[C] Orion Implementation — FLAG 034 + Cleanup Results

To: Vesper CC: Katja (Captain), Atlas From: Orion Date: 2026-04-17

Branch¶

fix/post-injection-cleanup off feat/flag-031-basis-model in /tmp/neo_git_work.

Four commits, each self-contained with unit tests. Bundled on one branch per "bundle if clean" guidance — all four changes are read-path or diagnostic and do not overlap.

Commits¶

SHA	Subject	Files
`32c5b0a`	flag-034: display balance uses TOTAL (fills + capital overlay)	`summarize_paper_run.py`, `tests/test_flag_034_display_overlay.py`
`9faba8a`	retire max_inventory_usd: dead config removed	14 files (code + configs + tests)
`d4c88ca`	flag-033: startup DB integrity check (PRAGMA quick_check)	`run_paper_session.py`, `tests/test_flag_033_startup_integrity.py`
`4ff5241`	flag-028: add idx_fills_session_id index	`neo_engine/state_manager.py`, `tests/test_flag_028_fills_session_index.py`

RLUSD Exposure Trace (Task 3)¶

Enforcement location: neo_engine/risk_engine.py:96

if inventory.rlusd_balance > self._config.risk.max_rlusd_exposure:
    ...
    return RiskStatus.HALT

Mirrored halt-reason diagnosis in main_loop.py:789.

Check variable: inventory.rlusd_balance — TOTAL post-overlay balance via InventoryManager.get_snapshot(). Same source as all other guards.

Mechanism: Hard HALT, strict > comparison. Not a quote-generation gate, not a sizing attenuator. Any tick where post-fill RLUSD > cap trips the risk engine and stops the main loop for the session.

Headroom analysis at current live state: - Current RLUSD balance: ~97.6 - max_rlusd_exposure: 120.0 - Headroom: ~22.39 RLUSD

At base_size_rlusd = 15: - One SELL fill at base size: 97.6 → ~112.6. OK, still ~7.4 RLUSD under the cap. - Two SELL fills same session: 97.6 → ~127.6. Breaches cap → HALT. - One SELL fill with size-skew multiplier (up to ~1.30× base from inventory drift = ~19.5 RLUSD): 97.6 → ~117.1. OK but within 3 RLUSD of cap.

Verdict: max_rlusd_exposure = 120 is NOT currently gating fills (no quotes blocked, no sizes reduced). But it IS a tripwire — two SELL fills in the same session will HALT the engine mid-run. Not the root cause of S33–S35 zero fills, but the headroom is tight enough that once BUY/SELL activity resumes at size=15 we will see a RLUSD-exposure HALT within the first couple of SELL fills on a high-drift trajectory.

Recommendation: Raise max_rlusd_exposure to 140 or 150 before the next session. Not bundled with this branch — requires Atlas ruling since it's a live risk parameter change.

Test Coverage — FLAG-034¶

Five unit tests, all passing:

Test	Covers
`test_no_capital_events_returns_fills_only`	overlay = 0 → returns fills_only unchanged
`test_deposit_adds_to_fills_only`	overlay = +35.21 XRP → fills_only + overlay
`test_withdrawal_subtracts_from_fills_only`	overlay = -25.0 RLUSD → fills_only - overlay
`test_basis_commit_does_not_move_asset_balance`	`basis_commit` excluded by CASE WHEN → balance unchanged
`test_fallback_used_when_no_ledger_rows`	engine_state seeded balance + overlay

Added basis_commit and fallback cases: live DB has both a synthetic basis_commit event and engine_state seeded balances — confirmed fix handles them correctly.

FLAG-033 Notes¶

_startup_integrity_check runs BEFORE _create_pre_run_backup — corrupt files do not get quietly backed up.
Handles both failure modes: PRAGMA quick_check returning non-ok, AND DatabaseError raised when the file is too broken for the pragma to execute (311-page truncation case).
Read-only open via sqlite:///file:…?mode=ro URI so the check cannot itself damage the DB.
Five unit tests: no-op paths (:memory:, missing path, empty file), healthy pass, and truncated file failure.

FLAG-028 Notes¶

Single index: idx_fills_session_id ON fills (session_id). In migration block alongside other post-schema column additions, gated by CREATE INDEX IF NOT EXISTS — idempotent across existing DBs. Two unit tests: index exists, index covers the session_id column.

`max_inventory_usd` Retirement Notes¶

14 files touched: - neo_engine/strategy_engine.py — removed from init log dict (line 116) - neo_engine/main_loop.py — removed buy_inventory_guard_blocked from _log_no_intents_reason diagnostic - neo_engine/config.py — removed StrategyConfig.max_inventory_usd field and loader kwarg - config/config.yaml, config/config_live_stage1.yaml, config/config_live_session1.yaml, config/config.example.yaml — removed from all four - tests/test_task5.py — removed from _make_config helper default, one call site, and StrategyConfig(...) constructor - tests/test_phase3d.py, tests/test_phase4a.py, tests/test_main_loop.py — removed all kwargs and mock assignments - neo_simulator/simulation_runner.py — removed kwarg - neo_engine/main_loop_Old.py, neo_engine/strategy_engine_old.py — archive-file references scrubbed for grep hygiene

Smoke tests pass: all four configs load cleanly, StrategyConfig no longer has the field.

Workspace Config — Katja Action Required¶

The git repo at /tmp/neo_git_work is the source of truth. The workspace copy at config/config_live_stage1.yaml is a separate working copy with unmerged edits (base_size_rlusd: 15.0 is staged but not yet committed there). Did NOT touch it to avoid stomping edits.

Katja: When merging fix/post-injection-cleanup into main locally, delete the max_inventory_usd line from config_live_stage1.yaml (line 78) before running the next session, OR resolve the merge by keeping the git version.

What Stays Unchanged¶

anchor_max_divergence_bps: 10.0 — held
base_size_rlusd: 15.0 — held
No other strategy parameters touched

Merge Ordering¶

fix/flag-008 → merge to main (pre-existing, blocked on Katja)
fix/flag-030 → rebase onto main, merge (pre-existing, blocked on Katja)
feat/flag-031-basis-model → rebase, merge (pre-existing, blocked on Katja)
fix/post-injection-cleanup → rebase, merge (this branch)

— Orion