The First Closed Loop: a Runtime Gate

Goal: build the first loop that actually acts. Units 1–3 made the agent observable; now you use that signal to change what the agent does next, inside a single turn. You will build a small finite-state gate that watches an agent’s tool calls and blocks a runaway — the reflex-tier loop that, in Unit 0’s war story, was the one thing that worked. Sense → decide → act → emit a verdict, in milliseconds, with no human and no model in the loop.

Where this fits: the first reflex unit (the first level of the autonomy gradient above pure sensing). It consumes Unit 1’s trace and Unit 2’s vocabulary (it emits a gate_blocked event). It is the safest possible loop to close automatically — narrow, deterministic, in-turn, reversible — which is exactly why it is first: you earn the higher, riskier tiers later.

An agent stuck in a loop is an unstable system

In Unit 0, an agent asked about its own metrics called one tool 24 times and another 50 times, making no progress, until a safeguard stopped it. Control theory has a name for a system that repeats the same move and never settles: unstable — it oscillates. The fix is the same one an engineer reaches for: a damper that detects the oscillation and forces it to stop. That damper is a feedback loop. It is the gate you build here.

The gate is a true closed-loop controller: it reads a signal (the tool call and its output), compares it to a policy, and acts (allow, warn, or block) — then records why. personal_agent implements exactly this in orchestrator/loop_gate.py: a ToolLoopGate holding one ToolFSM (finite-state machine) per tool, and “all decisions are returned as GateResult” — the verdict is data, not a silent side effect.

Three signals, escalating

The gate watches for three distinct kinds of stuck, and treats them differently (Reference: examples/04/loop_gate.py ):

The ordering of severity is the interesting part. Calling the same tool a few times in a row is suspicious but sometimes legitimate (a retry after a transient error), so it is advisory: the call runs, with a hint to the model that it may be looping. But identical output is terminal, and the harness comment says why: “Identical output is pathological.” A tool that returns byte-for-byte the same result has given the agent no new information — continuing cannot help, by definition. That is pure oscillation, and the gate damps it at once.

def observe(self, tool, output):
    """Post-execution: identical output is pathological -> terminal BLOCK_OUTPUT."""
    h = stable_hash(output)
    fsm.output_counts[h] = fsm.output_counts.get(h, 0) + 1
    if fsm.output_counts[h] >= 2:
        fsm.blocked = True
        return GateResult(Decision.BLOCK_OUTPUT, f"identical output seen {fsm.output_counts[h]}x")
    return GateResult(Decision.ALLOW)

The FSM: three states

Each tool moves through three states. A blocked tool is terminal for the turn — every further call returns blocked without dispatching, so a wedged agent cannot keep paying for a tool that has already proven useless:

stateDiagram-v2
    [*] --> IDLE
    IDLE --> ACTIVE: first call (ALLOW)
    ACTIVE --> ACTIVE: new args or new output (ALLOW / WARN)
    ACTIVE --> BLOCKED: same args past ceiling (BLOCK_IDENTITY)
    ACTIVE --> BLOCKED: identical output seen twice (BLOCK_OUTPUT)
    BLOCKED --> [*]: dispatch skipped

Running the example against a tool that returns the same result every call, the gate stops it almost immediately — the Unit 0 runaway, prevented:

iter 1: allowed
iter 2: warn — search 2x in a row (executing, with a hint)
iter 2: BLOCKED after execution — identical output seen 2x

stopped after 2 iterations (hard limit was 10).

Two iterations instead of fifty. The hard iteration limit still exists as a last resort, but the gate makes it almost never the safeguard that triggers.

Why this loop is safe to automate

This is the bottom of the autonomy gradient for a reason. The gate’s action is narrow (it only blocks one tool), deterministic (same inputs, same verdict — no model judgment), in-turn (it acts in milliseconds, with full context), and reversible (the block lasts one turn). Those four properties are what earn it full autonomy: you do not need a human to approve a loop-block, because you can see exactly what it did and undo it trivially. Keep this test — the loops in later units give up one property at a time, and each thing they give up is why they need more supervision.

Security: the gate is a control surface, so it is also an attack surface. An attacker who can make a tool return slightly varied output on each call (a timestamp, a nonce) defeats the output-identity check and keeps the loop alive — so pair it with the call-identity and consecutive ceilings, which do not depend on output. The reverse risk is denial of service: input crafted to trip the gate can block a legitimate tool, wedging the agent. Treat a high gate_blocked rate as a possible attack signal, not just a buggy agent.

Observe: this unit emits a gate_blocked event (Unit 2’s vocabulary) carrying the tool and the reason, stamped with the trace tuple (Unit 1). The loop it closes is immediate — “is this tool still making progress? if not, stop.” Note the gate also observes itself: every decision is a GateResult, so the controller’s own behavior is queryable. Watching the gates is itself a feedback loop (Unit 10) — the harness monitors its deterministic gates as a class (ADR-0053).

Challenges

1. Block the identity loop. Drive the gate with the same args more than the per-signature ceiling. Success: it returns BLOCK_IDENTITY at the right call, and the tool’s FSM is terminal for the rest of the turn.
2. Distinguish retry from runaway. Make a tool fail twice then succeed (different output each time). Success: the gate warns on consecutiveness but does not block, so a legitimate retry survives — and you can explain why output-identity would have been the wrong signal here.
3. Make the verdict observable. Aggregate the gate_blocked events from a run by reason. Success: a count per reason, and a one-sentence read on whether the agent is looping on inputs (same args) or outputs (stuck tool).

Recap

• An agent repeating itself is an unstable control system; a runtime gate is the damper that closes the loop: sense the call → decide by policy → act (block) → emit a GateResult.
• The gate watches three signals — call identity, consecutiveness, output identity — and escalates: consecutiveness is advisory, but identical output is terminal because it is pathological (no new information).
• A per-tool FSM (IDLE → ACTIVE → BLOCKED) makes a blocked tool terminal for the turn, so a wedged agent stops paying for a useless call. Two iterations, not fifty.
• This loop is safe to fully automate because it is narrow, deterministic, in-turn, and reversible — the properties that earn autonomy. Later loops give them up one at a time.

Next

Unit 5 — Budget as Feedforward Control : the loop gate reacts to what already happened. Next you build a gate that acts on what is about to happen — reserving against a projected cost before the call, and denying it if it would breach the budget. That is feedforward control, and it is how you stop an overspend you cannot take back.