The Mathematics of Formal Verification in Finance

Financial outputs depend on mathematical assumptions, finite representations, and operational state. We formalize proof-carrying finance by separating semantic certificate relations from total fail-closed checkers on versioned finite encodings, with explicit checked assumptions, environmental assumptions, and trusted computing bases. We prove three finite results. For explicitly enumerated rational one-period markets, no-arbitrage admits polynomial-size strictly positive state-price witnesses with polynomial-time exact checking and linear-programming production. For a rational static-hedge calculus, a terminating structural algorithm extracts a net portfolio, disposal slack, and unused budget and reconstructs a cut-free derivation. For an environment-parameterized typed deterministic serial reservedexecution schema with cumulative fills, cancellation, fee reserves, buffering, digest-bound replay protection, and authenticated terminal finality, we prove preservation of cash, inventory, quantity, and report-consistency invariants. The release provides Lean 4 developments and bounded Python checkers with per-artifact scope; it does not establish an end-to-end autonomous-trading system or a refinement of the Python execution model to the paper schema.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-07-23
DOI
https://doi.org/10.5281/zenodo.21493512
Primary Topic
Logic, Reasoning, and Knowledge
Type
preprint
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preprint

The Mathematics of Formal Verification in Finance

Miquel Noguer Alonso, Alejandro Roige Vazquez
Zenodo (CERN European Organization for Nuclear Research)
Logic, Reasoning, and Knowledge
preprint

The Mathematics of Formal Verification in Finance

Miquel Noguer Alonso, Alejandro Roige Vazquez
preprint en

Abstract

Financial outputs depend on mathematical assumptions, finite representations, and operational state. We formalize proof-carrying finance by separating semantic certificate relations from total fail-closed checkers on versioned finite encodings, with explicit checked assumptions, environmental assumptions, and trusted computing bases. We prove three finite results. For explicitly enumerated rational one-period markets, no-arbitrage admits polynomial-size strictly positive state-price witnesses with polynomial-time exact checking and linear-programming production. For a rational static-hedge calculus, a terminating structural algorithm extracts a net portfolio, disposal slack, and unused budget and reconstructs a cut-free derivation. For an environment-parameterized typed deterministic serial reservedexecution schema with cumulative fills, cancellation, fee reserves, buffering, digest-bound replay protection, and authenticated terminal finality, we prove preservation of cash, inventory, quantity, and report-consistency invariants. The release provides Lean 4 developments and bounded Python checkers with per-artifact scope; it does not establish an end-to-end autonomous-trading system or a refinement of the Python execution model to the paper schema.

Zenodo (CERN European Organization for Nuclear Research)
Allen Institute for Artificial Intelligence (US)
Logic, Reasoning, and Knowledge
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The Mathematics of Formal Verification in Finance — Miquel Noguer Alonso, Alejandro Roige Vazquez · Zenodo (CERN European Organization for Nuclear Research) (2026) | TGRS Research Map | TGRS