Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnlyHint, idempotentHint, destructiveHint, and openWorldHint, covering the safety profile. The description adds structural context (institution contains accounts) but does not mention pagination, ordering, auth requirements, or return format.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Is the description appropriately sized, front-loaded, and free of redundancy?

Two sentences, front-loaded with the core action, and no wasted words. Each sentence provides useful context.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a simple list tool with one fully documented parameter and rich annotations, the description is nearly complete. It could mention pagination or return ordering, but those are minor given the low complexity.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100% for the single user_id parameter, so the schema fully documents it. The description adds no further detail about the parameter, which is acceptable at this coverage level.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb ('Lists') and resource ('financial institutions'), and adds that each institution represents a bank and contains accounts. It implicitly distinguishes from 'get_institution' by saying 'all', but does not explicitly name siblings or exclusions.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Does the description explain when to use this tool, when not to, or what alternatives exist?

No guidance on when to use this tool versus alternatives like get_institution, list_accounts, or create_institution. The implied use case is retrieving all institutions for a user, but no conditions or exclusions are provided.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.