Neurobrick Systems

Markets change.
The system adapts.

Governance is the system. Execution is incidental.

EHAA — Evolutionary Hierarchical Adaptive Architecture

A constraint enforcement system. Execution is permitted only as an exception.

Multiple constraint layers. Multiple veto points. One governed portfolio state.

Event-driven governance with weighted aggregation, formal gates, and hard veto controls.

Scope & Intent

The objective is not execution.
It is the prevention of prohibited states.

Execution is conditional, gated, and exceptional.

Operational Origin

This architecture emerged from observing execution behavior under regime instability, correlation structure shifts, and risk budget compression. Design priorities reflect lessons from operating when assumptions did not hold. The relevant lessons were not about prediction—they were about portfolio interaction and risk accumulation.

System Overview
What This System Does Not Attempt

This system intentionally does not attempt:

  • – To commit capital based solely on point predictions
  • – To remain continuously deployed across all conditions
  • – To optimize short-term accuracy
  • – To scale linearly with capital
  • – To eliminate drawdowns

These constraints are not shortcomings.
They are design decisions.

System Boundaries
  • This is not a forecasting system.
  • This is not a continuously active system.
  • This is not optimized for smooth equity curves.
Governance Primitives

The 3 Pillars

Listed in order of primacy. Constraint enforcement is the system's reason for existence.

01

Constraint Enforcement

"The system exists to prevent action."

Prohibition-first design. All actions are gated by formal constraints, state validation, and portfolio-level invariants. Execution is denied by default.

Primary function. All other pillars serve this.

02

Unified Portfolio State

"Prerequisite for constraint evaluation."

Multi-exchange adapters with unified ledger abstraction. Portfolio-level state consistency maintained across connected venues and supported instruments.

Enables governance. Does not enable execution.

03

Advisory Intelligence

"Propositional, not authoritative."

Agents propose; governance decides. Proposals have no decision rights and may be rejected without appeal.

Secondary. Agents inform; they do not decide.

Constraints decide. Proposals do not.

Data Foundation

Inputs & Event Fabric

Multiple input sources are normalized into a governed event stream. All downstream logic operates on typed, validated events.

  • Market microstructure inputs (price, trades, order book, derivatives context)
  • On-chain flow signals (in/out flows, large transfers, network activity)
  • Macro and alternative signals (rates/liquidity proxies, news, sentiment)
  • Internal state and risk telemetry (exposure, PnL state, system health)
  • Cross-source integrity checks (validation and timestamp alignment)
Event Taxonomy
MarketEventStateEventRiskEventSystemEvent
Data Integrity Gates
  • Venue-to-venue price divergence checks
  • Timestamp reversals and ordering anomalies
  • Missing-data gaps and outliers beyond statistical bounds
  • Order book asymmetry and structural inconsistencies
  • Source health and freshness checks

Integrity failures trigger Defer/Block at source-level; severe conditions escalate to Safe Mode.

System Architecture

Layered Governance Structure

The system is composed of constraint-enforcement layers. Inter-layer communication is event-driven and governed by formal contracts.

The system is intentionally simple at the core, and deliberately complex around it.

Complexity serves constraint. Simplicity serves auditability.

Architecture described here reflects the live system. Specifics are withheld.

How the system prevents
  • Execution is denied by default. Permission requires formal justification at multiple layers.
  • Agents propose; governance accepts, defers, or vetoes. Proposals have no decision authority.
  • The system's most common output is inaction.
Core Decision Flow

The minimal governance path. Execution may exit at any layer.

Governance Layer
Constraint Evaluation / Invariant Enforcement
EVENT BUS
Execution Layer
Conditional Execution / Gated by Governance
EVENT BUS
State Interface Layer
Portfolio State / Market Interface / Reconciliation
Formal Gates
Invariant Check·Constraint Enforcement·State ValidationPermit / Deny

Execution may exit at any layer. Denial is the default outcome.

Governance Layer

Determines whether action is permitted.

Evaluates proposals against formal constraints. No agent has direct market access. All proposals propagate through governance before reaching execution.

Constraint EvaluationInvariant ChecksVeto Logic
Execution Layer

Conditionally permits validated actions to reach markets.

Execution is gated, not autonomous. Permitted actions are subject to additional constraints: size-to-depth limits, participation caps, spread guards, throttling. These restrict execution, not optimize it.

Order ValidationFormal GatesRestrictive Controls
State Interface Layer

Maintains a consistent view of portfolio and market state.

Manages portfolio state, market data ingestion, and external connectivity. Post-trade reconciliation synchronizes ledger state with venue-reported positions.

State ManagerMarket AdaptersReconciliationEvent Store
Enforcement Layers

These layers exist to constrain, prohibit, and govern. Execution requires passage through all.

