diff --git a/pyproject.toml b/pyproject.toml
index 3cc2f38..1e302b6 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -56,6 +56,8 @@ allowed-confusables = ["σ"]
 "src/pf1e_simulator/combat.py" = ["PLR0913"]
 # runner.py: run_encounter needs 6 params (spec, runs, seed, policy, spell_registry, capture_first_transcript)
 "src/pf1e_simulator/runner.py" = ["PLR0913"]
+# client.py: LLMClient/FakeLLMClient need the full safeguard knobs (cache, budget, pricing, retry, breaker)
+"src/pf1e_simulator/client.py" = ["PLR0913"]
 
 # ── Basedpyright ──────────────────────────────────────────────────────────────
 [tool.basedpyright]
diff --git a/src/pf1e_simulator/client.py b/src/pf1e_simulator/client.py
new file mode 100644
index 0000000..75b2adf
--- /dev/null
+++ b/src/pf1e_simulator/client.py
@@ -0,0 +1,536 @@
+"""Provider-agnostic LLM client for the phase-2 decision layer (P1.1/P1.2).
+
+One abstraction for every LLM call the simulator makes, so sweeps, the
+compiler and the per-turn showcase all share the same safeguards:
+
+- **Composite cache** (decision D6): a ``ResponseCache`` keyed by
+  ``(model, params, prompt_version, schema_version, prompt hash)``. The
+  ``prompt_version`` (external pack version + per-prompt content hash, see
+  ``prompt.py``) makes a campaign reproducible after a prompt edit (section
+  14). The cache is sharded (decision D10) and thread-safe, so parallel
+  sweep workers can share one instance.
+- **Cost/token guards** (P1.2, section 13): a ``CostBudget`` enforces
+  optional ceilings on provider calls, total tokens and estimated USD cost,
+  raising a typed ``BudgetExceededError`` instead of silently continuing.
+  The ledger counts every attempt plus tokens/cost of successful completions.
+- **Retry/backoff**: a transient ``ProviderError`` is retried with
+  exponential backoff (injectable ``sleep`` for tests), then a typed
+  ``RetryExhaustedError`` is raised.
+- **Circuit breaker** (section 13): after ``failure_threshold`` consecutive
+  failures the client refuses further calls (``CircuitOpenError``) for
+  ``open_refusals`` calls, then allows one probe attempt; a success closes
+  the breaker, a failure reopens it.
+
+``LLMClient`` is abstract and provider-agnostic (section 13): subclasses
+implement ``_call_once`` (one attempt, returning text + token usage).
+``FakeLLMClient`` serves a scripted sequence of responses offline (P1.1),
+with optional simulated transient failures - this is what drives P1.3's
+fully offline battle tests.
+"""
+
+from __future__ import annotations
+
+import hashlib
+import time
+import zlib
+from abc import ABC, abstractmethod
+from dataclasses import dataclass
+from threading import RLock
+from typing import TYPE_CHECKING
+
+from pf1e_simulator.combat import OBSERVATION_SCHEMA_VERSION
+
+if TYPE_CHECKING:
+    from collections.abc import Callable, Sequence
+
+
+class ClientError(RuntimeError):
+    """Base error for the LLM client layer."""
+
+
+class ProviderError(ClientError):
+    """A transient provider failure - safe to retry."""
+
+
+class RetryExhaustedError(ClientError):
+    """Every retry attempt failed; the last provider error is the cause."""
+
+
+class CircuitOpenError(ClientError):
+    """The circuit breaker is open: calls are refused, not attempted."""
+
+
+class BudgetExceededError(ClientError):
+    """A cost/token/call ceiling was hit (P1.2, section 13)."""
+
+
+class ScriptExhaustedError(ClientError):
+    """A scripted fake client has no more responses to serve."""
+
+
+@dataclass(frozen=True)
+class ClientParams:
+    """Sampling parameters; part of the composite cache key (D6)."""
+
+    temperature: float = 0.0
+    max_tokens: int = 1024
+    top_p: float = 1.0
+
+
+@dataclass(frozen=True)
+class Pricing:
+    """USD per 1000 tokens, used to estimate the cost ledger."""
