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feat(engine): COND-1 — rules that read the clock and the meter - #249

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feat(engine): COND-1 — rules that read the clock and the meter#249
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@ericlovold ericlovold commented Aug 20, 2026

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The second approved engine arc, on the pattern INHERIT-1 proved. A tool rule can now carry a when — a closed vocabulary, exactly one predicate per rule, restrictive effects only. No DSL, no expression language: composition is more rules, which stays simulable and explainable.

The two predicates

Predicate The sentence it enables
outside_hours_utc: [start, end) "Production deploys escalate to a human outside business hours" — midnight wrap supported
after_model_calls_today: N The runaway breaker: "once this agent's model calls pass N today, block everything until a human looks"

An allow is never conditional — allow-list semantics never depend on a clock or a counter.

The design correction, recorded not hidden

The design doc proposed maxDecisionsPerDay. Implementation surfaced the data problem: allowed tool calls are decision-only and never persisted, so a "decisions today" counter would be blind to exactly the runaway loops it targets. The shipped signal is model calls today (persisted token logs) — always real, always counted. The doc carries the correction, same ritual as INHERIT-1's concat fix.

Determinism (ADR-0009)

Signals are captured once per request by the enforcement shell — the UTC hour, and the token-log count fetched only when some layer actually conditions on it (proven by a test asserting zero counter queries otherwise) — passed into the pure ladder, and persisted in the decision's evidence. Replay reads the stored snapshot, never the live clock. A rule whose signal is absent from a context is deterministically inactive, so pre-COND rows replay unchanged.

Composition

  • Precedence: block → conditional block → allow-list → escalate → conditional escalate
  • Inheritance: conditions ride the INHERIT-1 layers — an org-level breaker binds every team below (route-tested)
  • Parity: AuthZEN PDP wired with the identical signal contract
  • Write path: new Policy.toolConditions Json column (migration included), validated in lib/policy.ts (exactly one predicate, hour bounds, start ≠ end), already writable via PATCH /wallets/policy and console actions through the shared policyInputSchema; OpenAPI documents the shape
  • Console: tool-posture card counts conditionals; the inherited card names them (render-checked)
  • Simulate boundary, stated: the tool ladder predates SIM-1's simulatable set; candidate tool_conditions echo back in ignored_fields

Verified

  • 17 new tests: window boundaries + midnight wrap, threshold edges with the counts in the reason string, absent-signal inactivity, precedence (conditional block beats allow-list mention; unconditional block beats conditional escalate), prefix-glob; route-level threshold deny with signals asserted in the persisted evidence, lazy counter proven, parent-condition-binds-child
  • Live-fired both predicates in both directions against the seeded Meridian org — deploy escalated outside the window with the labeled reason (…requires human approval outside 02–03 UTC (deploy.*)), allowed inside it; batch.* allowed at 0 calls, denied at the threshold with after 2 model calls today (2 so far) — including catching and redoing a false positive where a leftover unconditional escalate masked the conditional one
  • tsc clean · eslint 0 errors · 1130 passing

Truth surfaces (same PR)

TRACEABILITY COND-1 row + suite map · DOMAIN · roadmap Now ("Rules that read the clock and the meter") · changelog entry · design doc stamped with the correction · backlog checked off.

Both engine items from the sprint-C queue are now shipped. Next signals (spend pace, denial rate) wait until each has an honest persisted source.


Generated by Claude Code


Note

Cursor Bugbot is generating a summary for commit f0f69d2. Configure here.

Context-conditional tool rules, the second approved engine arc. A tool rule
can carry a `when` — a CLOSED vocabulary, exactly one predicate per rule,
restrictive effects only (an allow is never conditional, so allow-list
semantics never depend on a clock or a counter). No DSL, no expressions:
composition is more rules, which stays simulable and explainable.

