Kinetic Trust Protocol (KTP) - Trust Federation Specification¶
This document specifies the Trust Federation system for the Kinetic Trust Protocol (KTP). Trust Federation enables portable trust between Blue Zones, allowing agents to carry their reputation across zone boundaries while maintaining appropriate trust adjustments based on zone relationships.
The specification covers federation models, trust negotiation, cross- zone attestations, dispute resolution, and governance of federated trust networks.
Introduction¶
A single Blue Zone provides environment-derived authorization for agents within its boundaries. But the real power of KTP emerges when zones are connected--when trust earned in one zone carries weight in another.
Trust Federation is the protocol by which zones establish trust relationships, negotiate trust factors, and enable portable reputation across the emerging network of Blue Zones.
The Federation Problem¶
Without federation, each zone is an island:
- Agents must rebuild trust from zero in each zone
- Good behavior in Zone A provides no benefit in Zone B
- Bad actors can "zone hop" to escape consequences
- The network effect of trust cannot emerge
With federation:
- Trust is portable between federated zones
- Good behavior creates compound value
- Bad actors are tracked across zone boundaries
- Network effects create positive sum dynamics
The challenge is: how do zones agree on trust relationships when they may have different policies, different risk tolerances, and different governance structures?
Federation Philosophy¶
KTP Federation is built on these principles:
-
Sovereignty: Each zone retains full sovereignty over its internal governance. Federation does not require policy harmonization.
-
Reciprocity: Trust relationships are reciprocal by default. If Zone A trusts Zone B at factor 0.8, Zone B trusts Zone A at 0.8 unless explicitly negotiated otherwise.
-
Transitivity Limits: Trust is not infinitely transitive. If Zone A trusts Zone B, and Zone B trusts Zone C, Zone A does not automatically trust Zone C.
-
Degradation Safety: Federation failures degrade gracefully. If trust cannot be verified, agents are treated as unfederated, not blocked entirely.
-
Transparency: Federation relationships are public. Agents can see which zones are federated before choosing to participate.
Requirements Language¶
The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT", "SHOULD", "SHOULD NOT", "RECOMMENDED", "NOT RECOMMENDED", "MAY", and "OPTIONAL" in this document are to be interpreted as described in BCP 14 [RFC2119] [RFC8174].
Terminology¶
Bilateral Federation: A direct trust relationship between exactly two zones.
Cross-Zone Attestation: An attestation that is co-signed by Trust Oracles from multiple zones, creating portable proof of behavior.
Federation Agreement: A formal contract between zones specifying trust factors, obligations, and dispute resolution procedures.
Federation Hub: A zone that serves as a central trust anchor for multiple spoke zones.
Federation Mesh: A network of zones with many-to-many trust relationships.
Forward Propagation: The process by which positive trust events in one zone increase an agent's reputation in federated zones.
Backward Propagation: The process by which negative trust events in one zone decrease an agent's reputation in previously visited zones.
Trust Factor: A multiplier (0.0 to 1.0) applied to an agent's E_base when crossing from one zone to another.
Trust Path: The chain of federated zones through which trust is calculated for a multi-hop agent journey.
Federation Models¶
Zones can federate using several models, each with different characteristics.
Bilateral Federation¶
The simplest model: two zones agree to trust each other.
Characteristics:
- Direct relationship between two zones
- Single trust factor per direction
- Simple to establish and maintain
- Does not scale to many zones
Structure:
Use cases:
- Two organizations with partnership
- Parent company and subsidiary
- Vendor and customer relationship
Agreement example:
{
"federation_type": "bilateral",
"parties": [
{ "zone_id": "zone-blue-corp-a", "name": "Corp A" },
{ "zone_id": "zone-blue-corp-b", "name": "Corp B" }
],
"trust_factors": {
"a_to_b": 0.9,
"b_to_a": 0.9
},
"effective_date": "2025-01-01",
"expiration_date": "2026-01-01",
"auto_renewal": true
}
Hub Federation¶
A central zone acts as trust anchor for multiple spoke zones.
