Fund Operations

Alerts, double-entry ledger, paper-to-live promotion, and self-healing recovery.

Operational infrastructure that runs alongside the oversight loop. These subsystems handle notifications, accounting, strategy promotion, and automatic recovery from failures.

Alerts and Notifications

Rate-limited alert system with multi-channel delivery. Alerts fire during the oversight loop for risk events, kill switch activations, strategy failures, and settlements.

Alert Levels and Categories

Level	Use
INFO	Routine events (settlement detected, strategy promoted)
WARNING	Approaching limits (80% drawdown, strategy paused)
CRITICAL	Immediate action needed (kill switch, multiple failures)

Category	Triggered By
KILL_SWITCH	Fund drawdown exceeds limit
STRATEGY_FAILURE	Strategy thread crashes
DRAWDOWN	Fund or strategy drawdown approaching limit
SETTLEMENT	Market resolved, P&L booked
CORRELATION	Cross-strategy correlation exceeds threshold
RISK_LIMIT	VaR budget breach
RECOVERY	Self-healing restart attempt
PROMOTION	Strategy promoted to next stage
REBALANCE	Capital reallocation triggered
GENERAL	Everything else

Rate Limiting

Each category is limited to 5 alerts per 60 seconds. Excess alerts are silently dropped to prevent notification floods during volatile periods.

Channels

from horizon.fund import FundConfig

# Webhook channel -- delivers alerts via HTTP POST
fund = FundManager(FundConfig(
    total_capital=100_000,
    alert_webhook_url="https://hooks.slack.com/services/...",
))

# The webhook sends JSON:
# {
#     "level": "CRITICAL",
#     "category": "KILL_SWITCH",
#     "title": "Kill switch activated",
#     "message": "Fund drawdown 15.2% exceeded limit 15.0%",
#     "timestamp": "2026-03-13T14:30:00.000000"
# }

Webhook delivery runs in a background thread to avoid blocking the oversight loop. Failed deliveries are logged but do not retry.

MCP Tool

fund_alerts(limit=50)

Returns recent alerts with counts by category. Use this to check what happened while the LLM was idle.

Double-Entry Ledger

SQLite-backed accounting ledger that records every financial event as a debit/credit journal entry. Provides balance sheet and income statement views.

Accounts

Account	Type	Tracks
CASH	Asset	Available capital
POSITIONS	Asset	Capital deployed in positions
FEES_RECEIVABLE	Asset	Fees owed (internal)
MANAGEMENT_FEES	Revenue	Annual management fee accruals
PERFORMANCE_FEES	Revenue	Performance fee accruals
REALIZED_PNL	Revenue	Booked profit and loss
UNREALIZED_PNL	Revenue	Mark-to-market P&L

Journal Entries

Every financial event creates a balanced journal entry:

Event	Debit	Credit	Amount
Deposit	CASH	(external)	Deposit amount
Withdrawal	(external)	CASH	Withdrawal amount
Profitable trade	CASH	REALIZED_PNL	Profit
Losing trade	REALIZED_PNL	CASH	Loss
Management fee	MANAGEMENT_FEES	FEES_RECEIVABLE	Fee amount
Performance fee	PERFORMANCE_FEES	FEES_RECEIVABLE	Fee amount

Configuration

fund = FundManager(FundConfig(
    total_capital=100_000,
    ledger_enabled=True,  # Enable double-entry ledger
))

When enabled, the oversight loop automatically records:

• Settlement P&L when markets resolve
• Management and performance fee accruals each tick
• All amounts validated (must be finite, positive)

MCP Tool

fund_ledger(limit=50)

Returns recent journal entries, balance sheet (assets vs. liabilities), and income statement.

Reports

# Balance sheet
bs = fund.ledger.balance_sheet()
# {"CASH": 95000.0, "POSITIONS": 5000.0, "MANAGEMENT_FEES": 200.0, ...}

# Income statement
inc = fund.ledger.income_statement()
# {"REALIZED_PNL": 1500.0, "MANAGEMENT_FEES": -200.0, "PERFORMANCE_FEES": -100.0}

# Recent entries
entries = fund.ledger.recent_entries(limit=20)

Paper-to-Live Promotion

Structured lifecycle that gates strategy promotion behind performance criteria. Strategies must prove themselves in paper trading before progressing to shadow mode and then live trading.

Promotion Stages

PAPER --> SHADOW --> LIVE

Stage	Description
PAPER	Simulated execution, no real capital
SHADOW	Runs alongside live but orders not submitted
LIVE	Real execution with real capital

Promotion Criteria

Each transition requires meeting minimum thresholds:

Criteria	Default	Description
min_paper_days	14	Minimum days in current stage
min_trades	50	Minimum number of trades
min_sharpe	1.0	Minimum Sharpe ratio
max_drawdown_pct	20.0	Maximum drawdown percentage
min_win_rate	0.45	Minimum win rate

Configuration

fund = FundManager(FundConfig(
    total_capital=100_000,
    promotion_enabled=True,  # Enable promotion lifecycle
))

When enabled, the oversight loop checks promotion eligibility every 60 ticks. Promotions are recorded with a full audit trail in SQLite (strategy name, from/to stage, timestamp, metrics at promotion time).

MCP Tool

fund_promotion_status()

Returns current promotion stage for each strategy and promotion history.

Persistence

Two SQLite tables track state:

• promotions: current stage per strategy
• promotion_history: every promotion event with timestamp and reason

Data is stored in ~/.horizon/promotion.db with WAL mode and 0o600 permissions.

Self-Healing Recovery

Automatic strategy restart with exponential backoff and circuit breaker. Detects failed strategies and stale feeds, attempts recovery without human intervention.

How It Works

1. The oversight loop calls recovery.check_strategies() every 10 ticks
2. For each failed strategy, it attempts a restart via controller.restart()
3. If the restart fails, backoff doubles: 60s, 120s, 240s…
4. After 3 failed attempts, the circuit breaker opens and the strategy is marked permanently failed

Circuit Breaker

Attempt	Cooldown	Action
1	60s	Restart strategy
2	120s	Restart strategy
3	240s	Restart strategy
4+	—	Circuit breaker open, no more retries

To re-enable recovery for a permanently failed strategy:

fund.recovery.reset("strategy_name")

Feed Monitoring

The recovery manager also detects stale feeds (no update for 300+ seconds) and logs warnings. Feed staleness is informational; automatic feed reconnection is handled by the feed manager.

Configuration

fund = FundManager(FundConfig(
    total_capital=100_000,
    self_healing_enabled=True,  # Enable self-healing
))

Recovery Events

Every recovery attempt is logged:

events = fund.recovery.event_history(limit=20)
# [
#     RecoveryEvent(
#         action="restart_strategy",
#         target="political_mm",
#         success=True,
#         attempt=1,
#         error=None,
#     ),
# ]

stats = fund.recovery.stats()
# {"total_attempts": 5, "successes": 3, "failures": 2, "circuit_breakers_open": 1}

Configuration Summary

Parameter	Default	Description
alert_webhook_url	None	Webhook URL for alert delivery
ledger_enabled	False	Enable double-entry accounting
promotion_enabled	False	Enable paper-to-live promotion
self_healing_enabled	False	Enable automatic recovery

All four subsystems are off by default. Enable them individually in FundConfig. They integrate with the oversight loop automatically when enabled.