+
+    prompt_per_1k_usd: float = 0.0
+    completion_per_1k_usd: float = 0.0
+
+    def cost_usd(self, usage: TokenUsage) -> float:
+        return (
+            usage.prompt_tokens / 1000 * self.prompt_per_1k_usd
+            + usage.completion_tokens / 1000 * self.completion_per_1k_usd
+        )
+
+
+@dataclass(frozen=True)
+class CostBudget:
+    """Optional hard ceilings enforced by ``LLMClient`` (section 13).
+
+    Each field defaults to ``None`` = unlimited for that resource.
+    """
+
+    max_calls: int | None = None
+    max_total_tokens: int | None = None
+    max_cost_usd: float | None = None
+
+
+@dataclass(frozen=True)
+class TokenUsage:
+    """Token counts of one completion (measured by the provider, or estimated)."""
+
+    prompt_tokens: int
+    completion_tokens: int
+
+    @property
+    def total(self) -> int:
+        return self.prompt_tokens + self.completion_tokens
+
+
+@dataclass(frozen=True)
+class Completion:
+    """One successful provider response."""
+
+    text: str
+    usage: TokenUsage
+
+
+@dataclass(frozen=True)
+class ClientStats:
+    """Read-only snapshot of the client ledger (for reports and sweeps)."""
+
+    calls: int
+    prompt_tokens: int
+    completion_tokens: int
+    cost_usd: float
+    cache_hits: int
+    cache_misses: int
+
+
+def estimate_tokens(text: str) -> int:
+    """Rough token estimate (chars / 4) used when the provider reports none."""
+    return max(1, len(text) // 4)
+
+
+def response_cache_key(
+    *,
+    model: str,
+    params: ClientParams,
+    prompt_version: str,
+    schema_version: int,
+    prompt: str,
+) -> str:
+    """Composite cache key (D6): model, params, prompt version, schema, hash.
+
+    The prompt hash covers the full rendered prompt text, so two different
+    observations never collide even when they share every other component.
+    """
+    params_component = (
+        f"t={params.temperature:g};mt={params.max_tokens};tp={params.top_p:g}"
+    )
+    digest = hashlib.sha256(prompt.encode("utf-8")).hexdigest()
+    return (
+        f"{model}|{params_component}|{prompt_version}"
+        f"|schema={schema_version}|{digest}"
+    )
+
+
+class ResponseCache:
+    """Thread-safe, sharded cache of completion texts (D6 + D10).
+
+    The key is the composite string from :func:`response_cache_key`; the
+    value is the completion text. Shards are selected by ``zlib.crc32`` so
+    parallel sweep workers (D10) never contend on one dict.
+    """
+
+    def __init__(self, shard_count: int = 8) -> None:
+        if shard_count < 1:
+            msg = f"shard_count must be >= 1, got {shard_count}"
+            raise ValueError(msg)
+        self._shards: tuple[dict[str, str], ...] = tuple({} for _ in range(shard_count))
+        self._locks: tuple[RLock, ...] = tuple(RLock() for _ in range(shard_count))
+        self._stat_lock = RLock()
+        self._hits = 0
+        self._misses = 0
+
+    def get(self, key: str) -> str | None:
+        """Return the cached completion for ``key``, or ``None``."""
+        shard, lock = self._shard_for(key)
+        with lock:
+            value = shard.get(key)
+        with self._stat_lock:
+            if value is None:
+                self._misses += 1
+            else:
+                self._hits += 1
+        return value
+
+    def put(self, key: str, text: str) -> None:
+        """Store ``text`` under ``key`` (idempotent)."""
+        shard, lock = self._shard_for(key)
+        with lock:
+            shard[key] = text
+
+    def clear(self) -> None:
+        """Drop every entry and reset the hit/miss counters (tests only)."""