Characteristics:
- One hub zone, multiple spoke zones
- Spokes trust hub fully (factor 1.0)
- Spokes trust each other via hub
- Hub has significant responsibility
- Efficient for organizational hierarchies
Structure:
+----------+
| Hub |
+----------+
/ | \
/ | \
+------+ +------+ +------+
|Spoke1| |Spoke2| |Spoke3|
+------+ +------+ +------+
Trust calculation (Spoke1 to Spoke2):
Use cases:
- Corporate zone hierarchy
- Government agency federation
- Industry consortium
Agreement example:
{
"federation_type": "hub",
"hub": {
"zone_id": "zone-blue-headquarters",
"name": "Corporate HQ"
},
"spokes": [
{ "zone_id": "zone-blue-division-a", "trust_factor": 1.0 },
{ "zone_id": "zone-blue-division-b", "trust_factor": 1.0 },
{ "zone_id": "zone-cyan-subsidiary", "trust_factor": 0.8 }
],
"spoke_to_spoke": "via_hub"
}
Mesh Federation¶
Many zones with direct relationships to each other.
Characteristics:
- Multiple bilateral relationships
- No central authority
- Complex trust calculation
- Most flexible but hardest to manage
Structure:
+---------+---------+---------+
| | | |
v v v v
+------+ +------+ +------+ +------+
|Zone A|--|Zone B|--|Zone C|--|Zone D|
+------+ +------+ +------+ +------+
| | | |
+---------+---------+---------+
Trust calculation requires path finding:
- Direct path: Use direct trust factor
- Multi-hop path: Multiply factors along path
- Multiple paths: Use highest trust path
Use cases:
- Industry peer networks
- Research institution networks
- Decentralized ecosystems
Agreement example:
{
"federation_type": "mesh",
"zone_id": "zone-blue-university-a",
"peers": [
{
"zone_id": "zone-blue-university-b",
"trust_factor": 0.95,
"relationship": "research_partner"
},
{
"zone_id": "zone-blue-university-c",
"trust_factor": 0.90,
"relationship": "consortium_member"
},
{
"zone_id": "zone-cyan-startup-x",
"trust_factor": 0.70,
"relationship": "incubator_graduate"
}
]
}
Hierarchical Federation¶
Tree structure with inheritance of trust relationships.
Characteristics:
- Parent-child zone relationships
- Trust inherited down hierarchy
- Children can have additional peer relationships
- Natural for organizational structures
Structure:
+----------+
| Root |
+----------+
/ \
+------+ +------+
|Tier 1| |Tier 1|
+------+ +------+
/ \ / \
+----+ +----+ +----+ +----+
|Tier| |Tier| |Tier| |Tier|
| 2 | | 2 | | 2 | | 2 |
+----+ +----+ +----+ +----+
Trust rules:
- Parent trusts all descendants at factor 1.0
- Child trusts parent at factor 1.0
- Siblings trust each other at parent's discretion
- Cross-branch trust calculated via common ancestor
Use cases:
- Government hierarchies
- Multi-national corporations
- Franchise networks
Trust Factor Calculation¶
Base Trust Factor¶
The base trust factor is the starting point for cross-zone trust calculation:
Trust factor ranges:
- 1.0: Full trust (same as own zone)
- 0.8-0.99: High trust (close partner)
- 0.5-0.79: Moderate trust (known zone)
- 0.3-0.49: Low trust (minimal relationship)
- 0.0-0.29: Very low trust (untrusted zone)
- 0.0: No trust (effectively unfederated)
Example calculation:
Agent with E_base = 85 in Zone A
Zone A to Zone B trust factor = 0.8
E_base in Zone B = 85 * 0.8 = 68
Dynamic Trust Factor¶
Trust factors can be adjusted dynamically based on:
- Recent behavior of agents from the zone
- Zone's security posture
- Federation agreement compliance
- Incident history
Dynamic adjustment formula:
Where behavior_modifier is calculated from:
Clamped to range [0.5 * base, 1.0 * base] to prevent extreme swings.
