Avrox Asset · Research paper

Ladder experiment: calculation checks

Russ Oxley · First published 7 September 2026 · Revised 15 September 2026

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7 September 2026

Separate computational checks reconcile the raw CSV files for all three 1,000-path cohorts with the reported rung counts, payment components and path ledgers. The checks include every recorded simulation path. These are numerical verification procedures, not external peer review.

Initial pool Simulated paths Pool paths stopped Focal eligible rung observations Completed Unresolved Rungs meeting the display rule
50 1,000 886 20,936 20,857 79 1–24
200 1,000 153 20,974 20,972 2 1–37
500 1,000 5 20,585 20,585 0 1–37

The display rule requires all survivor-eligible outcomes for that rung to be completed and at least 30 observations. The last three rungs in the larger pools fail the sample-size requirement, despite complete coverage of the observed eligible releases.

Of the 886 stops in the 50-member pool, 596 follow the conservative two-member boundary and 290 occur at an infeasible exposure share. Corresponding counts for the 200-member pool are 25 and 128. All five stops in the 500-member pool occur at an infeasible exposure share. These are pool continuation outcomes; the focal member's unresolved payment count is a different quantity.

The model executed and audited 728,300 single-death allocations. Its largest numerical fairness residual was £2.69×10⁻⁹. The largest transfer-conservation residual was £3.73×10⁻⁸ and the largest whole-path ledger residual was £1.20×10⁻⁷. Each focal example's five payment components sum to the reported payment within £1.82×10⁻¹².

The independent funding calculation agrees with the implementation within £4.27×10⁻¹³. Additional deterministic cases check the dense expected-transfer equations, no-death investment returns, death during the distribution year and treatment of a stopped but survivor-eligible path. All passed.

Scope: these checks support the reported experiment under its declared synthetic mortality, investment and allocation assumptions. They do not establish complete lifetime funding, a guaranteed target, interval-certified fairness, an unordered batch policy or a contractual solution for retained assets when the research calculation stops. The three sizes use different fixed cohorts; their results do not isolate pool size as the only experimental variable.

The source and results package includes checks/audit_model.py, which reads the simulation source and raw outputs, writes model_audit_results.json and runs the deterministic checks described in checks/model_audit_note.md.