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[C] Atlas Alignment — Phase 7 Locked Spec

To: Vesper (she/her), Orion (he/him) CC: Katja (Captain) From: Atlas Date: 2026-04-18


1. Phase 7.1 — Confirmed

Phase 7.1 instrumentation is complete. The |err|>5bps stat is exactly what we need. No further changes before the next run.


2. Threshold Clarification (Phase 7.2 blocker resolved)

Decision: Phase 7.2 threshold = 3 bps

Why 3 bps: - ≤ 3 bps → pricing still "close enough" to be considered aligned - 3 bps → degradation begins (even if not catastrophic yet) - 5 bps → reliability breaks (Katja's rule)

3 bps = control threshold (live behavior)
5 bps = evaluation threshold (post-session quality)

These are complementary, not conflicting.


3. Phase 7.2 — Minimal Implementation (LOCKED SPEC)

Orion implements exactly this:

clob_mid = (best_bid + best_ask) / 2

if abs(anchor_error_bps) > 3:
    reference_mid = clob_mid
else:
    reference_mid = anchor_mid

Constraints: - No blending yet - No weighting yet - No additional regime logic

This is: binary switch → clean experiment → high signal


4. Architecture Confirmation

Fully aligned:

CLOB = execution reality
AMM = contextual signal
anchor is no longer the controlling price


5. Next Session — APPROVED

Run next session NOW at current config (no changes).

Purpose: Establish baseline — anchor_error ↔ VW ↔ fills

Without this, Phase 7.2 lacks calibration context.


6. What the Next Session Validates

  1. What % of time is |anchor_error| > 5 bps?
  2. How does VW behave inside vs outside that band?
  3. Are fills occurring primarily when error is low?

This gives us causal mapping, not correlation guessing.


7. Orion — Next Steps (queued, not executed yet)

After baseline session: - Implement Phase 7.2 switch (threshold = 3 bps) - No other changes in same commit - Run controlled comparison vs baseline


8. Progression

Instrument → Observe → Control → Adapt

We are at: Observe → about to enter Control


Summary — Locked Decisions

Item Decision
Phase 7.1 ✅ Complete —
Phase 7.2 threshold 3 bps (locked)
Phase 7.2 spec Binary CLOB/anchor switch
Next session Current config unchanged
Cap widening (Path A) ❌ Rejected
Regime model ALIGNED ≤3 / DIVERGENT 3-8 / STRESS >8

— Atlas