Loren said:
What if you are underwater? Does that stop chalice-hunting knights?
I estimate it would stop them, yet the knight/chalice event may no longer be working in DOM_3. If it is working it's extremely rare needing either specific terrain or specific scales.
I've held the Chalice in Dom 1, Dom 2, and Dom 3, and have never seen knights attacking my chalice-bearer (who's always rather well-equipped to deal with a knight, anyway...).