Trust Factor Decay¶
Trust factors naturally decay over time without positive reinforcement:
Where:
- t0: Time of last federation activity
- t: Current time
- decay_rate: Typically 0.99 per day
This ensures that inactive federations don't maintain full trust indefinitely. Regular cross-zone traffic maintains trust; inactive relationships gradually return to baseline.
Decay is reset by:
- Successful agent crossings
- Cross-zone attestations
- Federation agreement renewal
Minimum Trust Floor¶
To prevent trust from decaying to zero, federations MAY specify a minimum trust floor:
Typical floors:
- Bilateral: 0.5 (maintain meaningful relationship)
- Hub: 0.8 (maintain organizational trust)
- Mesh: 0.3 (maintain basic connectivity)
If trust falls below floor despite decay protection, this indicates a relationship problem requiring human intervention.
Federation Agreements¶
Agreement Structure¶
A Federation Agreement is a formal contract between zones:
{
"agreement_id": "fed-agree-uuid-12345",
"agreement_version": "1.0",
"created": "2025-01-01T00:00:00Z",
"effective": "2025-01-15T00:00:00Z",
"expires": "2026-01-15T00:00:00Z",
"parties": [
{
"zone_id": "zone-blue-corp-a",
"legal_entity": "Corporation A Inc.",
"jurisdiction": "US-DE",
"signing_authority": "CISO",
"signature": "sig:zone-a:abc123..."
},
{
"zone_id": "zone-blue-corp-b",
"legal_entity": "Corporation B Ltd.",
"jurisdiction": "UK",
"signing_authority": "Head of Security",
"signature": "sig:zone-b:def456..."
}
],
"trust_terms": {
"base_trust_factor": 0.85,
"asymmetric": false,
"dynamic_adjustment": true,
"decay_rate": 0.99,
"floor": 0.5,
"ceiling": 0.95
},
"obligations": {
"ktp_version": "1.0",
"min_zone_type": "blue",
"flight_recorder": "required",
"audit_access": "quarterly",
"incident_notification": "24_hours",
"soul_enforcement": "required"
},
"data_handling": {
"cross_zone_attestations": true,
"trajectory_sharing": "on_request",
"resilience_ledger_sync": "daily"
},
"dispute_resolution": {
"negotiation_period_days": 30,
"mediation": "recommended",
"arbitration": "JAMS",
"arbitration_jurisdiction": "US-NY",
"governing_law": "US-NY"
},
"termination": {
"notice_period_days": 90,
"immediate_termination_causes": [
"security_breach",
"agreement_violation",
"insolvency"
]
}
}
Negotiation Protocol¶
Federation agreements are negotiated through a structured protocol:
Phase 1: Discovery
- Zones exchange public information
- Verify zone registration and governance
- Assess compatibility (zone types, policies)
Phase 2: Proposal
- Initiating zone sends federation proposal
- Proposal includes suggested terms
- Receiving zone acknowledges receipt
Phase 3: Negotiation
- Zones exchange counter-proposals
- Terms are negotiated
- Legal review occurs
Phase 4: Agreement
- Final terms are documented
- Signing authorities approve
- Cryptographic signatures applied
Phase 5: Activation
- Agreement is published (if public federation)
- Trust Oracles are configured
- Federation becomes active
Protocol messages:
// Proposal
{
"message_type": "federation_proposal",
"from_zone": "zone-blue-corp-a",
"to_zone": "zone-blue-corp-b",
"proposal_id": "prop-uuid-12345",
"proposed_terms": { ... },
"valid_until": "2025-02-01T00:00:00Z"
}
// Counter-proposal
{
"message_type": "federation_counter",
"from_zone": "zone-blue-corp-b",
"to_zone": "zone-blue-corp-a",
"proposal_id": "prop-uuid-12345",
"counter_id": "counter-uuid-67890",
"modified_terms": { ... },
"accepted_terms": [ ... ],
"rejected_terms": [ ... ]
}
// Acceptance
{
"message_type": "federation_accept",
"from_zone": "zone-blue-corp-a",
"to_zone": "zone-blue-corp-b",
"proposal_id": "prop-uuid-12345",
"final_agreement": { ... },
"signature": "sig:zone-a:xyz789..."