Two predicates ship:
- outside_hours_utc: [start, end) UTC, wrapping midnight — "deploys escalate
  outside business hours".
- after_model_calls_today: N — the runaway breaker: once the agent's
  persisted model calls pass N today, block (or escalate) matching tools.

One honest correction from the design doc, recorded there: the counting
signal is MODEL CALLS, not "decisions" — allowed tool calls are decision-only
and never persisted, so a decisions counter would be blind to exactly the
runaway loops this exists to stop.

Determinism (ADR-0009): signals are captured ONCE per request by the
enforcement shell — the UTC hour, and the token-log count fetched ONLY when
some layer actually conditions on it — passed into the pure ladder, and
persisted in the decision's evidence. Replay reads the stored snapshot,
never the live clock. A rule whose signal is absent from a context is
deterministically inactive, so pre-COND rows replay unchanged.

Precedence: block → conditional block → allow-list → escalate → conditional
escalate. Conditions ride the INHERIT-1 layers, so an org-level breaker
binds every team below; parity on the AuthZEN PDP with the same signal
contract. New Policy.toolConditions Json column (migration included),
validated in lib/policy.ts (one predicate, hour bounds, start != end),
writable through the existing PATCH /wallets/policy and console actions via
policyInputSchema. OpenAPI documents the shape. Console: tool-posture card
counts conditionals; the inherited card names them.

Simulate boundary, stated not hidden: the tool ladder predates SIM-1's
simulatable set; candidate tool_conditions echo back in ignored_fields.

Verified: 13 new unit tests (window boundaries + midnight wrap, threshold
edges with counts in the reason, absent-signal inactivity, precedence,
prefix-glob), 4 route tests (threshold deny with signals persisted in
evidence; the counter queried only when conditioned on; a parent's
conditional rule binding the child), and both predicates live-fired in both
directions against the seeded org — including catching and redoing a false
positive where an unconditional escalate masked the conditional one. Policy
page render-checked.

Truth surfaces: TRACEABILITY COND-1 row + suite map, DOMAIN, roadmap Now,
changelog, design doc stamped with the correction, backlog checked off.

Gate: tsc clean, eslint 0 errors, 1130 passing.

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn
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Cursor Bugbot has reviewed your changes using high effort and found 1 potential issue.

Fix All in Cursor

❌ Bugbot Autofix is OFF. To automatically fix reported issues with cloud agents, enable autofix in the Cursor dashboard.

Reviewed by Cursor Bugbot for commit f0f69d2. Configure here.

escalateTools: outcome.decidedBy.escalateTools,
conditions: outcome.decidedBy.toolConditions,
requestHourUtc: signals.requestHourUtc,
modelCallsToday: signals.modelCallsToday,

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Replay loses conditional escalate code

Medium Severity

Idempotent replay of a tool escalation always reports TOOL_ESCALATION_REQUIRED and its remediation. A live TOOL_CONDITION_ESCALATION_REQUIRED decision therefore comes back as an unconditional escalate on retry or status poll, so agents replan against the wrong code.

Fix in Cursor Fix in Web

Reviewed by Cursor Bugbot for commit f0f69d2. Configure here.

@ericlovold
ericlovold merged commit aa83607 into main Aug 20, 2026
7 of 9 checks passed
ericlovold added a commit that referenced this pull request Aug 20, 2026
* feat(python): LiteLLM callback posts usage to /tokens

Land the unpublished sanction-sdk package with a duck-typed CustomLogger so Python agents can meter LiteLLM completions without importing litellm. This is post-call reporting; the fail-closed budget wall stays the LLM gateway.

Co-authored-by: Cursor <cursoragent@cursor.com>

* feat(site): agent-wallet story on the home page (#239)

Hero becomes copy + wallet object (card, verified mandate, orbit); new dark
the MCP terminal panel. Styling scoped in brand.css, responsive at 900/640,
reduced-motion guarded.

