What are "Threshold Sending Rules"?
In straightforward terms, Bitpanda Custody provides a feature referred to as automatic co-signing for outbound transactions that meet certain predefined criteria. This feature, when paired with our trustvault-co-signing-service, empowers users to establish a detailed and comprehensive set of rules. These rules play a crucial role in enabling the automated signing of transactions, which significantly enhances the efficiency of your transaction management process.
How can they be used?
Imagine a scenario where you oversee an operations department responsible for processing various transactions. In this context, you might want to set a specific threshold: for instance, transactions valued below £2,000 could be authorized and dispatched by the operations team without additional approvals. On the other hand, for transactions that are equal to or exceed the £2,000 threshold, it would be preferable to have these transactions signed off by management personnel. This approach establishes a clear and structured distinction in the approval process, based on the monetary value of the transactions.
To put this system into practice, we can create a wallet policy that outlines the conditions under which transactions are permitted to be sent. For example, a transaction can proceed if:
- It is co-signed by the trustvault-co-signing-service in conjunction with the operations team.
Alternatively, a transaction may also be processed if:
- Any two out of three designated management members provide their signatures of approval.
The trustvault-co-signing-service is designed to utilize trustworthy data sourced from Bitpanda Custody, ensuring that transactions are only signed when they meet the established rules. The criteria for the trustvault-co-signing-service can be summarized in the following manner:
- Only sign if the value of the transaction can be accurately assessed* AND
The transaction value is below £2,000 AND
The transaction involves ETH.
It is crucial to recognize that the wallet policy can be customized to be considerably more flexible. It can be adjusted to permit overrides or to facilitate a combination of different signatures, depending on your organization’s specific needs and requirements.
Optional Extras
When you utilize the trustvault-co-signing-service, you have the option to introduce various additional rules that can further refine your transaction processes. For instance, you might decide to only authorize transactions that involve BTC, or you might specify that ETH transactions should only be processed if they are sent to a particular address. This level of customization allows for a more precise and controlled management of your transaction activities.
The rules you can establish are highly adaptable, with the primary limitation being that they must function based on the values inherent in the transaction. For example, if you wanted to implement a rule that only authorizes transactions when the temperature in London exceeds 5 degrees Celsius, this is indeed possible, though it would necessitate integration with external weather data feeds.
If you are interested in incorporating more sensitive data into your rules or if you require access to a private API, we suggest considering the option of running the co-signing service independently. There is an open-source co-signing-service framework available that can assist you in this process.
Determining the value of a transaction
It is vital to understand that not all transactions can be easily assessed for value. For instance, transferring ETH or BTC is relatively straightforward, as is sending supported ERC-20 tokens. However, when it comes to executing transactions directed towards smart contracts, determining the value can become quite complex. Currently, our service is capable of valuing the following types of transactions:
- ERC-20 supported transactions
- ETH value transfers
- BTC value transfers
It is important to note that, at this moment, ETH transfers to any smart contract, including on-chain wallets or vaults, are not subject to valuation.