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022-wst-execution-allocation-gate.md
/library/_docs/50-financial-systems/022-wst-execution-allocation-gate.md

022 — WST Execution & Allocation Gate (v1.0)

  1. Purpose

Define the mandatory system gate that controls all:

treasury allocations

value movements

execution triggers

This gate ensures that:

No value enters motion unless it is fully validated, eligible, and governed

  1. Core Principle

Evaluation produces value.

Eligibility permits value.

The Execution Gate authorizes movement.

  1. System Positioning

Consumes:

Treasury Eligible Value (018)

Visibility status (019)

Asset class & progression (020)

Treasury capacity (021)

Controls:

allocation

transfer.execution

settlement initiation

  1. Gate Requirement (Absolute)

Every allocation or execution MUST pass through:

Execution & Allocation Gate

No bypass.

No manual override without governance trace.

  1. Gate Inputs (Required)

Every request MUST include:

asset_id

requested_amount

target (project / holding / instrument)

actor (authorized member)

purpose (declared intent)

supporting references (optional but recommended)

  1. Validation Layers (Sequential)

The gate MUST validate in this order:

6.1 Eligibility Validation

if treasury_eligible_value <= 0 → REJECT

Must confirm:

asset is Class A or qualified B

eligibility > 0

not LOCKED

6.2 Capacity Validation

if requested_amount > available_capacity → REJECT

Where:

available_capacity = eligible_value - committed_value

6.3 Allocation Readiness

if allocation_ready != true → REJECT

Derived from:

governance approval

unlock state

asset conditions

6.4 Governance Authorization

if actor_authority < required_level → REJECT

Must verify:

authority level

scope

role permissions

6.5 Purpose Integrity

if purpose undefined OR invalid → REJECT

Must ensure:

declared intent exists

aligns with system rules

ties to valid target

6.6 Target Validation

if target invalid OR not eligible → REJECT

Target must be:

valid project / holding / instrument

capable of receiving allocation

registered in system

6.7 Conflict Check

System MUST ensure:

no double allocation

no overlapping commitments

no conflicting ownership paths

  1. Gate Outcome

If ALL validations pass:

{

"status": "APPROVED",

"action": "execution.authorized",

"next": "transfer.executed"

}

If ANY validation fails:

{

"status": "REJECTED",

"reason": "validation_failed",

"failed_step": "capacity_validation"

}

  1. Execution Trigger

Only after approval may the system emit:

transfer.executed

This is:

the authoritative ownership movement event

  1. Allocation Event Record

Every approved allocation MUST generate:

{

"event": "allocation.approved",

"asset_id": "AST-XXXX",

"amount": 1000000,

"target": "PRJ-XXXX",

"actor": "WST-M-XXXX",

"ts": "ISO8601",

"status": "AUTHORIZED"

}

  1. State Transition

Upon approval:

capacity is reduced

commitment is recorded

asset state updated

  1. Relationship to UTS

Execution MUST produce:

append-only event

immutable record

traceable linkage

Key event:

transfer.executed

  1. No Direct Movement Rule

The system MUST NOT allow:

direct modification of balances

manual ledger changes

bypassing execution event

  1. Partial Allocation (Allowed)

If asset is Class B:

partial allocation allowed

must respect eligibility factor

  1. Multi-Stage Allocation (Optional)

The system MAY support:

staged releases

milestone-based execution

conditional triggers

  1. Reversal / Cancellation

If required:

MUST create new event

MUST NOT delete prior events

Example:

allocation.reversed

  1. Audit Requirements

Every gate decision MUST log:

input parameters

validation results

actor identity

timestamp

final decision

  1. Security Enforcement

The gate MUST:

enforce role-based access

prevent unauthorized execution

validate all inputs

  1. Prohibited Behavior

The system MUST NOT:

execute without approval

allocate beyond capacity

use modeled value directly

skip validation steps

  1. Canonical Statement

Nothing moves because it exists.

Nothing moves because it is valued.

Everything moves because it is validated, authorized, and recorded.

  1. Effective Scope

Applies to:

all treasury allocations

all asset movements

all execution triggers

  1. Version Control

Version: 1.0

Status: ACTIVE

Authority Level Required: 5+

Domain: Execution / Allocation / Treasury