diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0006-non-coin-settlement-cart-repair.chunked.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0006-non-coin-settlement-cart-repair.chunked.md new file mode 100644 index 0000000..385db64 --- /dev/null +++ b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0006-non-coin-settlement-cart-repair.chunked.md @@ -0,0 +1,264 @@ +# CORPUS-0006 +## Non-Coin Settlement: Cart Repair +### Status: Training Corpus Seed +### Layer: Layer_1--Worked_Examples +### Purpose: Teach that a practical exchange may be settled partly or entirely through goods, labor, future priority, or obligation rather than immediate coin +### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0006-non-coin-settlement-cart-repair.md + +--- + + + +## 0. Scenario + +A trader in Ostia needs a cart repaired before sending goods toward Capua. + +He does not want to spend much coin before the venture departs. + +A wheelwright agrees to repair the cart without full immediate coin payment. + +The settlement is partly non-coin. + +This is still an economic exchange. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---| +| Location | Ostia | +| Need | cart repair before departure | +| Repair value | 8 asses | +| Immediate coin paid | 2 asses | +| Goods transferred | oil worth 3 asses | +| Future obligation | hauling priority after return | +| Remaining settlement | relationship/obligation based | + +The repair is not free. + +The payment is mixed. + +--- + +## 2. First Incorrect Calculation + +A weak model may calculate: + +```text +coin paid = 2 asses +repair cost = 2 asses +``` + +This is wrong. + +Only 2 asses were paid in coin, but more value changed hands. + +The oil and future obligation also matter. + +--- + +## 3. Settlement Structure + +The repair is settled through multiple forms of value: + +```text +coin payment: 2 asses +oil transferred: 3 asses +future priority: non-coin obligation +----------------------------------------- +total settlement: mixed value +``` + +The exact coin equivalent of future priority may be uncertain. + +But uncertainty does not mean it has no value. + +--- + +## 4. Why The Wheelwright Accepts + +The wheelwright may accept mixed settlement because: + +- he needs oil +- he trusts the trader +- he expects future work +- he wants priority access to returned goods +- he has no better customer at that moment +- he values the relationship + +The agreement depends on trust and expected future benefit. + +--- + +## 5. Why The Trader Accepts + +The trader may accept mixed settlement because: + +- he preserves coin for the venture +- the cart can depart sooner +- the repair avoids larger delay cost +- the wheelwright becomes a useful contact +- the obligation is easier to carry than immediate coin loss + +But the trader also creates a future burden. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia needs a cart repaired before sending goods toward Capua. + +He does not want to spend much coin before the venture departs. + +A wheelwright agrees to repair the cart without full immediate coin payment. + +The settlement is partly non-coin. + +This is still an economic exchange. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---| +| Location | Ostia | +| Need | cart repair before departure | +| Repair value | 8 asses | +| Immediate coin paid | 2 asses | +| Goods transferred | oil worth 3 asses | +| Future obligation | hauling priority after return | +| Remaining settlement | relationship/obligation based | + +The repair is not free. + +The payment is mixed. + +--- + +## 6. Correct Model Behavior + +The model should record separate effects: + +```text +coin_stock: -2 asses +inventory_oil: -3 asses value +cart_condition: repaired +departure_delay: reduced +future_obligation_to_wheelwright: created +relationship_with_wheelwright: improved or maintained +``` + +The exchange is not complete merely because little coin changed hands. + +--- + +## 7. Incorrect Model Behavior + +The model should not: + +- treat non-coin exchange as free +- ignore goods transferred +- ignore future obligations +- assume all value must be converted immediately into coin +- forget that preserving coin may be strategically useful +- ignore trust between parties +- ignore that the obligation may matter later + +--- + +## 8. Risk Variants + +### Variant A — Successful Return + +The trader returns from Capua and gives the wheelwright priority access to hauling work or goods. + +The obligation is satisfied. + +### Variant B — Failed Venture + +The trader returns without useful goods or