LIBR State Machine Engineering Note | Exit Protocol

UTC:<br>00:00:00

SID:<br>UNAUTHEN...

SYNC_ID:

ENCRYPTION:<br>ENCRYPTION ACTIVE (at rest)

DEFCON:<br>Lvl 4

&bull; LIBR_ENGINE: DETECTED_DIP [$14,500 RECOVERED]<br>&bull; ENTITY_RESOLUTION: FLAGGED_CRYPTO_TRANSFER [COINBASE -><br>UNKNOWN_WALLET]<br>&bull; INTEL_ANALYSIS: BLOCKED_HOSTILE_TEXT [RISK_LEVEL: HIGH]<br>&bull; ALERT: NEW_OFFSHORE_NODE_IDENTIFIED<br>&bull; SYSTEM_STATUS: ENCRYPTION_ACTIVE (evidence at rest)<br>&bull; LIBR_ENGINE: DETECTED_DIP [$14,500 RECOVERED]<br>&bull; ENTITY_RESOLUTION: FLAGGED_CRYPTO_TRANSFER [COINBASE -><br>UNKNOWN_WALLET]

Public Engineering Note

LIBR as a Deterministic Ledger State Machine

An engineering note on replaying ordered financial transactions to preserve balance dips, same-day assumptions, and non-replenishment behavior.

Public engineering note<br>Synthetic data only<br>Deterministic calculation demo<br>Not legal advice

Open Public Repo

Read LIBR Guide<br>View Synthetic Workpaper

State transition card<br>Each ledger step replays one ordered transaction against running state.

State inputs:<br>- prior traceable balance<br>- current account balance<br>- transaction amount<br>- ordering mode

Transition:<br>traceable_after = min(traceable_before, account_balance_after)

Boundary:<br>later deposits do not automatically restore a previously reduced traceable amount under the selected LIBR assumption.

Replay one ordered transaction against running traceable balance.

After a dip: traceable_after = min(traceable_before, account_balance_after).

Later deposits do not automatically restore prior trace under the LIBR assumption.

Purpose<br>Why this artifact exists

The full Exit Protocol product remains private. This public engineering note isolates one narrow technical claim: LIBR-style tracing can be represented as deterministic replay over an ordered ledger.

The companion repository uses synthetic CSV fixtures and regression tests so developers, forensic accountants, and diligence reviewers can inspect the calculation model directly. The artifact is for technical feedback — not legal conclusions, expert opinions, or product completeness claims.

Visual Module<br>LIBR replay state machine

Synthetic fixture only. Each ordered transaction advances account balance and traceable balance under explicit LIBR assumptions.

Swipe horizontally if the diagram extends beyond the screen.

stateDiagram-v2<br>[*] --> Baseline<br>Baseline --> ClaimOpen: separate-property deposit<br>ClaimOpen --> Replay: chronological replay<br>Replay --> DipDetected: withdrawal below trace level<br>DipDetected --> TraceReduced: cap at lowest intermediate balance<br>TraceReduced --> Replay: continue replay<br>Replay --> LaterDeposit: later deposit<br>LaterDeposit --> HoldTrace: balance rises<br>HoldTrace --> Replay

Model<br>State machine representation

LIBR tracing is stateful ledger math. Each transaction advances account balance and traceable balance together. Reviewers can inspect the replay path rather than inferring results from narrative summaries.

Source deposit Claim opens

Ordered replay Ledger walk

Balance dip Trace ceiling drops

Same-day order Mode applied

Snapshot Inspectable output

State variables

account_balance — running cash balance after each transaction

traceable_balance — candidate separate-property trace under LIBR

depletion_events — points where traceable balance is reduced by a dip

ordering_mode — same-day tie-break assumption

source_deposit — separate-property claim anchor for the replay

Transitions

deposit — may increase account balance; separate deposits may increase provisional trace

withdrawal — reduces account balance and may trigger a dip

same-day reorder — resequences ambiguous intraday rows

balance dip — traceable balance capped by account balance

report snapshot — frozen state for inspection and tests

Invariants

Trace never exceeds account<br>traceable balance cannot exceed the account balance after any step.

Trace never exceeds source claim<br>traceable balance cannot exceed the separate-property amount being traced.

Non-replenishment after dip<br>later deposits do not automatically restore a traceable amount previously reduced by a dip.

Deterministic replay<br>same inputs and same ordering mode produce the same outputs on every run.

Example Ledger<br>Synthetic replay with a balance dip

Illustrative rows only. The public repository includes a fuller synthetic CSV and regression fixtures.

Swipe horizontally to view all ledger columns on tablet widths.

Date<br>Event<br>Account Balance<br>Traceable Balance<br>State Note

Jan 1<br>Opening balance<br>$5,000<br>Baseline community/pre-existing funds

Jan 3<br>Separate-property deposit<br>$105,000<br>$100,000<br>Source deposit opens traceable claim

Feb 10<br>Withdrawal<br>$45,000<br>$45,000<br>Red dip: trace capped by account balance

Mar 1<br>Later salary deposit<br>$65,000<br>$45,000<br>Account rises; traceable balance unchanged

Date<br>Event<br>Account Balance<br>Traceable Balance<br>State Note

Jan 1<br>Opening balance<br>$5,000<br>Baseline community/pre-existing funds

Jan 3<br>Separate-property...