# kaal:claim:7314479-007

**Claim.** A plugin written by the vendor is a feature governed by the vendor's own accountability, while a service invoked across an economic boundary is a counterparty requiring institutions between parties.

**Type.** definitional  **Support.** argued

**Holds when.**

- heterogeneous composition among independently operated components

**Source quote.**

> A plugin written by the vendor is a feature. A service invoked across an economic boundary is a counterparty. The distinction between a feature and a counterparty is the entire subject of this Article. Features are governed by their vendor's own accountability. Counterparties require institutions between parties.

**From.** Wulf A. Kaal, *Institutional Requirements for Sovereign Local Agent Runtimes* (2026), II. The Sovereign Local Agent Runtime as a Class of System, page 6

**Cite as.** Wulf A. Kaal, Institutional Requirements for Sovereign Local Agent Runtimes (2026). SSRN: https://ssrn.com/abstract=7314479

**Verify.** sha256 of source PDF `debace24a155ae924a155b1fafe98856d98cf83689feff2f87a32f1c06171ce6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20Institutional%20Requirements%20for%20Sovereign%20Local%20Agent%20Runtimes.pdf

**Topics.** institutional-design, economics, ai-and-agents

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