diff --git a/README.md b/README.md
index 306f5bc..1e7f02a 100644
--- a/README.md
+++ b/README.md
@@ -109,7 +109,7 @@ export default createNextApiHandler({
 });
 ```
 
-**Critical limitation:** The current `createNextApiHandler` implementation does **not** stop after a Core-decision denial. When `middleware()` writes HTTP 503 (no decision available or denied), it returns without calling `next()`, but `nextApiHandler()` unconditionally invokes `proxy()` afterward. The proxy path skips envelope validation when no envelope is present and may fetch upstream. **Do not treat this handler as fail-closed.** A source-level fix with regression test is tracked in NOD-002.
+**Fail-closed handler:** `createNextApiHandler` returns after middleware writes HTTP 503 or another refusal (`headersSent` or `statusCode >= 400`) and does **not** call `proxy()`. Envelope validation, ladder-model recheck, and policy-digest integrity remain fail-closed. Compatibility opt-out (`requireCoreDecision: false`) is explicit only.
 
 ---
 
diff --git a/docs/adr/ADR-001-execution-envelope-enforcement.md b/docs/adr/ADR-001-execution-envelope-enforcement.md
index cf4059a..e88cdc8 100644
--- a/docs/adr/ADR-001-execution-envelope-enforcement.md
+++ b/docs/adr/ADR-001-execution-envelope-enforcement.md
@@ -27,7 +27,7 @@ We establish the required edge-level `ExecutionEnvelope` validation rules for Ve
 
 - `src/middleware/forwarder.ts` implements fail-closed envelope validation by default before non-streaming JSON and streaming SSE forwarding. It checks the request model and does not substitute it.
 - `src/index.ts` validates an attached envelope in the higher-level gateway, but it currently skips enforcement when the envelope is absent, does not supply independent policy-digest evidence, and does not revalidate locally substituted ladder models.
-- **Critical defect:** `src/index.ts`'s `nextApiHandler()` unconditionally invokes `proxy()` after `middleware()` returns, even when `middleware()` wrote HTTP 503 without calling `next()`. The proxy path then skips envelope validation (no envelope attached) and may fetch upstream. This path is not fail-closed.
+- **Fail-closed handler:** `src/index.ts`'s `nextApiHandler()` returns after middleware writes HTTP 503 or another refusal (`headersSent` or `statusCode >= 400`) and does not call `proxy()`. Envelope validation, ladder-model recheck, and policy-digest integrity remain fail-closed. Compatibility opt-out (`requireCoreDecision: false`) is explicit only.
 - The published Core contract, Core issuance path, shared fixtures, and CI conformance coverage are not yet aligned.
 
 ## Consequences