replace_order · Derive MCP: Risk & Policy

WHAT IT DOES

What replace_order does on Derive MCP

AI agents invoke replace_order to trigger actions in Derive 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 IT NEEDS A POLICY

Why replace_order needs a policy

This tool atomically cancels an existing order and places a new one in a financial trading context. While it involves financial instruments (options, perpetuals, spot markets), the primary action is order replacement/modification rather than directly moving money. However, it does trigger external trading operations with significant financial impact.

From the tool's definition Replace an existing order (cancel old and place new) in one atomic operation. Requires authentication.

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

replace_order Rate-limited

replace_order 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.

View as policy code

policy.json

{
  "version": "1",
  "default": "deny",
  "tools": {
    "replace_order": {
      "limits": [
        {
          "counter": "replace_order_rate",
          "window": "minute",
          "max": 10,
          "scope": "grant"
        }
      ]
    }
  }
}

RATE-LIMIT THIS TOOL →

Instant setup, no code required.

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

FAQ

Questions about replace_order

What does the replace_order tool do? +

Replace an existing order (cancel old and place new) in one atomic operation. Requires authentication. It is categorised as a Execute tool in the Derive MCP MCP Server, which means it can trigger actions or run processes. Use rate limits and argument validation.

How do I enforce a policy on replace_order? +

Register the Derive MCP server in PolicyLayer and add a rule for replace_order: 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 Derive MCP. Nothing to install.

What risk level is replace_order? +

replace_order is a Execute tool with high risk. Execute tools should be rate-limited and have argument validation enabled.

Can I rate-limit replace_order? +

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

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

replace_order is provided by the Derive MCP server (solenyaresearch0000/derive-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.