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Visual expression of the Removal Is Neutral Principle, affirming that removing capital or positions is a structural adjustment without judgment, reward, or penalty.📘 Removal Is Neutral Principle
Policy Name: Removal Is Neutral Principle
Version: v1.0
Status: ✅ LOCKED
Effective Date: December 21, 2025
Applies To: Micro Harvesting Portfolio (all positions and frameworks)
1. Purpose
This principle governs how stock removal, deactivation, or reclassification is interpreted within the Micro Harvesting system.
Its objectives are to:
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Prevent emotional framing of removals
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Separate governance decisions from performance narratives
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Preserve decision clarity and capital discipline
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Ensure consistent treatment of exits across all frameworks
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Eliminate regret-based or pride-based bias
Removal is an act of alignment, not judgment.
2. Definition of Neutral Removal
A neutral removal is defined as:
The deliberate exclusion of a stock from active participation without assigning success, failure, gain, or loss meaning to the decision.
Neutrality refers to governance posture, not numerical outcome.
3. Governing Principles (Non-Negotiable)
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Removal does not imply a mistake.
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Removal does not imply correctness of prior inclusion.
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Removal does not require a loss or a gain.
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Removal does not demand immediate replacement.
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Removal is final unless governed by a reactivation protocol.
Only rule compliance matters.
4. Conditions Under Which Removal Is Neutral
A stock removal is automatically considered neutral if it occurs under any of the following conditions:
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Role Misalignment
The stock no longer fits its assigned framework or function. -
Structural Ineligibility
The stock fails to meet minimum criteria of all active systems. -
Opportunity Cost Dominance
Capital efficiency is materially inferior to alternatives. -
Framework Reclassification
The stock is moved to SUNSET, Dormant, or Archive status. -
Lifecycle Completion
The stock has fulfilled its intended portfolio purpose.
No additional justification is required.
5. What Neutral Removal Is Not
Neutral removal shall not be interpreted as:
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❌ A realized loss (unless explicitly sold at a loss)
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❌ A failed thesis
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❌ A psychological defeat
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❌ A signal to “make it back” elsewhere
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❌ A mandate to immediately redeploy capital
6. Capital Treatment Upon Removal
Upon neutral removal:
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Capital may be:
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Reallocated deliberately,
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Parked as cash, or
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Left as a residual accounting artifact
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No urgency to redeploy is imposed
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Cash is recognized as a valid position
Residual outcomes (zero, positive, or incidental) do not affect neutrality.
7. Documentation and Record-Keeping
All neutral removals shall be logged with:
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Date of removal
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Framework or level at time of removal
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Eligibility-based reason
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New status (e.g., SUNSET, Dormant, Archived)
Performance commentary is optional and non-operative.
8. Behavioral Safeguards
The portfolio manager shall not:
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Delay removal to avoid emotional discomfort
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Reinterpret history to justify retention
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Force a new framework onto an ineligible stock
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Re-enter removed stocks without formal reactivation approval
Any such behavior constitutes governance erosion.
9. Relationship to Other Protocols
This principle operates in conjunction with:
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SUNSET Governance Protocol v1.0
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SUNSET Reactivation Protocol v1.0
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Level Promotion / Demotion Protocol v1.0
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Harvesting Policy v1.0
In case of conflict:
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Governance protocols supersede narrative interpretation.
10. Meta-Rule
Stocks are temporary.
Standards are permanent.
A portfolio that never removes stocks is static, not disciplined.
Change Log
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v1.0 — December 21, 2025
Initial codification and lock-in of the Removal Is Neutral Principle.
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