+        for shard, lock in zip(self._shards, self._locks, strict=True):
+            with lock:
+                shard.clear()
+        with self._stat_lock:
+            self._hits = 0
+            self._misses = 0
+
+    @property
+    def hits(self) -> int:
+        with self._stat_lock:
+            return self._hits
+
+    @property
+    def misses(self) -> int:
+        with self._stat_lock:
+            return self._misses
+
+    def _shard_for(self, key: str) -> tuple[dict[str, str], RLock]:
+        index = zlib.crc32(key.encode("utf-8")) % len(self._shards)
+        return self._shards[index], self._locks[index]
+
+
+class CircuitBreaker:
+    """Trips after N consecutive failures; probes after K refusals.
+
+    Not thread-safe by itself: ``LLMClient`` serializes all access with its
+    own lock.
+    """
+
+    def __init__(self, *, failure_threshold: int = 3, open_refusals: int = 2) -> None:
+        if failure_threshold < 1:
+            msg = f"failure_threshold must be >= 1, got {failure_threshold}"
+            raise ValueError(msg)
+        if open_refusals < 0:
+            msg = f"open_refusals must be >= 0, got {open_refusals}"
+            raise ValueError(msg)
+        self.failure_threshold = failure_threshold
+        self.open_refusals = open_refusals
+        self._consecutive_failures = 0
+        self._refusals = 0
+
+    @property
+    def is_open(self) -> bool:
+        return self._consecutive_failures >= self.failure_threshold
+
+    @property
+    def probe_due(self) -> bool:
+        """True when an open breaker allows exactly one probe attempt."""
+        return self.is_open and self._refusals >= self.open_refusals
+
+    @property
+    def consecutive_failures(self) -> int:
+        return self._consecutive_failures
+
+    def record_failure(self) -> None:
+        self._consecutive_failures += 1
+        self._refusals = 0
+
+    def record_refusal(self) -> None:
+        self._refusals += 1
+
+    def close(self) -> None:
+        self._consecutive_failures = 0
+        self._refusals = 0
+
+
+class LLMClient(ABC):
+    """Provider-agnostic client: caching, budgets, retry/backoff, breaker.
+
+    Subclasses implement :meth:`_call_once` (one provider attempt). The
+    public :meth:`complete` adds the shared safeguards around it.
+    """
+
+    def __init__(
+        self,
+        *,
+        model: str,
+        prompt_version: str,
+        schema_version: int = OBSERVATION_SCHEMA_VERSION,
+        cache: ResponseCache | None = None,
+        budget: CostBudget | None = None,
+        pricing: Pricing | None = None,
+        retries: int = 2,
+        backoff_base_s: float = 0.25,
+        sleep: Callable[[float], None] = time.sleep,
+        breaker: CircuitBreaker | None = None,
+    ) -> None:
+        if retries < 0:
+            msg = f"retries must be >= 0, got {retries}"
+            raise ValueError(msg)
+        if backoff_base_s < 0:
+            msg = f"backoff_base_s must be >= 0, got {backoff_base_s}"
+            raise ValueError(msg)
+        self.model = model
+        self.prompt_version = prompt_version
+        self.schema_version = schema_version
+        # Cache is mandatory (section 13); a client without an explicit one
+        # gets its own instance, so caching is never silently off.
+        self._cache = cache if cache is not None else ResponseCache()
+        self._budget = budget
+        self._pricing = pricing
+        self._retries = retries
+        self._backoff_base_s = backoff_base_s
+        self._sleep = sleep
+        self._breaker = breaker if breaker is not None else CircuitBreaker()
+        self._lock = RLock()
+        self._calls = 0
+        self._prompt_tokens = 0
+        self._completion_tokens = 0
+        self._cost_usd = 0.0
+        self._cache_hits = 0
+        self._cache_misses = 0
+
+    @abstractmethod
+    def _call_once(self, prompt: str, *, params: ClientParams) -> Completion:
+        """One provider attempt; raise ``ProviderError`` on transient failure."""
+
+    def complete(
+        self,
+        prompt: str,
+        *,
+        params: ClientParams | None = None,
+    ) -> str:
+        """Complete ``prompt`` through the cache/budget/breaker safeguards.
+
+        Returns the completion text (from the cache when possible). Raises a
+        typed ``ClientError`` subclass on budget, circuit or retry failure.
