Kill criteria

Kill criteria — the allocator’s pre-commitment against drift: for every asset, a numeric exit condition written the day you buy it (“net yield below MP2 four consecutive quarters → sell”; “trace metric diverges from reported revenue >10% → investigate, then exit”; “note 120 days past due → foreclose, no renegotiation without new collateral”). Sunk cost can’t argue with a number it agreed to in advance — the quarterly review only checks trips. Corollary worth writing down: an asset you’d refuse to set a kill criterion for is being held for identity, not return.

First used in: 4.7 · The allocator’s dashboard