diff --git a/prod/VIOLET_dev/reports/violet_v3_parity_20260613_181458.json b/prod/VIOLET_dev/reports/violet_v3_parity_20260613_181458.json
new file mode 100644
index 0000000..d37577d
--- /dev/null
+++ b/prod/VIOLET_dev/reports/violet_v3_parity_20260613_181458.json
@@ -0,0 +1,172 @@
+{
+  "n_samples": 2111,
+  "n_bins": 23,
+  "max_abs_err": 0.23778841851851729,
+  "pearson_r": 0.9998403353285148,
+  "max_abs_err_budget": 1.0,
+  "pearson_budget": 0.95,
+  "bins": [
+    {
+      "vd_bin": -0.35,
+      "n": 8,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.24,
+      "n": 8,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.23,
+      "n": 10,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.22,
+      "n": 9,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.21,
+      "n": 8,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.19,
+      "n": 9,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.18,
+      "n": 8,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.17,
+      "n": 8,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.16,
+      "n": 9,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.15,
+      "n": 16,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.14,
+      "n": 11,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.13,
+      "n": 19,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.12,
+      "n": 28,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.11,
+      "n": 17,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.1,
+      "n": 26,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.09,
+      "n": 34,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.08,
+      "n": 53,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.07,
+      "n": 71,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.06,
+      "n": 114,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.05,
+      "n": 162,
+      "recorded_median_leverage": 9.0,
+      "base_conviction": 9.0,
+      "abs_err": 0.0
+    },
+    {
+      "vd_bin": -0.04,
+      "n": 278,
+      "recorded_median_leverage": 2.7807301000000004,
+      "base_conviction": 3.0185185185185177,
+      "abs_err": 0.23778841851851729
+    },
+    {
+      "vd_bin": -0.03,
+      "n": 519,
+      "recorded_median_leverage": 0.8341213,
+      "base_conviction": 0.8148148148148147,
+      "abs_err": 0.019306485185185296
+    },
+    {
+      "vd_bin": -0.02,
+      "n": 396,
+      "recorded_median_leverage": 0.513395575,
+      "base_conviction": 0.5,
+      "abs_err": 0.013395574999999993
+    }
+  ],
+  "passed": true
+}
\ No newline at end of file
diff --git a/prod/clean_arch/violet/parity_harness.py b/prod/clean_arch/violet/parity_harness.py
new file mode 100644
index 0000000..6124de4
--- /dev/null
+++ b/prod/clean_arch/violet/parity_harness.py
@@ -0,0 +1,153 @@
+"""VIOLET V3d: base-sizer parity harness vs recorded live BLUE.
+
+Validates that the V3a ``VioletBetSizer`` reproduces BLUE's BASE conviction curve,
+measured against recorded ``dolphin.trade_events`` (vel_div_entry -> leverage).
+
+Per-trade ``leverage`` is NOT base alone — it is ``base_sizer(vel_div) +- modulation``
+(SC-haircut / ACB / OB-cascade / "gold"; see
+prod/docs/VIOLET_FINDING__MODULATION_LAYER_VS_UNDERUTILIZATION.md). The modulation is a
+DEFERRED organ. So the parity GATE here is the BASE / MEDIAN curve: per vel_div bin, the
+recorded MEDIAN leverage must track the base sizer's conviction at the bin midpoint —
+proving L1 reproduces BLUE's central tendency. Per-trade exact parity is expected to be
+low (~1/3) by construction and is NOT the gate.
