PG-AI

AI Management
Mandate

Fiduciary-Grade AI Autonomy · User-Signed Risk Envelope · Multi-LLM Orchestration · High-Water Mark Fee · Kill Switch

PG-AI-DOC-05 · Confidential · 2026
01
What is a Mandate

A Mandate is a legally binding, user-signed document that defines the exact boundaries within which PG-AI's AI agents may operate on the user's behalf. It is the user's constitution — every AI skill invocation must pass through the mandate's rules before execution.

Core rule: No skill runs without mandate approval. No trade executes outside mandate parameters. No exception.

02
Mandate Parameters

Each user defines the following parameters when signing their mandate:

ParameterDescriptionExample
Max DrawdownMaximum permissible portfolio decline from peak before AI halts all trading5% / 10% / 15%
Asset WhitelistSpecific asset classes the AI may invest inUST, IG Credit, Gold, S&P 500
Asset BlacklistAsset classes explicitly prohibitedCommodities futures, leveraged ETFs
Rebalance CadenceHow often the AI may rebalance the portfolioWeekly / Monthly / Threshold-only
Offensive CapMaximum allocation to the offensive engine0% / 10% / 25%
Investment HorizonMinimum holding period before the AI may liquidate30 days / 90 days / 1 year
Geographic ScopePermitted investment geographiesUS only / US + EU / Global
ESG FilterEnvironmental, social, governance constraintsNone / Exclusion / Full ESG
03
The Eight Skills

The mandate governs the invocation of all eight core skills. Each skill call is pre-checked against the mandate's parameters by the Compliance skill (Skill 03) before execution.

01
Market Intel

Reads macro, earnings, yield curves. Maps into regime signal: expansion, contraction, crisis, recovery.

02
Risk Guardrails

Enforces max drawdown, VaR limits, and concentration caps per the user's mandate.

03
Compliance

Pre-checks every skill invocation against mandate parameters, jurisdictional rules, and suitability.

04
Tax Optimization

Lot selection, wash-sale avoidance, residency-aware yield routing per mandate's tax jurisdiction.

05
Rebalancing

Drift correction bounded by mandate's rebalance cadence and offensive cap.

06
Custody Reconciliation

Streams signed holdings from 5 banks every 3 seconds. Verifies assets match liabilities.

07
Event Watch

Monitors macro events. Triggers defensive mode based on mandate's risk tolerance.

08
Portfolio Construction

Builds target allocation across defensive and offensive engines within mandate bounds.

04
Defensive & Offensive Modes

Defensive Mode

Trigger: VIX > 30, yield-curve inversion, geopolitical crisis, or Event Watch regime-shift signal.

Action: Portfolio Construction rotates up to 100% of assets into US Treasuries and allocated gold. All offensive positions are unwound. Rebalancing frequency increases to daily.

Offensive Mode

Trigger: Market Intel confirms expansion regime + earnings-beat cluster detected + Risk Guardrails confirms budget available.

Action: Portfolio Construction allocates up to the mandate's offensive cap (default 25%) into growth equities, Apollo private credit, and infrastructure RWA. Tax Optimization selects the most efficient entry points.

05
Explainability Log

Every skill invocation produces a signed Explainability Log entry containing:

TimestampUTC nanosecond precision. Immutable append-only storage.
Skill IDWhich skill was invoked (e.g., portfolio.rebalance).
LLM UsedWhich model reasoned for this invocation (e.g., Claude Opus).
Input StateMarket signals, portfolio state, and mandate parameters at invocation time.
ReasoningThe LLM's step-by-step reasoning chain that led to the skill dispatch.
OutputThe trade or action executed by the skill.
Mandate CiteWhich mandate parameter(s) authorized this action.
SignatureCryptographic signature from the multi-sig flow (bank + LLM + compliance).

All logs are available to the user in real time via the PG-AI dashboard. Regulators (SEC, MAS) have full read access per their respective oversight agreements.

06
Fee Structure

High-Water Mark Mechanism

Management fee: 0%. PG-AI charges zero recurring management fee under any circumstances.

Performance fee: 20%. Calculated only on net new gains above the investor's historical high-water mark (HWM). If the portfolio declines and later recovers, the fee applies only to returns above the previous peak — never on recovered losses.

Crystallization: Quarterly. Accrued daily, settled at quarter-end.

Hurdle rate: None. The HWM mechanism itself ensures PG-AI only earns when the investor reaches new peaks.

07
Kill Switch

At any time, the user can activate the Kill Switch — a one-tap control that immediately freezes all AI skill invocations and places the portfolio in custody-only mode.

ImmediateAll 8 skills cease execution within 1 second of activation.
Custody-OnlyAssets remain safely held at custodian banks. No trades, no rebalancing, no movement.
ReversibleUser can reactivate skills at any time by re-confirming their mandate.
WithdrawalIn custody-only mode, users may request full withdrawal to their verified bank account.
08
Mandate Signing Template

Declaration

I, the undersigned, hereby authorize PG-AI Inc. and its regulated SPV (PG-AI Custody Holdings Pte. Ltd.) to manage my assets within the parameters defined in this Mandate. I understand that:

(a) All AI operations are bounded by the parameters I have set above;
(b) I may modify these parameters at any time with 24-hour notice;
(c) I may activate the Kill Switch at any time to freeze all operations;
(d) My assets are held at custodian banks, not by PG-AI;
(e) PG-AI charges 0% management fee and 20% performance fee above HWM only;
(f) This mandate is governed by the laws of the State of Delaware (US) and the Republic of Singapore.

ClientName: _________________________   Signature: _________________________   Date: _____________
PG-AIAuthorized Signatory: _________________________   Date: _____________
WitnessIndependent Compliance Officer: _________________________   Date: _____________