Co-authored-by: Claude Fable 5 <noreply@anthropic.com>

* feat(slack): interactive Approve/Deny through resolveApproval

Incoming webhooks still deep-link. Channel archive URLs plus a Slack app post Approve/Deny via chat.postMessage; the click is HMAC-verified and settles the same pending approval as the dashboard.

Co-authored-by: Cursor <cursoragent@cursor.com>

* feat(slack): Add to Slack OAuth install per workspace

Interactive Approve/Deny no longer needs a pasted channel URL and a
platform bot token. The remaining pickup is standing up the Slack app
and setting the OAuth env vars.

Co-authored-by: Cursor <cursoragent@cursor.com>

* feat(console): roster is the dashboard home (#240)

Replace the monthly-zero report with group and agent cards, a three-item
rail, and add-an-agent on the group. Old destinations stay under Vault.

Co-authored-by: Cursor <cursoragent@cursor.com>

* feat(mcp): hosted Streamable HTTP wallet endpoint at /mcp (#241)

* feat(mcp): hosted Streamable HTTP wallet endpoint at /mcp

Give agents a URL to paste. Same ten cooperative tools as stdio, API-key auth, stateless JSON responses so it runs on Vercel. Broker intercept of tools/call stays Next.

Co-authored-by: Cursor <cursoragent@cursor.com>

* test(mcp): cover shared wallet tool handlers

The hosted URL extracts tools into lib/mcpServer; without calling them the coverage ratchet falls below 90%.

Co-authored-by: Cursor <cursoragent@cursor.com>

---------

Co-authored-by: Cursor <cursoragent@cursor.com>

* fix(mcp): browser GET /mcp is a paste page, not a raw 401 (#242)

Humans who open the published wallet URL have no agent key. MCP clients still fail closed with JSON.

Co-authored-by: Cursor <cursoragent@cursor.com>

* fix(site): reconcile the agent-wallet story with the services-led home page (#243)

* release: v0.8.0 + two enforcement-path fixes found by the pre-release review (#244)

* fix(site): reconcile the agent-wallet story with the services-led home page

#239 put the platform pitch in slot #2 of a home page that #232 had just
repositioned services-led, leaving two pitches on one page instead of one
argument.

- Move the #agent-wallet deep dive below "What we've built" so it joins the
  proof chapter as one continuous dark run, with a hairline marking the seam
  between the two dark tones. The exec buyer now reads why they called
  before meeting `npx`.
- Stop repeating the wallet headline verbatim in the Sanction Platform card;
  it names the job instead ("Answer for what your agents spend and do").
- Write the bridge the page was missing: the engagement installs the agents,
  the platform governs what they spend and do.
- Give the wallet section a services-side CTA so book-a-call and
  install-a-package stop being two funnels that never meet.
- Date the MIA ribbon comment and back it with a backlog entry, so a
  launch-window element does not become permanent by default.

The nav needed no new entry — "What we've built" now sits directly above the
section it previously had no way to reach.

The backlog also captures the reposition doc drift (README and AGENTS.md
still describe a product-only identity) as its own docs-only pass, kept
deliberately separate from this layout change.

Verified: tsc clean, eslint 0 errors, 1083 tests passing, and the page
rendered at 1440px and 390px with 0px horizontal overflow.

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

* docs(readme): structure the README around who it's for and how it's used

Ingests an external positioning analysis (via /INPUT) — the structural
findings applied; feature ideas routed to the backlog; suggestions that
contradicted confirmed decisions or live code pushed back.

- "Who runs Sanction" up front, leading with the confirmed primary case:
  organizations governing their own internal AI usage and spend.
- A concrete decision example under "What it does" using the real response
  contract — status, stable decision_code, verbatim remediation string —
  instead of leaving "checked and debited atomically" abstract.
- API section regrouped by workflow (ask permission / escalate / carry
  credentials / prove / shape policy / run the fleet / standards); same
  endpoints and descriptions, no longer one wall.
- Distribution gains a shortest-path matrix; policy packs surfaced by name;
  "changing policy in production" and "when to use the credential vault"
  sections added.
- Corrected a stale claim while in the file: @sanction/sdk is not on the
  npm registry (verified against the registry) — install instructions now
  point at sdk/ with publish marked pending; the wider docs sweep is queued.

