Algebraic Effects and Delimited Continuations for Multi-Agent AI Systems in Financial Portfolio Management and Options Pricing, 2025
This document presents an architectural framework for building multi-agent AI systems in the fina... more This document presents an architectural framework for building multi-agent AI systems in the financial domain using Kyo’s algebraic effect system. Kyo, developed by Flavio Brasil at Nubank, introduces a novel approach to effect handling through first-class delimited continuations
that can be resumed zero, one, or multiple times (Brasil 2023, 2025). Unlike traditional approaches that rely on callback chains, promise combinators, or actor-based message passing, Kyo’s continuation-based semantics enable sophisticated control flow patterns essential for financial applications: speculative execution for latency-sensitive pricing,
transactional rollback for failed multi-leg trades, fan-out aggregation for consensus pricing, and checkpoint/resume for long-running optimisation loops. This architecture addresses critical production concerns including type-safe effect tracking, composable error handling, and formal reasoning about system behaviour—essential for regulatory compliance and risk management in institutional finance.
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that can be resumed zero, one, or multiple times (Brasil 2023, 2025). Unlike traditional approaches that rely on callback chains, promise combinators, or actor-based message passing, Kyo’s continuation-based semantics enable sophisticated control flow patterns essential for financial applications: speculative execution for latency-sensitive pricing,
transactional rollback for failed multi-leg trades, fan-out aggregation for consensus pricing, and checkpoint/resume for long-running optimisation loops. This architecture addresses critical production concerns including type-safe effect tracking, composable error handling, and formal reasoning about system behaviour—essential for regulatory compliance and risk management in institutional finance.