Update M4-wallets.md

core/docs/plans/M4-wallets.md

@@ -4,8 +4,7 @@
 The economy organ's vault: **sovereign, local-hosted, our-custody-only cryptocurrency wallets**.
 Each wallet binds to exactly one Trader (M5) — strictly 1:1 both directions. A single wallet
 handles multiple chains internally (EVM, Solana, etc.). A trader without a wallet cannot access
-the Marketplace (M1). Wallets hold keys, sign transactions, and enforce wallet-level spending
-limits.
+the Marketplace (M1). Wallets hold keys, sign transactions, and enforce wallet-level trade limits.
 Tax is collected on trader income and routed to the Verschwörern Veregeister wallets (stub — M0).
 
 ## 2. Status / certainty
@@ -13,8 +12,7 @@ DESIGN-FIRST · ABSENT. Role C4 (sovereign custody is a hard requirement); imple
 
 ## 3. Language & location
 TBD · `src/economy/wallets/`. Needs cryptographic key management (secp256k1 for EVM, ed25519 for
-Solana, etc.), HD derivation, and transaction signing. Rust or Go for crypto primitives; Python
-with web3 libs for prototyping.
+Solana, etc.)
 
 ## 4. Does / does-not
 - **Does:** generate and store private keys locally (never transmitted); sign transactions on
@@ -26,16 +24,11 @@ with web3 libs for prototyping.
   custody to any third party — ever.
 
 ## 5. Interface contract
-- `create_wallet(chains: [Chain], trader_id) -> wallet_id` — generates keys for each chain,
-  binds to trader. One multi-chain wallet per trader.
 - `sign(wallet_id, tx: UnsignedTransaction) -> SignedTransaction` — signs with the wallet's key.
-  Only the bound trader (via Marketplace) can request signing.
+  Only the bound trader can request signing.
 - `balance(wallet_id) -> { chain, assets: [{ token, amount }] }`.
-- `spending_check(wallet_id, amount) -> { allowed:bool, remaining_daily:num }`.
-- `tax_collect(wallet_id, income_amount) -> { tax_amount, receipt }` — computes and stages tax.
-- `transfer_tax_stub(source_wallet, dest_wallet, amount) -> receipt` — **STUB** for future
-  Verschwörern Veregeister internal transfer. Logs only; does not execute.
-- `Chain` ∈ { `evm`, `solana`, `bitcoin`, … } — extensible.
+- `spending_check(wallet_id)`.
+- taxes are out of scope
 
 ## 6. Dependencies & stubs
 - M5 Traders — 1:1 binding; *stub:* canned trader ID.
@@ -45,33 +38,32 @@ with web3 libs for prototyping.
 
 ## 7. Invariants / laws
 - **L1 (C5):** **sovereign custody only** — private keys are generated locally, stored locally,
-  and **never leave the wallet**. No custodial service, no exchange deposit, no MPC with external
+  and **never leave the wallet**. No custodial service, no exchange deposit, no trust with external
   parties. Our keys, our coins.
 - **L2 (C5):** **1:1 trader binding** — each wallet is bound to exactly one trader. A trader
   cannot use another trader's wallet. The Marketplace enforces this.
-- **L3 (C4):** **signing requires Marketplace routing** — a wallet will not sign a transaction
-  that didn't come through the Marketplace harness (M1-L1). No direct signing API for traders.
+- **L3 (C4):** **signing requires Marketplace confirmation** — a wallet will not sign a transaction
+  that didn't receive direct authorization from Marketpakce (M1-L1). No direct signing API for traders.
 - **L4 (C4):** **spending limits are wallet-level** — independent of Conductor or Marketplace
-  limits. Defense in depth: even if other controls fail, the wallet itself caps exposure.
+  limits. Defense in depth: even if other rules fail, the wallet itself caps exposure.
 - **L5 (C4):** **tax collection is automatic** — realized income triggers tax staging. The trader
-  cannot opt out.
+  cannot opt out. OUT OF SCOPE
 
 ## 8. Build steps
-1. Implement key generation and secure local storage (encrypted keystore).
-2. Implement transaction signing for one chain (start with EVM/secp256k1).
+1. Implement key generation and secure storage.
+2. Implement transaction signing for one chain.
 3. Implement trader binding and Marketplace-only signing enforcement.
-4. Implement spending limits (daily cap, per-tx cap).
-5. Implement tax calculation and staging stub.
+4. Implement algorithmic limits.
 
 ## 9. Tests
-Custody: private key never appears in any API response or log. Binding: wrong trader cannot
-sign. Marketplace-only: direct sign request (not via Marketplace) rejected. Spending limit:
-over-limit transaction rejected. Tax: income event triggers correct tax amount. Multi-chain:
-EVM and one other chain produce valid signatures.
+Custody: private key never appears in any response, messages, or log. 
+Binding: wrong trader cannot sign. 
+Trade limits: over-limit transaction rejects; risk :: reward ratio below-limit rejects.
+Tax: out of scope. 
+Multi-chain: every chain produces valid signatures.
 
 ## 10. Open items
-- Key storage format (encrypted JSON keystore? OS keyring? HSM for production?).
-- Which chains to support initially.
-- Spending limit configuration (hardcoded? per-trader? adjustable by Conductor?).
-- Tax rate and calculation method.
+- Key storage format.
+- Which chains to support initially. (all of them)
+- Spending limit configuration (correction: This is algorithmic and hardcoded.)
 - Key rotation / backup strategy.