Pricing left exactly as it stands — free-or-agreement is a confirmed
decision, not an omission.

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

* feat(console): month runway charts + seat health — the collapsed sprint arc

One arc collapsing the three ingest sprints (external analysis, verified
piece by piece against the live code):

Console — surface what's already measured:
- Month runway card on /dashboard/spend: cumulative token cost and
  authorized spend drawn day by day against the monthly caps, with the
  linear projection and "budget hit ~<date>" made visible instead of
  numeric. Pure SVG; series math (bucketByDay, cumulative) factored into
  lib/burn.ts beside the existing pace helpers, unit-tested.
- Seat health card: flags seats whose denial rate is hot (≥25% over a real
  sample) or climbing (last 7 days ≥1.5× the month baseline), with each
  seat's most-hit denial code via the same decisionCode mapping agents see.
  Drift logic is pure (lib/seatHealth.ts), unit-tested; a healthy fleet
  renders as good news, not an empty table.
- Fix (adjacent, render-check caught it): the 14-day token trend bars
  rendered 0px — items-end kept the bar columns at content height, so the
  bars' percentage heights resolved against auto. Columns stretch again.

Engine — design before code:
- docs/plans/policy-inheritance.md: budgets cascade today, rules don't;
  proposes evaluation-time ancestor-first overlay if inheritance is wanted.
- docs/plans/context-conditional-rules.md: closed-vocabulary `when`
  predicates over a richer context snapshot; rejects free-form expressions.
  Both stamped proposed — the product call stays with the owner.

Docs:
- FRAMEWORK-ADAPTERS.md: stop instructing `npm install @sanction/sdk` —
  the package is not on the npm registry; points at sdk/ until publish.
- AGENTS.md: dated note recording the 2026-08-10 site reposition so future
  sessions don't "fix" the repo/site identity mismatch unprompted.

Verified: tsc clean, eslint 0 errors, 1092 tests passing (18 new), and the
spend page rendered against a seeded Meridian demo org — runway projections,
cap lines, exhaust dates, seat flag, and the revived trend bars all
confirmed by screenshot.

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

* chore(backlog): check off the two console items the sprint arc shipped

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

* chore(release): v0.8.0 — a wallet you can paste, hand over, and verify

Cuts the 52-commit pack since v0.7.0 (2026-07-12) and realigns the three
package versions that had drifted apart.

- package.json 0.7.0 → 0.8.0; packages/sanction-mcp 0.7.0 → 0.8.0;
  sdk 0.6.0 → 0.8.0. All three move together again.
- Changelog gains the v0.8.0 release header summarizing the pack: the
  hosted Streamable HTTP wallet URL and MCP 2026-07-28 conformance, the
  public Wallet Card + mandate verify, team membership and roles, Slack
  OAuth install with interactive Approve/Deny, the roster console with
  month runway and seat health, providers connected once, and the gateway
  metering fix that stops unpriced models billing $0.
- Roadmap: adds the shipped roster-console/team-roles item to Now, and
  restates the SDK item against verified reality — it is 0.8.0, builds,
  typechecks, and passes 55 tests, with the npm scope named as the single
  remaining precondition rather than a vague "once the org is wired".

Claim verification (the "ten tools, not nine" rule) turned up a live error
this pass: the README said nine policy packs; lib/policyPacks.ts registers
eleven — payment-agent-mandate and no-egress were below the fold when that
line was written. Corrected. MCP tool count re-counted from
lib/mcpServer.ts: ten, matching the claim.

Boundaries kept honest in the notes: MCP stays cooperative (broker
interception of tools/call is Next, not claimed today), and the SDK is
described as publish-pending rather than installable from npm.

