How Exit Protocol Works · Part 3 of 5

Apply documented LIBR tracing on selected ledger history.

Exit Protocol replays account activity under a visible Lowest Intermediate Balance Rule assumption, surfacing balance dips and material ledger rows that may constrain a separate-property tracing position.

Stage 03 — Apply Documented Tracing

Methodology note: LIBR is a tracing assumption discussed in forensic accounting and legal-review literature. Counsel and retained experts decide whether it fits the jurisdiction, facts, and record set.

Commingled-account disputes rarely turn on whether an initial deposit can be identified. They turn on what happened afterward — withdrawals, deposits, transfers, and the order in which balances moved. LIBR asks a conservative chronological question: after each event, how much of the claimed separate-property amount remains traceable?

The LIBR assumption in system terms

If the account balance drops below the claimed separate-property amount, the modeled traceable position is reduced to that lower balance. Later deposits do not automatically restore earlier trace value unless applicable facts and legal theory support a different treatment.

Input

Claimed deposit, ordered ledger rows, and selected tracing strategy.

Replay

Deterministic chronological LIBR calculation with visible strategy disclosure.

Output

Modeled remainder, lowest-balance event, and material transaction rows.

Tracing sequence

1 State the claimed deposit

Identify the separate-property amount and the account history selected for replay.

2 Replay chronologically

Apply LIBR row by row so each balance change affects the modeled traceable ceiling.

3 Identify the lowest dip

Surface the lowest intermediate balance that may constrain the modeled remainder.

4 Disclose strategy on the workpaper

Keep the tracing method visible so reviewers can reproduce or challenge the calculation path.

What strong tracing output exposes

Inspectable tracing

Initial deposit, transaction order, lowest balance, modeled remainder, strategy note, and material ledger rows.

Weak tracing

A single summary number without ledger sequence, source records, or stated assumptions.

V1 workpapers are scoped to single-claim LIBR exports. Multi-claim and pro-rata scenarios require separate review and are not presented as the default export path.