TRACE: Trajectory Risk-Aware Compression for Long-Horizon Agent Safety

LLM agents increasingly operate through multi-turn tool use and environment interaction, where safety risks often emerge from intermediate steps long before they surface in the final outcome. Reactive auditing is therefore insufficient: post-hoc diagnosis frequently misses the chance to flag risks while they are unfolding. We propose TRACES, a representation-based proactive auditor that learns prefix-level trajectory risk states from the hidden representations of an observer LLM. TRACES induces latent mechanism features from step representations and models their temporal evolution to estimate whether a partial trajectory is drifting toward unsafe behavior. To sidestep the cost and ambiguity of step-level risk annotation, TRACES is trained with weak trajectory-level supervision while still producing dense prefix-level risk estimates. Across multiple agent safety benchmarks, TRACES improves both full-trajectory safety prediction and proactive risk discrimination. Our analyses further suggest that these risk states can help train a safer agent, highlighting the broader potential of proactive auditing for long-horizon agent safety.

Autonomous LLM agents can pursue hidden malicious objectives through sequences of individually benign actions, making sabotage difficult to detect using standard trajectory-level monitoring. Existing approaches either evaluate complete trajectories in a single pass or partition them into independently scored windows, limiting their ability to connect evidence across temporally distant actions. We propose TRACE, a monitoring framework for long-horizon LLM agent trajectories. TRACE operates through a TIJ (Triage-Inspect-Judge) loop that identifies high-signal regions, performs targeted inspection while maintaining accumulated evidence across reasoning steps, and synthesizes a trajectory-level verdict. We evaluate TRACE on ten task domains from SHADE-Arena against state-of-the-art baselines. TRACE achieves an aggregate F1 of 0.713 and recall of 0.844, with the largest gains on tasks requiring long-range evidence linking.

Long-horizon LLM agents accumulate memory across sessions, creating sparse but high-impact risks: stale facts, conflicting updates, cross-user leakage, revoked-memory reuse, and constraint decay. Standard aggregate scores hide per-risk failure rates--a model achieving 78% average accuracy may still leak data in 4% of episodes--and benchmark compression preferentially discards the rare high-severity events that distinguish a mostly-working model from one that occasionally causes harm. We present MemRiskBench. The primary contribution is a five-category risk taxonomy (plus one documented, unscored category) operationalized by deterministic trace grounded checks, instantiated as a 120-episode scripted benchmark with full trace logging and no LLM-as-judge on the pass/fail path, evaluated on five locally run quantized instruction-tuned models. Second, a risk-preserving subset selector: a coverage-constrained greedy selector on deterministic trace-derived features that retains full ranking (Spearman rho = 0.975, deterministic; CI collapses to a point estimate with zero bootstrap variance), risk coverage (1.0), and high-risk model detection (1.0) at a 20% subset size, reducing compute 5x. Unlike ranking-only subset selectors, this selector additionally preserves risk-type coverage and high-risk detection using trace-grounded deterministic features that do not require an LLM judge. All episodes, traces, the scoring implementation, and the selector are released to support reproducible evaluation and risk assessment of deployed LLM agents