Verified: tsc clean, eslint 0 errors, 1092 tests passing, changelog and
roadmap both parse and render their new entries.

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

* fix(enforce): roll back cascade denials; stop callers opting out of metering

Two defects on the money path, found by an adversarial pre-release review and
verified against the code before fixing. Both were fail-open or
state-corrupting; the release should not carry either.

1. Phantom spend on denied cascade decisions (app/api/v1/authorize/route.ts).
   reserveCascadeDailySpend walks capped ancestors root->leaf, incrementing
   each counter, and throws CascadeBudgetExceeded on the first cap breach.
   lib/cascadeBudget.ts documents the contract: the throw must roll the
   surrounding transaction back. The spend route caught it INSIDE
   db.$transaction and returned normally, which commits — so every ancestor
   already incremented kept the spend of a request that was denied. The
   reconcile is GREATEST(spentCents, rolled), so it only ever heals upward:
   the phantom total was permanent and compounding, and a parent pool would
   start denying legitimate spend on money nobody spent. Requires >=2 capped
   ancestors, which no test built. Now unguarded inside the transaction and
   handled outside it, matching the grant path and the AuthZEN PDP, which
   were already correct.

2. Token metering was opt-in for the party being governed
   (app/api/gateway/[provider]/[...path]/route.ts, lib/gateway.ts).
   OpenAI-compatible providers emit stream usage only when the caller sets
   stream_options.include_usage — and the gateway forwarded the request body
   verbatim while docs/GATEWAY.md instructed the caller to set it. An agent
   streaming without it produced no usage block, so no tokenLog row was
   written, no budget moved, and the pre-call wall (which reads those rows)
   never saw the spend. forceStreamUsage() now sets the flag on the way out;
   a stream that still reports nothing is logged rather than passing in
   silence. Anthropic and Gemini stream usage by default and are untouched.
   Unparseable bodies pass through unchanged — a proxy must not corrupt a
   request it does not understand.

Also fixed here, same review:
- Subtree-cap denials persisted no policyRevision/decisionContextJson, so
  GET /authorize/{id}/evidence returned nulls for a denial class that is
  itself appealable. The denial now carries the evidence captured before the
  reservation attempt.
- MCP_SERVER_VERSION was left at 0.7.0 by the version bump, so every MCP
  host would report 0.7.0 for a 0.8.0 release.
- Three different coverage numbers across README (88%), CONTRIBUTING
  (80/80/85) and TRACEABILITY (80/80/85), none matching vitest.config.ts
  (90/90/94/83). All three now state the enforced gate, with the config
  named as the single source of truth. Test count corrected from "700+" and
  "500+" to 1,100+/1,000+.

5 new regression tests pin the metering fix, including the exact bypass.
Gate: tsc clean, eslint 0 errors, 1097 passing.

Co-Authored-By: Claude <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

---------

Co-authored-by: Claude <noreply@anthropic.com>

* docs(truth): drain the drift the pre-release audit found (#245) v0.8.0

A truthsync pass over the five truth surfaces. Docs + spec only; no behavior
changes. Every claim written here was verified against the code first.

Actively false, now corrected:
- docs/DOMAIN.md claimed Sanction sits "inline as the enforcement point" for
  MCP. That is the exact interception claim the Wallet Card, lib/roadmap.ts,
  and the changelog all explicitly refuse to make. Replaced with the
  cooperative-MCP contract: the gateway intercepts, MCP does not, broker mode
  is Next.
- docs/DOMAIN.md said "No wallet switcher yet"; it shipped 2026-07-17 and
  TRACEABILITY already marked that gap closed — the two files contradicted
  each other in the same repo.
- docs/DOMAIN.md's arc line listed human approval and Sanction Local as Next;
  both shipped.
- TRACEABILITY ORG-VIS asserted "the resolve action stays wallet-scoped".
  Resolution now authorizes against subtreeWalletIds. A false row in the
  security registry is the worst kind, since the file's whole promise is that
  claims map to enforcing code.
- README said the dashboard leads with budget runway (the roster is the home
  now) and described Slack as deep-link-only (interactive Approve/Deny and
  Add to Slack OAuth are the v0.8.0 flagship).

