create_wallet · Privy MCP Server MCP: Risk & Policy

WHAT IT DOES

What create_wallet does on Privy MCP Server

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

WHY IT NEEDS A POLICY

Why create_wallet needs a policy

This tool creates a new wallet resource, which is a reversible write operation (wallets can be deleted or decommissioned). It does not directly move funds or execute transactions, though it is a prerequisite for financial operations. The blast radius is medium since misuse could result in unauthorized wallet proliferation under the app's management.

From the tool's definition Creates a new app-owned wallet. App-owned wallets are fully managed by your Privy app.

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

create_wallet Rate-limited

create_wallet 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": {
    "create_wallet": {
      "limits": [
        {
          "counter": "create_wallet_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 Privy MCP Server, so you can run agents against it safely.

FAQ

Questions about create_wallet

What does the create_wallet tool do? +

Creates a new app-owned wallet. App-owned wallets are fully managed by your Privy app. It is categorised as a Write tool in the Privy MCP Server MCP Server, which means it can create or modify data. Consider rate limits to prevent runaway writes.

How do I enforce a policy on create_wallet? +

Register the Privy MCP Server MCP server in PolicyLayer and add a rule for create_wallet: 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 Privy MCP Server. Nothing to install.

What risk level is create_wallet? +

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

Can I rate-limit create_wallet? +

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

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

create_wallet is provided by the Privy MCP Server MCP server (privy-io/privy-mcp-server). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.