LIBR State Machine Engineering Note | Exit Protocol

Public Engineering Note LIBR as a Deterministic Ledger State Machine An engineering note on replaying ordered financial transactions to preserve balance dips, same-day assumptions, and non-replenishment behavior. Public engineering note Synthetic data only Deterministic calculation demo Not legal advice State transition cardEach ledger step replays one ordered transaction against running state. State inputs: - prior traceable balance - current account balance - transaction amount - ordering mode

Transition: traceable_after = min(traceable_before, account_balance_after)

Boundary: later deposits do not automatically restore a previously reduced traceable amount under the selected LIBR assumption. Replay one ordered transaction against running traceable balance. After a dip: traceable_after = min(traceable_before, account_balance_after). Later deposits do not automatically restore prior trace under the LIBR assumption.

PurposeWhy this artifact exists The full Exit Protocol product remains private. This public engineering note isolates one narrow technical claim: LIBR-style tracing can be represented as deterministic replay over an ordered ledger. The companion repository uses synthetic CSV fixtures and regression tests so developers, forensic accountants, and diligence reviewers can inspect the calculation model directly. The artifact is for technical feedback — not legal conclusions, expert opinions, or product completeness claims.

Visual ModuleLIBR replay state machine Synthetic fixture only. Each ordered transaction advances account balance and traceable balance under explicit LIBR assumptions. Swipe horizontally if the diagram extends beyond the screen. stateDiagram-v2 [*] --> Baseline Baseline --> ClaimOpen: separate-property deposit ClaimOpen --> Replay: chronological replay Replay --> DipDetected: withdrawal below trace level DipDetected --> TraceReduced: cap at lowest intermediate balance TraceReduced --> Replay: continue replay Replay --> LaterDeposit: later deposit LaterDeposit --> HoldTrace: balance rises HoldTrace --> Replay

ModelState machine representation LIBR tracing is stateful ledger math.

Each transaction advances account balance and traceable balance together. Reviewers can inspect the replay path rather than inferring results from narrative summaries.

Source depositClaim opens Ordered replayLedger walk Balance dipTrace ceiling drops Same-day orderMode applied SnapshotInspectable output

State variables account_balance — running cash balance after each transaction traceable_balance — candidate separate-property trace under LIBR depletion_events — points where traceable balance is reduced by a dip ordering_mode — same-day tie-break assumption source_deposit — separate-property claim anchor for the replay Transitions deposit — may increase account balance; separate deposits may increase provisional trace withdrawal — reduces account balance and may trigger a dip same-day reorder — resequences ambiguous intraday rows balance dip — traceable balance capped by account balance report snapshot — frozen state for inspection and tests

Invariants Trace never exceeds accounttraceable balance cannot exceed the account balance after any step. Trace never exceeds source claimtraceable balance cannot exceed the separate-property amount being traced. Non-replenishment after diplater deposits do not automatically restore a traceable amount previously reduced by a dip. Deterministic replaysame inputs and same ordering mode produce the same outputs on every run.

Example LedgerSynthetic replay with a balance dip Illustrative rows only. The public repository includes a fuller synthetic CSV and regression fixtures. Swipe horizontally to view all ledger columns on tablet widths. Date Event Account Balance Traceable Balance State Note Jan 1 Opening balance $5,000 — Baseline community/pre-existing funds Jan 3 Separate-property deposit $105,000 $100,000

Source deposit opens traceable claim Feb 10 Withdrawal $45,000 $45,000 Red dip: trace capped by account balance Mar 1 Later salary deposit $65,000 $45,000 Account rises; traceable balance unchanged Date Event Account Balance Traceable Balance State Note Jan 1 Opening balance $5,000 — Baseline community/pre-existing funds Jan 3 Separate-property deposit $105,000 $100,000 Source deposit opens traceable claim Feb 10 Withdrawal $45,000 $45,000 Red dip: trace capped by account balance Mar 1 Later salary deposit $65,000 $45,000 Account rises; traceable balance unchanged Red dip: A red dip occurs when the account balance falls below the claimed separate-property amount, reducing the candidate traceable amount under the selected LIBR assumption.

Ordering ModesSame-day ordering assumptions Bank statements often lack reliable intraday timestamps. When multiple rows share a date, ordering changes the replay path. These modes expose calculation assumptions for review — they are not legal conclusions. Ledger orderPublic repo: --ordering ledger. Preserves CSV order within each date. Baseline deterministic replay. Claimant-favorablePublic repo: --ordering best_case. Deposits before withdrawals on same day. Exit Protocol product maps to maximize strategy. Opposing-counsel conservativePublic repo: --ordering worst_case. Withdrawals before deposits on same day.

Exit Protocol product maps to minimize strategy. Neutral baselineExit Protocol product uses a court-balanced neutral strategy for default replay when same-day ambiguity exists.

Public RepositoryWhat the public repo demonstrates Dependency-free PythonStandalone calculator with no Django dependency. Synthetic ledger fixtureCSV commingled-account sample for public inspection. Same-day ordering modesledger, best_case, and worst_case CLI switches. Zero-balance depletion testRegression coverage for full account depletion. Replenishment fallacy testLater deposits do not restore depleted trace. Multiple source depositsEdge-case fixture for added separate-property inflows. CLI executionPrint material trace events from the command line. Reproducible outputSame fixture and mode yield the same trace on rerun.

Product BoundaryWhat Exit Protocol adds beyond the public artifact The repository proves the calculation primitive. The product wraps that primitive in a review workflow: Authenticated case workspacePrivate matter context with role boundaries. Statement ingestionSelected financial records normalized into ledger rows. ReconciliationOpening, activity, and closing balances tested before tracing. Material ledger selectionRows surfaced for attorney and expert inspection. Attorney-reviewable workpaperStructured export — not legal advice or an expert report. Source provenanceSupporting rows linked to selected statements or exports. SHA-256 snapshot integrityFingerprint of calculation state at export time. Final file hash verificationPost-export byte check for generated workpapers. V1 single-claim export guardDefault workpaper path scoped to one claim per account.

Run LocallyInspect the calculation artifact Requires Python 3.10+.