The Madhyamika Absolute is epistemic (from The Yogacara Idealism, by Ashok Kumar Chatterjee, foreword by T.R.V. Murti, 1962, 1975, Delhi 2007)
Self-consciousness of Reason itself is the Madhyamika Absolute. The approach is purely negative here. Negation is not complete in the Vedanta and the Yogacara; it is in the service of an affirmation, which is really the guiding principle of these systems. Negation is simply the removal of the outer husk as it were, which hides the inner core, the affirmation. For the Madhyamika, it is bare negation, total and absolute, so far as thought goes. The Absolute is identified with nothing within thought, i.e. within phenomena. Though the Absolute in both other systems is said to be beyond thought, the transition is made easy by indicating something within phenomena themselves which is not exhausted in it and has a transcendent existence. The gulf between phenomena and noumenon is not frightfully abrupt in these systems. It is bridged by that which is itself not phenomenal but can yet be shown to work within it. This reality is pure Being in the Vedanta and pure Will in the Yogacara. But, for the Madhyamika, it is not anything within phenomena. His interest in phenomena is indirect; primarily he criticises the various views; but, as in metaphysics there can be had no neutral fact which is not coloured by one view or another, that is, which is not subject of any predication, affirmative or negative, his criticism of all views amounts to the rejection of phenomena in toto. It is not merely one aspect of it that is negated, the other being preserved and exalted as the Absolute. No aspect is preferred to any other; criticism is complete here. Avidya is not viewing things as objective which are really identical with consciousness [as it is in Yogacara], nor viewing things as different which are in reality identical [as it is in Vedanta], but it [i.e. avidya] is “viewing” as such, Reason itself.
The argument of both the other systems is that illusion is not possible without a substrate reality. For them the Madhyamika is an extreme position where there is an illusion without any underlying reality which alone makes it possible. This substrate is Consciouness for the Yogacara and Being for the Vedantin. The Madyamika does not deny the necesssity of a substrate; his contention is that it cannot be identified with anything within the context of the illusion itself; in that particular context everything is relative to each other and is therefore equally false. The substrate is the critical consciousness itself, which, when diversified by the views, becomes false. Remove all thought categories and the basic reality, the Dharmata or Tathata of things, shines forth. It has not to be led to in a particular way; it is just the cancellation of all ways.
The Madhyamika Absolute is therefore epistemic. At first sight it might seem to be utterly transcendent, but a closer inspection reveals the fact that it is nothing outside thought, not a thing-in-itself. The Vedantic as well as the Yogacara Absolute are both ontological. In the Vedanta it is one reality without a second, the only existent; it is rather existence itself. In the Yogacara also it has no other than itself, being the only reality. In the Madhyamika however, what is negated is not any second reality other than the Absolute, as in the former two systems, but rather any view about it. As has just been said, the Absolute is purely epistemic [epistemological] here. Contrasted with this, the Vedantic Absolute may be said to be ontological and the Yogacara Absolute psychological.