> 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/resources/glossary.md).

# Glossary

> Terms used across these docs. For external links and references, see [Links & References](/covenant-docs/resources/links.md).

**x402** — The HTTP `402 Payment Required` micropayment protocol. A server answers an unpaid request with an `accepts[]` **envelope** (scheme, network, amount, asset, `payTo`); the client pays and retries with proof in an `X-PAYMENT` header; the server verifies and returns the resource.

**402 envelope / `accepts[]`** — The JSON body of a 402 response describing how to pay: `scheme` (`"exact"`), `network` (`"base-sepolia"`), `maxAmountRequired`, `payTo`, `asset` (USDC), and `extra` (decimals, purpose, verified, service).

**`X-PAYMENT`** — The request header carrying the payment proof (here, the redemption transaction hash) on the retry after a 402.

**ERC-7710** — Ethereum standard for **delegated execution rights** between smart accounts: a delegator grants a delegate a scoped, caveated permission, redeemed through a `DelegationManager`.

**Delegation** — The signed object granting the permission. Contains delegator, delegate, authority, caveats, salt, and a signature. In Covenant it *is* the covenant.

**Caveat** — An on-chain constraint attached to a delegation, checked at redemption time by a **caveat enforcer** contract. Covenant uses two.

**`ERC20TransferAmountEnforcer`** — The enforcer backing the **budget cap**: cumulative ERC-20 (USDC) transfers under the delegation cannot exceed `maxAmount`.

**`TimestampEnforcer`** — The enforcer backing the **expiry**: a redemption is only valid within the configured time window (`beforeThreshold`).

**Redemption** — Calling `redeemDelegations` to execute the delegated action (here, a USDC transfer) under the delegation's caveats.

**`DelegationManager`** — MetaMask's audited contract that validates a delegation + its caveats and executes the redemption. Pre-deployed on Base Sepolia.

**DeleGator / smart account** — MetaMask's audited ERC-7710 smart-contract account. Covenant uses the **Hybrid** implementation; the connected EOA is its owner/signer.

**Counterfactual address** — A smart account's deterministic address, known before it is deployed. It can sign delegations immediately; it must be **deployed** (and funded) before a redemption can settle on-chain.

**EIP-712** — The typed-data signing standard used to produce the real wallet signature when a covenant is created. Signing moves no funds.

**Covenant** — In this app: the user-signed ERC-7710 delegation **plus** its policy — budget, expiry, per-request cap, allowed services, purpose, and active window.

**Policy engine / firewall** — `src/lib/policy.ts`. The off-chain `evaluatePolicy` that checks each payment against the covenant *before* any redemption and returns `approved` / `needs_user` / `blocked`.

**`needs_user` (approve once & pay)** — The decision when a payment fails *only* the soft per-request cap. The run pauses for one-time human approval; the on-chain budget still caps the total.

**`execMode` (`real` / `simulated`)** — The honesty flag on a settlement. `real` only when the redemption broadcast succeeded **and** the seller verified the on-chain transfer; otherwise `simulated`.

**Smart Accounts Kit / Delegation Toolkit** — MetaMask's SDK (`@metamask/delegation-toolkit@0.13.0`) for creating accounts and building/signing/redeeming ERC-7710 delegations.

**Venice AI** — The agent's reasoning provider, used for task planning (`planTask`) and report generation (`generateReport`), proxied server-side.

**USDC** — The payment stablecoin (6 decimals) on Base Sepolia. Convert with `toUnits` / `fromUnits`.

**Base Sepolia** — The OP-stack L2 testnet Covenant runs on; cheap, fast, and where MetaMask's contracts are pre-deployed.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://covenant-3.gitbook.io/covenant-docs/resources/glossary.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.