calculate_pv10

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

With no annotations, the description must fully disclose behavior. It includes the formula and explains that monthly_net_revenue is after royalties and opex. However, it doesn't mention any constraints (e.g., positive values, array length) or that the output is a scalar present value. Given the simplicity of the function, the description is minimally adequate.

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 very concise: two sentences and an arguments block. Every sentence adds value, with the purpose and formula front-loaded. No superfluous information.

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 one-parameter tool with an output schema, the description is nearly complete. It explains the input and the formula. It does not describe the output format, but the output schema likely handles that. Slight deduction for not specifying the output units (assumed dollars).

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?

The schema has 0% description coverage, but the description adds meaning beyond the schema: it clarifies that monthly_net_revenue is in dollars and after royalties/opex. This is helpful context that the schema type 'array of numbers' does not provide.

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 tool calculates PV10 using an SEC standard formula. It uses a specific verb ('Calculate') and resource ('PV10'). While it doesn't explicitly differentiate from similar financial tools like calculate_npv, the formula and reference to SEC standard make the purpose distinct.

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 is provided on when to use this tool versus alternatives like calculate_npv or calculate_irr. There are many sibling calculation tools, and the description lacks any context for selection, such as typical use cases or prerequisites.

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