remove_liquidity

THE RISK

Critical Risk

Why remove_liquidity needs a policy

Although the tool transfers assets back to the user (making it superficially similar to Write), the core mechanism is burning LP tokens, which is irreversible destruction of a financial instrument. Combined with the broader context of a wallet MCP server managing multi-chain crypto operations and financial assets, misuse could result in unintended liquidity removal and permanent loss of LP positions.

From the tool's definition 'Remove liquidity from a Pendle market by burning LP tokens' - the tool irreversibly burns LP tokens, converting them to underlying assets in a non-recoverable way. Burning is a destructive action that cannot be undone.

Documented attack patterns abuse exactly the kind of access remove_liquidity gives an agent:

POLICY

How to control remove_liquidity

PolicyLayer is an MCP gateway — it sits between your AI agents and Waiaas, and nothing reaches the server without passing your rules. This is the rule we recommend for remove_liquidity:

policy.json

{
  "version": "1",
  "default": "deny",
  "hide": [
    "remove_liquidity"
  ]
}

remove_liquidity disappears from the agent's tool list entirely, and any attempt to call it is denied. The rest of the server keeps working.

Create a free account and register Waiaas — nothing to install.
Add this policy — paste it, or build it visually.
Point your MCP client (Claude, Cursor, anything) at your gateway URL.

RESTRICT THIS TOOL →

Free to start. No card required.

EXPLORE

Related tools and policies

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Go deeper

Critical-risk tools in Waiaas → Every critical-risk tool this server exposes, in one view.
All critical-risk MCP tools → Every critical-risk tool across the catalogue, and the policy pattern that contains them.
The MCP Attack Database → Documented attack patterns against MCP deployments — and the policies that stop them.
Blast radius → How much damage one compromised or confused agent can do — and how to bound it.
Tool call approval → Approval gates on individual tool calls: auto-allow, prompt, or deny.
Rate Limiting MCP Tool Calls: A Practical Guide →
MCP Security: Why Prompt Guardrails Aren't Enough →

FAQ

Questions about remove_liquidity

What does the remove_liquidity tool do? +

Remove liquidity from a Pendle market by burning LP tokens. It is categorised as a Destructive tool in the Waiaas MCP Server, which means it can permanently delete or destroy data. Block by default and require explicit approval.

How do I enforce a policy on remove_liquidity? +

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

What risk level is remove_liquidity? +

remove_liquidity is a Destructive tool with critical risk. Critical-risk tools should be blocked by default and only enabled with explicit human approval.

Can I rate-limit remove_liquidity? +

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

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

remove_liquidity is provided by the Waiaas MCP server (minhoyoo-iotrust/waiaas). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.

Enforce policy on every Waiaas tool call.

Start from Waiaas, add the rest of your stack, and see everything your agents can call. Then put policy on all of it.

CHECK YOUR STACK →