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Agent Loop Internals
The core orchestration engine is run_agent.py's AIAgent class — roughly 9,200 lines that handle everything from prompt assembly to tool dispatch to provider failover.
Core Responsibilities
AIAgent is responsible for:
- Assembling the effective system prompt and tool schemas via
prompt_builder.py - Selecting the correct provider/API mode (chat_completions, codex_responses, anthropic_messages)
- Making interruptible model calls with cancellation support
- Executing tool calls (sequentially or concurrently via thread pool)
- Maintaining conversation history in OpenAI message format
- Handling compression, retries, and fallback model switching
- Tracking iteration budgets across parent and child agents
- Flushing persistent memory before context is lost
Two Entry Points
# Simple interface — returns final response string
response = agent.chat("Fix the bug in main.py")
# Full interface — returns dict with messages, metadata, usage stats
result = agent.run_conversation(
user_message="Fix the bug in main.py",
system_message=None, # auto-built if omitted
conversation_history=None, # auto-loaded from session if omitted
task_id="task_abc123"
)
chat() is a thin wrapper around run_conversation() that extracts the final_response field from the result dict.
API Modes
Hermes supports three API execution modes, resolved from provider selection, explicit args, and base URL heuristics:
| API mode | Used for | Client type |
|---|---|---|
chat_completions | OpenAI-compatible endpoints (OpenRouter, custom, most providers) | openai.OpenAI |
codex_responses | OpenAI Codex / Responses API | openai.OpenAI with Responses format |
anthropic_messages | Native Anthropic Messages API | anthropic.Anthropic via adapter |
The mode determines how messages are formatted, how tool calls are structured, how responses are parsed, and how caching/streaming works. All three converge on the same internal message format (OpenAI-style role/content/tool_calls dicts) before and after API calls.
Mode resolution order:
- Explicit
api_modeconstructor arg (highest priority) - Provider-specific detection (e.g.,
anthropicprovider →anthropic_messages) - Base URL heuristics (e.g.,
api.anthropic.com→anthropic_messages) - Default:
chat_completions
Turn Lifecycle
Each iteration of the agent loop follows this sequence:
run_conversation()
1. Generate task_id if not provided
2. Append user message to conversation history
3. Build or reuse cached system prompt (prompt_builder.py)
4. Check if preflight compression is needed (>50% context)
5. Build API messages from conversation history
- chat_completions: OpenAI format as-is
- codex_responses: convert to Responses API input items
- anthropic_messages: convert via anthropic_adapter.py
6. Inject ephemeral prompt layers (budget warnings, context pressure)
7. Apply prompt caching markers if on Anthropic
8. Make interruptible API call (_api_call_with_interrupt)
9. Parse response:
- If tool_calls: execute them, append results, loop back to step 5
- If text response: persist session, flush memory if needed, return
Message Format
All messages use OpenAI-compatible format internally:
{"role": "system", "content": "..."}
{"role": "user", "content": "..."}
{"role": "assistant", "content": "...", "tool_calls": [...]}
{"role": "tool", "tool_call_id": "...", "content": "..."}
Reasoning content (from models that support extended thinking) is stored in assistant_msg["reasoning"] and optionally displayed via the reasoning_callback.
Message Alternation Rules
The agent loop enforces strict message role alternation:
- After the system message:
User → Assistant → User → Assistant → ... - During tool calling:
Assistant (with tool_calls) → Tool → Tool → ... → Assistant - Never two assistant messages in a row
- Never two user messages in a row
- Only
toolrole can have consecutive entries (parallel tool results)
Providers validate these sequences and will reject malformed histories.
