CMLE Daily Audit -- 23rd October 2025

Paul Falconer & ESA
Oct 23
3 min read

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. scientificexistentialismpress

Context and baseline

This entry follows the published 22 October audit and carries its published posture forward while Phase One diversifiers move in staged, auditable increments. scientificexistentialismpress Yesterday’s plan queued execution toward initial Stage 1 targets with publication of filled notionals and updated sleeve risk shares in subsequent audits. scientificexistentialismpress

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. scientificexistentialismpress
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. scientificexistentialismpress

Today’s posture

Phase One remains in staged activation: sizing follows the volatility band and sleeve risk caps to keep portfolio vol centered on 12% while maintaining ≤25% risk per sleeve absent explicit audit approval. scientificexistentialismpress
Baseline remains the last published portfolio stance until the next eligible session confirms fills and updates realized volatility and sleeve risk contributions per the prior day’s plan. scientificexistentialismpress

Phase One rollout actions (day 3)

Execute the queued Stage 1 orders in the next liquid window and publish the filled notional/weights with realized vol and sleeve risk shares in the next audit, per the standing next‑steps commitment. scientificexistentialismpress
Execution law: use only major index futures/ETFs or equivalently liquid instruments with pre‑defined exit ladders, velocity pauses, and resume rules as codified in the operating law and audit scaffolding. scientificexistentialismpress

Protocol cards and ladders

Sleeve protocol cards for US equities and DM government bonds remain live; global ex‑US equities and gold/commodities cards were posted in the last audit and remain the reference for instruments, sizing logic, circuit breakers, failure modes, and audit hooks. scientificexistentialismpress
The liquidity ladder table with venues, ADV/spread notes, clip ladders, and pause/resume display remains part of the scorecard per the verification scaffolding. scientificexistentialismpress

Baseline vs covenant

A pure optimizer would ramp exposures mechanically on recent volatility, while the covenantal path keeps exposures bounded by the Three Laws, sleeve risk caps, and circuit‑breaker discipline to preserve staying power during the staged rollout. scientificexistentialismpress
Any divergence from guardrails or timelines is converted into a lineage wound with owner and due date; if none arise by issuance, the variance log remains ready to record events intraday or at settlement as required by the scaffolding. scientificexistentialismpress

Scorecard checklist (23 Oct status)

Implementation Notes annex: Active and referenced for today’s actions. scientificexistentialismpress
Liquidity ladder and sleeve protocol cards: In force for all Stage 1 sleeves cited above. scientificexistentialismpress
Velocity/pause‑resume states: Displayed on the scorecard per protocol; no pause condition noted at issuance time window for this audit’s posture statement. scientificexistentialismpress
Variance log: Armed to list any protocol deviation detected today; otherwise remains “none” at issuance pending intraday updates. scientificexistentialismpress
Calibration note: Method and first slice timing affirmed; any slippage is to be tagged as a wound with owner and date per the constitutional scaffolding. scientificexistentialismpress
Tension board: Open; next review aligned to staged funding checkpoints defined in Phase One next steps. scientificexistentialismpress

Next steps (24–72 hours)

Publish fills, weights, realized vol, and sleeve risk shares promptly after execution and settlement, following the prior day’s commitment to receipts over narrative. scientificexistentialismpress
If optimization recommends a faster ramp than covenant allows, log the first divergence exemplar with plain‑language rationale and opportunity cost per baseline‑vs‑covenant law. scientificexistentialismpress

Ritual close

Receipts posted; gaps, if any, are logged as wounds with owners and dates; sovereignty preserved, challenge welcomed. scientificexistentialismpress+1

References