+        """
+        parameters = params if params is not None else ClientParams()
+        key = response_cache_key(
+            model=self.model,
+            params=parameters,
+            prompt_version=self.prompt_version,
+            schema_version=self.schema_version,
+            prompt=prompt,
+        )
+
+        with self._lock:
+            self._check_call_budget()
+            cached = self._cache.get(key)
+            if cached is not None:
+                self._cache_hits += 1
+                return cached
+            self._cache_misses += 1
+            if self._breaker.is_open and not self._breaker.probe_due:
+                self._breaker.record_refusal()
+                msg = (
+                    f"circuit breaker open "
+                    f"({self._breaker.consecutive_failures} consecutive "
+                    f"failures); call refused"
+                )
+                raise CircuitOpenError(msg)
+
+        try:
+            completion = self._complete_with_retry(prompt, parameters)
+        except RetryExhaustedError:
+            with self._lock:
+                self._breaker.record_failure()
+            raise
+
+        with self._lock:
+            self._record_usage(completion.usage)
+            self._breaker.close()
+            self._cache.put(key, completion.text)
+        return completion.text
+
+    def _complete_with_retry(
+        self,
+        prompt: str,
+        params: ClientParams,
+    ) -> Completion:
+        """Attempt ``_call_once`` up to ``retries + 1`` times, backing off."""
+        last_error: ProviderError | None = None
+        for attempt in range(self._retries + 1):
+            with self._lock:
+                self._calls += 1
+            try:
+                return self._call_once(prompt, params=params)
+            except ProviderError as exc:
+                last_error = exc
+                if attempt < self._retries:
+                    self._sleep(self._backoff_base_s * (2**attempt))
+        msg = (
+            f"provider failed after {self._retries + 1} attempt(s): {last_error}"
+        )
+        raise RetryExhaustedError(msg) from last_error
+
+    def _check_call_budget(self) -> None:
+        if self._budget is None or self._budget.max_calls is None:
+            return
+        if self._calls >= self._budget.max_calls:
+            msg = (
+                f"call budget exceeded: {self._calls} >= "
+                f"{self._budget.max_calls} calls"
+            )
+            raise BudgetExceededError(msg)
+
+    def _record_usage(self, usage: TokenUsage) -> None:
+        """Add a completion to the ledger, enforcing the token/cost ceilings."""
+        if self._budget is not None:
+            ceiling = self._budget.max_total_tokens
+            if ceiling is not None:
+                total_after = (
+                    self._prompt_tokens + self._completion_tokens + usage.total
+                )
+                if total_after > ceiling:
+                    msg = (
+                        f"token budget exceeded: {total_after} > {ceiling} "
+                        f"total tokens"
+                    )
+                    raise BudgetExceededError(msg)
+        self._prompt_tokens += usage.prompt_tokens
+        self._completion_tokens += usage.completion_tokens
+        if self._pricing is not None:
+            cost = self._pricing.cost_usd(usage)
+            self._cost_usd += cost
+            ceiling = None if self._budget is None else self._budget.max_cost_usd
+            if ceiling is not None and self._cost_usd > ceiling:
+                msg = (
+                    f"cost budget exceeded: {self._cost_usd:.6f} USD > "
+                    f"{ceiling:.6f} USD"
+                )
+                raise BudgetExceededError(msg)
+
+    @property
+    def calls(self) -> int:
+        with self._lock:
+            return self._calls
+
+    @property
+    def prompt_tokens(self) -> int:
+        with self._lock:
+            return self._prompt_tokens
+
+    @property
+    def completion_tokens(self) -> int:
+        with self._lock:
+            return self._completion_tokens
+
+    @property
+    def cost_usd(self) -> float:
+        with self._lock:
+            return self._cost_usd
+
+    @property
+    def cache_hits(self) -> int:
+        with self._lock:
+            return self._cache_hits
+
+    @property
+    def cache_misses(self) -> int:
+        with self._lock:
+            return self._cache_misses
+
+    @property
+    def stats(self) -> ClientStats:
+        with self._lock:
+            return ClientStats(
+                calls=self._calls,
+                prompt_tokens=self._prompt_tokens,
+                completion_tokens=self._completion_tokens,
+                cost_usd=self._cost_usd,
+                cache_hits=self._cache_hits,
+                cache_misses=self._cache_misses,
+            )
+
+
+class FakeLLMClient(LLMClient):
+    """Scripted, offline LLM client (P1.1) for tests and the showcase.
