Home › Micro Harvesting System › Governance Hub
Visual representation of the SUNSET Governance Protocol, defining the formal deactivation of capital, positions, or rules that are no longer eligible for active deployment.📘 SUNSET Governance Protocol v1.0
Policy Name: SUNSET Governance Protocol
Version: v1.0
Status: ✅ LOCKED
Effective Date: December 21, 2025
Applies To: Micro Harvesting Portfolio (all positions)
1. Purpose
This protocol governs the formal deactivation of stocks from active participation in the Micro Harvesting system.
Its objectives are to:
-
Preserve capital discipline and clarity
-
Prevent emotional attachment to ineligible positions
-
Ensure clean exits without narrative distortion
-
Separate historical outcomes from operational decisions
-
Maintain portfolio signal-to-noise integrity
SUNSET is a governance decision, not a performance judgment.
2. Definition of SUNSET
A stock classified as SUNSET is:
-
Non-operational
-
Non-eligible for harvesting, promotion, or demotion
-
Excluded from deployment, DHER, and rotation decisions
-
Retained only for record-keeping and audit purposes
SUNSET represents final deactivation, not temporary suspension.
3. Governing Principles (Non-Negotiable)
-
Removal is neutral; it implies no success or failure.
-
SUNSET decisions are eligibility-based, not P/L-driven.
-
Deactivation prioritizes clarity over optimization.
-
SUNSET is final by default; reactivation is exceptional.
-
Silence after SUNSET is compliance.
4. Grounds for SUNSET Classification
A stock may be classified as SUNSET if any of the following apply:
-
Structural ineligibility across all active frameworks
-
Persistent role misalignment
-
Opportunity cost dominance
-
Completion of its intended portfolio lifecycle
-
Governance conflicts that cannot be resolved via demotion
SUNSET does not require:
-
A realized loss
-
A failed thesis
-
Prolonged drawdown
5. Capital Treatment Upon SUNSET
Upon SUNSET classification:
-
No new capital may be allocated
-
No averaging or repair is permitted
-
Existing capital may be:
-
Liquidated,
-
Parked, or
-
Left as residual (realized artifact)
-
Residual outcomes (zero, positive, or incidental) do not alter neutrality.
6. Dashboard & Reporting Treatment
-
SUNSET stocks are excluded from all active metrics
-
SUNSET data is aggregated only at the portfolio level
-
Per-stock SUNSET metrics are prohibited to avoid noise
SUNSET visibility exists for governance, not action.
7. Relationship to Other Protocols
This protocol operates in conjunction with:
-
Level Promotion / Demotion Protocol v1.0
-
Harvesting Policy v1.0
-
Removal Is Neutral Principle
-
Quarterly Reset & Capital Containment Rule
In case of conflict:
-
SUNSET classification supersedes all level and harvesting rules.
8. Documentation Requirement
Each SUNSET action shall be logged with:
-
Date of SUNSET
-
Reason for deactivation (eligibility-based)
-
Capital status at deactivation
-
Final classification (SUNSET)
Performance commentary is not required.
9. Behavioral Safeguards
The portfolio manager shall not:
-
Delay SUNSET to avoid admitting change
-
Reframe SUNSET as a loss or failure
-
Maintain SUNSET stocks as “watchlist trades”
-
Allow SUNSET positions to influence active decisions
Any such behavior constitutes governance erosion.
10. Meta-Rule
SUNSET ends a chapter.
The portfolio moves on without commentary.
Change Log
-
v1.0 — December 21, 2025
Initial codification and lock-in of the SUNSET Governance Protocol.
Home | About Us | Contact Us | Privacy Policy | Terms of Use | Disclaimer





No comments:
Post a Comment