A long-horizon agent's trace outgrows both of its consumers: the human observer monitoring the run, and the agent itself, whose bounded context the trace must be folded back into. We present a live trace model, an append-only event ledger folded incrementally into typed run state and compiled into per-consumer views, and evaluate it for both consumers against deterministic ground truth. For the observer side, evaluated with an LLM reader as proxy, the compiled view answers monitoring questions using approximately 14x and 15x fewer input tokens (by reader) and at 5-7x lower cost than a budget-capped single-call reading of the raw trace, with higher accuracy (0.85-0.87 versus 0.48). Because the questions were co-designed with the view schema, we treat the token and cost reduction, conditional on schema coverage, as the transferable result. For the agent, on 120-link sequential-dependency tasks, mechanisms that maintain the task's running statistic in per-step state succeed where full-context prompting fails (30/30 versus 8/30 under a clean protocol, n=30, labeled descriptive owing to benchmark-system co-development); a prompt-level scratchpad matches the fold's accuracy at lower cost, and a two-arm decomposition attributes the fold's accuracy to its deterministic aggregate and its cost advantage to its compactness. The fold's remaining value over cheaper alternatives is deterministic auditability and serving the observer from the same state. We derive eleven candidate requirements for trace folding from observed failures and delimit them with an order-sensitive task family on which the fold ceases to help. Code, benchmarks, a regenerable synthetic corpus, and all workbench traces are released.
Delegation-scoped execution is not identifiable from standard observables: audit logs and execution traces can be identical under multiple incompatible delegation assignments. This gap is especially acute in LLM-based agentic systems, where agents dynamically select tools, vary execution sequences across runs for the same instruction, and spawn cooperating sub-agents. These dynamics fragment and interleave traces, making delegation-scoped reconstruction from causal structure alone structurally underdetermined. Although individual actions are authorized and logged, existing audit, tracing, and security schemas lack the semantics to reconstruct what actions occurred under a given delegation across heterogeneous systems. We focus on delegation-scoped attribution and access/share footprint reconstruction, not intent inference or reasoning reconstruction. We present an agent-aware observability substrate consisting of a lightweight gateway and a common information model that binds delegation context at execution time. This enables reliable cross-tool delegation-scoped reconstruction and direct forensic queries without heuristic time-window correlation.