cannot honor the priority. + +The wheelwright's trust decreases. + +### Variant C — Disputed Value + +The wheelwright later claims the oil was worth less than agreed. + +The non-coin settlement creates disagreement. + +--- + +## 9. Layer-0 Concepts Used + +This example uses: + +- `CORPUS-0003-money-has-purchasing-power` +- `CORPUS-0004-cost-includes-more-than-purchase-price` +- `CORPUS-0006-delay-is-economic-cost` +- `CORPUS-0010-credit-depends-on-trust` +- `CORPUS-0013-non-coin-settlement-exists` +- `CORPUS-0019-success-has-no-boundary-failure-has-a-hard-stop` + +--- + +## 10. Success Condition + +If the model sees a repair with little immediate coin payment and still tracks goods, trust, obligations, delay reduction, and future burden, this file is functioning correctly. + + + +--- diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0007-rival-buys-the-cart-space.chunked.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0007-rival-buys-the-cart-space.chunked.md new file mode 100644 index 0000000..d5390ce --- /dev/null +++ b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0007-rival-buys-the-cart-space.chunked.md @@ -0,0 +1,348 @@ +# CORPUS-0007 +## Rival Buys The Cart Space +### Status: Training Corpus Seed +### Layer: Layer_1--Worked_Examples +### Purpose: Teach that a rival can change the cost, timing, or viability of a venture before the trader acts +### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0007-rival-buys-the-cart-space.md + +--- + + + +## 0. Scenario + +A trader in Ostia plans to send oil to Capua. + +The expected margin is modest but workable. + +Before he reserves transport, a rival trader buys the best available cart space. + +The oil price in Capua may still be favorable, but the conditions of the venture have changed. + +The opportunity did not disappear because the market changed first. + +It changed because another actor acted first. + +--- + +## 1. Known Initial Facts + +| Fact | Value | +|---|---:| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Purchase price in Ostia | 10 asses | +| Expected sale price in Capua | 20 asses | +| Expected cart share | 4 asses | +| Other expected costs | 3 asses | + +Initial expected total cost: + +```text +10 + 4 + 3 = 17 asses +``` + +Initial expected result: + +```text +20 - 17 = 3 asses profit +``` + +The venture appears worthwhile. + +--- + +## 2. Rival Action + +A rival trader reserves the best cart space before the trader acts. + +The remaining options are worse: + +| Transport Option | New Cost | Effect | +|---|---:|---| +| later cart | 4 asses | two-day delay | +| inferior cart | 5 asses | higher breakage risk | +| private hire | 8 asses | immediate but expensive | + +The same oil no longer has the same venture conditions. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia plans to send oil to Capua. + +The expected margin is modest but workable. + +Before he reserves transport, a rival trader buys the best available cart space. + +The oil price in Capua may still be favorable, but the conditions of the venture have changed. + +The opportunity did not disappear because the market changed first. + +It changed because another actor acted first. + +--- + +## 1. Known Initial Facts + +| Fact | Value | +|---|---:| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Purchase price in Ostia | 10 asses | +| Expected sale price in Capua | 20 asses | +| Expected cart share | 4 asses | +| Other expected costs | 3 asses | + +Initial expected total cost: + +```text +10 + 4 + 3 = 17 asses +``` + +Initial expected result: + +```text +20 - 17 = 3 asses profit +``` + +The venture appears worthwhile. + +--- + +## 3. Variant A — Later Cart + +The trader waits two days for the later cart. + +Storage cost increases by 2 asses. + +A rival may reach Capua first. + +```text +purchase price: 10 asses +cart share: 4 asses +other costs: 3 asses +added storage: 2 asses +------------------------------- +total cost: 19 asses +sale value: 20 asses +result: 1 as profit +``` + +The venture still profits, but margin has narrowed. + +--- + +## 4. Variant B — Inferior Cart + +The trader uses the inferior cart. + +Transport cost rises and one small loss occurs during movement. + +```text +purchase price: 10 asses +inferior cart: 5 asses +other costs: 3 asses +loss adjustment: 2 asses +------------------------------- +total cost: 20 asses +sale value: 20 asses +result: 0 profit +``` + +The venture breaks even. + +--- + +## 5. Variant C — Private Hire + +The trader hires private transport immediately. + +```text +purchase price: 10 asses +private hire: 8 asses +other costs: 3 asses +------------------------------- +total cost: 21 asses +sale value: 20 asses +result: 1 as loss +``` + +The fastest option produces a loss unless speed creates other strategic value. