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What is Budget Exhaustion?

Budget exhaustion is the moment an agent's spend ceiling is reached — and the agent must stop, degrade, or ask. How you design for it decides the outcome.

What happens

The ceiling is a per-agent or per-category cap.

When reached, further spend is BLOCKED or FLAGGED.

Why it matters

Exhaustion is a feature, not a failure — it's the firewall doing its job.

Well-designed agents handle it: finish with what they have, or ask for more.

The design principle

Make exhaustion explicit and reviewable — the audit log shows exactly where and why it happened.

FAQ

Is hitting the cap a bug?

No — it's the control working. The review loop is the escape hatch.

How do I size ceilings?

From the audit log: legitimate spend + headroom.

Related

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One API call (or MCP tool) in front of every agent transaction — APPROVED, BLOCKED, or FLAGGED, deterministic, ~5 ms, fully logged.

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