+
+    Serves ``script`` in order, one response per successful call. With
+    ``failures > 0`` the first ``failures`` attempts raise a simulated
+    ``ProviderError`` (to exercise retry/backoff and the breaker); scripts
+    are only consumed by successes. A call past the script raises
+    ``ScriptExhaustedError`` (a test-authoring bug, not a transient outage).
+    Token usage is estimated from character counts.
+    """
+
+    def __init__(
+        self,
+        script: Sequence[str],
+        *,
+        model: str = "fake",
+        prompt_version: str = "fixture:fake:0",
+        failures: int = 0,
+        schema_version: int = OBSERVATION_SCHEMA_VERSION,
+        cache: ResponseCache | None = None,
+        budget: CostBudget | None = None,
+        pricing: Pricing | None = None,
+        retries: int = 2,
+        backoff_base_s: float = 0.25,
+        breaker: CircuitBreaker | None = None,
+    ) -> None:
+        if failures < 0:
+            msg = f"failures must be >= 0, got {failures}"
+            raise ValueError(msg)
+        super().__init__(
+            model=model,
+            prompt_version=prompt_version,
+            schema_version=schema_version,
+            cache=cache,
+            budget=budget,
+            pricing=pricing,
+            retries=retries,
+            backoff_base_s=backoff_base_s,
+            sleep=lambda _: None,  # tests must never actually sleep
+            breaker=breaker,
+        )
+        self._script = tuple(script)
+        self._failures = failures
+        self._attempts = 0
+        self._served = 0
+
+    def _call_once(self, prompt: str, *, params: ClientParams) -> Completion:
+        del params  # a scripted fake ignores sampling parameters
+        with self._lock:
+            self._attempts += 1
+            if self._attempts <= self._failures:
+                msg = f"simulated provider outage (attempt {self._attempts})"
+                raise ProviderError(msg)
+            if self._served >= len(self._script):
+                msg = (
+                    f"fake script exhausted after {self._served} served "
+                    f"response(s) of {len(self._script)}"
+                )
+                raise ScriptExhaustedError(msg)
+            text = self._script[self._served]
+            self._served += 1
+            usage = TokenUsage(
+                prompt_tokens=estimate_tokens(prompt),
+                completion_tokens=estimate_tokens(text),
+            )
+        return Completion(text=text, usage=usage)
diff --git a/tests/test_phase2_client.py b/tests/test_phase2_client.py
new file mode 100644
index 0000000..ffd3d42
--- /dev/null
+++ b/tests/test_phase2_client.py
@@ -0,0 +1,378 @@
+"""Phase-2 LLM client layer (docs/phase-2 P1.1/P1.2, decisions D6/D10).
+
+``client.py`` wraps every LLM call with the shared safeguards: composite
+cache (D6: model, params, prompt_version, schema_version, prompt hash),
+cost/token budgets + circuit breaker (P1.2, section 13), retry/backoff on
+transient provider failures, and ``FakeLLMClient`` (P1.1) to drive battles
+fully offline. These tests pin the ledger, the budgets and the breaker
+behaviour without any network.
+"""
+
+from __future__ import annotations
+
+import pytest
+
+from pf1e_simulator.client import (
+    BudgetExceededError,
+    CircuitBreaker,
+    CircuitOpenError,
+    ClientParams,
+    ClientStats,
+    Completion,
+    CostBudget,
+    FakeLLMClient,
+    LLMClient,
+    Pricing,
+    ResponseCache,
+    RetryExhaustedError,
+    ScriptExhaustedError,
+    TokenUsage,
+    estimate_tokens,
+    response_cache_key,
+)
+
+_PARAMS = ClientParams()
+_PROMPT = "observation rendered prompt v1"
+
+
+class _UnusedClient(LLMClient):
+    """Concrete client whose provider is never invoked (validation tests)."""
