The horseshoe crab clotting factor, factor C, present in the hemocytes is a serine-protease zymogen activated with lipopolysaccharide. It is a two-chain glycoprotein ( M r = 123000) composed of a heavy chain ( M , = 80000) and a light chain (Mr = 43000) Eur. J . Biochem. 154, 511 -5211. In our continued study of this zymogen, we have now also found a single-chain form of factor C (Mr = 123000) in the hemocyte lysate. The heavy chain had the NH2-terminal sequence of Ser-Gly-Val-Asp-, consistent with that of the singlechain factor C, indicating that the heavy chain is derived from the NH2-terminal part of the molecule. The light chain had an NH,-terminal sequence of Ser-Ser-Gln-Pro-. Incubation of the two-chain zymogen with lipopolysaccharide resulted in the cleavage of a Phe-Ile bond between residues 72 and 73 of the ligth chain.Concomitant with this cleavage, the A (72 amino acid residues) and B chains derived from the light chain were formed. The complete amino acid sequence of the A chain was determined by automated Edman degradation.The A chain contained a typical segment which is similar in sequence to a family of repeats in human p2-glycoprotein I, complement factors B, protein H, C4b-binding protein, and coagulation factor XI11 b subunit. The NH2-terminal sequence of the B chain was Ile-Trp-Asn-Gly-. This chain contained the serine-active site sequence -Asp-Ala-Cys-Ser-Gly-Asp-SxGl y-Gl y-Pro-.These results indicate that horseshoe crab factor C exists in the hemocytes in a single-chain zymogen form and is converted to an active serine protease by hydrolysis of a specific Phe-Ile peptide bond.The hemocytes circulating in horseshoe crab hemolymph contain a coagulation system, which participates both in hemostasis and in defence against invading microorganisms [l -31. Exposure of the hemocytes to bacterial endotoxins (LPS) results in the activation of the coagulation system, which involves three intracellular serine-protease zymogens. Our recent studies have established that the role of LPS is to induce the activation of zymogen factor C. The active enzyme, factor c, then converts zymogen factor B to its active form factor B, which subsequently activates the proclotting enzyme to clotting enzyme [4-61. This sequential activation of three serine-protease zymogens results in the transformation of coagulogen to insoluble coagulin gel [7 -91. The serine-protease zymogen, factor C, participates in the initial phase of horseshoe crab hemocyte coagulation. It is a two-chain glycoprotein (123 kDa) composed of the 80-kDa heavy chain and the 43-kDa light chain. Upon activation, the light chain is cleaved to form two new fragments, the 8.5-kDa A chain and the 34-kDa B chain, the latter containing a Dip-F-sensitive active site [4]. The activation of factor C, induced by LPS, apparently does not require the presence of any other protease. This makes it an interesting system for further investigation.To learn more about the structure and function of factor C, the present work was undertaken to identify and align the pr...