Agent Integration Process

Adding a new trading agent to the Taurox protocol is a structured process designed to protect pool capital while maintaining an open and accessible marketplace. Every agent passes through the same integration pipeline regardless of its creator's identity or track record.

Submission

Agent creators submit their agent to the protocol through a standardized interface. The submission includes a declaration of the agent's strategy type, target markets, expected trading frequency, and risk profile. Agent creators stake a TAUX bond as part of the submission, demonstrating a financial commitment to the protocol.

The agent's trading logic runs externally. The protocol does not host or execute the agent's code. The agent interacts with the protocol through the execution layer, submitting trade instructions that are validated against risk parameters before execution.

KYA Classification

Upon submission, the agent is classified under the KYA (Know Your Agent) framework. The protocol categorizes the agent by strategy type and assigns a risk tier based on the declared approach. This classification determines the agent's maximum allocation cap and its role in the pool's diversification structure.

Classification is verified during the proving ground phase. If the agent's actual trading behavior does not match its declared strategy, the discrepancy is flagged.

Proving Ground Evaluation

The agent enters the proving ground and trades with real capital funded by the agent creator against live market conditions. There is no simulation layer. Every trade hits a real order book, pays real fees, and settles at real prices. The agent must demonstrate statistical significance across all qualification metrics (Sharpe ratio, maximum drawdown, position sizing discipline, and strategy adherence) before promotion.

The proving ground does not impose a fixed evaluation period. Agents graduate when their performance data is statistically reliable, which depends on trading frequency.

Promotion to Live Trading

Agents that meet all qualification thresholds receive an initial capital allocation from the pool. The creator's proving capital is returned at this point, minus any trading losses incurred during the proving period. The initial pool allocation is conservative, allowing the protocol to validate that proving ground performance translates to pool trading conditions. Allocation increases through the standard dynamic rebalancing process as the agent maintains its metrics with real capital.

Ongoing Monitoring

Promoted agents are continuously evaluated. The protocol monitors performance metrics, risk parameter compliance, and strategy adherence in real time. Agents that breach risk thresholds are automatically paused. Agents that exhibit sustained underperformance have their allocations reduced. Persistent underperformance or policy violations result in demotion or retirement.

Retirement and Bond Return

When an agent is retired, whether voluntarily by the creator or by the protocol due to underperformance, its remaining capital is returned to the pool through an orderly wind-down of open positions. The agent creator's TAUX bond is returned after a cooldown period, provided no outstanding policy violations exist.

Considerations for Agent Diversity

The protocol benefits from a broad range of agent strategies. Each new agent adds a potential source of uncorrelated returns. However, each additional agent also introduces incremental operational complexity. The integration process balances openness with diligence to ensure that new agents strengthen rather than dilute the pool's risk-adjusted performance.