+
+    def _call_once(self, prompt: str, *, params: ClientParams) -> Completion:
+        del prompt, params  # validation-only: the provider never runs
+        msg = "provider must never be called"
+        raise AssertionError(msg)
+
+
+# ── composite cache key (D6) ───────────────────────────────────────────────
+
+
+def test_cache_key_is_composite_and_deterministic() -> None:
+    """Each D6 component changes the key; identical inputs are stable."""
+    base = response_cache_key(
+        model="m",
+        params=_PARAMS,
+        prompt_version="pack:1.0.0:nl:abc",
+        schema_version=1,
+        prompt=_PROMPT,
+    )
+    assert (
+        response_cache_key(
+            model="m",
+            params=_PARAMS,
+            prompt_version="pack:1.0.0:nl:abc",
+            schema_version=1,
+            prompt=_PROMPT,
+        )
+        == base
+    )
+    assert (
+        response_cache_key(
+            model="other",
+            params=_PARAMS,
+            prompt_version="pack:1.0.0:nl:abc",
+            schema_version=1,
+            prompt=_PROMPT,
+        )
+        != base
+    )
+    assert (
+        response_cache_key(
+            model="m",
+            params=ClientParams(temperature=0.7),
+            prompt_version="pack:1.0.0:nl:abc",
+            schema_version=1,
+            prompt=_PROMPT,
+        )
+        != base
+    )
+    assert (
+        response_cache_key(
+            model="m",
+            params=_PARAMS,
+            prompt_version="pack:9.9.9:nl:xyz",
+            schema_version=1,
+            prompt=_PROMPT,
+        )
+        != base
+    )
+    assert (
+        response_cache_key(
+            model="m",
+            params=_PARAMS,
+            prompt_version="pack:1.0.0:nl:abc",
+            schema_version=2,
+            prompt=_PROMPT,
+        )
+        != base
+    )
+    assert (
+        response_cache_key(
+            model="m",
+            params=_PARAMS,
+            prompt_version="pack:1.0.0:nl:abc",
+            schema_version=1,
+            prompt="a different observation",
+        )
+        != base
+    )
+
+
+def test_response_cache_round_trip_and_counters() -> None:
+    """get/put round-trip; hits and misses are counted separately."""
+    cache = ResponseCache(shard_count=4)
+    key = response_cache_key(
+        model="m",
+        params=_PARAMS,
+        prompt_version="pack:1.0.0:nl:abc",
+        schema_version=1,
+        prompt=_PROMPT,
+    )
+    assert cache.get(key) is None
+    assert cache.hits == 0
+    assert cache.misses == 1
+    cache.put(key, "action json 1")
+    assert cache.get(key) == "action json 1"
+    assert cache.hits == 1
+    assert cache.misses == 1
+
+
+def test_response_cache_clear_drops_entries_and_counters() -> None:
+    """clear() empties every shard and resets the counters (tests only)."""
+    cache = ResponseCache(shard_count=2)
+    key = response_cache_key(
+        model="m",
+        params=_PARAMS,
+        prompt_version="p:1:nl:a",
+        schema_version=1,
+        prompt=_PROMPT,
+    )
+    cache.put(key, "action json 1")
+    assert cache.get(key) == "action json 1"
+    cache.clear()
+    assert cache.get(key) is None
+    assert cache.hits == 0
+    assert cache.misses == 1
+
+
+def test_response_cache_requires_positive_shard_count() -> None:
+    """A zero shard count is a data error, not a silent default."""
+    with pytest.raises(ValueError, match="shard_count"):
+        ResponseCache(shard_count=0)
+
+
+# ── FakeLLMClient: scripted offline behaviour (P1.1) ───────────────────────
+
+
+def test_fake_serves_script_in_order() -> None:
+    """The fake returns scripted responses one per successful call."""
+    client = FakeLLMClient(script=("action a", "action b"))
+    assert client.complete("observation one") == "action a"
+    assert client.complete("observation two") == "action b"
+    assert client.stats.calls == 2
+
+
+def test_fake_script_exhaustion_raises_typed_error() -> None:
+    """A call past the script is a test-authoring bug, loudly reported."""
