generate_mnemonic · Kaspa MCP: Risk & Policy

WHAT IT DOES

What generate_mnemonic does on Kaspa MCP

AI agents use generate_mnemonic to create or update resources in Kaspa MCP — usually the action step of a workflow, after the agent has gathered context. Every call changes real data in your Kaspa MCP environment.

WHY IT NEEDS A POLICY

Why generate_mnemonic needs a policy

This tool creates new data (mnemonic phrase and wallet) but does not execute arbitrary code, delete irreversibly, or directly move funds. While it has financial implications as a wallet creation step, it does not itself commit financial obligations.

From the tool's definition Tool generates a new BIP39 mnemonic phrase and derives a corresponding Kaspa wallet address, creating a new wallet. This is a reversible creation operation that modifies wallet state by introducing a new cryptographic identity into the system.

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

generate_mnemonic Rate-limited

generate_mnemonic stays usable, but capped — an agent stuck in a loop can't make hundreds of changes a minute. Everything else on the server is denied unless you say otherwise.

View as policy code

policy.json

{
  "version": "1",
  "default": "deny",
  "tools": {
    "generate_mnemonic": {
      "limits": [
        {
          "counter": "generate_mnemonic_rate",
          "window": "minute",
          "max": 30,
          "scope": "grant"
        }
      ]
    }
  }
}

LIMIT THIS TOOL →

Instant setup, no code required.

PolicyLayer is an MCP gateway: every tool call is checked against your rule before it reaches Kaspa MCP, so you can run agents against it safely.

FAQ

Questions about generate_mnemonic

What does the generate_mnemonic tool do? +

Generate a new BIP39 mnemonic phrase and derive the corresponding Kaspa wallet address. Use this to create a new wallet. It is categorised as a Write tool in the Kaspa MCP MCP Server, which means it can create or modify data. Consider rate limits to prevent runaway writes.

How do I enforce a policy on generate_mnemonic? +

Register the Kaspa MCP server in PolicyLayer and add a rule for generate_mnemonic: 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 Kaspa MCP. Nothing to install.

What risk level is generate_mnemonic? +

generate_mnemonic is a Write tool with medium risk. Write tools should be rate-limited to prevent accidental bulk modifications.

Can I rate-limit generate_mnemonic? +

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

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

generate_mnemonic is provided by the Kaspa MCP server (kasanova-io/kaspa-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.