# Absorbing Complexity: An Interaction-Native Knowledge Harness for Financial LLM Agents

arXiv: https://arxiv.org/abs/2606.01886 · HTML: https://mlsanity.com/paper/2606.01886/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use.
- Builds on 23 of its 34 references that are in the map.
- First posted on arXiv 1 Jun 2026.

## Placed in

- LLM agents and tool use / [Financial trading and forecasting agents](https://mlsanity.com/agents/financial-trading-and-forecasting-agents/)

## Builds on (most cited first, 23 of 23)

- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [Self-Refine: Iterative Refinement with Self-Feedback](https://mlsanity.com/paper/2303.17651/) (2023)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [Self-RAG: Learning to Retrieve, Generate, and Critique through Self-Reflection](https://mlsanity.com/paper/2310.11511/) (2023)
- [Improving language models by retrieving from trillions of tokens](https://mlsanity.com/paper/2112.04426/) (2021)
- [A-MEM: Agentic Memory for LLM Agents](https://mlsanity.com/paper/2502.12110/) (2025)
- [ExpeL: LLM Agents Are Experiential Learners](https://mlsanity.com/paper/2308.10144/) (2023)
- [Evaluating Very Long-Term Conversational Memory of LLM Agents](https://mlsanity.com/paper/2402.17753/) (2024)
- [Mem0: Building Production-Ready AI Agents with Scalable Long-Term Memory](https://mlsanity.com/paper/2504.19413/) (2025)
- [LongMemEval: Benchmarking Chat Assistants on Long-Term Interactive Memory](https://mlsanity.com/paper/2410.10813/) (2024)
- [Zep: A Temporal Knowledge Graph Architecture for Agent Memory](https://mlsanity.com/paper/2501.13956/) (2025)
- [FinanceBench: A New Benchmark for Financial Question Answering](https://mlsanity.com/paper/2311.11944/) (2023)
- [FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Design](https://mlsanity.com/paper/2311.13743/) (2023)
- [Finance Agent Benchmark: Benchmarking LLMs on Real-world Financial Research Tasks](https://mlsanity.com/paper/2508.00828/) (2025)
- [FinAgentBench: A Benchmark Dataset for Agentic Retrieval in Financial Question Answering](https://mlsanity.com/paper/2508.14052/) (2025)
- [Graph-based Agent Memory: Taxonomy, Techniques, and Applications](https://mlsanity.com/paper/2602.05665/) (2026)
- [BizFinBench: A Business-Driven Real-World Financial Benchmark for Evaluating LLMs](https://mlsanity.com/paper/2505.19457/) (2025)
- [Execution Is the New Attack Surface: Survivability-Aware Agentic Crypto Trading with OpenClaw-Style Local Executors](https://mlsanity.com/paper/2603.10092/) (2026)
- [Safe and Compliant Cross-Market Trade Execution via Constrained RL and Zero-Knowledge Audits](https://mlsanity.com/paper/2510.04952/) (2025)

## Abstract (arXiv)

Financial AI agents often fail for a simple reason: they make users carry the complexity. A user must repeatedly restate goals, risk preferences, portfolio context, past judgments, and shifting market assumptions, while the agent answers, retrieves, acts, and forgets. In finance, this is not just inconvenient. In tasks such as market analysis, copy-trading review, and trade preparation, forgotten context and stale memory can create latency, repeated errors, weak auditability, and unsafe decisions. We propose the interaction-native knowledge harness (InKH), an architecture for financial LLM agents that absorbs complexity into the system. InKH converts user, market, portfolio, and tool events into structured operational knowledge. It uses passive knowledge injection to assemble a bounded working context buffer before the main model step, temporal graph memory for low-latency retrieval, a wiki audit surface for human-readable governance, and background extraction with maturity, decay, and write-time invalidation. We evaluate InKH on a reproducible controlled synthetic benchmark with 24 random seeds, 4 rounds, 80 episodes per round, and 6 baselines, producing 46,080 baseline-conditioned evaluations. InKH achieves mean task quality of 0.815 at 900 ms latency. Compared with agent-driven wiki-walk memory, it reduces latency by 82.95 percent, token cost by 82.29 percent, and stale-knowledge usage by 96.58 percent, while improving quality by 0.108 and traceability by 0.461. Compared with a temporal-graph system without invalidation, it improves quality by 0.050 and reduces stale-memory usage by 96.58 percent with comparable serving cost. The results support a design thesis for financial AI: adoption happens when complexity is absorbed by the system rather than transferred to the user. The benchmark validates architecture-level behavior, not live trading performance.