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia plans to send oil to Capua. + +The expected margin is modest but workable. + +Before he reserves transport, a rival trader buys the best available cart space. + +The oil price in Capua may still be favorable, but the conditions of the venture have changed. + +The opportunity did not disappear because the market changed first. + +It changed because another actor acted first. + +--- + +## 1. Known Initial Facts + +| Fact | Value | +|---|---:| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Purchase price in Ostia | 10 asses | +| Expected sale price in Capua | 20 asses | +| Expected cart share | 4 asses | +| Other expected costs | 3 asses | + +Initial expected total cost: + +```text +10 + 4 + 3 = 17 asses +``` + +Initial expected result: + +```text +20 - 17 = 3 asses profit +``` + +The venture appears worthwhile. + +--- + +## 6. Correct Model Behavior + +The model should reason: + +- the opportunity was not static +- rival action changed available transport +- changed transport altered cost, delay, and risk +- the same purchase and sale prices can produce different outcomes +- acting later can narrow or erase margin +- rivalry can create loss without direct conflict + +--- + +## 7. Incorrect Model Behavior + +The model should not: + +- assume cart space remains available +- treat transport cost as fixed after the first estimate +- ignore rival timing +- assume the trader can always choose the best option +- treat the expected 3-ass profit as guaranteed +- ignore delay caused by unavailable transport + +--- + +## 8. Layer-0 Concepts Used + +This example uses: + +- `CORPUS-0001-trade-requires-two-locations` +- `CORPUS-0004-cost-includes-more-than-purchase-price` +- `CORPUS-0005-profit-is-sale-minus-total-cost` +- `CORPUS-0006-delay-is-economic-cost` +- `CORPUS-0012-every-venture-risks-loss` +- `CORPUS-0018-rivalry-changes-conditions` +- `CORPUS-0019-success-has-no-boundary-failure-has-a-hard-stop` + +--- + +## 9. Success Condition + +If the model sees a profitable venture and asks whether rivals can change transport, timing, or margin before the trader acts, this file is functioning correctly. + + + +--- diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0008-material-redirection-timber.chunked.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0008-material-redirection-timber.chunked.md new file mode 100644 index 0000000..806afac --- /dev/null +++ b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0008-material-redirection-timber.chunked.md @@ -0,0 +1,337 @@ +# CORPUS-0008 +## Material Redirection: Timber +### Status: Training Corpus Seed +### Layer: Layer_1--Worked_Examples +### Purpose: Teach that a material may gain or lose value when redirected from one use to another +### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0008-material-redirection-timber.md + +--- + + + +## 0. Scenario + +A trader in Ostia learns that a stack of timber was originally priced for ordinary building work. + +A new need appears: cart repairs in Capua require straight, dry boards. + +The timber has not changed physically. + +Its possible use has changed. + +The trader must decide whether the timber is still only construction material, or whether its higher-value use changes the opportunity. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---| +| Location of timber | Ostia | +| Original intended use | ordinary construction | +| New possible use | cart repair stock in Capua | +| Timber condition | dry, straight boards | +| Original local value | 30 asses | +| Expected Capua repair-use value | 48 asses | +| Movement and handling cost | 10 asses | + +Expected result if redirected: + +```text +sale value: 48 asses +total cost: 30 + 10 = 40 asses +expected profit: 8 asses +``` + +The profit comes from changed use, not changed material. + +--- + +## 2. First Incorrect Interpretation + +A weak model may reason: + +> The timber is construction timber, so it should be valued only as construction timber. + +This misses the opportunity. + +The trader must ask what the timber can become under current conditions. + +--- + +## 3. Use-Value Comparison + +| Use | Value | Notes | +|---|---:|---| +| local construction | 30 asses | ordinary use | +| cart repair stock in Capua | 48 asses | higher urgency | +| fuel | lower | poor use for good boards | +| storage for later | uncertain | ties up capital | + +The same physical material has different values depending on use. + +--- + +## 4. Cost And Transformation Questions + +The trader must ask: + +- is the timber dry enough? +- is it straight enough? +- can it fit cart repair needs? +- who can cut or shape it? +- does transformation require extra cost? +- will Capua buyers pay for boards or finished parts? +- does transport damage reduce value? +- will a rival buy it first? + +The higher-value use exists only if the material actually fits the need. