> For the complete documentation index, see [llms.txt](https://black-sheep-finance.gitbook.io/black-sheep-finance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://black-sheep-finance.gitbook.io/black-sheep-finance-docs/core-concepts/approvals.md).

# Approvals

When a payment is allowed by policy but exceeds the **approval threshold**, Black Sheep parks it as an `approval` and waits for a human.

## Lifecycle

```
created  ──approve──▶  signing  ──▶  sent
   │
   └──reject──▶  rejected
```

| Status     | Meaning                                                    |
| ---------- | ---------------------------------------------------------- |
| `pending`  | Awaiting action. Webhook `approval.pending` already fired. |
| `signing`  | Briefly held while we re-evaluate policy and broadcast.    |
| `sent`     | On-chain. Signature available.                             |
| `rejected` | Closed without spending.                                   |
| `expired`  | Pending > 7 days. Auto-closes.                             |

## Acting on an approval

### Dashboard

**Dashboard → Approvals**. Each row shows the requesting wallet, amount, recipient, memo, and the originating webhook payload. Click **Approve** or **Reject**.

### API

```http
POST /api/public/v1/approvals/:id/approve
POST /api/public/v1/approvals/:id/reject
Authorization: Bearer bs_live_...
```

### Slack

If your webhook endpoint is Slack-formatted, the message includes inline **Approve / Reject** buttons (requires the Black Sheep Slack app).

## Re-evaluation at approval time

When approved, the policy is checked **again** before broadcasting. If the daily limit has since been hit by other sends, the approval is rejected with `policy_violation_at_approval` — you'll see this in the audit log.

## Webhooks involved

| Event               | When it fires                |
| ------------------- | ---------------------------- |
| `approval.pending`  | Approval is created          |
| `approval.approved` | Human approved, tx broadcast |
| `approval.rejected` | Human or system rejected     |

## Best practices

* Route `approval.pending` to a **channel with on-call coverage**, not a personal DM.
* Include the agent label and memo in the message so reviewers know what they're approving.
* Don't set `approval_threshold_usdc = 0` unless you really want every cent approved manually — at scale this becomes a bottleneck.


---

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