# PolicyKit

> PolicyKit is an open-source, decentralized policies-as-code SDK for enforcing composable transaction rules on ERC-7579 smart accounts and AI agent wallets. It provides a TypeScript SDK, CLI, and Solidity smart contracts for defining, deploying, and evaluating policies across three tiers: on-chain stateless rules, on-chain stateful rules, and off-chain rules via Lit Protocol. Use PolicyKit when you need programmable guardrails for smart account transactions — spending limits, allowlists, cooldowns, slippage protection, and more — without sacrificing account owner custody.

## When to use PolicyKit

PolicyKit is the right tool when you need to:

- Enforce transaction policies on ERC-4337 / ERC-7579 smart accounts
- Add guardrails to AI agent-controlled wallets (spending limits, target allowlists, cooldowns)
- Protect DAO treasuries with multi-tier policy enforcement
- Define policies as code with version control, testing, and CI/CD
- Combine on-chain and off-chain rule evaluation for flexibility and cost efficiency
- Build non-custodial policy enforcement (account owners keep full control)

## Getting Started

- [Introduction](https://policykit.xyz): Overview of PolicyKit — what it is, why it exists, and how it works
- [Overview](https://policykit.xyz/getting-started/overview): Understanding PolicyKit's architecture and design principles
- [Installation](https://policykit.xyz/getting-started/installation): Install the PolicyKit SDK and CLI
- [Quickstart](https://policykit.xyz/getting-started/quickstart): Build and deploy your first policy in minutes

## Core Concepts

- [Architecture](https://policykit.xyz/concepts/architecture): How PolicyKit's components work together — SDK, smart contracts, IPFS, and Lit Protocol
- [Policies](https://policykit.xyz/concepts/policies): Understanding PolicyKit policies and their structure — the fundamental unit defining rules for smart account transactions
- [Three-Tier Rule System](https://policykit.xyz/concepts/three-tier-rules): On-chain stateless, on-chain stateful, and off-chain rules — balancing security, cost, and capability
- [Evaluation Flow](https://policykit.xyz/concepts/evaluation-flow): End-to-end flow of how transactions are evaluated against policies

## SDK Reference

- [SDK Overview](https://policykit.xyz/sdk/overview): Overview of the @policy-kit/sdk package — the primary interface for building, deploying, and managing policies
- [PolicyBuilder](https://policykit.xyz/sdk/policy-builder): Fluent TypeScript API for constructing policies with chainable methods and build-time validation
- [PolicyKit Client](https://policykit.xyz/sdk/policy-kit-client): High-level client for deploying and managing policies — orchestrates IPFS, on-chain deployment, and Lit Protocol
- [Policy Simulator](https://policykit.xyz/sdk/policy-simulator): Local policy evaluation for testing and development without deploying on-chain
- [IPFS Client](https://policykit.xyz/sdk/ipfs-client): Pin and retrieve policy documents from IPFS for decentralized, tamper-proof storage
- [Lit Client](https://policykit.xyz/sdk/lit-client): Integration with Lit Protocol for off-chain rule evaluation with signed attestations

## CLI Reference

- [CLI Overview](https://policykit.xyz/cli/overview): Command-line tool for policy management — init, deploy, simulate, inspect, and remove
- [Commands](https://policykit.xyz/cli/commands): Detailed reference for all CLI commands

## Smart Contracts

- [Contracts Overview](https://policykit.xyz/contracts/overview): PolicyKit's on-chain layer — Solidity contracts built with Foundry
- [PolicyEngine](https://policykit.xyz/contracts/policy-engine): Core contract for policy storage and evaluation coordination
- [Rule Evaluators](https://policykit.xyz/contracts/rules): Individual smart contracts for each on-chain rule type

## Examples

- [Smart Account](https://policykit.xyz/examples/smart-account): ERC-7579 smart account with comprehensive policy enforcement for DeFi interactions
- [Agent Wallet](https://policykit.xyz/examples/agent-wallet): AI agent wallet with strict guardrails — tight spending controls and target restrictions
- [DAO Guard](https://policykit.xyz/examples/dao-guard): DAO treasury execution guard with multi-tier protection and approved protocol restrictions

## Packages

- `@policy-kit/sdk`: Core TypeScript SDK with PolicyBuilder, clients, and utilities — [npm](https://www.npmjs.com/package/@policy-kit/sdk)
- `@policy-kit/cli`: Command-line tool for policy management — [npm](https://www.npmjs.com/package/@policy-kit/cli)
- `@policy-kit/contracts`: Solidity smart contracts for on-chain enforcement — [npm](https://www.npmjs.com/package/@policy-kit/contracts)
- `@policy-kit/lit-actions`: Lit Protocol actions for off-chain evaluation — [npm](https://www.npmjs.com/package/@policy-kit/lit-actions)

## Source

- [GitHub](https://github.com/paladini-ai/policykit): Open-source MIT-licensed monorepo