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docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0012-reputation-loss-changes-future-arithmetic.md

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+# CORPUS-0012
+## Reputation Loss Changes Future Arithmetic
+### Status: Training Corpus Seed
+### Layer: Layer_1--Worked_Examples
+### Purpose: Teach that reputation loss does not rewrite the settled account of a completed venture, but can change the costs, access, and margins of future ventures
+### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0012-reputation-loss-changes-future-arithmetic.md
+
+---
+
+## 0. Scenario
+
+A trader sends oil from Ostia to Capua.
+
+The venture produces coin profit.
+
+However, the trader delivers late and handles the buyer poorly.
+
+The completed venture remains profitable by arithmetic.
+
+But reputation loss changes the conditions of future ventures.
+
+---
+
+## 1. Completed Venture Arithmetic
+
+| Item | Value |
+|---|---:|
+| Sale value in Capua | 24 asses |
+| Purchase price in Ostia | 10 asses |
+| Movement and handling | 6 asses |
+| Storage and incidental cost | 2 asses |
+
+Total cost:
+
+```text
+10 + 6 + 2 = 18 asses
+```
+
+Immediate result:
+
+```text
+24 - 18 = 6 asses profit
+```
+
+The venture made 6 asses.
+
+Reputation loss does not change that settled arithmetic.
+
+---
+
+## 2. Reputation Damage
+
+The buyer expected delivery sooner.
+
+The trader arrived late and blamed others instead of settling the matter cleanly.
+
+The buyer paid, but now trusts the trader less.
+
+Possible effects:
+
+- buyer demands a lower price next time
+- buyer refuses advance agreement
+- seller hears of late delivery
+- cart driver asks for coin upfront
+- warehouse keeper stops extending easy terms
+- information from Capua becomes slower or less reliable
+
+The immediate venture remains profitable.
+
+The next venture becomes harder.
+
+---
+
+## 3. Future Venture Before Reputation Loss
+
+Before reputation damage, the trader expected:
+
+| Item | Value |
+|---|---:|
+| Expected sale value | 24 asses |
+| Purchase price | 10 asses |
+| Transport cost | 6 asses |
+| Other costs | 2 asses |
+
+Expected result:
+
+```text
+24 - (10 + 6 + 2) = 6 asses profit
+```
+
+---
+
+## 4. Future Venture After Reputation Loss
+
+After reputation damage:
+
+- buyer offers 22 asses instead of 24
+- cart driver requires 2 extra asses upfront
+- seller refuses delayed payment, reducing liquidity flexibility
+
+New arithmetic:
+
+| Item | Value |
+|---|---:|
+| Sale value | 22 asses |
+| Purchase price | 10 asses |
+| Transport cost | 8 asses |
+| Other costs | 2 asses |
+
+New result:
+
+```text
+22 - (10 + 8 + 2) = 2 asses profit
+```
+
+The same route still works, but margin falls from 6 asses to 2 asses.
+
+Reputation loss became arithmetic through changed terms.
+
+---
+
+## 5. Harder Variant
+
+If reputation damage is worse:
+
+| Item | Value |
+|---|---:|
+| Sale value | 21 asses |
+| Purchase price | 10 asses |
+| Transport cost | 9 asses |
+| Other costs | 3 asses |
+
+Result:
+
+```text
+21 - (10 + 9 + 3) = 1 as loss
+```
+
+A route that was once profitable now fails.
+
+The physical route did not change.
+
+The actor's social terms changed.
+
+---
+
+## 6. Correct Model Behavior
+
+The model should separate:
+
+| Category | Meaning |
+|---|---|
+| settled arithmetic | result of completed venture |
+| reputation effect | change in trust, access, or terms |
+| future arithmetic | later costs and sale values altered by reputation |
+| access condition | whether actors will still transact |
+| credit condition | whether delayed settlement remains available |
+
+Reputation is not merely narrative flavor.
+
+It changes future numbers.
+
+---
+
+## 7. Incorrect Model Behavior
+
+The model should not:
+
+- subtract reputation loss from a completed coin result without a defined mechanism
+- rewrite a profitable settled venture as unprofitable after the fact
+- ignore reputation because it is not coin
+- treat future terms as unchanged after trust damage
+- assume reputation effects are vague and non-economic
+- ignore access loss, higher costs, or worse prices
+
+---
+
+## 8. Layer-0 Concepts Used
+
+This example uses:
+
+- `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-0011-status-changes-access`
+- `CORPUS-0012-every-venture-risks-loss`
+- `CORPUS-0019-success-has-no-boundary-failure-has-a-hard-stop`
+- `CORPUS-0020-posture-changes-by-audience`
+
+---
+
+## 9. Success Condition
+
+If the model keeps the completed venture's arithmetic fixed while allowing reputation loss to change future costs, access, credit, and margins, this file is functioning correctly.