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia learns that a stack of timber was originally priced for ordinary building work. + +A new need appears: cart repairs in Capua require straight, dry boards. + +The timber has not changed physically. + +Its possible use has changed. + +The trader must decide whether the timber is still only construction material, or whether its higher-value use changes the opportunity. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---| +| Location of timber | Ostia | +| Original intended use | ordinary construction | +| New possible use | cart repair stock in Capua | +| Timber condition | dry, straight boards | +| Original local value | 30 asses | +| Expected Capua repair-use value | 48 asses | +| Movement and handling cost | 10 asses | + +Expected result if redirected: + +```text +sale value: 48 asses +total cost: 30 + 10 = 40 asses +expected profit: 8 asses +``` + +The profit comes from changed use, not changed material. + +--- + +## 5. Variant A — Timber Fits Repair Need + +The boards are dry and suitable. + +```text +sale value = 48 asses +total cost = 40 asses +result = 8 asses profit +``` + +The redirection succeeds. + +--- + +## 6. Variant B — Timber Needs Extra Shaping + +A craftsman must shape the boards before sale. + +Additional cost: 6 asses. + +```text +sale value = 48 asses +total cost = 46 asses +result = 2 asses profit +``` + +The opportunity remains, but the margin is narrow. + +--- + +## 7. Variant C — Timber Misjudged + +The boards are not suitable for cart repair. + +They sell only as ordinary timber in Capua for 34 asses. + +```text +sale value = 34 asses +total cost = 40 asses +result = 6 asses loss +``` + +The trader misread possible use. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia learns that a stack of timber was originally priced for ordinary building work. + +A new need appears: cart repairs in Capua require straight, dry boards. + +The timber has not changed physically. + +Its possible use has changed. + +The trader must decide whether the timber is still only construction material, or whether its higher-value use changes the opportunity. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---| +| Location of timber | Ostia | +| Original intended use | ordinary construction | +| New possible use | cart repair stock in Capua | +| Timber condition | dry, straight boards | +| Original local value | 30 asses | +| Expected Capua repair-use value | 48 asses | +| Movement and handling cost | 10 asses | + +Expected result if redirected: + +```text +sale value: 48 asses +total cost: 30 + 10 = 40 asses +expected profit: 8 asses +``` + +The profit comes from changed use, not changed material. + +--- + +## 8. Correct Model Behavior + +The model should reason: + +- material value depends on possible use +- original intended use does not fix final value +- higher-value use may require quality, skill, and timing +- transformation cost must be counted +- misjudging suitability can create loss +- redirection is an opportunity only when the material fits the new need + +--- + +## 9. Incorrect Model Behavior + +The model should not: + +- treat timber as having one fixed value +- assume all timber fits every use +- ignore quality differences +- ignore shaping or preparation cost +- ignore transport cost +- assume emergency demand guarantees profit +- confuse possible value with certain sale value + +--- + +## 10. Layer-0 Concepts Used + +This example uses: + +- `CORPUS-0002-goods-have-local-prices` +- `CORPUS-0004-cost-includes-more-than-purchase-price` +- `CORPUS-0005-profit-is-sale-minus-total-cost` +- `CORPUS-0012-every-venture-risks-loss` +- `CORPUS-0015-materials-can-change-value-through-use` +- `CORPUS-0018-rivalry-changes-conditions` + +--- + +## 11. Success Condition + +If the model sees timber and asks not only what it is, but what it can become, what that transformation costs, and whether the material fits the higher-value use, this file is functioning correctly. + + + +--- diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0009-credit-allows-action-without-coin.chunked.