arXiv:2610.00787v1 Announce Type: new Abstract: A correctly governed LLM agent can reach a state in which neither continuing execution nor automatically halting is admissible: the system has detected a persistent failure of its observability or drift-detection layer, but cannot itself decide who has the authority to resume, deny, or recalibrate the deployment. We call this an identity-bound governance event and formalise the mechanism that resolves it.

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