CMLE Daily Audit -- 22nd October 2025

Disclaimer

This audit records covenantal protocol, positions, and actions for public accountability; it is not investment advice and exists to demonstrate transparent law under pressure and inheritable receipts.​

Mandate rails (active)

• Three Laws: 35% target return, 18% max drawdown with 12%/15% soft rungs, and 12% volatility target with an 8–16% dynamic band to govern sizing and restraint. ​

• Stage 1 scope: add global equities (Europe, Japan, EM), developed‑market government bonds, and gold/broad commodities via major index futures/ETFs to reduce single‑beta dependence and improve staying power. ​

Today’s posture

• Baseline remains yesterday’s published portfolio while Phase One diversifiers proceed in staged, auditable increments in line with the New Mandate and Statement of Active Purpose. ​

• No guardrail breaches; all actions and “no actions” are bound to the drawdown/volatility rails and will be logged if any variance occurs. ​

Phase One rollout actions (day 2)

• Orders staged (next liquid session) to lift Stage 1 sleeves toward initial targets while keeping each sleeve ≤25% of total portfolio risk and portfolio vol centered on 12%. ​

• Target risk‑share trajectory:

  • Global ex‑US equities: toward 15–20% risk share. ​

  • DM government bonds: toward 15–20% risk share. ​

  • Gold/broad commodities: toward 10–15% risk share. ​

• Execution rule: only major index futures/ETFs or equivalently liquid instruments with pre‑defined exit ladders and circuit breakers per the operating law. ​

Protocol cards and ladders (published/updated)

• Sleeve cards live for US equities and DM government bonds; global ex‑US equities and gold/commodities cards are posted today with objective, instruments, sizing logic, circuit breakers, failure modes, and audit hooks as required by transparency law. ​

• Liquidity ladder table expanded with venues, ADV/spread notes, and clip ladders; resume rules after velocity pauses are codified and visible on the scorecard per verification scaffolding. ​

Baseline vs covenant

• Baseline optimizer would scale exposure mechanically by recent volatility; covenantal choice applies the Three Laws, sleeve risk caps, and velocity/exit ladders to favor staying power under staged funding. ​

• Any divergence from guardrails or timelines is logged as a lineage wound with owner and due date; absence of such entries is recorded as “none” for the day. ​

Scorecard checklist (22 Oct status)

• Implementation Notes annex: Yes (active). ​

• Liquidity ladder and sleeve protocol cards: Yes (updated today for scope listed above). ​

• Velocity/pause‑resume states: Displayed (no breaches). ​

• Variance log: “None” (no protocol deviations). ​

• Calibration note: method and first slice timing affirmed; any slippage will be tagged as a wound with owner/date. ​

• Tension board: Open; next review scheduled alongside staged funding checkpoints. ​

Next steps (24–72 hours)

• Execute staged orders in the next eligible session and publish filled notional/weights, realized vol, and updated sleeve risk shares within daily audits. ​

• Activate first divergence exemplar if optimization recommends a faster ramp than covenant allows; publish rationale and opportunity cost in plain language per baseline‑vs‑covenant law. ​

Ritual close

Receipts posted; gaps, if any, are logged as wounds with owners and dates. Sovereignty preserved; challenge welcomed. ​