merge_shares

THE RISK

Critical Risk

Why merge_shares needs a policy

This tool performs an on-chain financial operation that converts prediction market outcome tokens back into USDC stablecoin, directly moving/converting financial assets on the Algorand blockchain. This constitutes a financial transaction with real monetary value implications.

From the tool's definition Merge equal YES and NO outcome tokens back into USDC. 1 YES + 1 NO = 1 USDC.

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

POLICY

How to control merge_shares

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

policy.json

{
  "version": "1",
  "default": "deny",
  "tools": {
    "merge_shares": {
      "deny_if": [
        {
          "conditions": [],
          "on_deny": "Requires human approval."
        }
      ]
    }
  }
}

Any call to merge_shares is blocked until a human approves it. The rest of the server keeps working.

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

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EXPLORE

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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.
Human-in-the-loop → When a tool call should wait for a person — and when policy can decide alone.
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FAQ

Questions about merge_shares

What does the merge_shares tool do? +

Merge equal YES and NO outcome tokens back into USDC. 1 YES + 1 NO = 1 USDC. It is categorised as a Financial tool in the Alpha Arcade MCP Server, which means it involves financial transactions. Block by default and require explicit approval.

How do I enforce a policy on merge_shares? +

Register the Alpha Arcade MCP server in PolicyLayer and add a rule for merge_shares: 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 Alpha Arcade. Nothing to install.

What risk level is merge_shares? +

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

Can I rate-limit merge_shares? +

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

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

merge_shares is provided by the Alpha Arcade MCP server (phara23/alpha-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.

Enforce policy on every Alpha Arcade tool call.

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

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