+"""
+
+from __future__ import annotations
+
+import math
+from typing import Dict, List, Optional, Tuple
+
+from pydantic import Field
+
+from .alpha_wrappers import VioletBetSizer
+from .domain import StrictModel
+
+
+class BinParity(StrictModel):
+    vd_bin: float
+    n: int = Field(ge=1)
+    recorded_median_leverage: float = Field(ge=0.0, allow_inf_nan=False)
+    base_conviction: float = Field(ge=0.0, allow_inf_nan=False)
+    abs_err: float = Field(ge=0.0, allow_inf_nan=False)
+
+
+class ParityReport(StrictModel):
+    n_samples: int = Field(ge=0)
+    n_bins: int = Field(ge=0)
+    max_abs_err: float = Field(ge=0.0, allow_inf_nan=False)
+    pearson_r: float = Field(allow_inf_nan=False)
+    max_abs_err_budget: float
+    pearson_budget: float
+    bins: List[BinParity]
+    passed: bool
+
+
+def _median(xs: List[float]) -> float:
+    s = sorted(xs)
+    k = len(s)
+    if k == 0:
+        return 0.0
+    mid = k // 2
+    return s[mid] if k % 2 else 0.5 * (s[mid - 1] + s[mid])
+
+
+def _pearson(xs: List[float], ys: List[float]) -> float:
+    n = len(xs)
+    if n < 2:
+        return 1.0
+    mx, my = sum(xs) / n, sum(ys) / n
+    sxy = sum((x - mx) * (y - my) for x, y in zip(xs, ys))
+    sxx = sum((x - mx) ** 2 for x in xs)
+    syy = sum((y - my) ** 2 for y in ys)
+    if sxx <= 0 or syy <= 0:
+        return 1.0
+    return sxy / math.sqrt(sxx * syy)
+
+
+def base_curve_parity(
+    samples: List[Tuple[float, float]],          # (vel_div, recorded_leverage)
+    sizer: VioletBetSizer,
+    *,
+    bin_width: float = 0.01,
+    min_n: int = 8,
+    vel_div_threshold: float = -0.02,
+    max_abs_err_budget: float = 1.0,
+    pearson_budget: float = 0.95,
+) -> ParityReport:
+    """Bin by vel_div; compare recorded MEDIAN leverage to the base sizer's
+    conviction at the bin midpoint. Gate: max bin abs-err <= budget AND
+    recorded-vs-base Pearson r >= budget across bins.
+
+    Restricted to the SHORT-signal domain (vd <= vel_div_threshold): outside it
+    the base short sizer floors at min_leverage and the recorded trades are
+    long-side / edge cases the short base curve does not govern.
+    """
+    buckets: Dict[float, List[float]] = {}
+    for vd, lev in samples:
+        if vd > vel_div_threshold:
+            continue
+        b = round(round(vd / bin_width) * bin_width, 4)
+        buckets.setdefault(b, []).append(float(lev))
+
+    bins: List[BinParity] = []
+    rec_meds: List[float] = []
+    base_vals: List[float] = []
+    for b in sorted(buckets):
+        levs = buckets[b]
+        if len(levs) < min_n:
+            continue
+        rec_med = _median(levs)
+        base = sizer.calculate(capital=1.0, vel_div=b, trade_direction=-1).conviction_leverage
+        bins.append(BinParity(
+            vd_bin=b, n=len(levs), recorded_median_leverage=rec_med,
+            base_conviction=base, abs_err=abs(rec_med - base),
+        ))
+        rec_meds.append(rec_med)
+        base_vals.append(base)
+
+    max_abs_err = max((bp.abs_err for bp in bins), default=0.0)
+    r = _pearson(base_vals, rec_meds)
+    passed = bool(bins) and max_abs_err <= max_abs_err_budget and r >= pearson_budget
+    return ParityReport(
+        n_samples=len(samples), n_bins=len(bins),
+        max_abs_err=max_abs_err, pearson_r=r,
+        max_abs_err_budget=max_abs_err_budget, pearson_budget=pearson_budget,
+        bins=bins, passed=passed,
+    )
+
+
+def load_recorded_samples_from_ch(
+    *, limit: int = 5000, ch_url: str = "http://localhost:8123/",
+    user: str = "dolphin", key: str = "dolphin_ch_2026",
+) -> List[Tuple[float, float]]:
+    """Pull clean (vel_div_entry, leverage) pairs from recorded BLUE trades."""
+    import urllib.request
+
+    sql = (
+        "WITH dedup AS (SELECT trade_id, any(vel_div_entry) vd, any(leverage) lev, "
+        "any(exit_reason) er, any(bars_held) bh FROM dolphin.trade_events GROUP BY trade_id) "
+        "SELECT vd, lev FROM dedup WHERE er!='HIBERNATE_HALT' AND bh>0 AND lev>0 "
+        f"LIMIT {int(limit)} FORMAT TSV"
+    )
+    req = urllib.request.Request(
+        ch_url, data=sql.encode(),
+        headers={"X-ClickHouse-User": user, "X-ClickHouse-Key": key},
+    )
+    with urllib.request.urlopen(req, timeout=30) as resp:
+        body = resp.read().decode()
+    out: List[Tuple[float, float]] = []
+    for line in body.splitlines():
+        if not line.strip():
+            continue
+        a, b = line.split("\t")
+        out.append((float(a), float(b)))
+    return out
+
+
+def live_blue_sizer() -> VioletBetSizer:
+    """The sizer parameterized to live BLUE's BASE curve (pinned 2026-06-13 from the
+    recorded median curve: max_leverage 9.0, thr -0.02, extreme -0.05, convexity 3)."""
