-rate interest payments, it makes sense for AXI to be scaled down. For example, a bank loan linked to AXI would have a floating interest payment R(t) on date t of the contractual form R(t) = SOFR(t) + B*AXI(t) + borrower fixed spread, where B is a constant scaling factor specific to the 3-month length of the coupon period and SOFR(t) is SOFR for the 3-month coupon period ending on date t, obtained from daily SOFR compounded in arrears over the coupon period. (Image source: NY Federal Reserve – Forum on Ongoing Innovation in Reference Rates for Commercial Lending) With this construction of loan terms, floating-rate risk can be managed with combinations of derivatives linked to SOFR and derivatives linked to AXI. For example, a loan of principal P paying a fixed spread over SOFR + B*AXI can be swapped to a fixed rate by entering a SOFR payer swap with notional P and an AXI payer swap with notional B*P.