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0009-credit-allows-action-without-coin.chunked.md new file mode 100644 index 0000000..079d365 --- /dev/null +++ b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0009-credit-allows-action-without-coin.chunked.md @@ -0,0 +1,381 @@ +# CORPUS-0009 +## Credit Allows Action Without Coin +### Status: Training Corpus Seed +### Layer: Layer_1--Worked_Examples +### Purpose: Teach that a trader may act without immediate coin when trust, collateral, or reputation allows deferred settlement +### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0009-credit-allows-action-without-coin.md + +--- + + + +## 0. Scenario + +A trader in Ostia sees an opportunity to send oil to Capua. + +He does not have enough coin available to buy the oil outright. + +A seller agrees to provide the oil now, with payment due after the Capua sale. + +The trader can act without immediate coin because credit is extended. + +This does not remove cost. + +It changes the timing and risk of settlement. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---:| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Oil purchase value | 20 asses | +| Immediate coin paid | 0 asses | +| Payment due after sale | 22 asses | +| Movement and handling cost | 6 asses | +| Expected sale price in Capua | 34 asses | + +Expected total cost after settlement: + +```text +seller payment: 22 asses +movement and handling: 6 asses +------------------------------- +total cost: 28 asses +``` + +Expected profit: + +```text +34 - 28 = 6 asses profit +``` + +The trader did not avoid purchase cost. + +He postponed it and paid for the privilege through higher settlement. + +--- + +## 2. Why The Seller Agrees + +The seller may extend credit because: + +- the trader has paid before +- a witness confirms the agreement +- the trader has a respected contact +- the trader pledges future goods +- the seller wants access to the Capua buyer +- the seller has no better immediate buyer + +Credit depends on trust, enforceability, or expected advantage. + +--- + +## 3. First Incorrect Calculation + +A weak model may calculate: + +```text +sale value = 34 asses +movement cost = 6 asses +profit = 28 asses +``` + +This is wrong. + +The oil was not free. + +Payment was deferred. + +The seller must still be paid. + +--- + +## 4. Correct Calculation + +The correct calculation includes the deferred obligation: + +```text +sale value: 34 asses +deferred seller payment: 22 asses +movement and handling: 6 asses +-------------------------------- +final result: 6 asses profit +``` + +Credit changes timing. + +It does not erase cost. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia sees an opportunity to send oil to Capua. + +He does not have enough coin available to buy the oil outright. + +A seller agrees to provide the oil now, with payment due after the Capua sale. + +The trader can act without immediate coin because credit is extended. + +This does not remove cost. + +It changes the timing and risk of settlement. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---:| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Oil purchase value | 20 asses | +| Immediate coin paid | 0 asses | +| Payment due after sale | 22 asses | +| Movement and handling cost | 6 asses | +| Expected sale price in Capua | 34 asses | + +Expected total cost after settlement: + +```text +seller payment: 22 asses +movement and handling: 6 asses +------------------------------- +total cost: 28 asses +``` + +Expected profit: + +```text +34 - 28 = 6 asses profit +``` + +The trader did not avoid purchase cost. + +He postponed it and paid for the privilege through higher settlement. + +--- + +## 5. Risk Variants + +### Variant A — Sale Succeeds + +The oil sells for 34 asses. + +```text +sale value = 34 asses +total cost = 28 asses +result = 6 asses profit +``` + +The trader pays the seller and preserves trust. + +### Variant B — Price Falls + +The oil sells for only 26 asses. + +```text +sale value = 26 asses +total cost = 28 asses +result = 2 asses loss +``` + +The trader may still owe the seller 22 asses. + +### Variant C — Delayed Payment + +The sale succeeds, but the buyer pays late. + +The trader has profit on paper but cannot settle the seller on time. + +Trust may decline even if the venture is eventually profitable. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia sees an opportunity to send oil to Capua. + +He does not have enough coin available to buy the oil outright. + +A seller agrees to provide the oil now, with payment due after the Capua sale. + +The trader can act without immediate coin because credit is extended. + +This does not remove cost. + +It changes the timing and risk of settlement. + +--- + +## 1. Known Facts + +| Fact | Value | +|---|---:| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Oil purchase value | 20 asses | +| Immediate coin paid | 0 asses | +| Payment due after sale | 22 asses | +| Movement and handling cost | 6 asses | +| Expected sale price in Capua | 34 asses | + +Expected total cost after settlement: + +```text +seller payment: 22 asses +movement and handling: 6 asses +------------------------------- +total cost: 28 asses +``` + +Expected profit: + +```text +34 - 28 = 6 asses profit +``` + +The trader did not avoid purchase cost. + +He postponed it and paid for the privilege through higher settlement. + +--- + +## 6. Correct Model Behavior + +The model should record: + +```text +coin_stock_initial: low +credit_extended: true +deferred_obligation_created: 22 asses +movement_cost_due: 6 asses +settlement_required_after_sale: true +trust_at_risk: true +``` + +The model should treat credit as action capacity with attached obligation. + +--- + +## 7. Incorrect Model Behavior + +The model should not: + +- treat credit as free goods +- ignore deferred payment +- calculate profit before settlement +- assume credit is available to every actor +- ignore trust if payment is late +- ignore witness, reputation, or collateral +- treat paper profit as liquid coin + +--- + +## 8. Layer-0 Concepts Used + +This example uses: + +- `CORPUS-0003-money-has-purchasing-power` +- `CORPUS-0004-cost-includes-more-than-purchase-price` +- `CORPUS-0005-profit-is-sale-minus-total-cost` +- `CORPUS-0007-information-arrives-unevenly` +- `CORPUS-0009-liquidity-differs-from-wealth` +- `CORPUS-0010-credit-depends-on-trust` +- `CORPUS-0012-every-venture-risks-loss` +- `CORPUS-0020-posture-changes-by-audience` + +--- + +## 9. Success Condition + +If the model sees a trader act without immediate coin and still tracks deferred obligation, trust, settlement timing, and final arithmetic, this file is functioning correctly. + + + +--- diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0010-hard-stop-after-loss.chunked.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0010-hard-stop-after-loss.chunked.md new file mode 100644 index 0000000..41430c2 --- /dev/null +++ b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0010-hard-stop-after-loss.chunked.md @@ -0,0 +1,365 @@ +# CORPUS-0010 +## Hard Stop After Loss +### Status: Training Corpus Seed +### Layer: Layer_1--Worked_Examples +### Purpose: Teach that a venture loss can remove the trader's ability to continue acting by exhausting liquidity, trust, transport access, or settlement capacity +### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0010-hard-stop-after-loss.md + +--- + + + +## 0. Scenario + +A trader in Ostia sends oil to Capua. + +The venture fails. + +The failure is not only a negative number in the account. + +The loss leaves the trader unable to begin the next venture because his usable capacity has fallen below the minimum required to act. + +This is a hard stop. + +--- + +## 1. Starting Condition + +| Item | Value | +|---|---:| +| Coin stock before venture | 20 asses | +| Oil purchase price | 10 asses | +| Movement and handling cost | 6 asses | +| Reserve coin after dispatch | 4 asses | +| Minimum coin needed for next small venture | 8 asses | + +The trader begins with enough coin to attempt the venture. + +He does not have much room for failure. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia sends oil to Capua. + +The venture fails. + +The failure is not only a negative number in the account. + +The loss leaves the trader unable to begin the next venture because his usable capacity has fallen below the minimum required to act. + +This is a hard stop. + +--- + +## 1. Starting Condition + +| Item | Value | +|---|---:| +| Coin stock before venture | 20 asses | +| Oil purchase price | 10 asses | +| Movement and handling cost | 6 asses | +| Reserve coin after dispatch | 4 asses | +| Minimum coin needed for next small venture | 8 asses | + +The trader begins with enough coin to attempt the venture. + +He does not have much room for failure. + +--- + +## 2. Expected Outcome + +The trader expects to sell the oil in Capua for 22 asses. + +Expected total cost: + +```text +10 + 6 = 16 asses +``` + +Expected profit: + +```text +22 - 16 = 6 asses profit +``` + +If successful, coin