> 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/policies.md).

# Policies

Policies are the heart of Black Sheep. Without them, an agent wallet is just a wallet. With them, it's a **budget**.

## Schema

```ts
type Policy = {
  daily_limit_usdc: number;        // 0–1,000,000
  max_tx_usdc: number;             // 0–1,000,000
  approval_threshold_usdc: number; // 0–1,000,000
  allowlist: string[];             // up to 50 base58 addresses; [] = any
};
```

## Evaluation order

For every `send` call, the server evaluates in this exact order. The **first** matching rule wins.

```
1. amount > max_tx_usdc                    → DENY
2. allowlist non-empty AND to ∉ allowlist  → DENY
3. sum(last 24h sends) + amount > daily    → DENY
4. amount ≥ approval_threshold_usdc        → REQUIRE_APPROVAL
5. otherwise                                → ALLOW
```

This evaluation runs **inside a server function with the wallet's owner context**. It cannot be bypassed by malformed clients, manipulated request bodies, or LLM prompt injection — the LLM only ever calls `send(to, amount)`. The numbers come from the database.

## Examples

### "Research bot" — small, frequent purchases

```ts
{
  daily_limit_usdc: 50,
  max_tx_usdc: 5,
  approval_threshold_usdc: 5,  // = max_tx → never auto-sends, every spend approved
  allowlist: [],
}
```

### "Vendor payer" — large but constrained

```ts
{
  daily_limit_usdc: 10_000,
  max_tx_usdc: 2_500,
  approval_threshold_usdc: 500,
  allowlist: ["7xKX...vendor1", "9pQR...vendor2"],
}
```

### "Auto-pilot" — fully autonomous (use with care)

```ts
{
  daily_limit_usdc: 200,
  max_tx_usdc: 25,
  approval_threshold_usdc: 1_000_000, // effectively off
  allowlist: ["7xKX...known-good"],
}
```

## Updating

Policies update **immediately**. In-flight approvals are not re-evaluated — they still settle against the policy that was in force when they were created.

## Edge cases

* `daily_limit_usdc = 0` blocks everything.
* `approval_threshold_usdc > max_tx_usdc` means approvals never trigger — every allowed tx auto-sends.
* Allowlist matches are exact, case-sensitive base58. No prefix or wildcard matching.


---

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