+    client = FakeLLMClient(script=("action a",))
+    assert client.complete("observation one") == "action a"
+    with pytest.raises(ScriptExhaustedError, match="script exhausted"):
+        client.complete("observation two")
+
+
+def test_fake_reports_estimated_token_usage() -> None:
+    """Token usage is estimated from character counts (no provider metric)."""
+    client = FakeLLMClient(script=("0123456789",))
+    client.complete(_PROMPT)
+    stats = client.stats
+    assert stats.prompt_tokens == estimate_tokens(_PROMPT)
+    assert stats.completion_tokens == estimate_tokens("0123456789")
+    assert isinstance(stats, ClientStats)
+
+
+# ── cache integration on the client (D6) ───────────────────────────────────
+
+
+def test_client_cache_hit_consumes_no_script() -> None:
+    """A cached response is returned without a provider call."""
+    client = FakeLLMClient(script=("action a", "action b"))
+    first = client.complete(_PROMPT)
+    second = client.complete(_PROMPT)
+    assert first == second == "action a"
+    assert client.calls == 1  # the second call came from the cache
+    assert client.cache_misses == 1
+    assert client.cache_hits == 1
+
+
+def test_client_cache_miss_on_different_prompt() -> None:
+    """A different prompt is a different cache key: script advances."""
+    client = FakeLLMClient(script=("action a", "action b"))
+    assert client.complete(_PROMPT) == "action a"
+    assert client.complete("another observation") == "action b"
+    assert client.calls == 2
+
+
+def test_client_cache_respects_prompt_version() -> None:
+    """The composite key includes prompt_version: packs do not collide."""
+    cache = ResponseCache()
+    a = FakeLLMClient(
+        script=("action a",),
+        prompt_version="pack:1.0.0:nl:aaa",
+        cache=cache,
+    )
+    b = FakeLLMClient(
+        script=("action b",),
+        prompt_version="pack:1.0.0:nl:bbb",
+        cache=cache,
+    )
+    assert a.complete(_PROMPT) == "action a"
+    assert b.complete(_PROMPT) == "action b"
+    assert a.calls == 1
+    assert b.calls == 1
+
+
+def test_client_cache_respects_model() -> None:
+    """The composite key includes the model name."""
+    cache = ResponseCache()
+    a = FakeLLMClient(script=("action a",), model="model-a", cache=cache)
+    b = FakeLLMClient(script=("action b",), model="model-b", cache=cache)
+    assert a.complete(_PROMPT) == "action a"
+    assert b.complete(_PROMPT) == "action b"
+    assert a.calls == 1
+    assert b.calls == 1
+
+
+# ── retry/backoff (P1.2) ───────────────────────────────────────────────────
+
+
+def test_retry_recovers_after_transient_failures() -> None:
+    """ProviderError is retried; the script is only consumed by successes."""
+    client = FakeLLMClient(
+        script=("action a",),
+        failures=2,
+        retries=3,
+    )
+    assert client.complete(_PROMPT) == "action a"
+    assert client.calls == 3  # two failures + one success
+
+
+def test_retry_exhausted_after_too_many_failures() -> None:
+    """Past the retry budget, a typed RetryExhaustedError is raised."""
+    client = FakeLLMClient(script=("action a",), failures=5, retries=2)
+    with pytest.raises(RetryExhaustedError, match="after 3 attempt"):
+        client.complete(_PROMPT)
+
+
+def test_retry_counter_requires_positive_value() -> None:
+    """A negative retry count is a data error."""
+    with pytest.raises(ValueError, match="retries"):
+        FakeLLMClient(script=("a",), retries=-1)
+
+
+# ── circuit breaker (P1.2, section 13) ─────────────────────────────────────
+
+
+def test_breaker_opens_refuses_probes_and_recovers() -> None:
+    """Open after N failures: refusals, then a probe that closes on success."""
