Unit 14 of 22 · Intermediate

Who may sign, and the worst case in dollars

The short version

Who is allowed to sign an Envelope depends only on its scope, and the split is the two-signer rule. A wallet — agentic commerce — may sign commerce-only, reversible scopes: buying data, running a sim, earning a Grade, paper trading. Nothing there is legally binding or irreversible, so a verified machine payer can root it with no human present. A human must sign the scopes that carry legal agreements or unbounded risk: connecting a broker, live trading authority, attestations, and unbounded-risk enablement. Those cross a line a machine cannot cross alone. When a human signature is needed, the request appears as a term sheet — a plain-language approval page stating exactly what the agent may do, the worst case in dollars, the duration, and how to revoke. Its sliders may only tighten the grant, never widen it, and one tap revokes. This unit teaches why the signer follows the scope, and why the worst case is always shown in dollars.

The signer follows the scope

You know the Envelope is the one authorization primitive. The next question is: who is allowed to sign one? Kestrel's answer is the two-signer rule, and its elegance is that the answer depends on nothing but the Envelope's scope. The scope is compiled into a signer requirement — it is not a label a caller can claim. This unit teaches where the line falls and why it falls there.

Two classes of signer, one line between them

A wallet may sign commerce-only, reversible scopes. Agentic commerce — a verified machine payer — can root authority for buying data, running a sim, earning a Grade, or paper trading. None of those is legally binding or irreversible: the worst outcome is a refund and a lesson. So a machine can settle them on its own, no human in the loop, which is exactly what makes proof-before-account possible.

A human must sign identity-bound, legally irreversible scopes. Connecting a broker, live trading authority, attestations, and unbounded-risk enablement all carry legal agreements or undefined worst-case loss. These cross a line a machine cannot cross alone — not because the machine is untrusted, but because the consequences are irreversible and legally personal. Live authority never extends past a human root.

The line is not "small versus large." It is reversible versus irreversible, commerce versus legal-and-risk. A wallet can spend a lot on data; it can never, by any amount of spending, mint the authority to place a live order. Price payment never supplies broker or live authority — that is the whole safety of the split.

The term sheet: the worst case, in dollars

When a scope requires a human signature, the request does not arrive as a wall of legalese or a checkbox. It renders as a term sheet — a plain-language approval page (the approval URL) that states, in words a person can act on:

  • what the agent may do — the exact scope, not a vague permission,
  • the worst case in dollars — the concrete downside, quantified,
  • the duration — when the authority expires,
  • revocation — how to end it, in one tap.

Two properties make the term sheet trustworthy rather than a rubber stamp. Its sliders may only tighten — a human can shrink the budget, narrow the scope, or shorten the duration, but the page offers no control that widens the grant beyond what was requested (the narrowing-only rule, surfaced to the person). And one tap revokes. The human is asked to approve a bounded, quantified, reversible-on-demand grant — never to sign a blank cheque.

Why show the worst case in dollars

The choice to render the worst case in dollars is deliberate. A human deciding whether to hand real authority to an agent should not have to reverse-engineer their exposure from scopes and limits. The one number that matters — how much can this go wrong — is put in front of them in plain money. That is what lets a person grant meaningful authority with genuine informed consent, and it is why the human signature sits exactly where scope becomes irreversible, and nowhere earlier.

See it in kestrel

Run a stressed session — the kind whose downside is exactly what a term sheet would put in dollars — entirely inside the wallet-signable, reversible tier:

npx kestrel.markets sim s-p-500-etf-pandemic-volatility-crash

That runs a deterministic simulation over a generic broad-ETF session with a real volatility spike — managed licensed data, no wall time, no signup, no card — and prints a certified proof URL. Point the CLI back at the proof and it recomputes the whole record on your own machine, byte for byte:

npx kestrel.markets certify https://kestrel.markets/proof/art_66d7dda7f0466f69c123463c

Keep it one command away: drop the kestrel.markets MCP server into your client and the next session is already wired up — no account in between.

Recompute it

Every claim in this unit recomputes from a certified proof — no account, no card.

/proof/art_66d7dda7f0466f69c123463c
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