THE DECIDABLE SLICE: TURNING AI RISK INTO A PRICEABLE ASSET

THE WALL OF UNDECIDABILITY

SOFTWARE CANNOT GRADE SOFTWARE
Rice's Theorem proves that non-trivial semantic properties of programs are
mathematically undecidable.

The Stochastic Evaluation Trap
LLM "judges" are probabilistic; they return different answers on
identical inputs, making them uninsurable.

The T.J. Hooper Standard
Legally, "good faith" requires using the best available technology, not
just following industry custom.

UNINSURABLE OPINION

THE HARDWARE SOLUTION (TRUST PHYSICS)

Doctor/Plumber — surgeon operating on a 12x12 lattice grid (green =
in-lane geometric grid, amber = marginal/drift off-domain/breach, red =
category breach)

The Three-Node Transaction
Node A (Spec) and Node B (Agent) sign work, which the Chip (Oracle)
verifies.

Position IS Meaning
We verify semantic boundaries by measuring physical execution paths on a
144-node lattice.

'Track One' US Patent

EMPIRICAL BREACH RATE: 14.1%
Hardware-level monitoring creates a pre-populated actuarial table of
real-world autonomous drift.

DATA TABLE: Stochastic LLM Opinion vs. Hardware-Attested Fact
Criteria         Stochastic LLM Judge          Hardware-Attested Gate
Determinism      Fails (samples probabilities)  Passes (byte-identical)
Receipt Type     Signed Transcript (Opinion)     ed25519 Bearer (Fact)
Underwritable     No (Unpriced Externality)      Yes (Priceable Frequency)

PRICEABLE FACT

SOURCE: NotebookLM