withdraw_collateral

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

No annotations are provided, so the description carries the burden. It usefully discloses that the tool 'Builds unsigned tx' (i.e., does not execute) and requires a Floe API key. However, it does not mention whether state is modified, what the return value is, or error behavior, leaving some ambiguity.

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?

The description is concise (two sentences) and front-loaded with the primary action. The second sentence adds essential authentication context without fluff. Every word earns its place.

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 two-parameter tool with no output schema, the description covers the core purpose and authentication. It does not explicitly mention the return value (the unsigned transaction), but given the name and 'Build unsigned tx', this is reasonably inferable. It is slightly incomplete regarding post-build steps (e.g., broadcasting).

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 description coverage is 100% for the two parameters (amount and loan_id), so the schema already provides adequate descriptions. The tool description adds no additional parameter-specific semantics beyond implying that the amount is 'excess' collateral.

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?

The description clearly states the action ('Build unsigned tx') and the target ('withdraw excess collateral'). This distinguishes it from related tools like add_collateral or liquidate_loan. The phrase 'excess collateral' adds specificity.

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?

The description implies usage context via 'withdraw excess collateral' and states an authentication requirement, but it does not explicitly explain when to use this tool versus alternatives such as add_collateral or repay_loan. There is no mention of exclusions or prerequisites beyond the API key.

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