burn_cdp

Burn iAssets to reduce CDP debt — builds an unsigned transaction (CBOR hex) for client-side signing

SERVERIndigo Protocol MCP SOURCEindigoprotocol/indigo-mcp

Critical RISK CLASS

Category Financial

Parameters 50 required

Recommended Approval-gatedsee the rule below

Registry record Grade F, identity unverified Pull the record →

This record as markdown: /tools/indigoprotocol-indigo-mcp/burn-cdp.md

WHAT IT DOES

What burn_cdp does on Indigo Protocol MCP

AI agents use burn_cdp to commit financial operations through Indigo Protocol MCP, usually the final step of a payment, billing, or trading workflow. A call moves real money.

Parameter	Type	Required	Description
`asset`	string	—
`amount`	string	—	iAsset amount to burn in smallest unit
`address`	string	—	User Cardano bech32 address (addr1... or addr_test1...)
`cdpTxHash`	string	—	Transaction hash of the CDP UTxO
`cdpOutputIndex`	number	—	Output index of the CDP UTxO

Parameters from the server's own tool schema.

RISK

Why burn_cdp is rated Critical

This tool constructs a financial transaction that burns iAssets (synthetic assets) to reduce debt in a Collateralized Debt Position (CDP) on the Indigo Protocol DeFi platform. This directly modifies financial obligations and positions on a blockchain protocol, making it a Financial category tool.

From the tool's definition Burn iAssets to reduce CDP debt — builds an unsigned transaction (CBOR hex) for client-side signing

Attacks that exploit this kind of access

RECOMMENDED RULE

The rule that runs burn_cdp safely

PolicyLayer is an MCP gateway: it sits between your AI agents and Indigo Protocol MCP, and checks every tool call against a rule you set before the call runs. Nothing changes on the server itself. For burn_cdp, this is the rule to start with:

burn_cdp Approval-gated

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

View as policy code

policy.json

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

GATE THIS TOOL → Instant setup, no code required.

The button opens the PolicyLayer dashboard: create your workspace, connect Indigo Protocol MCP, apply this rule, and every burn_cdp call is checked against it from then on.

FAQ

Questions about burn_cdp

What does the burn_cdp tool do? +

Burn iAssets to reduce CDP debt — builds an unsigned transaction (CBOR hex) for client-side signing. It is categorised as a Financial tool in the Indigo Protocol MCP MCP Server, which means it involves financial transactions. Block by default and require explicit approval.

What parameters does burn_cdp accept? +

burn_cdp accepts 5 parameters: asset, amount, address, cdpTxHash, cdpOutputIndex. The full parameter table on this page comes from the server's own tool schema.

How do I enforce a policy on burn_cdp? +

Register the Indigo Protocol MCP server in PolicyLayer and add a rule for burn_cdp: 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 Indigo Protocol MCP. Nothing to install.

What risk level is burn_cdp? +

burn_cdp 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 burn_cdp? +

Yes. Add a rate_limit block to the burn_cdp 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 burn_cdp completely? +

Set action: deny in the PolicyLayer policy for burn_cdp. 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 burn_cdp? +

burn_cdp is provided by the Indigo Protocol MCP server (indigoprotocol/indigo-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.

KEEP EXPLORING

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