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Technical Paper

Bounded Confidence Envelopes for Large Language Model Inference

John McGraw — TaskHawk Systems, LLC
February 13, 2026
AI GovernanceConfidence ScoringFormal VerificationLLM SafetyHysteresisHash-Chained Evidence

Abstract

Large Language Models deployed in regulated or safety-critical settings generate outputs that carry inherent uncertainty. Current mitigation strategies — prompt engineering, RLHF, retrieval-augmented generation — improve average-case quality but provide no deterministic enforcement guarantees. We introduce Bounded Confidence Envelopes (BCE), a governance mechanism that wraps LLM inference with dual-threshold confidence gating, hysteresis-based mode management, and hash-chained evidence logging. The system enforces four graduated actions — Allow, Flag, Constrain, Block — based on real-time confidence scoring, with all enforcement decisions cryptographically logged to a tamper-evident audit trail. We provide a formal specification in TLA+ covering 32.8 million states with zero counterexamples across eight safety properties. Benchmark evaluation on TruthfulQA demonstrates +2.9 percentage-point accuracy improvement and 73% filtering of incorrect outputs, with 4.2% token savings from constrained inference.

Key contributions

Bounded Confidence Envelopes
A deterministic governance layer that wraps LLM inference with dual-threshold confidence gating and graduated enforcement actions.
Hysteresis-Based Mode Management
Four-mode lifecycle (INERT → BOOT → RUN → FAULT) with asymmetric thresholds that prevent state oscillation in production systems.
Formal Verification
TLA+ specification covering 32.8 million states with zero counterexamples across eight safety properties, including fault latching and evidence chain integrity.
Empirical Validation
Benchmark results on TruthfulQA demonstrating measurable accuracy improvement and hallucination filtering with minimal token overhead.

This research is the Kevros product.

The techniques described in this paper are implemented in the Kevros AI Governance Gateway — deployed as an Azure Managed Application inside your subscription.