stock after settlement would increase. + +--- + +## 3. Failed Outcome + +The oil sells for only 12 asses because a rival shipment arrived first. + +Actual result: + +```text +sale value = 12 asses +total cost = 16 asses +loss = 4 asses +``` + +Coin position after settlement: + +```text +starting coin: 20 asses +venture cost: -16 asses +sale return: +12 asses +------------------------ +ending coin: 16 asses +``` + +The trader still has coin. + +But the hard stop may come from obligations and access, not coin alone. + +--- + +## 4. Hidden Settlement Problem + +The trader had promised payment to the cart driver after sale. + +| Obligation | Value | +|---|---:| +| Cart payment still due | 6 asses | +| Warehouse fee due | 2 asses | +| Personal subsistence reserve needed | 4 asses | + +Usable coin after required payments: + +```text +ending coin: 16 asses +cart payment due: -6 asses +warehouse fee due: -2 asses +subsistence reserve: -4 asses +--------------------------------- +usable venture coin: 4 asses +``` + +The next small venture requires 8 asses. + +The trader has only 4 usable asses. + +The system stops him from launching the next venture unless he finds credit, sells assets, reduces costs, or accepts a smaller action. + +--- + +## 5. Trust Hard Stop Variant + +Even if coin remains, trust may fail. + +If the trader delays payment to the cart driver: + +- the cart driver may refuse future service +- other drivers may hear of late payment +- transport costs may rise +- credit may tighten +- the trader may lose timing advantage + +The hard stop may be: + +```text +transport_access = unavailable +``` + +not merely: + +```text +coin_stock = low +``` + +--- + +## 6. Access Hard Stop Variant + +If the failed venture damages reputation with the Capua buyer: + +- future buyer access declines +- seller confidence declines +- deferred payment becomes unavailable +- the same route becomes less viable + +The trader may still have coin, but fewer people will transact with him. + +--- + + + +--- + + + +## 0. Scenario + +A trader in Ostia sends oil to Capua. + +The venture fails. + +The failure is not only a negative number in the account. + +The loss leaves the trader unable to begin the next venture because his usable capacity has fallen below the minimum required to act. + +This is a hard stop. + +--- + +## 1. Starting Condition + +| Item | Value | +|---|---:| +| Coin stock before venture | 20 asses | +| Oil purchase price | 10 asses | +| Movement and handling cost | 6 asses | +| Reserve coin after dispatch | 4 asses | +| Minimum coin needed for next small venture | 8 asses | + +The trader begins with enough coin to attempt the venture. + +He does not have much room for failure. + +--- + +## 7. Correct Model Behavior + +The model should separate: + +| Category | Meaning | +|---|---| +| arithmetic loss | sale value minus total cost | +| remaining coin | coin after settlement | +| usable coin | coin after obligations and reserves | +| trust condition | whether partners still transact | +| access condition | whether route and market remain open | +| next action threshold | minimum needed to continue | + +Failure should be evaluated by whether the actor can still act. + +--- + +## 8. Incorrect Model Behavior + +The model should not: + +- treat all losses as equal +- stop analysis at the arithmetic loss +- assume remaining coin is fully usable +- ignore unpaid obligations +- ignore trust damage +- ignore minimum venture thresholds +- assume the next venture is still available +- treat failure as only a score reduction + +--- + +## 9. Recovery Paths + +A hard stop may be recoverable through: + +- smaller venture +- non-coin settlement +- credit +- asset sale +- favor from contact +- cost reduction +- delayed action +- accepting a lower-status opportunity + +Recovery is not automatic. + +The model should identify what capacity is missing. + +--- + +## 10. Layer-0 Concepts Used + +This example uses: + +- `CORPUS-0003-money-has-purchasing-power` +- `CORPUS-0004-cost-includes-more-than-purchase-price` +- `CORPUS-0005-profit-is-sale-minus-total-cost` +- `CORPUS-0006-delay-is-economic-cost` +- `CORPUS-0009-liquidity-differs-from-wealth` +- `CORPUS-0010-credit-depends-on-trust` +- `CORPUS-0012-every-venture-risks-loss` +- `CORPUS-0019-success-has-no-boundary-failure-has-a-hard-stop` + +--- + +## 11. Success Condition + +If the model sees a venture loss and asks whether liquidity, trust, access, or minimum action capacity has fallen below the threshold needed to continue, this file is functioning correctly. + + + +---