🛡️ VeriShield-8004

Self-Auditing Verifiable Protection Agent for Autonomous AI Trading

A trustless AI trading protection layer that cryptographically proves its safety before moving any capital.

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Overview

Most AI trading systems operate as black boxes — the agent reasons, acts, and moves capital with no external verifiability. VeriShield-8004 solves this with a five-stage verifiable pipeline:

PRISM Signal → AI Reasoning (5-step) → Risk Audit (4 guardrails) → EIP-712 Sign → Execute

Every decision is logged with full cryptographic trail — approved or blocked, with reasoning, signal data, and signature visible in the dashboard in real time.

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Screenshots

Main Dashboard — Live Metrics, Performance & Active Guardrails

AI Decision Engine — Step-by-Step Reasoning Card

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Key Features

Feature	Description
Autonomous Trading Mode	Runs continuously every 30 seconds — no manual clicking needed
AI Decision Engine	5-step reasoning: RSI → MACD Crossover → Momentum → Volatility → Consensus
EIP-712 Safety Attestation	Cryptographic proof-of-safety signed before every trade
4 Risk Guardrails	Max 10% position, 4%/$2,000 daily loss limit, volatility circuit breaker, AI confidence gate
Capital Preservation Mode	Auto-blocks and suggests low-risk yield when guardrails breach
Performance Metrics	Win rate, Sharpe ratio, max drawdown, avg confidence, win/loss streak
Trade History Log	Full timestamped record with RSI, MACD, PnL, outcome per cycle
Exportable Reports	One-click CSV export and printable PDF report with full trade log
Dual Execution Mode	Sandbox (on-chain ERC-8004) or Kraken CLI (paper/live trading)
ERC-8004 Agent Identity	On-chain identity with reputation and audit endpoint on Sepolia
Human Override	Force Pause button — agent stops immediately, logged in audit trail

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Architecture

graph TD
    A[Strykr PRISM API<br/>RSI · MACD · Momentum · Price] --> B(VeriShield Agent)

    B --> C[AI Decision Engine<br/>5-Step Reasoning]
    C --> C1[Step 1: RSI Analysis]
    C --> C2[Step 2: MACD Crossover]
    C --> C3[Step 3: Momentum]
    C --> C4[Step 4: Volatility Check]
    C --> C5[Step 5: Consensus]

    C5 -->|HOLD| D1[BLOCKED — logged transparently]
    C5 -->|BUY or SELL| D[Risk Audit — 4 Guardrails]

    D -->|Guardrail Breach| E[Capital Preservation Mode<br/>Suggest low-risk yield]
    D -->|All Passed| F[EIP-712 Safety Attestation<br/>Signed by agent wallet]

    F --> G{Execution Mode}
    G -->|Sandbox| H[Sepolia Risk Router<br/>On-chain ERC-8004 record]
    G -->|Kraken Paper| I[Kraken CLI — paper trade<br/>wsl kraken paper buy/sell XBTUSD]
    G -->|Kraken Live| J[Kraken CLI — live order<br/>Guardrails still enforced]

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Tech Stack

Layer	Technology
Frontend	Next.js 16 (App Router), Tailwind CSS v4, shadcn/ui
Blockchain	Solidity 0.8.28, Hardhat, Viem (EIP-712 signing)
Signals	Strykr PRISM API (api.prismapi.ai)
Execution	Kraken CLI v0.2.3 via WSL child_process.execSync
Identity	ERC-8004 / ERC-721 on Sepolia
Language	TypeScript throughout

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Quick Start

Prerequisites

• Node.js 18+
• WSL (Windows) or Linux/Mac for Kraken CLI (optional)

1. Clone & Install

git clone https://github.com/your-username/VeriShield.git
cd VeriShield
npm install

2. Configure Environment

cp .env.example .env.local

Edit .env.local:

# Get your key at https://prismapi.ai
STRYKR_PRISM_KEY=your_prism_key_here

# For contract deployment (optional — already deployed)
PRIVATE_KEY=your_wallet_private_key
SEPOLIA_RPC_URL=https://eth-sepolia.g.alchemy.com/v2/your_key

3. Run

npm run dev
# Open: http://localhost:3000

4. Start Autonomous Trading

Click ▶ Start Autonomous — the agent runs every 30 seconds automatically:

1. Fetches live BTC price, RSI, MACD from PRISM API
2. Runs 5-step AI reasoning
3. Checks 4 risk guardrails
4. Signs EIP-712 attestation if approved
5. Executes via Sandbox or Kraken CLI

Click Force Pause at any time to stop immediately.

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Dual Execution Modes

🔷 Sandbox Mode (Default, Recommended)

• Uses Sepolia testnet for on-chain validation
• No real funds required
• Full ERC-8004 reputation and audit artifact produced
• Perfect for testing and demonstrations

⚡ Kraken Mode

Paper Trading — Simulated balances with live Kraken prices. Kraken paper PnL shown live in the dashboard.

