A bounded agent run loops turn-by-turn while RUNNING until it reaches COMPLETED, FAILED, or — at max_turns — EXHAUSTED, a distinct terminal state that is neither success nor failure
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Bounded by Design
• RUNNING advances one turn at a time
• A turn budget (max_turns) caps the loop
• Completed is the on-rail success exit
Three Terminal States
• Completed = the goal was reached
• Failed = an unrecoverable error
• Exhausted = budget spent, no verdict
Why It Matters
• Exhausted is not a failure to alert on
• It signals re-plan or raise the budget
• Conflating the two hides real errors
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