}
Agreement Lifecycle¶
Federation agreements follow a lifecycle:
- Draft: Agreement being negotiated
- Pending: Agreement signed, awaiting activation
- Active: Agreement in force
- Suspended: Temporarily inactive (dispute, incident)
- Expiring: Within notice period of expiration
- Expired: Past expiration date
- Terminated: Ended before expiration
State transitions:
Cross-Zone Attestations¶
Attestation Types¶
Cross-zone attestations provide portable proof of behavior:
Passage Attestation:
- Issued when agent successfully crosses zone boundary
- Proves agent met entry requirements
- Lightweight, high volume
Behavior Attestation:
- Issued periodically for agents operating in zone
- Summarizes behavior over time period
- Medium weight, regular cadence
Exit Attestation:
- Issued when agent leaves zone
- Comprehensive summary of zone tenure
- Detailed, one per zone visit
Crisis Attestation:
- Issued for behavior during high-stress periods
- Carries extra weight for Proof of Resilience
- Rare, high value
Co-Signature Requirements¶
Cross-zone attestations require co-signatures for maximum portability:
Single-zone attestation (limited portability):
- Signed by issuing zone's Oracle only
- Accepted by federated zones at reduced weight
- Weight reduction: 20%
Dual-zone attestation (standard):
- Signed by both source and destination zone Oracles
- Full weight in both zones and their federations
- Standard for zone crossings
Multi-zone attestation (premium):
- Signed by three or more zone Oracles
- Full weight across all signing zones' federations
- Used for high-value agents
Co-signature format:
{
"attestation_id": "att-uuid-12345",
"attestation_type": "exit",
"agent_id": "agent:7gen:optimized:a1b2c3d4",
"content": { ... },
"signatures": [
{
"zone_id": "zone-blue-corp-a",
"oracle_id": "oracle-a-1",
"signature": "sig:oracle-a:abc...",
"timestamp": "2025-11-25T18:00:00Z"
},
{
"zone_id": "zone-blue-corp-b",
"oracle_id": "oracle-b-1",
"signature": "sig:oracle-b:def...",
"timestamp": "2025-11-25T18:00:01Z"
}
]
}
Attestation Verification¶
To verify a cross-zone attestation:
- Parse attestation structure
- For each signature: a. Identify signing zone b. Retrieve zone's Oracle public key c. Verify signature against content d. Check timestamp is within acceptable range
- Calculate attestation weight: - Base weight from attestation type - Multiplied by signing zone trust factors - Bonus for multi-zone signatures
- Add to agent's Proof of Resilience
Weight calculation:
Where co_sign_bonus:
- 1 signature: 1.0
- 2 signatures: 1.2
- 3+ signatures: 1.5
Attestation Chain¶
Attestations form a chain that tracks an agent's cross-zone journey:
Zone A Entry --> Zone A Exit --> Zone B Entry --> Zone B Exit
| | | |
v v v v
[Passage Att] [Exit Att] [Passage Att] [Exit Att]
| | | |
+-------+-------+-------+-------+-------+-------+
|
v
[Agent's Attestation Chain]
The attestation chain provides:
- Complete history of zone participation
- Verifiable behavior record
- Input for Proof of Resilience
- Evidence for dispute resolution
Trust Propagation¶
Forward Propagation¶
Positive events in one zone can increase trust in federated zones:
Propagation trigger:
- Agent earns high-value attestation
- Agent achieves lineage advancement
- Agent demonstrates exceptional behavior
Propagation formula:
Where propagation_factor is typically 0.5 (positive events propagate at half strength).
