Update M7-sae-monitor.md

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@ -23,45 +23,21 @@ Shares the architectural pattern with F2 but is a separate instance scoped to th
- **Does:** intercept and log **every trader action at the Marketplace level** — the Marketplace - **Does:** intercept and log **every trader action at the Marketplace level** — the Marketplace
is the only interface traders can act through, so monitoring it captures everything; embed trader is the only interface traders can act through, so monitoring it captures everything; embed trader
action sequences; run SAE anomaly detection over action embeddings; flag suspicious patterns action sequences; run SAE anomaly detection over action embeddings; flag suspicious patterns
(unusual trading frequency, outsized positions, coordinated behavior across traders, repeated (unusual trading frequency, outsized positions, repeated failed actions); report alerts to the Conductor (M6) with evidence; format alerts **identically to Brain messages** (same structure, same signatures).
failed actions); report alerts to the Conductor (M6) with evidence; format alerts **identically - **Does-not:** block actions directly (Conductor decides); watch the Conductor (the stomach's "homunculus" — echoes F2-L1); correct trader behavior (detection only — F2-L2: no closed elimination loop); trade or access wallets.
to Brain messages** (same structure, same signatures).
- **Does-not:** block actions directly (Conductor decides); watch the Conductor (the stomach's
"homunculus" — echoes F2-L1); correct trader behavior (detection only — F2-L2: no closed
elimination loop); trade or access wallets.
## 5. Interface contract ## 5. Interface contract
- `log_action(trader_id, action_type, args, result, timestamp)` — called on every trader
interaction at the Marketplace level. Synchronous interception (the action is logged before
execution proceeds).
- `alert(trader_id, alert_type, evidence, severity) -> SAEAlert`.
`alert_type` ∈ { `unusual_frequency`, `outsized_position`, `coordinated_behavior`,
`repeated_failures`, `pattern_deviation` }.
`severity` ∈ { `low`, `medium`, `high`, `critical` }.
- `SAEAlert` structure is **identical to Brain message structure** — same fields, same
signature scheme. The Conductor (M6) processes SAE alerts and Brain messages through the
same intake (M6-L5).
- `status() -> { active, traders_monitored, alerts_pending, model_freshness }`.
## 6. Dependencies & stubs ## 6. Dependencies & stubs
- M5 Traders — tool call source; *stub:* canned tool call log. -
- M6 Conductor — alert consumer; *stub:* print alerts.
- F2 SAE monitor (organism-level) — architectural pattern; no runtime dependency.
## 7. Invariants / laws ## 7. Invariants / laws
- **L1 (C5):** the SAE watches **traders, never the Conductor** — the Conductor is the - **L1 (C5):** the SAE watches everyone in the orgab.
stomach's judgment; the SAE monitors the machinery. Echoes F2-L1 (watch the machinery, never - **L2 (C5):** **every tool call is logged** — no trader action escapes monitoring. This is enforced architecturally (tool call interception), not by policy.
the homunculus). - **L3 (C4):** **detection only, no enforcement** — the SAE reports to the Conductor; it never blocks, pauses, or modifies trader actions itself. Echoes F2-L2 (no closed elimination loop).
- **L2 (C5):** **every tool call is logged** — no trader action escapes monitoring. This is - **L4 (C4):** **alert format = Brain message format** — structurally identical, same signatures. This is not coincidental; it ensures the Conductor can be supervised by the Brain using the same protocol if the organism ever needs to override stomach autonomy.
enforced architecturally (tool call interception), not by policy. - **L5 (C3):** the SAE model is **trained on normal trader behavior** — anomalies are deviations from the learned normal, not violations of predefined rules (those are the law script's job in M1).
- **L3 (C4):** **detection only, no enforcement** — the SAE reports to the Conductor; it never
blocks, pauses, or modifies trader actions itself. Echoes F2-L2 (no closed elimination loop).
- **L4 (C4):** **alert format = Brain message format** — structurally identical, same signatures.
This is not coincidental; it ensures the Conductor can be supervised by the Brain using the
same protocol if the organism ever needs to override stomach autonomy.
- **L5 (C3):** the SAE model is **trained on normal trader behavior** — anomalies are deviations
from the learned normal, not violations of predefined rules (those are the law script's job
in M1).
## 8. Build steps ## 8. Build steps
1. Implement action interception at the Marketplace level (M1). 1. Implement action interception at the Marketplace level (M1).
@ -71,15 +47,5 @@ Shares the architectural pattern with F2 but is a separate instance scoped to th
5. Wire alerts to Conductor (M6) in Brain-compatible message format. 5. Wire alerts to Conductor (M6) in Brain-compatible message format.
## 9. Tests ## 9. Tests
Interception: every Marketplace action produces a log entry. Anomaly: known-suspicious patterns
(e.g. 100x normal frequency) trigger alert. Normal: baseline behavior does not trigger alert.
No enforcement: SAE cannot pause or block a trader (only Conductor can). Alert format: SAE
alert parses as valid Brain message. Conductor-blind: no Conductor action appears in SAE logs.
## 10. Open items ## 10. Open items
- SAE architecture (how many features? reconstruction vs. classification?).
- Training data bootstrapping (simulated trading or historical data?).
- Alert threshold tuning (too sensitive = alert fatigue; too lax = missed anomalies).
- Whether M7 should also monitor Marketplace execution outcomes (fills, slippage) in addition
to tool calls.
- Relationship to F2: shared model? shared training pipeline? or fully independent?