alpha_merge_shares

THE RISK

Critical Risk

Why alpha_merge_shares needs a policy

This tool performs a financial transaction on a blockchain prediction market, converting outcome tokens (YES/NO shares) into USDC stablecoin. It involves movement of tokenized financial assets and commits a financial operation on-chain, which is irreversible once submitted. This clearly falls under the Financial category as it moves value between asset types.

From the tool's definition Merge equal YES and NO outcome tokens back into USDC on Alpha Arcade. 1 YES + 1 NO = 1 USDC.

Documented attack patterns abuse exactly the kind of access alpha_merge_shares gives an agent:

POLICY

How to control alpha_merge_shares

PolicyLayer is an MCP gateway — it sits between your AI agents and Algorand MCP, and nothing reaches the server without passing your rules. This is the rule we recommend for alpha_merge_shares:

policy.json

{
  "version": "1",
  "default": "deny",
  "tools": {
    "alpha_merge_shares": {
      "deny_if": [
        {
          "conditions": [],
          "on_deny": "Requires human approval."
        }
      ]
    }
  }
}

Any call to alpha_merge_shares is blocked until a human approves it. The rest of the server keeps working.

Create a free account and register Algorand MCP — nothing to install.
Add this policy — paste it, or build it visually.
Point your MCP client (Claude, Cursor, anything) at your gateway URL.

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EXPLORE

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Go deeper

Govern MCP payment tools → Approval gates, spend caps, and per-identity scopes on every refund, payout, and charge your agents make.
Critical-risk tools in Algorand MCP → Every critical-risk tool this server exposes, in one view.
All critical-risk MCP tools → Every critical-risk tool across the catalogue, and the policy pattern that contains them.
The MCP Attack Database → Documented attack patterns against MCP deployments — and the policies that stop them.
Human-in-the-loop → When a tool call should wait for a person — and when policy can decide alone.
Tool call approval → Approval gates on individual tool calls: auto-allow, prompt, or deny.
How to Add Spending Controls to Any MCP Agent →
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PolicyLayer vs alternatives → How deterministic, per-call MCP policy compares with gateways, identity layers, and authorisation platforms.

FAQ

Questions about alpha_merge_shares

What does the alpha_merge_shares tool do? +

Merge equal YES and NO outcome tokens back into USDC on Alpha Arcade. 1 YES + 1 NO = 1 USDC. It is categorised as a Financial tool in the Algorand MCP MCP Server, which means it involves financial transactions. Block by default and require explicit approval.

How do I enforce a policy on alpha_merge_shares? +

Register the Algorand MCP server in PolicyLayer and add a rule for alpha_merge_shares: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches Algorand MCP. Nothing to install.

What risk level is alpha_merge_shares? +

alpha_merge_shares is a Financial tool with critical risk. Critical-risk tools should be blocked by default and only enabled with explicit human approval.

Can I rate-limit alpha_merge_shares? +

Yes. Add a rate_limit block to the alpha_merge_shares rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.

How do I block alpha_merge_shares completely? +

Set action: deny in the PolicyLayer policy for alpha_merge_shares. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.

What MCP server provides alpha_merge_shares? +

alpha_merge_shares is provided by the Algorand MCP server (goplausible/algorand-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.

Enforce policy on every Algorand MCP tool call.

Start from Algorand MCP, add the rest of your stack, and see everything your agents can call. Then put policy on all of it.

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