Example:
Agent earns +5 resilience in Zone A
Zone A to Zone B trust factor = 0.8
Propagation factor = 0.5
Trust increase in Zone B = 5 * 0.5 * 0.8 = 2
Backward Propagation¶
Negative events in one zone can decrease trust in previously visited zones:
Propagation trigger:
- Agent commits policy violation
- Agent causes security incident
- Agent receives Soul veto
Propagation formula:
Where:
- propagation_factor for negatives is typically 0.8 (negative events propagate more strongly than positive)
- recency_factor decays based on time since zone visit
Example:
Agent loses -10 trust in Zone B due to incident
Zone A to Zone B trust factor = 0.8
Propagation factor = 0.8
Recency factor = 0.9 (visited Zone A recently)
Trust decrease in Zone A = 10 * 0.8 * 0.8 * 0.9 = 5.76
Backward propagation ensures that bad actors cannot escape consequences by zone hopping.
Propagation Limits¶
To prevent trust cascades and gaming:
- Hop Limit: Trust propagates maximum 2 hops from source
- Decay per Hop: Each hop reduces propagation by 50%
- Daily Cap: Maximum trust change from propagation: +/-10/day
- Source Verification: Propagation requires verified attestation
These limits ensure that:
- Local events have local primacy
- Federation provides benefit without dominance
- Gaming through federation is difficult
Federation Events¶
Zone Join¶
When a new zone joins a federation:
- Zone completes registration requirements
- Zone applies for federation membership
- Existing members vote (if required by federation rules)
- Federation agreement is executed
- Trust Oracles are configured
- Zone is announced to federation
- Agents can begin crossing to/from new zone
Join event broadcast:
{
"event_type": "zone_join",
"federation_id": "fed-mesh-research",
"new_zone": {
"zone_id": "zone-blue-university-d",
"zone_type": "blue",
"operator": "University D"
},
"trust_factors": {
"zone-blue-university-a": 0.85,
"zone-blue-university-b": 0.85,
"zone-blue-university-c": 0.80
},
"effective": "2025-12-01T00:00:00Z",
"announced_by": "federation-coordinator"
}
Zone Leave¶
When a zone leaves a federation:
- Zone announces intent to leave
- Notice period begins (per agreement)
- Agents are notified of impending change
- Cross-zone operations wind down
- Final attestations are issued
- Federation agreement terminates
- Zone is removed from federation
Leave event broadcast:
{
"event_type": "zone_leave",
"federation_id": "fed-mesh-research",
"leaving_zone": {
"zone_id": "zone-blue-university-d"
},
"reason": "voluntary_withdrawal",
"notice_given": "2025-09-01T00:00:00Z",
"effective": "2025-12-01T00:00:00Z",
"agent_guidance": "Agents should complete cross-zone
operations before effective date"
}
Trust Factor Change¶
When trust factors are adjusted:
- Triggering event occurs (incident, renegotiation, etc.)
- New trust factor is calculated
- Change is announced to affected zones
- Grace period for agent adjustment (optional)
- New factor takes effect
- Agents' cross-zone E_base is recalculated
Change event broadcast:
{
"event_type": "trust_factor_change",
"federation_id": "fed-bilateral-ab",
"zone_a": "zone-blue-corp-a",
"zone_b": "zone-blue-corp-b",
"old_factor": 0.85,
"new_factor": 0.70,
"reason": "security_incident_response",
"effective": "2025-11-26T00:00:00Z",
"review_date": "2026-02-26T00:00:00Z"
}
Emergency Severance¶
In case of security emergency, federation can be severed immediately:
Triggers:
- Active breach in federated zone
- Compromise of federated zone's Oracle
- Malicious behavior by federated zone
- Regulatory requirement
Severance process:
- Emergency severance declared
- All cross-zone traffic immediately blocked
- In-flight operations terminated
- Agents in severed zone are isolated
- Federation is suspended (not terminated)
- Investigation begins
- Resolution determines if federation resumes
Severance event (immediate broadcast):
{
"event_type": "emergency_severance",
"federation_id": "fed-bilateral-ab",
"severing_zone": "zone-blue-corp-a",
"severed_zone": "zone-blue-corp-b",
"reason": "active_security_breach",
"effective": "IMMEDIATE",
