Sonar's faders do drop off a cliff of sorts. I don't remember the exact number, but at somewhere between about ~-75dB and -80dB they jump to -infinity (digital silence).
Note that this is a "the way Sonar works" issue and
not anything particular to do with digital audio in general. Why they did it that way at that point, or whether it's a "problem" or a "beneficial feature" or whatever, is another question.
Sonar's meters and peak displays don't display any signal below something like -96dBFS either (don't remember the exact number) - if you have a signal that peaks at -110dBFS, Sonar's meters and peak displays seem to indicate there is no signal at all even though there is. Of course in the real world, this is irrelevant, as it's extremely unlikely that things at those levels would ever be audible.
Now the loaded question: When you are hearing this on a fade, are you listening at a normal volume? Or are you cranking the volume way up during the fade? If it's the latter, you may be wasting your time worrying about something that is unlikely to be a problem under real world conditions (how often do normal people crank up the volume drastically during a fade?).
But if not (or you choose to worry about it anyway), you can probably find a plugin with a level control that doesn't have this limitation that you can automate instead.