AI agents call list_files to retrieve information from Terminal without modifying anything — typically the context-gathering step in research, monitoring, and reporting workflows, before the agent takes action elsewhere.
This tool only queries and returns directory contents without side effects. It is a straightforward read operation that retrieves information about the filesystem structure. The low severity reflects minimal blast radius: misuse would only expose file/folder names within ROOT_DIR, not execute code or modify data.
From the tool's definition Tool name is 'list_files' and description states it 'List files and folders in a directory' — a retrieval operation with no modification or execution.
Attacks that exploit this kind of access
List files and folders in a directory (relative to ROOT_DIR). It is categorised as a Read tool in the Terminal MCP Server, which means it retrieves data without modifying state.
Register the Terminal MCP server in PolicyLayer and add a rule for list_files: 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 Terminal. Nothing to install.
list_files is a Read tool with low risk. Read-only tools are generally safe to allow by default.
Yes. Add a rate_limit block to the list_files 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 list_files. 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.
list_files is provided by the Terminal MCP server (koushikmaji31/terminal-mcp-agent). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.
Every MCP server has a record like this.
Type a name, get the same breakdown: verified identity, auth posture, risk grade, capabilities, recommended policy.
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