Yep, that’s the way I read it too.
What a great thing to have, to know when volume is too high and the load is too hard for the dacs output buffer. It’s got a distortion sensor that blinks the red led, nice. This will prove to you if it’s not loud enough direct and you need more gain from an active preamp.
" “CLIP” indicator: Will blink when the DAC output signal is clipping. You should not turn the volume knob higher than to where the red “CLIP” LED will not blink."And it may blink at different volume positions, depending on what load the dac’s output buffer sees, (the 10kohm of the DNA-500 or the variable input 30k -120k of the CJ-17LS2 depending on it’s volume position.)
So if you’ve just turned it back down a little from where it blinked, what’s that volume like when you go direct to poweramp?
Cheers George

