> For the complete documentation index, see [llms.txt](https://docs.adcpcapital.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.adcpcapital.com/verification/reconciliation.md). # Reconciliation Two distinct properties are checked independently — see [Capital Accounting](/protocol/capital-accounting.md): 1. **Internal ledger self-consistency** — does the accounting contract's own bookkeeping satisfy its accounting identity at all times? 2. **Accounted-vs-actual custody conservation** — does the accounted balance the ledger believes it holds ever exceed what the custody contract can independently prove it actually holds? ## Why this distinction matters A ledger can be internally self-consistent while still disagreeing with real custody — for example, if funds left custody through a path the ledger doesn't know about. ADCP treats these as two separate checks, not one, and neither one alone is treated as sufficient reconciliation evidence. ## Unexplained transfers An unsolicited or unexplained token transfer into protocol custody is never automatically classified as capital, revenue, or distributable surplus. It requires an explicit reconciliation procedure, and no privileged role can unilaterally relabel it as revenue. ## Observing reconciliation yourself The live application's balance-sheet and system views expose the inputs needed to perform this comparison directly — see [Observable State](/verification/observable-state.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.adcpcapital.com/verification/reconciliation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.