close_position · Hyperliquid MCP Server MCP: Risk & Policy

WHAT IT DOES

What close_position does on Hyperliquid MCP Server

AI agents use close_position to commit financial operations through Hyperliquid MCP Server — usually the final step of a payment, billing, or trading workflow. A call moves real money.

WHY IT NEEDS A POLICY

Why close_position needs a policy

Closing a position on a perpetual futures exchange constitutes a financial transaction that realizes gains or losses. This directly moves money and commits financial obligations by executing a trade to exit an open derivatives position. Misuse could result in significant financial loss.

From the tool's definition Close an open position (market close or limit close) on Hyperliquid exchange for trading perpetuals

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

close_position Approval-gated

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

View as policy code

policy.json

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

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Instant setup, no code required.

PolicyLayer is an MCP gateway: every tool call is checked against your rule before it reaches Hyperliquid MCP Server, so you can run agents against it safely.

FAQ

Questions about close_position

What does the close_position tool do? +

Close an open position (market close or limit close). It is categorised as a Financial tool in the Hyperliquid MCP Server MCP Server, which means it involves financial transactions. Block by default and require explicit approval.

How do I enforce a policy on close_position? +

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

What risk level is close_position? +

close_position 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 close_position? +

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

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

close_position is provided by the Hyperliquid MCP Server MCP server (samklein952-hub/hyperliquid-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.