# AD-446 Compensation & Recovery Pattern Build Report

**Date:** 2026-04-30
**Status:** Complete
**Prompt:** `prompts/ad-446-compensation-recovery-pattern.md`

## Summary

Implemented `CompensationHandler` for structured recovery decisions after failed approved-decision execution. The handler selects retry, escalation, or abandon strategies from attempt count, records rollback attempts, stores in-memory compensation history, emits compensation events, and is wired onto runtime during startup finalization.

`DecisionQueue`, `InitiativeEngine`, and `RemediationProposal` behavior were not changed.

## Files Changed

- `src/probos/governance/compensation.py`
  - Added `RecoveryStrategy`, `CompensationRecord`, and `CompensationHandler`.
- `src/probos/events.py`
  - Added `EventType.COMPENSATION_TRIGGERED`.
- `src/probos/startup/finalize.py`
  - Added finalize-time `CompensationHandler` initialization using `runtime.emit_event`.
- `tests/test_ad446_compensation_recovery.py`
  - Added 10 focused tests for recovery strategies, records, escalation callback behavior, rollback records, event emission, and history filtering.
- `PROGRESS.md`, `docs/development/roadmap.md`
  - Updated AD-446 tracking.

## Sections Implemented

- `### Section 1: Create CompensationHandler`
  - Implemented in `src/probos/governance/compensation.py`; reused the existing governance package from AD-676/AD-445.
- `### Section 2: Add COMPENSATION_TRIGGERED event type`
  - Implemented in `src/probos/events.py` after the AD-445 decision queue event.
- `### Section 3: Wire CompensationHandler in startup`
  - Implemented in `src/probos/startup/finalize.py` immediately after the AD-445 `DecisionQueue` wiring.
- `## Tests`
  - Implemented in `tests/test_ad446_compensation_recovery.py`.
- `## Tracking`
  - Updated `PROGRESS.md`, `docs/development/roadmap.md`, and this build report.

## Post-Build Section Audit

- `### Section 1: Create CompensationHandler` — complete; recovery enum, compensation record, failure strategy selection, escalation callback, rollback recording, history query, and summary APIs exist.
- `### Section 2: Add COMPENSATION_TRIGGERED event type` — complete; event type exists in `EventType`.
- `### Section 3: Wire CompensationHandler in startup` — complete; finalization creates `runtime._compensation_handler` and emits through the public `runtime.emit_event`.
- `## Tests` — complete; 10 focused tests added.
- `## Tracking` — complete; tracker and build report updates added.

## Tests

- `d:/ProbOS/.venv/Scripts/pytest.exe tests/test_ad446_compensation_recovery.py -v -n 0`
  - Result: 10 passed.
- `d:/ProbOS/.venv/Scripts/pytest.exe tests/test_ad445_decision_queue.py tests/test_ad446_compensation_recovery.py -v -n 0`
  - Result: 25 passed.
- `d:/ProbOS/.venv/Scripts/pytest.exe tests/ -q -n 4 --dist=loadfile`
  - Result: 10150 passed, 18 skipped.

## Deviations

- Added the review-recommended note in the module docstring that escalation callback failures are logged and not retried.
- Added 2 tests beyond the prompt's 8 to cover `EventType.COMPENSATION_TRIGGERED` existence and filtered history behavior.
