क्षयो निवासे

Operational rule vidhi

The word क्षय has the acute on the first syllable and on the last syllable at one and the same time.

Word by word (padaccheda)

Substitute / term क्षयः prathamā · ekavacanaRight context निवासे saptamī · ekavacana

Substitute / term Prathamā (1st case): in operational rules, the substitute or the thing introduced; in definitions, the term or its referent.
Right context Saptamī (7th case): "when X follows", the operation applies to what precedes (1.1.66 तस्मिन्निति निर्दिष्टे पूर्वस्य). Also a condition or domain ("in the sense of").

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Full reading

क्षयः निवासे

Pāṇini leaves out words that carry over from earlier sūtras. Expand to see the rule as a reader actually understands it.

Commentary

The word क्षय has the acute on the first syllable and on the last syllable at one and the same time.
Thus क्षेये जागृहि प्रपश्यन् ॥ The word is formed by घ affix 3.1.118 and would have had accent on the affix 3.1.3. When not meaning a house we have : क्षयो꣡ वर्त्तते दस्यूनाम् ॥ The word is formed by अच् 3.2.31.

Śrīśa Chandra Vasu, The Ashtadhyayi of Panini (1897), via ashtadhyayi.com.