Ingestion Layer
Normalize inputs into governed, typed events
Advisory Layer
Agents propose; outputs are propositional, not authoritative
Constraint Layer
Formal invariants, prohibitions, veto rules
Execution Layer
Conditional, gated, human-governed
Audit Layer
Decision traces, denial records, replay
Abstract mapping: World ≈ Ingestion + State | Advisory ≈ Proposal | Governance ≈ Constraint + Veto | Action ≈ Conditional Execution
Governed State Model
  • Single source of truth (SSOT): all modules read state through the state interface.
  • Consistency checks: position totals and available balances are validated continuously.
  • Immutable snapshots: each decision references a point-in-time state-snapshot.
  • Snapshots are managed as event-sourced checkpoints linked to immutable snapshot identifiers.

Supports reproducible audit and recovery workflows.

Governance Path

Propose → Constrain → Veto: how proposals are evaluated and denied.

Proposal Aggregation

Agent proposals are aggregated into governed intents. No proposal is sufficient grounds for action.

Aggregation produces an intent—not an order. Intents are subject to formal constraint evaluation.

StrategyAggregator · IntentRegistry
Constraint Enforcement

All intents are evaluated against formal invariants. Execution is denied by default.

Checks include limits, budgets, state validation, and liquidity constraints. Constraint violation terminates the proposal.

ConstraintController · InvariantChecker
Hard Veto

Unconditional prohibitions override all proposals.

Triggers: data anomalies, state violations, boundary breaches, external faults. Veto is immediate and non-negotiable. System transitions to Safe Mode.

VetoController · SafeModeManager

Most proposals terminate here.

Policy Update Governance
ProposalBacktest/ReplayRisk EvaluationApprovalStaged RolloutMonitoringAuto Rollback

Policy changes are subject to formal approval. All changes are rate-limited, rollbackable, and human-governed.

Hierarchical Risk Budgets
  • Budgets allocate top-down: portfolio → asset class → strategy/agent.
  • Consumption is tracked dynamically via volatility/loss constraints.
  • Correlation spikes are treated as unified risk, accelerating budget consumption and defensive posture.

Risk budgets are dynamically adjusted based on correlation structure and volatility consumption.

Rebalancing Triggers (State-Driven)

Rebalancing is triggered by state changes, not fixed schedules.

  • Regime transitions (RegimeChangeEvent)
  • Allocation drift vs targets (PortfolioManager)
  • Strategy reliability decay → weight recalibration (AlphaDecayAnalyzer → StrategyWeightOptimizer)
  • Risk boundary breach → defensive rebalance (volatility circuit breaker)
Audit-Grade Decision Trace
  • Each decision produces a trace linking: event context, governed intent, applied policy version, and point-in-time state snapshot.
  • Records actions AND non-actions with veto/defer reasons: Act Wait Block Defer
  • Supports timeline replay for governance review and partial state reconstruction.

Non-actions are first-class outputs. They are reviewed with the same rigor as executed decisions.

Failure & Degraded Modes

Failure is a first-class design parameter, not an edge case.

Safe Mode

Entry disabled; prioritizes capital preservation and defensive posture.

Shadow Observation Mode

Execution halted; decision pipeline runs in observation/simulation for monitoring.

Mode transitions are governed, logged, and auditable. Manual intervention is fail-closed by default.

Operating Boundaries

The system operates only within narrowly defined conditions.

Outside of them, inactivity is the expected outcome. Idleness is preferable to forced participation.

Modular by Design

System functionality is decomposed into independent, composable modules. Modules can be added, refined, or replaced without destabilizing unrelated components, enabling controlled evolution over time.

Module counts, interfaces, and internal structure are not disclosed.

Governance Discipline

Principles That Define the System

Prohibition by Default

Execution is denied unless formally permitted.

Proposals must satisfy invariant checks, constraint enforcement, and state validation. The system is structured to prevent action.

Denial as Primary Output

The system's most frequent output is prohibition.

Denials are recorded with the same rigor as permissions.

Governance Characteristics
  • Formal Invariants: execution requires satisfaction of explicit constraints.
  • Unconditional Prohibitions: no agent proposal bypasses governance.
  • Denial Records: every rejection is traceable and auditable.
Transparency

What This System Is Not

We don't sell signals.

We don't promise returns.

We build governance infrastructure.

Notice

Proprietary capital only. Operated under live conditions.

This is not an investment product, fund offering, or advisory service. No external capital is accepted. No investment advice is provided.

This website documents internal technology for transparency purposes. Implementation details, parameters, and performance metrics are intentionally omitted.

Research & technical correspondence: host@neurobrick.ai

Performance does not scale linearly with capital, and is not intended to.