update_leverage · Hyperliquid MCP: Risk & Policy

WHAT IT DOES

What update_leverage does on Hyperliquid

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

WHY IT NEEDS A POLICY

Why update_leverage needs a policy

This tool modifies account leverage settings, which is a write operation that changes account state. While leverage changes on a decentralized exchange can amplify financial risk and losses if set incorrectly by an AI agent, the action itself is reversible (leverage can be adjusted again). It does not move money directly (Financial category) or irreversibly delete data (Destructive category).

From the tool's definition Tool description states 'Update leverage for a specific asset on Hyperliquid.' The verb 'update' indicates modification of account settings. This is a reversible configuration change on a financial trading platform.

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

update_leverage Rate-limited

update_leverage 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": {
    "update_leverage": {
      "limits": [
        {
          "counter": "update_leverage_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 Hyperliquid, so you can run agents against it safely.

FAQ

Questions about update_leverage

What does the update_leverage tool do? +

Update leverage for a specific asset on Hyperliquid. It is categorised as a Write tool in the Hyperliquid MCP Server, which means it can create or modify data. Consider rate limits to prevent runaway writes.

How do I enforce a policy on update_leverage? +

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

What risk level is update_leverage? +

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

Can I rate-limit update_leverage? +

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

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

update_leverage is provided by the Hyperliquid MCP server (midodimori/hyperliquid-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.