+    return VioletBetSizer(
+        base_fraction=0.20, min_leverage=0.5, max_leverage=9.0,
+        vel_div_threshold=-0.02, vel_div_extreme=-0.05, leverage_convexity=3.0,
+    )
diff --git a/prod/clean_arch/violet/test_violet_parity.py b/prod/clean_arch/violet/test_violet_parity.py
new file mode 100644
index 0000000..b75e68d
--- /dev/null
+++ b/prod/clean_arch/violet/test_violet_parity.py
@@ -0,0 +1,80 @@
+"""V3d: base-sizer median-curve parity vs recorded BLUE (unit + @gate)."""
+
+from __future__ import annotations
+
+import json
+import sys
+from datetime import datetime, timezone
+from pathlib import Path
+
+sys.path.insert(0, "/mnt/dolphinng5_predict")
+
+import pytest
+
+from prod.clean_arch.violet.parity_harness import (
+    ParityReport, base_curve_parity, live_blue_sizer, load_recorded_samples_from_ch,
+)
+
+REPORTS_DIR = Path("/mnt/dolphinng5_predict/prod/VIOLET_dev/reports")
+
+
+def _base_samples(per_bin: int = 12):
+    """Synthetic samples drawn exactly from the base curve (perfect parity)."""
+    s = live_blue_sizer()
+    out = []
+    for k in range(2, 13):                     # vd = -0.02 .. -0.12, all on 0.01 bin centers
+        vd = -k / 100.0
+        base = s.calculate(capital=1.0, vel_div=vd, trade_direction=-1).conviction_leverage
+        out.extend([(vd, base)] * per_bin)
+    return out
+
+
+def test_perfect_base_samples_pass():
+    rep = base_curve_parity(_base_samples(), live_blue_sizer())
+    assert rep.passed
+    assert rep.max_abs_err == pytest.approx(0.0, abs=1e-6)
+    assert rep.pearson_r == pytest.approx(1.0, abs=1e-6)
+
+
+def test_median_tracks_base_under_minority_haircuts():
+    # majority at base, minority haircut down -> median still tracks base -> passes.
+    s = live_blue_sizer()
+    samples = []
+    for k in range(2, 13):                               # vd on 0.01 bin centers
+        vd = -k / 100.0
+        base = s.calculate(capital=1.0, vel_div=vd, trade_direction=-1).conviction_leverage
+        samples.extend([(vd, base)] * 8)                 # 8 at base
+        samples.extend([(vd, base * 0.3)] * 3)           # 3 haircut (minority)
+    rep = base_curve_parity(samples, s)
+    assert rep.passed
+
+
+def test_decorrelated_noise_fails_gate():
+    # leverage independent of vel_div -> low correlation -> gate fails (guard works).
+    import random
+    rng = random.Random(7)
+    samples = [(vd / 1000.0, rng.uniform(0.5, 9.0))
+               for vd in range(-60, -1) for _ in range(12)]
+    rep = base_curve_parity(samples, live_blue_sizer())
+    assert not rep.passed
+
+
+@pytest.mark.gate
+def test_base_curve_parity_vs_recorded_blue():
+    """GATE (prod host): the V3a base sizer reproduces BLUE's recorded median curve."""
+    samples = load_recorded_samples_from_ch(limit=5000)
+    assert len(samples) >= 500, f"too few recorded samples: {len(samples)}"
+    rep = base_curve_parity(samples, live_blue_sizer())
+
+    REPORTS_DIR.mkdir(parents=True, exist_ok=True)
+    ts = datetime.now(timezone.utc).strftime("%Y%m%d_%H%M%S")
+    (REPORTS_DIR / f"violet_v3_parity_{ts}.json").write_text(
+        json.dumps(rep.model_dump(), indent=2, default=str))
+
+    assert isinstance(rep, ParityReport)
+    assert rep.n_bins >= 5
+    assert rep.passed, (
+        f"base-curve parity FAILED: max_abs_err={rep.max_abs_err:.3f} "
+        f"(budget {rep.max_abs_err_budget}), pearson={rep.pearson_r:.3f} "
+        f"(budget {rep.pearson_budget})"
+    )
diff --git a/prod/docs/VIOLET_FINDING__MODULATION_LAYER_VS_UNDERUTILIZATION.md b/prod/docs/VIOLET_FINDING__MODULATION_LAYER_VS_UNDERUTILIZATION.md
new file mode 100644
index 0000000..24b1b6f
--- /dev/null
+++ b/prod/docs/VIOLET_FINDING__MODULATION_LAYER_VS_UNDERUTILIZATION.md
@@ -0,0 +1,77 @@
+# VIOLET Finding — The Sizing-Modulation Layer vs. the Capital-Under-Utilization Result
+
+**Status:** Finding / caveat, 2026-06-13. Separate doc by operator request. Qualifies
+(does NOT overturn) the [[blue_margin_envelope_study]] and constrains the
+`VIOLET_STUDY_SPEC__BASE_FRACTION_SIZING.md` (#3) and any pre-V4 sizing work.