Interruptible API Calls
API requests are wrapped in _api_call_with_interrupt() which runs the actual HTTP call in a background thread while monitoring an interrupt event:
┌──────────────────────┐ ┌──────────────┐
│ Main thread │ │ API thread │
│ wait on: │────▶│ HTTP POST │
│ - response ready │ │ to provider │
│ - interrupt event │ └──────────────┘
│ - timeout │
└──────────────────────┘
When interrupted (user sends new message, /stop command, or signal):
- The API thread is abandoned (response discarded)
- The agent can process the new input or shut down cleanly
- No partial response is injected into conversation history
Tool Execution
Sequential vs Concurrent
When the model returns tool calls:
- Single tool call → executed directly in the main thread
- Multiple tool calls → executed concurrently via
ThreadPoolExecutor- Exception: tools marked as interactive (e.g.,
clarify) force sequential execution - Results are reinserted in the original tool call order regardless of completion order
- Exception: tools marked as interactive (e.g.,
Execution Flow
for each tool_call in response.tool_calls:
1. Resolve handler from tools/registry.py
2. Fire pre_tool_call plugin hook
3. Check if dangerous command (tools/approval.py)
- If dangerous: invoke approval_callback, wait for user
4. Execute handler with args + task_id
5. Fire post_tool_call plugin hook
6. Append {"role": "tool", "content": result} to history
Agent-Level Tools
Some tools are intercepted by run_agent.py before reaching handle_function_call():
| Tool | Why intercepted |
|---|---|
todo | Reads/writes agent-local task state |
memory | Writes to persistent memory files with character limits |
session_search | Queries session history via the agent's session DB |
delegate_task | Spawns subagent(s) with isolated context |
These tools modify agent state directly and return synthetic tool results without going through the registry.
Callback Surfaces
AIAgent supports platform-specific callbacks that enable real-time progress in the CLI, gateway, and ACP integrations:
| Callback | When fired | Used by |
|---|---|---|
tool_progress_callback | Before/after each tool execution | CLI spinner, gateway progress messages |
thinking_callback | When model starts/stops thinking | CLI "thinking..." indicator |
reasoning_callback | When model returns reasoning content | CLI reasoning display, gateway reasoning blocks |
clarify_callback | When clarify tool is called | CLI input prompt, gateway interactive message |
step_callback | After each complete agent turn | Gateway step tracking, ACP progress |
stream_delta_callback | Each streaming token (when enabled) | CLI streaming display |
tool_gen_callback | When tool call is parsed from stream | CLI tool preview in spinner |
status_callback | State changes (thinking, executing, etc.) | ACP status updates |
Budget and Fallback Behavior
Iteration Budget
The agent tracks iterations via IterationBudget:
- Default: 90 iterations (configurable via
agent.max_turns) - Shared across parent and child agents — a subagent consumes from the parent's budget
- Two-tier budget pressure via
_get_budget_warning():- At 70%+ usage (caution tier): appends
[BUDGET: Iteration X/Y. N iterations left. Start consolidating your work.]to the last tool result - At 90%+ usage (warning tier): appends
[BUDGET WARNING: Iteration X/Y. Only N iteration(s) left. Provide your final response NOW.]
- At 70%+ usage (caution tier): appends
- At 100%, the agent stops and returns a summary of work done
Fallback Model
When the primary model fails (429 rate limit, 5xx server error, 401/403 auth error):
- Check
fallback_providerslist in config - Try each fallback in order
- On success, continue the conversation with the new provider
- On 401/403, attempt credential refresh before failing over
The fallback system also covers auxiliary tasks independently — vision, compression, web extraction, and session search each have their own fallback chain configurable via the auxiliary.* config section.
Compression and Persistence
When Compression Triggers
- Preflight (before API call): If conversation exceeds 50% of model's context window
- Gateway auto-compression: If conversation exceeds 85% (more aggressive, runs between turns)
What Happens During Compression
- Memory is flushed to disk first (preventing data loss)
- Middle conversation turns are summarized into a compact summary
- The last N messages are preserved intact (
compression.protect_last_n, default: 20) - Tool call/result message pairs are kept together (never split)
- A new session lineage ID is generated (compression creates a "child" session)
Session Persistence
After each turn:
- Messages are saved to the session store (SQLite via
hermes_state.py) - Memory changes are flushed to
MEMORY.md/USER.md - The session can be resumed later via
/resumeorhermes chat --resume
Key Source Files
| File | Purpose |
|---|---|
run_agent.py | AIAgent class — the complete agent loop (~9,200 lines) |
agent/prompt_builder.py | System prompt assembly from memory, skills, context files, personality |
agent/context_compressor.py | Conversation compression algorithm |
agent/prompt_caching.py | Anthropic prompt caching markers and cache metrics |
agent/auxiliary_client.py | Auxiliary LLM client for side tasks (vision, summarization) |
model_tools.py | Tool schema collection, handle_function_call() dispatch |