Human factor Xa specifically cleaves the anticoagulant protein S within the thrombin-sensitive domain. Amino-terminal amino acid sequencing of the heavy chain cleavage product indicates cleavage of protein S by factor Xa at Arg 60 , a site that is distinct from those utilized by ␣-thrombin. Cleavage by factor Xa is unaffected by the presence of hirudin and is completely blocked by tick-anticoagulant-peptide and D-Glu-GlyArg-chloromethyl ketone, the latter two being specific inhibitors of factor Xa. The cleavage requires the presence of phospholipid and Ca 2؉ , and is markedly inhibited by the presence of factor Va. Factor Xa-cleaved protein S no longer possesses its activated protein C-dependent or -independent anticoagulant activity, as measured in a factor VIII-based activated partial thromboplastin time clot assay. The apparent binding constant for protein S binding to phospholipid (K d Ӎ 4 nM ؎ 1.0) is unaffected by factor Xa or thrombin cleavage, suggesting that the loss of anticoagulant activity resulting from cleavage is not primarily due to the loss of membrane binding ability. Cleavage and inactivation of protein S by factor Xa may be an additional way in which factor Xa exerts its procoagulant effect, after the initial stages of clot formation.Protein S is a vitamin K-dependent, 635-amino acid, nonenzymatic glycoprotein (M r Х 78,000; Ref. 1) that acts as an anticoagulant in blood (2-4). The domain organization of protein S is similar to other plasma vitamin K-dependent proteins in that it contains an amino-terminal ␥-carboxyglutamate-rich domain and several (four) epidermal growth factor-like domains (5, 6). Unique to protein S, however, is a 29-amino acid thrombin-sensitive domain, located between the ␥-carboxyglutamate and first epidermal growth factor-like domains. The thrombin-sensitive domain corresponds to exon IV of the protein S gene (7). Protein S also contains a sex steroid binding protein-like domain (8) at the carboxyl-terminal end of the protein, in place of the serine protease domain found in the vitamin K-dependent plasma proteases. The sex steroid binding protein-like domain has been identified as being composed of two tandem repeat units homologous to the Cys-poor laminin A globular (G) domain found in a number of extracellular ligand binding basement membrane proteins involved in cellular growth and differentiation (9). Schneider and co-workers have described a cultured cell growth arrest-specific protein (Gas6) from NIH 3T3 mouse cells (10) and human IMR90 fibroblasts (11), which, except for the absence of a thrombinsensitive domain, is homologous throughout to protein S.Thrombin cleavage converts protein S into a two-chain, disulfide-linked protein that no longer possesses anticoagulant activity (12). The thrombin cleavage sites were first established for bovine protein S (at Arg 52 and Arg 70 ) by Dahlback et al. (13) and recently at the corresponding residues (Arg 49 and Arg 70 ) for human protein S (1).The defined mechanism(s) by which protein S exhibits its anticoagulant acti...