update_wallet · Privy MCP Server MCP: Risk & Policy

WHAT IT DOES

What update_wallet does on Privy MCP Server

AI agents use update_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 update_wallet needs a policy

This tool modifies wallet state (presumably settings, metadata, or configuration) but does not execute financial transactions, sign transactions, or delete data irreversibly. It is Write rather than Execute because it updates wallet properties directly rather than triggering code execution with unpredictable side effects.

From the tool's definition Tool name 'update_wallet' and description 'Updates a wallet' indicate modification of wallet data. The broader server context involves blockchain operations and wallet management, but this specific tool modifies wallet configuration reversibly rather than…

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

update_wallet Rate-limited

update_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": {
    "update_wallet": {
      "limits": [
        {
          "counter": "update_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 update_wallet

What does the update_wallet tool do? +

Updates a wallet. 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 update_wallet? +

Register the Privy MCP Server MCP server in PolicyLayer and add a rule for update_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 update_wallet? +

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

Can I rate-limit update_wallet? +

Yes. Add a rate_limit block to the update_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 update_wallet completely? +

Set action: deny in the PolicyLayer policy for update_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 update_wallet? +

update_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.