+
+## TL;DR
+
+The newly-isolated downstream **sizing-modulation layer** (SC-haircut / ACB / OB-cascade
+/ "gold" — the organs that ride along ACBv6) does **not** counter the margin study: that
+study used **actual recorded notionals**, which are already post-modulation. But it
+**sharpens** what "under-utilized capital" means, and makes the modulation layer a
+**required** pre-execution component for VIOLET — not optional.
+
+## 1. Why the margin study is NOT contradicted
+
+The margin/viability study computed `our_leverage = entry_price·quantity / capital_before`
+from `dolphin.trade_events` — i.e. from the **notionals BLUE actually traded**, haircuts
+and boosts already baked in. The modulation is therefore *inside* the measured numbers,
+not a missed factor. Conclusions stand on the as-traded data:
+
+- max realized `our_leverage` ≈ **1.81**
+- **100%** of trades margin-feasible at **2×** exchange leverage
+- **+$47k** clean deduped edge
+
+## 2. How recorded leverage decomposes (the discovery)
+
+Recorded conviction `leverage` is **NOT** the base bet-sizer output alone:
+
+```
+recorded_leverage(trade)  =  base_sizer(vel_div)  ±  modulation(SC, ACB, OB, gold)
+```
+
+- **base_sizer(vel_div)** — cubic-convex strength³ curve; VIOLET's V3a `VioletBetSizer`
+  reproduces it (validated on binned MEDIANS: vd −0.03→0.83, −0.04→2.78, −0.05→9.0 with
+  max_leverage=9 / thr −0.02 / extreme −0.05 / convexity 3).
+- **modulation** — mostly **downward haircuts** (mins far below the median per vel_div
+  bin), with some upward boosts to the 9 cap. This is the per-trade scatter that drops
+  exact per-trade parity to ~34% while the median curve matches.
+
+## 3. The sharpening (this is the load-bearing part)
+
+The study's **median wallet utilization was ~6.8%** (`our_leverage` p50 ≈ 0.068). That
+low median is **largely the haircut layer at work** — BLUE deliberately sized most trades
+far below the base curve. The **max 1.81** is the *un-haircut, base-saturated* tail.
+
+Consequences:
+
+1. **Margin feasibility is robust** even if the haircuts are later dropped: the study's
+   worst case (1.81) already equals the base-saturated value, and 2× covers it. Sizing at
+   full base does not break margin.
+2. **"Under-utilized ⇒ free ROI" is now GUARDED.** Much of the idle ~93% is **not waste**
+   — it is the modulation layer **deliberately de-risking** (cutting size on
+   lower-conviction / higher-risk setups). It is risk knowledge encoded as size.
+
+## 4. Binding implications
+
+- **#3 base-fraction study MUST NOT read the 6.8% median as free headroom.** A large part
+  of it is risk-management. Any base-fraction increase must be evaluated *with* the
+  modulation layer modeled, conditioned on the regime-robustness work — never by naively
+  reclaiming the idle capital.
+- **The modulation layer is REQUIRED before live execution (V4).** VIOLET running the
+  **base sizer alone** would size *bigger than BLUE did* on exactly the trades BLUE chose
+  to haircut → utilization jumps from ~7% median toward the base, and **realized
+  risk/return diverges from the recorded +$47k** (more variance, possibly worse
+  risk-adjusted). Median-curve base parity (V3d) is necessary but **not sufficient** for
+  faithful BLUE replication.
+- **New deferred task (pre-V4):** wrap the SC-haircut / ACB / OB-cascade / "gold"
+  modulation organs as a VIOLET sizing-modulation layer on top of the base
+  `VioletBetSizer`, with its own per-trade parity gate vs recorded `leverage`.
+
+## 5. Related
+
+[[blue_margin_envelope_study]] · [[violet_v3_alpha_doctrine]] (#9 keystone, #11 parity
+finding) · `VIOLET_STUDY_SPEC__BASE_FRACTION_SIZING.md` · `prod/clean_arch/violet/alpha_wrappers.py`
+(base sizer) · live organs in `prod/nautilus_event_trader.py`
+(`_apply_sc_entry_size_multiplier`, `_record_sc_haircut`, `AdaptiveCircuitBreaker`).