derive_key
Derive a child key from a seed using the given derivation path.
This record as markdown: /tools/network-tenzro-tenzro/derive-key.md
What derive_key does on Tenzro Ledger MCP
AI agents invoke derive_key to trigger actions in Tenzro Ledger MCP. What it does depends on the arguments the agent supplies, and its effects often reach beyond the immediate call: builds kicked off, notifications sent, workflows started.
Why derive_key is rated High
Key derivation is a cryptographic operation that generates new key material from a seed. It is not a simple read (it produces new derived keys), not a write in the traditional sense, but an execution of a cryptographic process. Misuse could expose or generate cryptographic keys used for signing, authentication, or financial operations in this wallet/payments/staking context, making the blast radius high.
From the tool's definition 'Derive a child key from a seed using the given derivation path'
Attacks that exploit this kind of access
The rule that runs derive_key safely
PolicyLayer is an MCP gateway: it sits between your AI agents and Tenzro Ledger MCP, and checks every tool call against a rule you set before the call runs. Nothing changes on the server itself. For derive_key, this is the rule to start with:
derive_key stays usable, but rate-capped: a runaway agent can't fire it dozens of times a minute. Everything else on the server is denied unless you say otherwise.
The button opens the PolicyLayer dashboard: create your workspace, connect Tenzro Ledger MCP, apply this rule, and every derive_key call is checked against it from then on.
Questions about derive_key
Derive a child key from a seed using the given derivation path. It is categorised as a Execute tool in the Tenzro Ledger MCP MCP Server, which means it can trigger actions or run processes. Use rate limits and argument validation.
Register the Tenzro Ledger MCP server in PolicyLayer and add a rule for derive_key: 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 Tenzro Ledger MCP. Nothing to install.
derive_key is a Execute tool with high risk. Execute tools should be rate-limited and have argument validation enabled.
Yes. Add a rate_limit block to the derive_key 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 derive_key. 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.
derive_key is provided by the Tenzro Ledger MCP server (https://canton-mcp.tenzro.network/mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.
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