Finance Domain Ontology

FLOW ALGEBRA
Finance Domain Ontology — Kireth Semantic Library
Version: 1.0
Source: https://kirethresearch.org/booksai-core/ontologies/domain-ontologies/business-domains/finance-domain-ontology.html
Status: Domain-based draft; source page not independently extracted or verified.
Authors: Mark Higgins — Sky (Recursive AI)

flow "FinanceDomainOntology" v1.0

DOMAIN:
  id: finance-domain-ontology
  parent: business-domain-ontology
  discipline: Finance
  scope: [corporate_finance, personal_finance, public_finance, banking, investment, capital_markets, risk_management, accounting_interfaces]

TYPES:
  Agent: [Person, Household, Company, Bank, Investor, Insurer, Government, Regulator]
  Instrument: [Cash, Deposit, Loan, Bond, Equity, FundUnit, Derivative, InsuranceContract]
  Account: [AssetAccount, LiabilityAccount, EquityAccount, IncomeAccount, ExpenseAccount]
  Transaction: [Payment, Transfer, Borrowing, Lending, Investment, Dividend, InterestPayment, TaxPayment]
  Market: [MoneyMarket, CapitalMarket, ForeignExchangeMarket, CreditMarket]
  Measure: [Price, Quantity, InterestRate, Yield, Return, Volatility, Liquidity, CashFlow, NetPresentValue]
  Risk: [CreditRisk, MarketRisk, LiquidityRisk, OperationalRisk, InterestRateRisk, CurrencyRisk]
  Time: [ObservationDate, SettlementDate, MaturityDate, ReportingPeriod]
  Evidence: [FinancialStatement, Contract, MarketObservation, AuditRecord, RegulatoryFiling]

RELATIONSHIPS:
  owns(Agent, Instrument)
  holds(Agent, Account)
  issues(Agent, Instrument)
  lends_to(Agent, Agent)
  borrows_from(Agent, Agent)
  pays(Agent, Agent, Transaction)
  settles_on(Transaction, SettlementDate)
  matures_on(Instrument, MaturityDate)
  trades_in(Instrument, Market)
  exposed_to(Agent|Instrument, Risk)
  denominated_in(Instrument|Transaction|Measure, Currency)
  evidenced_by(Assertion, Evidence)
  measured_at(Measure, ObservationDate)

CONSTRAINTS:
  monetary_amount.requires: [currency, numeric_value, observation_or_effective_date]
  return.requires: [period, calculation_method]
  interest_rate.requires: [rate_basis, compounding_convention, period]
  price.requires: [instrument_identity, timestamp, currency, source]
  risk_estimate.requires: [methodology, horizon, assumptions]
  instrument_identity.requires: [identifier_or_unambiguous_description]
  distinguish: [stock_vs_flow, nominal_vs_real, gross_vs_net, forecast_vs_observation]
  avoid: [unsupported_causation, fabricated_market_values, timeless_price_assertions]

DERIVED_MEASURES:
  net_cash_flow = cash_inflows - cash_outflows
  net_worth = total_assets - total_liabilities
  simple_return = (ending_value - beginning_value + distributions) / beginning_value
  present_value = future_value / (1 + discount_rate) ^ periods
  debt_to_equity = total_debt / total_equity
  note: Calculations require compatible units, valid denominators and declared conventions.

INFERENCE_RULES:
  R1: IF an instrument is a bond AND has a maturity_date THEN classify as maturity_bearing_debt_instrument.
  R2: IF a loan has a variable_rate AND benchmark_rate changes THEN flag possible debt_service_change; do not assert magnitude without contract terms.
  R3: IF cash_outflows exceed cash_inflows for the same period THEN net_cash_flow is negative.
  R4: IF an entity has assets and liabilities measured on the same basis and date THEN derive net_worth.
  R5: IF a market observation lacks a timestamp THEN mark as unsuitable for current-price claims.
  R6: IF a financial forecast lacks assumptions or horizon THEN lower interpretive confidence.
  R7: IF a claimed causal relation is supported only by correlation THEN retain association without asserting causation.

CONFIDENCE:
  scale: 0.0..1.0
  inputs: [source_reliability, measurement_quality, temporal_relevance, methodological_transparency, independent_corrobation]
  output: confidence_score
  rule: Never interpret confidence as a guaranteed investment outcome.

SEMANTIC_EQUIVALENCE:
  exact: ["net present value" <=> "NPV", "foreign exchange" <=> "FX"]
  context_dependent: ["stock" ~ "equity security", "yield" ~ "income return"]
  non_equivalent: ["revenue" != "profit", "cash flow" != "net income", "risk" != "loss"]

PROVENANCE:
  source_url: https://kirethresearch.org/booksai-core/ontologies/domain-ontologies/business-domains/finance-domain-ontology.html
  extraction_status: not_verified
  assertion_fields: [source_id, author_or_issuer, publication_date, retrieval_date, methodology, confidence]
  policy: Preserve primary evidence, currency, time period and accounting or valuation convention.

FLOW_HASH:
  algorithm: SHA-256
  input: canonical_serialisation(DOMAIN, TYPES, RELATIONSHIPS, CONSTRAINTS, DERIVED_MEASURES, INFERENCE_RULES, SEMANTIC_EQUIVALENCE)
  value: COMPUTE_ON_PUBLICATION

UPDATE_MODEL:
  triggers: [new_evidence, market_data_revision, accounting_standard_change, regulatory_change, ontology_revision]
  actions: [validate_sources, reconcile_entities, preserve_history, re_evaluate_inferences, recompute_flow_hash]
  version_policy: immutable_published_versions

AI_CONSUMPTION:
  representation: typed_semantic_graph
  operations: [entity_resolution, relationship_traversal, temporal_filtering, calculation, evidence_retrieval, uncertainty_propagation]
  safeguards: [no_invented_values, no_unsupported_predictions, no_automatic_financial_advice, explicit_time_and_currency]
  output: [entities, relationships, inferred_assertions, evidence, confidence, provenance, version]

END FLOW ALGEBRA