"agent_action": "All agents in severed zone should
immediately cease operations",
"contact": "security@corp-a.example.com"
}
Dispute Resolution¶
Dispute Types¶
Common federation disputes:
- Trust Factor Disputes: Disagreement over appropriate factor
- Attestation Disputes: Challenge to attestation validity
- Propagation Disputes: Disagreement over trust propagation
- Incident Attribution: Disagreement over incident responsibility
- Agreement Interpretation: Different readings of agreement terms
- Compliance Disputes: Alleged violation of federation obligations
Resolution Process¶
Standard resolution process:
Phase 1: Direct Negotiation (30 days)
- Zones attempt to resolve directly
- Technical and legal teams engage
- Document positions and evidence
Phase 2: Mediation (30 days, if needed)
- Neutral mediator engaged
- Non-binding facilitated discussion
- Attempt to find mutually acceptable resolution
Phase 3: Arbitration (60 days, if needed)
- Binding arbitration per agreement
- Arbitrator reviews evidence
- Decision is final and enforceable
Dispute record:
{
"dispute_id": "dispute-uuid-12345",
"parties": ["zone-blue-corp-a", "zone-blue-corp-b"],
"type": "attestation_validity",
"filed": "2025-11-01T00:00:00Z",
"status": "mediation",
"summary": "Zone A challenges validity of Exit Attestation
issued by Zone B for Agent X",
"evidence": ["att-uuid-67890", "flight-record-xyz"],
"phase_history": [
{ "phase": "negotiation", "start": "2025-11-01",
"end": "2025-11-30", "outcome": "unresolved" },
{ "phase": "mediation", "start": "2025-12-01",
"mediator": "KTP Mediation Services" }
]
}
Arbitration¶
Arbitration is the final dispute resolution mechanism:
Arbitrator selection:
- Agreed upon in federation agreement
- Must have KTP expertise
- No conflicts of interest
Arbitration process:
- Arbitrator reviews agreement and dispute
- Both parties submit evidence
- Technical experts may be consulted
- Arbitrator issues binding decision
- Decision is published (redacted if necessary)
- Parties must comply
Arbitration outcomes:
- Trust factor adjustment
- Attestation invalidation
- Compliance requirements
- Financial remedies
- Federation termination
Federation Governance¶
Governance Bodies¶
Large federations may establish governance bodies:
Federation Council:
- Representatives from member zones
- Sets federation-wide policy
- Approves new members
- Resolves disputes
Technical Committee:
- Technical experts from member zones
- Develops technical standards
- Reviews security issues
- Recommends protocol changes
Audit Committee:
- Independent auditors
- Reviews member compliance
- Investigates incidents
- Reports to Council
Policy Coordination¶
Federated zones may coordinate policies:
Mandatory coordination:
- KTP protocol version
- Trust Proof format
- Attestation format
- Security incident response
Optional coordination:
- Action risk classifications
- Trust tier thresholds
- Sensor configurations
- Retention policies
Standards Evolution¶
KTP will evolve. Federations must manage evolution:
Version compatibility:
- Zones must support current and previous major version
- 18-month deprecation period for old versions
- Federation agreement specifies version requirements
Change process:
- Proposal published to federation
- Technical review period (90 days)
- Pilot implementation in volunteer zones
- Federation-wide vote
- Implementation timeline established
- Coordinated rollout
Security Considerations¶
Federation Trust Attacks¶
Attackers may attempt to manipulate federation trust.
Mitigations:
- Trust factors change slowly (rate limited)
- Changes require multi-party approval
- Anomaly detection on trust factor changes
- Regular audit of federation relationships
Attestation Fraud¶
Zones might issue fraudulent attestations.
Mitigations:
- Co-signature requirements
- Attestation verification
- Audit of attestation patterns
- Federation penalties for fraud
Trust Laundering¶
Agents might zone-hop to launder bad reputation.
Mitigations:
- Backward propagation of negative events
- Trajectory chain verification
- Cross-zone reputation aggregation
- Hop limits on trust propagation