Core concepts
The primitives behind Prism: traces, sentinel verdicts, reports, x402 payments, and receipts.
Trading-R1 trace
A Trading-R1 trace is the trader's structured reasoning record. It includes the market, action, raw and final probabilities, evidence, thesis steps, risk factors, and a rationale. The trace is the object Prism validates.
Sentinel validation
The sentinel is a separate LLM family from the trader. It uses DSPy-style adversarial review to challenge evidence quality, thesis support, risk handling, and overconfidence. The output is a verdict score and label.
| Score band | Label |
|---|---|
0-25 | REJECT |
26-50 | WARN |
51-75 | PASS |
76-100 | ENDORSE |
Prism Report
A Prism Report is the developer-facing unit:
- trace identity and market context
- sentinel verdict
- deterministic reasoning metrics
- readiness classification
- structured issue ledger
- capital gate (
BLOCK,REVIEW,ALLOW_PAPER,ENDORSE) - warnings
- receipt links
Use the CLI or public APIs to fetch reports.
Capital gate
The capital gate converts a verdict into execution policy:
| Gate | Meaning |
|---|---|
BLOCK | REJECT, deterministic trace failure, or unresolved blocking issue. |
REVIEW | WARN, unresolved material issue, deterministic needs_review, or legacy receipt without a structured issue ledger. |
ALLOW_PAPER | Clean PASS with a structured issue ledger and no unresolved blocking issue. |
ENDORSE | High-confidence clean verdict eligible for configured risk limits. |
Prism's hackathon product uses this as a policy signal. It does not claim live Polymarket fills unless a fill receipt is present.
x402 payment
The sentinel MCP endpoint is x402-protected. Unpaid callers receive payment requirements; paid callers submit an X-PAYMENT header. Prism's CLI can construct the signed header through Circle CLI, but it does not read or store private keys.
MCP endpoint
The sentinel is exposed over MCP JSON-RPC/SSE at:
https://prism-sentinel-production.up.railway.app/mcp/Keep the trailing slash. Treat this as an MCP transport endpoint, not a normal REST route.
Execution attribution
Prism links validated reasoning to eventual market action through Prism trade receipts with Polymarket-compatible builder codes. Paper receipts and live trades carry HMAC-derived builder codes from ERC-8004 agent IDs, so a trade can be tied back to the agent/report that produced it. Live fills reconcile to Polymarket builder-trade receipts when present.
Fee totals are shown only when filled trades include price data. Legacy paper receipts without fill_price stay marked as fee-pending instead of being counted as revenue.
Receipts
Receipts link the report to evidence:
- trace IPFS CID
- verdict IPFS CID
- Base Sepolia x402 payment transaction when paid externally
- Arc validation request and response transactions when present
- Prism trade receipts with Polymarket-compatible builder codes when a trade exists
Prism does not deploy custom Solidity contracts. Arc interactions use deployed registries and Circle wallet infrastructure.