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Rewrite M-series: crypto trading engine + market prediction sims
The initial M-series specs were wrong (text digestion pipeline). Replaced
with the actual economy organ architecture:
M0 hub (independent system, scoped autonomy, multi-layered braking)
M1 Marketplace (multi-trader harness, deterministic law script, veto)
M2 Data Feeds (RSS + live market, bridges Marketplace ↔ Sims)
M3 Sims hub + 7 sub-specs (always-running, bounded predictions):
M3a statistical, M3b sociological, M3c AMM/liquidity,
M3d MEV/adversarial, M3e tokenomics/macro, M3f consensus/staking,
M3g market microstructure
M4 Wallets (sovereign custody, our keys only, 1:1 trader binding)
M5 Traders (AI actors, wallet-bound, all tool calls monitored)
M6 Conductor (supervisory AI, veto, pause/investigate, SAE intake)
M7 SAE monitor (trader surveillance, Brain-compatible message format)
Grounded in AMM invariant mechanics, MEV game theory, SDE tokenomics,
and evolutionary consensus games. Tax stub for Verschwörern Veregeister.
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
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# M7 — SAE monitor (trader surveillance)
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## 1. Component
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The economy organ's internal watchdog: a **sparse autoencoder pointed at every trader tool call**.
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Monitors all Trader (M5) actions — Marketplace submissions, Sim queries, Data Feed reads, and
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any other tool invocation — and reports **suspicious behavior** to the Conductor (M6). Messages
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from the SAE share **identical format and signatures** with Brain messages, so the Conductor
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processes them through the same pathway.
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Extends the F2 (SAE monitor) pattern to the economy organ's internal domain. F2 watches
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subagents at the organism level; M7 watches traders at the stomach level.
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## 2. Status / certainty
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DESIGN-FIRST · ABSENT. F2 SAE monitor provides the architectural pattern (watch the machinery,
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never the homunculus — F2-L1). M7 adapts this: watch the **traders** (the machinery), never the
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**Conductor** (the stomach's judgment). Role C3; implementation C1.
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## 3. Language & location
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TBD · `src/economy/sae/`. ML interpretability (sparse autoencoder over trader action embeddings).
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Shares the architectural pattern with F2 but is a separate instance scoped to the economy organ.
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## 4. Does / does-not
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- **Does:** intercept and log **every trader tool call** (Marketplace, Sims, Feeds, internal);
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embed trader action sequences; run SAE anomaly detection over action embeddings; flag suspicious
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patterns (unusual trading frequency, outsized positions, coordinated behavior across traders,
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repeated failed actions, unusual Sim query patterns); report alerts to the Conductor (M6) with
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evidence; format alerts **identically to Brain messages** (same structure, same signatures).
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- **Does-not:** block actions directly (Conductor decides); watch the Conductor (the stomach's
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"homunculus" — echoes F2-L1); correct trader behavior (detection only — F2-L2: no closed
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elimination loop); trade or access wallets.
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## 5. Interface contract
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- `log_tool_call(trader_id, tool_name, args, result, timestamp)` — called on every trader tool
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invocation. Synchronous interception (the call is logged before execution proceeds).
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- `alert(trader_id, alert_type, evidence, severity) -> SAEAlert`.
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`alert_type` ∈ { `unusual_frequency`, `outsized_position`, `coordinated_behavior`,
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`repeated_failures`, `anomalous_queries`, `pattern_deviation` }.
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`severity` ∈ { `low`, `medium`, `high`, `critical` }.
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- `SAEAlert` structure is **identical to Brain message structure** — same fields, same
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signature scheme. The Conductor (M6) processes SAE alerts and Brain messages through the
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same intake (M6-L5).
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- `status() -> { active, traders_monitored, alerts_pending, model_freshness }`.
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## 6. Dependencies & stubs
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- M5 Traders — tool call source; *stub:* canned tool call log.
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- M6 Conductor — alert consumer; *stub:* print alerts.
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- F2 SAE monitor (organism-level) — architectural pattern; no runtime dependency.
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## 7. Invariants / laws
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- **L1 (C5):** the SAE watches **traders, never the Conductor** — the Conductor is the
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stomach's judgment; the SAE monitors the machinery. Echoes F2-L1 (watch the machinery, never
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the homunculus).
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- **L2 (C5):** **every tool call is logged** — no trader action escapes monitoring. This is
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enforced architecturally (tool call interception), not by policy.
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- **L3 (C4):** **detection only, no enforcement** — the SAE reports to the Conductor; it never
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blocks, pauses, or modifies trader actions itself. Echoes F2-L2 (no closed elimination loop).
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- **L4 (C4):** **alert format = Brain message format** — structurally identical, same signatures.
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This is not coincidental; it ensures the Conductor can be supervised by the Brain using the
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same protocol if the organism ever needs to override stomach autonomy.
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- **L5 (C3):** the SAE model is **trained on normal trader behavior** — anomalies are deviations
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from the learned normal, not violations of predefined rules (those are the law script's job
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in M1).
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## 8. Build steps
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1. Implement tool-call interception in the trader harness (M5).
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2. Define the action embedding scheme (how tool calls are vectorized).
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3. Train the SAE on normal trader behavior (bootstrapped from simulated trading).
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4. Implement anomaly scoring and alert threshold.
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5. Wire alerts to Conductor (M6) in Brain-compatible message format.
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## 9. Tests
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Interception: every tool call produces a log entry. Anomaly: known-suspicious patterns (e.g.
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100x normal frequency) trigger alert. Normal: baseline behavior does not trigger alert.
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No enforcement: SAE cannot pause or block a trader (only Conductor can). Alert format: SAE
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alert parses as valid Brain message. Conductor-blind: no Conductor action appears in SAE logs.
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## 10. Open items
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- SAE architecture (how many features? reconstruction vs. classification?).
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- Training data bootstrapping (simulated trading or historical data?).
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- Alert threshold tuning (too sensitive = alert fatigue; too lax = missed anomalies).
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- Whether M7 should also monitor Marketplace execution outcomes (fills, slippage) in addition
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to tool calls.
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- Relationship to F2: shared model? shared training pipeline? or fully independent?
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