Simulate already-encoded, optionally-signed transactions (base64 bytes). Use this when you have raw txn bytes ready and only need a pass/fail + log/cost result — no execution tracing, no extra opcode budget, no unnamed-resource handling. For a richer simulation (trace, extra budget, unsigned txns...
AI agents invoke simulate_raw_transactions to trigger actions in Algorand MCP. What it does depends on the arguments the agent supplies, and its effects often reach beyond the immediate call — builds kicked off, notifications sent, workflows started.
The tool simulates transaction execution on the Algorand blockchain. While simulation is typically read-only (no on-chain state changes), it executes transaction logic and evaluates smart contract code paths. Since it involves running blockchain transaction logic (potentially including smart contracts), it falls under Execute.
From the tool's definition Simulate already-encoded, optionally-signed transactions (base64 bytes)... pass/fail + log/cost result — no execution tracing
Documented attack patterns abuse exactly the kind of access simulate_raw_transactions gives an agent:
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 simulate_raw_transactions:
{
"version": "1",
"default": "deny",
"tools": {
"simulate_raw_transactions": {
"limits": [
{
"counter": "simulate_raw_transactions_rate",
"window": "minute",
"max": 10,
"scope": "grant"
}
]
}
}
}simulate_raw_transactions stays usable, but rate-capped — a runaway agent can't fire it dozens of times a minute. Everything else on the server is denied unless you say otherwise.
Free to start. No card required.
Simulate already-encoded, optionally-signed transactions (base64 bytes). Use this when you have raw txn bytes ready and only need a pass/fail + log/cost result — no execution tracing, no extra opcode budget, no unnamed-resource handling. For a richer simulation (trace, extra budget, unsigned txns, multiple groups), use simulate_transactions. It is categorised as a Execute tool in the Algorand MCP MCP Server, which means it can trigger actions or run processes. Use rate limits and argument validation.
Register the Algorand MCP server in PolicyLayer and add a rule for simulate_raw_transactions: 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.
simulate_raw_transactions is a Execute tool with high risk. Execute tools should be rate-limited and have argument validation enabled.
Yes. Add a rate_limit block to the simulate_raw_transactions 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.
Set action: deny in the PolicyLayer policy for simulate_raw_transactions. 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.
simulate_raw_transactions 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.
Start from Algorand MCP, add the rest of your stack, and see everything your agents can call. Then put policy on all of it.
Free to start. No card required.
172 Algorand MCP tools catalogued and risk-classified — across an index of 43,000+ MCP servers.