// GLOSSARY -- AGENTIC FINANCE
What is an Autonomous Transaction?
A financial transaction initiated, constructed, and executed by an AI agent without human approval — the agent independently decides amount, recipient, and timing.
WHY IT MATTERS
Every autonomous transaction is a software decision. The promise: machine-speed optimization, 24/7. The peril: each is a potential unreviewed mistake.
Spans a spectrum: trading agent executing pre-defined strategies vs. general-purpose agent making novel LLM-reasoned decisions. Risk profiles differ dramatically.
Safety requires pre-defined constraints. Autonomy within boundaries — the agent decides what, boundaries define what's allowed.
HOW POLICYLAYER USES THIS
PolicyLayer ensures autonomous transactions stay within predefined boundaries while preserving the agent's decision-making autonomy.
FREQUENTLY ASKED QUESTIONS
How autonomous is too autonomous?
Depends on risk tolerance and the amount at stake. High-value novel decisions should have human checkpoints. Routine, well-understood operations can be fully autonomous.
Can autonomous transactions be audited?
Yes — PolicyLayer logs every decision with full context, enabling after-the-fact review of any autonomous transaction.
What if the agent makes a bad decision within limits?
Spending controls prevent catastrophic loss but can't prevent poor judgment. That's what agent evaluation, monitoring, and iterative policy refinement are for.