> For the complete documentation index, see [llms.txt](https://covenant-3.gitbook.io/covenant-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://covenant-3.gitbook.io/covenant-docs/readme.md).

# Welcome

**Covenant is the safety layer for self-paying AI agents.**

Giving an AI agent a wallet is like giving a toddler an uncapped credit card — one prompt injection or runaway loop can drain it. Covenant fixes that: a user signs **one** spending policy (the *covenant*), and from then on the agent can pay for [x402](https://x402.org) services autonomously using **ERC-7710 delegated permissions** from a **MetaMask Smart Account** — but it can never step outside that policy. Even a fully compromised agent cannot exceed the budget or spend after the covenant expires, because those limits are enforced by MetaMask's audited smart contracts, not by our code.

> **Hackathon tracks:** Best x402 + ERC-7710 · Best Agent · Best use of Venice AI

## The idea in 30 seconds

A user signs a **covenant**: an ERC-7710 delegation from their MetaMask Smart Account to the agent, carrying two on-chain caveats — a hard **USDC budget cap** and an **expiry**. The agent can then call paid x402 services and settle them by **redeeming** that delegation. Before any redemption, an off-chain **policy engine** checks the payment against the finer covenant rules. The budget and expiry are enforced *cryptographically*; everything else is enforced by the policy engine.

```mermaid
flowchart LR
  U([User]) -->|signs covenant| D["ERC-7710 delegation
  budget + expiry caveats"]
  A([Agent]) -->|task| P{Policy engine}
  X[x402 service] -->|402 Payment Required| P
  P -->|blocked / needs approval| S([Stop · no funds move])
  P -->|approved| R["redeemDelegations
  USDC transfer"]
  D -. guards .-> R
  R -->|tx hash| X
  X -->|verify transfer on-chain| OK([Paid data delivered])
```

## What makes it different

* **Two independent layers of defense.** A bypass of the off-chain policy is still caught by the on-chain caveats, and vice-versa. → [Security model](/covenant-docs/core-concepts/security-model.md)
* **x402 and ERC-7710 are one transaction, not two features.** The USDC transfer that satisfies x402's "prove you paid" is the very transfer constrained by the ERC-7710 caveats. → [x402 + ERC-7710](/covenant-docs/core-concepts/x402-and-erc-7710.md)
* **Honest about what's real.** Every step is badged `on-chain` / `real` / `simulated`; nothing claims to be on-chain when it isn't. → [Real vs Simulated](/covenant-docs/core-concepts/real-vs-simulated.md)
* **No custom smart contracts.** Covenant uses MetaMask's audited, pre-deployed `DelegationManager` and DeleGator account on Base Sepolia.

## Start here

| If you want to…         | Go to                                                                                                                                    |
| ----------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- |
| Understand the why      | [The Problem](/covenant-docs/introduction/the-problem.md) → [The Solution](/covenant-docs/introduction/the-solution.md)                  |
| See it run              | [Quickstart](/covenant-docs/getting-started/quickstart.md) → [Demo Guide](/covenant-docs/getting-started/demo-guide.md)                  |
| Read the design         | [How It Works](/covenant-docs/core-concepts/how-it-works.md) → [System Architecture](/covenant-docs/architecture/system-architecture.md) |
| Judge the hackathon fit | [Tracks & Judging](/covenant-docs/hackathon/tracks-and-judging.md)                                                                       |

***

**Stack:** Next.js 16 · React 19 · Tailwind v4 · viem · `@metamask/delegation-toolkit` · Venice AI · Base Sepolia


---

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