Low Risk

liquidate_cdp

Liquidate an undercollateralized CDP through the stability pool — builds an unsigned transaction (CBOR hex) for client-side signing

Part of the Indigo MCP server. Enforce policies on this tool with Intercept, the open-source MCP proxy.

AI agents call liquidate_cdp to retrieve information from Indigo without modifying any data. This is common in research, monitoring, and reporting workflows where the agent needs context before taking action. Because read operations don't change state, they are generally safe to allow without restrictions -- but you may still want rate limits to control API costs.

Even though liquidate_cdp only reads data, uncontrolled read access can leak sensitive information or rack up API costs. An agent caught in a retry loop could make thousands of calls per minute. A rate limit gives you a safety net without blocking legitimate use.

Read-only tools are safe to allow by default. No rate limit needed unless you want to control costs.

io-github-indigoprotocol-indigo-mcp.yaml
tools:
  liquidate_cdp:
    rules:
      - action: allow

See the full Indigo policy for all 59 tools.

Tool Name liquidate_cdp
Category Read
MCP Server Indigo MCP Server
Risk Level Low

View all 59 tools →

What does the liquidate_cdp tool do? +

Liquidate an undercollateralized CDP through the stability pool — builds an unsigned transaction (CBOR hex) for client-side signing. It is categorised as a Read tool in the Indigo MCP Server, which means it retrieves data without modifying state.

How do I enforce a policy on liquidate_cdp? +

Add a rule in your Intercept YAML policy under the tools section for liquidate_cdp. You can allow, deny, rate-limit, or validate arguments. Then run Intercept as a proxy in front of the Indigo MCP server.

What risk level is liquidate_cdp? +

liquidate_cdp is a Read tool with low risk. Read-only tools are generally safe to allow by default.

Can I rate-limit liquidate_cdp? +

Yes. Add a rate_limit block to the liquidate_cdp rule in your Intercept 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 liquidate_cdp completely? +

Set action: deny in the Intercept policy for liquidate_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 liquidate_cdp? +

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

Enforce policies on Indigo

Open source. One binary. Zero dependencies.

npx -y @policylayer/intercept
github.com/policylayer/intercept →
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