+    breaker = CircuitBreaker(failure_threshold=2, open_refusals=1)
+    client = FakeLLMClient(
+        script=("action a",),
+        failures=2,  # needs two attempts before real service
+        retries=0,
+        breaker=breaker,
+    )
+    with pytest.raises(RetryExhaustedError):
+        client.complete(_PROMPT)  # failure 1: not open yet
+    with pytest.raises(RetryExhaustedError):
+        client.complete(_PROMPT)  # failure 2: threshold reached, opens
+    assert breaker.is_open
+    with pytest.raises(CircuitOpenError, match="circuit breaker open"):
+        client.complete(_PROMPT)  # refused
+    assert client.complete(_PROMPT) == "action a"  # probe succeeds now
+    assert not breaker.is_open
+
+
+def test_breaker_probe_failure_reopens() -> None:
+    """A failed probe reopens the breaker for another refusal window."""
+    breaker = CircuitBreaker(failure_threshold=1, open_refusals=1)
+    client = FakeLLMClient(
+        script=("action a",),
+        failures=10,  # every attempt fails, probe included
+        retries=0,
+        breaker=breaker,
+    )
+    with pytest.raises(RetryExhaustedError):
+        client.complete(_PROMPT)
+    assert breaker.is_open
+    with pytest.raises(CircuitOpenError):
+        client.complete(_PROMPT)
+    with pytest.raises(RetryExhaustedError):
+        client.complete(_PROMPT)  # the probe fails
+    assert breaker.is_open
+    with pytest.raises(CircuitOpenError):
+        client.complete(_PROMPT)  # reopened: refuses again
+
+
+def test_breaker_validation() -> None:
+    """Breaker thresholds must be sensible numbers."""
+    with pytest.raises(ValueError, match="failure_threshold"):
+        CircuitBreaker(failure_threshold=0)
+    with pytest.raises(ValueError, match="open_refusals"):
+        CircuitBreaker(open_refusals=-1)
+
+
+# ── cost/token budgets (P1.2) ──────────────────────────────────────────────
+
+
+def test_call_budget_ceiling() -> None:
+    """max_calls refuses further calls with a typed error."""
+    client = FakeLLMClient(
+        script=("a", "b", "c"),
+        budget=CostBudget(max_calls=1),
+    )
+    assert client.complete(_PROMPT) == "a"
+    with pytest.raises(BudgetExceededError, match="call budget exceeded"):
+        client.complete("a different observation")
+
+
+def test_token_budget_ceiling() -> None:
+    """A completion over max_total_tokens is rejected and not cached."""
+    client = FakeLLMClient(
+        script=("x" * 400,),  # ~100 estimated completion tokens
+        budget=CostBudget(max_total_tokens=50),
+    )
+    with pytest.raises(BudgetExceededError, match="token budget exceeded"):
+        client.complete(_PROMPT)
+
+
+def test_cost_budget_ceiling_and_ledger() -> None:
+    """Estimated USD cost is accumulated and capped by max_cost_usd."""
+    pricing = Pricing(prompt_per_1k_usd=1.0, completion_per_1k_usd=1.0)
+    long_prompt = "p" * 2000  # ~500 prompt tokens ≈ 0.5 USD
+    client = FakeLLMClient(
+        script=("c" * 2000, "c" * 2000),  # ~500 completion tokens each ≈ 0.5 USD
+        pricing=pricing,
+        budget=CostBudget(max_cost_usd=1.0),
+    )
+    assert client.complete(long_prompt) == "c" * 2000
+    assert client.cost_usd == pytest.approx(1.0, abs=1e-6)
+    with pytest.raises(BudgetExceededError, match="cost budget exceeded"):
+        client.complete("q" * 2000)
+    assert client.cost_usd == pytest.approx(2.0, abs=1e-6)
+
+
+def test_backoff_must_be_positive() -> None:
+    """A negative backoff is a data error (validation-only client)."""
+    with pytest.raises(ValueError, match="backoff_base_s"):
+        _UnusedClient(
+            model="m",
+            prompt_version="p:1:nl:a",
+            backoff_base_s=-1.0,
+        )
+
+
+def test_token_usage_total() -> None:
+    """TokenUsage.total is the sum of both counters."""
+    usage = TokenUsage(prompt_tokens=3, completion_tokens=4)
+    assert usage.total == 7
+    assert estimate_tokens("abcd") >= 1