> ## Documentation Index
> Fetch the complete documentation index at: https://docs.mls.onchainden.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Policies

> Policies define what transactions can be executed and by whom.

The heart of Multi-Layer Security Wallet is the **policy engine**—rules that define what transactions can be executed, by whom, and how often. When creating a transaction via web or API, the initiator selects which policy applies to it.

## Policy concepts

* **Approval type:** Sets whether transactions auto-approve or require manual review from Members or Groups.
* **Transaction type:** Defines what the policy applies to—any transaction, token transfers, or contract interactions.
* **Transaction parameters:** Filters which transactions match based on criteria like source account, initiator, token, or recipient.
* **Time limitations:** Caps how often a policy can be used within a set interval.

## Policy configuration

<Tabs>
  <Tab title="Approval types">
    Determines whether matching transactions require manual review or execute automatically. Approval type can be set to auto-approval or manual review.

    | Type              | Behavior                                           | Example                                        |
    | ----------------- | -------------------------------------------------- | ---------------------------------------------- |
    | **Auto-approval** | Executes immediately                               | Transfers under \$500 from petty cash          |
    | **Manual review** | Requires approval from specified Members or Groups | Large transfers require 2 of 3 Finance members |

    Transactions can also be rejected using the same threshold, which blocks execution on-chain.
  </Tab>

  <Tab title="Transaction type">
    Specifies what kind of transaction the policy applies to.

    | Type                      | Use for                                                  | Example                                                           |
    | ------------------------- | -------------------------------------------------------- | ----------------------------------------------------------------- |
    | **Any**                   | Broad policies that apply regardless of transaction type | "All transactions from the Operations account require 1 approval" |
    | **Token transfers**       | Sending tokens to recipients                             | "USDC transfers under \$10,000 require 1 approval"                |
    | **Contract interactions** | Calling smart contract functions                         | "Aave deposits require Treasury approval"                         |
  </Tab>

  <Tab title="Transaction parameters">
    Narrow which transactions match your policy. Available conditions vary based on the transaction type.

    **For all transaction types:**

    | Condition          | Example                                          |
    | ------------------ | ------------------------------------------------ |
    | **Source Account** | Only transactions from the "Treasury" account    |
    | **Initiator**      | Only transactions initiated by the Finance group |

    **Only for token transfers:**

    | Condition     | Example                                        |
    | ------------- | ---------------------------------------------- |
    | **Token**     | Only USDC transfers                            |
    | **Recipient** | Only to addresses on a list of allowed vendors |
    | **Amount**    | Only transfers under \$5,000                   |

    **Only for contract interactions:**

    | Condition     | Example                               |
    | ------------- | ------------------------------------- |
    | **Contract**  | Only the Aave lending pool contract   |
    | **Function**  | Only the `deposit` function           |
    | **Arguments** | Only deposits where the asset is USDC |

    <Info>
      Argument filters support: Bool (exact), Uint/Int/Enum (exact or range), Address (exact or allowlist), Fixed bytes (exact), Bytes/String (exact).
    </Info>
  </Tab>

  <Tab title="Time limitations">
    Restrict how often a policy can be used within a time interval. Limits can be applied by initiator, source account, or destination—and scoped **per** (each individually) or **across** (all combined):

    | Scope              | Per                                              | Across                                                    |
    | ------------------ | ------------------------------------------------ | --------------------------------------------------------- |
    | **Initiator**      | Each initiator can transfer up to \$50,000/month | All initiators combined can transfer up to \$50,000/month |
    | **Source account** | Each account can send up to \$100,000/week       | All accounts combined can send up to \$100,000/week       |
    | **Destination**    | Up to \$25,000/day to each recipient             | Up to \$25,000/day to all recipients combined             |
  </Tab>
</Tabs>

## Example policies

<CardGroup cols={1}>
  <Card title="High-value transfers require multiple signatures" icon="money-bill-transfer">
    "If a transaction is sending more than \$10,000, require approval from 2 out of 3 Finance team members"
  </Card>

  <Card title="DeFi deposits auto-approve for API key" icon="vault">
    "If a transaction is depositing into the Aave lending pool and initiated by the Treasury API key, auto-approve"
  </Card>

  <Card title="RWA whitelist updates require Compliance approval" icon="list-check">
    "If a transaction is adding an address to the RWA token whitelist, require approval from the Compliance team"
  </Card>
</CardGroup>