> 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/getting-started/demo-guide.md).

# Demo Guide

> The three no-wallet scenarios that show the firewall live, plus a suggested 2-minute script. For the real on-chain settlement, see [Going On-Chain](/covenant-docs/getting-started/going-on-chain.md).

## The three decisions, with no wallet

The seed ships three **active** covenants that produce all three decisions against the same 0.25 USDC demo payment. Go to **Task Console**, pick a covenant, and **Run agent**.

| Covenant                | Config                                                                       | Outcome               | Why                                                               |
| ----------------------- | ---------------------------------------------------------------------------- | --------------------- | ----------------------------------------------------------------- |
| **#001 Research Agent** | allows `market-api.demo`, purpose `research-data-purchase`, max/req **0.50** | ✅ **Approved**        | Every rule passes → redeems + settles.                            |
| **#006 Insights Agent** | same allow-list & purpose, but max/req **0.20**                              | ⏸️ **Needs approval** | Only the per-request cap fails → **Approve once & pay** / Cancel. |
| **#005 Compliance Bot** | allows only `inference.xyz`, purpose `compliance-audit`, max/req **0.10**    | ⛔ **Blocked**         | Service, purpose, and per-request all fail (hard block).          |

### Scenario A — Approved (the happy path)

Pick **Research Agent (#001)** → Run. Watch the four cards: plan → 402 → policy (all ✓, green "Approved") → settlement ("Sent 0.25 USDC", badge `simulated` with no wallet). The budget decrements.

### Scenario B — Needs approval (the soft override)

Pick **Insights Agent (#006)** → Run. The policy card shows **one red ✗** on *Under max per request* and an amber **"Needs your approval"** with **Approve once & pay** / **Cancel**.

* **Approve once & pay** → decision flips to green **"Approved by you,"** the run settles, and the audit notes a one-time per-request override (the ✗ stays — an honest record).
* **Cancel** → recorded as **blocked**; no funds move.

### Scenario C — Blocked (the firewall)

Pick **Compliance Bot (#005)** → Run. The policy card lights up **red ✗** on *Service allowed*, *Purpose matches*, and *Under max per request*; the decision is **"Blocked by covenant — no funds moved,"** and the run **halts before any redemption**. The attempt is recorded in the **Audit log**.

> Every run ends in the **Audit log** (`/dashboard/audit`): approved entries show an `on-chain` / `simulated` badge (and a BaseScan link for real txs); blocked entries show the failing reason. The log exports to JSON. → [Real vs Simulated](/covenant-docs/core-concepts/real-vs-simulated.md)

## Strict mode — prove the gate is real

Set this in `.env.local` and restart:

```bash
X402_REQUIRE_ONCHAIN=true
```

Now the x402 server keeps the **402 paywall up** until a payment is **verified on-chain**. A simulated (no-wallet) run will *not* unlock the resource — a clean way to prove that the on-chain settlement gate is genuinely doing the work.

## Suggested 2-minute demo script

1. **Frame it (15s):** "Agents need to pay autonomously, but a wallet given to an agent is a liability. Covenant is the safety layer."
2. **Block (30s):** Compliance Bot → Run → the firewall lights up red and halts. "No transaction was ever built."
3. **Approve-once (30s):** Insights Agent → Run → "everything passes except the per-request cap, so it asks me" → Approve once & pay → settles. "Soft limit, human speed-bump — but the on-chain budget still caps the total."
4. **Happy path + on-chain (30s):** Research Agent → Run (or the deployed/funded on-chain covenant) → settles; open the Audit log → BaseScan link. "Budget and expiry are enforced by MetaMask's audited contracts, not by us."
5. **Close (15s):** "Two layers — cryptographic hard limits, plus an intent firewall. Worst case, the agent spends the budget you set, before the time you set, and nothing more."

## Next

Take a covenant all the way to a real on-chain settlement → [Going On-Chain](/covenant-docs/getting-started/going-on-chain.md).


---

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