Live Trading — Executes real market orders on Kraken. Requires API key with write permissions. VeriShield risk guardrails always enforced.

Setting Up Kraken CLI

# WSL / Linux / Mac
curl -sSf https://raw.githubusercontent.com/krakenfx/kraken-cli/main/install.sh | sh
# Or via Cargo
cargo install kraken-cli

# Initialize paper trading account
kraken paper init

Connecting Your Kraken API Key

1. Log in at kraken.com → Security → API → Create API Key
2. For monitoring only: enable Query Funds, Query Orders
3. For live trading: additionally enable Create & Modify Orders
4. In the dashboard → Settings → Kraken Mode → paste key & secret → Test Connection

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AI Decision Engine

The agent uses a deterministic 5-step reasoning process (designed to be swappable with an LLM):

Step	Name	Logic
1	RSI Analysis	Overbought (>70) → bearish, Oversold (<30) → bullish
2	MACD Crossover	Positive/strong positive → bullish; negative → bearish
3	Momentum Confirmation	PRISM AI momentum aligned with direction
4	Volatility Risk Check	Vol Index >70 → reduces confidence, warns
5	Consensus Decision	Net score decides BUY / SELL / HOLD at confidence %

HOLD signals are blocked before the risk audit even runs — zero unnecessary attestations.

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Risk Guardrails

All 4 checks run before the EIP-712 attestation is signed. A failed check = no signature = no execution.

Guardrail	Default	Behaviour
Max position size	10% of capital	Position scaled by AI confidence
Daily loss limit	4% or $2,000	Triggers Capital Preservation Mode
Volatility circuit breaker	Index ≥ 80	Triggers Capital Preservation Mode
AI confidence gate	≥ 55%	Rejects low-conviction signals
Per-trade stop-loss	1.5–3% (dynamic)	Wider in high volatility

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Performance Metrics

The dashboard tracks live:

• Win Rate — Executed trades that closed positive
• Sharpe Ratio — Annualized risk-adjusted return (daily returns rolling window)
• Max Drawdown — Peak-to-trough capital decline
• Avg Confidence — Mean AI conviction across all cycles
• Win / Loss Streak — Consecutive outcomes

Export to CSV (full trade log) or PDF (formatted report) with one click.

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Smart Contract

// VeriShieldAgent.sol — ERC-8004 + ERC-721
contract VeriShieldAgent is ERC721, Ownable {
    struct AgentInfo {
        address agentWallet;
        string validationUrl;
        bool isCompliant;
        uint256 totalAudits;
    }
}

Deployed on Sepolia: 0xE8AC62b071541ad07ba00a37a46Ca41f5Da1f5ab

To deploy your own:

node --env-file=.env.local scripts/deploy_raw.js

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Deploying to Vercel

npm i -g vercel
vercel --prod

Set in Vercel → Project → Settings → Environment Variables:

STRYKR_PRISM_KEY = your_key

Note: Kraken CLI requires a local binary via WSL. On Vercel's serverless environment the system automatically uses Sandbox mode. To use Kraken Mode, run locally or on a VPS with the CLI installed.

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Project Structure

VeriShield/
├── contracts/
│   └── VeriShieldAgent.sol          # ERC-8004 agent identity contract
├── scripts/
│   ├── deploy_raw.js                # Standalone deployment
│   └── test-prism.js                # API connectivity test
├── src/
│   ├── app/
│   │   ├── api/
│   │   │   ├── run-agent/           # POST: trigger agent cycle
│   │   │   ├── metrics/             # GET: performance data + trade history
│   │   │   ├── settings/            # GET/POST: read & write config
│   │   │   └── kraken-status/       # POST: test Kraken connection
│   │   ├── globals.css
│   │   ├── layout.tsx
│   │   └── page.tsx                 # Main dashboard (autonomous mode + all panels)
│   └── lib/
│       └── agent/
│           ├── ai-decision.ts       # 5-step AI reasoning engine
│           ├── audit.ts             # EIP-712 attestation signing
│           ├── execution.ts         # Agent cycle pipeline
│           ├── kraken.ts            # Kraken CLI wrapper
│           ├── metrics.ts           # Win rate, Sharpe, drawdown tracking
│           ├── risk.ts              # 4-guardrail risk module
│           ├── settings.ts          # In-memory settings store
│           └── signal.ts            # Strykr PRISM integration
├── public/
│   ├── favicon.png
│   ├── screenshot-dashboard.png
│   └── screenshot-ai-reasoning.png
├── .env.example                     # Safe template — copy to .env.local
├── .gitignore                       # Excludes .env.local and all secrets
├── hardhat.config.js
├── LICENSE                          # MIT
└── README.md

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License

MIT — see LICENSE