Transaction Risk policy

Transaction Risk policy is used to set up rules to approve or reject transactions based on the transaction risk status. It requires you to integrate with a supported Transaction Risk provider. Currently, Liminal Firewall supports TRM Labs for Transaction Risk Monitoring compliance.

Rule parameters

The Transaction Risk policy has the following rule parameters:

  • Direction: This specifies whether the rule pertains to outgoing or incoming transactions. You get the following options to select from:
    • Any: Refers to both incoming and outgoing transactions.
    • Send: Refers to outgoing transactions.
    • Receive: Refers to incoming transactions. Note that Liminal currently doesn’t support the incoming transactions (receive) workflow, however, it is in the process to be released soon.
  • Risk Score (TRM Labs): This refers to the risk score associated with a transaction. TRM Labs provides the following risk scores:
    • Any: Refers to any score.
    • Not Available: Indicates that there is no risk score associated with the transaction. Or the risk score is unknown.
    • Unknown: The risk score is unknown.
    • Severe: Indicates extremely high risk, suggesting immediate and critical attention is required.
    • High: Represents a significant risk that may impact security or compliance.
    • Medium: Denotes a moderate risk level, warranting caution and potential further review.
    • Low: Suggests minimal risk, generally considered safe with standard monitoring.
  • Protocol: This specifies the protocol to which the rule is applied. You get the following options to select from:
    • Any: Indicates that the rule applies to all protocols.
    • Protocol Name: Indicates the protocol that is applicable.
  • Assets: This specifies the assets to which the rule is applied. You get the following options to select from:
    • Any: Indicates that the rule applies to all assets.
    • Asset Name: Indicates the asset that is applicable.
  • Outcome: This is the outcome of the rule. The outcomes of a transaction can be any one of the following:
    • Reject: Indicates that the transaction will be halted (or frozen if incoming).
    • Allow: Indicates that the transaction will proceed.
    • Approval: Indicates that the transaction requires approval from the dedicated compliance team. Enter the values in the following fields:
      • Team Name: This is the name of the compliance team that is required to approve a transaction.
      • Min Approval: This is the minimum number of approvals required for a transaction.

To understand rule parameters and outcomes, a few examples of the Travel Risk policy are illustrated in the following table. These examples are just for your reference and not a recommendation.

Send rules (for outgoing transactions)

Order of priorityProtocolAssetRisk StatusOutcomeExplanation
1.AnyAnySevereRejectThe outcome is severe so the transaction will be rejected.
2.AnyAnyHigh, MediumApproval
2 of X Team
The transaction requires 2 approvals from the X team.
3.AnyAnyLowAllowThe transaction is allowed since the risk is low.
4.AnyAnyAnyReject"Reject" is the rule for outgoing transactions when a transaction doesn't match any rules.

Receive rules (for incoming transactions)

Order of priorityProtocolAssetRisk StatusOutcomeExplanation
1.AnyADA, BTC, ETHAnyAllowThe incoming transactions are allowed for ADA, BTC, and ETH.
2.AnyAnySevereRejectThe transaction risk score is severe, so the transaction is rejected.
3.AnyAnyHigh, Medium, LowApproval
2 of X Team
The transaction requires 2 approvals from the X team.
4.AnyAnyAnyAllow"Allow" is the rule for outgoing transactions when a transaction doesn't match any rules.