As I understand it, you are lighting up the red LED while using the digital input. The digital data is as it comes straight off the disc, so there is no way to attenuate it. I assume that the MSB of the 16 bit CD word is treated as the MSB of the 24 bit word in the DEQ2496. True clipping will only occur if all the lower order bits are set as well as this MSB. If the digital input clips it means that the CD data was already clipped (but you never has an indicator to tell you this).
The red LED also lights if the CLIP Limiter inside the DEQ2496 activates, and that might happen due to your equalization when the input is near, but not quite exceeding the maximum. The CLIP Limiter threshold is permanently set at 0dB, but there are some parameters of the limiter that you could play with. Check the manual.
The red LED also lights if the CLIP Limiter inside the DEQ2496 activates, and that might happen due to your equalization when the input is near, but not quite exceeding the maximum. The CLIP Limiter threshold is permanently set at 0dB, but there are some parameters of the limiter that you could play with. Check the manual.