Here denotes ZF without foundation. Transfinite recursion on ordinals defines the cumulative hierarchy by
The associated class is . Each level is a set, while is a definable class. Without Foundation it need not contain every ambient set; it consists of the sets built by this well-founded hierarchy.
Use transfinite induction. The inclusion at zero is immediate. If , monotonicity of the power set gives
If is a limit and , choose with . The inductive inclusion means that . Thus . This proves for every ordinal. These successive inclusions and the union definition also give whenever .
The preceding inclusion is exactly . Therefore every is a subset of . Equivalently,
which says that is a transitive set. This uses the power set definition and the proved inclusion, without any ambient use of Foundation.
We prove the stronger ordinal identity
by transfinite induction. It holds at zero. At a successor stage an ordinal belongs to exactly when every belongs to . By induction this means every is less than , equivalently . Thus the ordinals in are precisely those less than . At a limit the identity follows by taking unions.
Every consequently belongs to , so and . But , since an ordinal is not less than itself. Hence
The only well-foundedness used is that of the ordinal order, available independently of Foundation for arbitrary ambient sets.
Every set is a subset of itself, so . By the successor definition,
Membership and inclusion are different statements here; this argument establishes membership of the whole level in its successor.
The class is transitive because all its levels are transitive. Let be nonempty. There is a least ordinal for which : existence follows by choosing an element of , which lies in , and then minimizing within some witnessing ordinal bound. The least ordinal is neither zero nor a limit, so write . Choose . Then , while minimality gives . Thus . Also , proving Foundation inside .
By the given hypothesis this same class satisfies every axiom of , and hence it satisfies every axiom of . Translate any finite formal proof by restricting each quantifier to the definable class . Within the translated axioms have proofs, logical steps remain valid, and the translated contradiction is still a contradiction. Substituting those axiom proofs therefore converts the original derivation effectively into a finite derivation of contradiction from . Equivalently,
This is the syntactic relative-consistency construction; it does not assume that is a set or that it equals the whole ambient universe.

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