Honest gap rather than a confident claim: the subtree-resolution change has
no test that builds a real two-level org — the only covering test mocks
subtreeWalletIds to a single wallet. Cited that way in ORG-VIS and added to
Gaps + the backlog rather than dressed up as proven.

Registry integrity (the file's own maintenance rule):
- New rows TRACE-1 (W3C trace-context validation before host values become
  outbound headers), PROV-1 (provider keys vaulted + injected at the gateway),
  SIM-2 (sequential replay), each citing a test confirmed to exist.
- GATEWAY row now carries both metering invariants: unpriced models meter at
  the fallback rate, and stream usage reporting is forced rather than left to
  the caller.
- SIM-1's "sequential re-fold is slice 2" note was stale.
- Test-suite map gained traceContext, providers, roster, seatHealth, format,
  funnel, simulation-sequential.

Changelog backfill — four shipped capabilities had no entry of their own:
provider connections, team membership + roles + wallet switcher, MCP wallet
derivation, and org-owner subtree resolution. Inserted in date order.

Doc bugs that break working code:
- STARTER-KIT polled d.grant?.id; the API returns a flat grant_id, so the
  documented escalate->redeem loop silently never fired. That is the one path
  that makes Sanction Sanction.
- lib/openapi.ts declared a REQUIRED wallet_id query param that the handler
  never reads (it derives the wallet from the request row), so every generated
  client — Bedrock included — demanded a value that does nothing.
- sdk/README.md and docs/PAY-PER-CRAWL.md instructed an npm install that 404s;
  FRAMEWORK-ADAPTERS said "install from the repo path" without a command. All
  three now give a working path install.

README also gained the capabilities it never described (roster + team roles,
observe mode, outcomes/freeze/reallocation) and the eight endpoints missing
from the API section. DOMAIN gained PolicyRevision, SlackInstall, Outcome, and
BudgetReallocation — all verified present in prisma/schema.prisma.

Gate: tsc clean, 1092 tests passing. Changelog parses and is date-ordered.


Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

Co-authored-by: Claude <noreply@anthropic.com>

* feat(sdk): rename to sanction-sdk + sprint B (local-dev path, subtree proof) (#246)

* docs(sdk): sanction-sdk is live on npm — sweep every publish-pending hedge (#247)

npm view sanction-sdk -> 0.8.0, FSL-1.1-MIT, published by the same
automation path as sanction-mcp. The hedges written while the publish was
blocked now come out:

- README: both SDK rows become `npm install sanction-sdk`.
- FRAMEWORK-ADAPTERS: the repo-path install workaround collapses to the
  real install command.
- PAY-PER-CRAWL + sdk/README: the "Not on npm yet" blockquotes collapse to
  the install line.
- roadmap: the SDK item's TypeScript half is Shipped; the Python adapters
  (LiteLLM callback, LangChain/LangGraph + CrewAI) stay Next.
- changelog: a dated entry for the ship itself, and the v0.8.0 release
  entry drops its "until the publish workflow runs" clause.
- backlog: dated ops reminder that the new granular npm token EXPIRES —
  when it does, both publish workflows start failing with no other warning.
  Expiry date to be filled in from npmjs.com; the old select-packages token
  gets deleted once confirmed unused.


Claude-Session: https://claude.ai/code/session_013Eb6zTfLyE42dYS8tgWfvn

Co-authored-by: Claude <noreply@anthropic.com>

* feat(engine): INHERIT-1 — rules inherit down the wallet tree (tool + capability) (#248)

* feat(engine): COND-1 — rules that read the clock and the meter (#249)

---------

Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Claude Fable 5 <noreply@anthropic.com>
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