PACE: Provenance-Aware Capability Enforcement for Tool-Using LLM Agents

Tool-using LLM agents must act on untrusted webpages, emails, files, and API outputs while issuing privileged tool calls. Existing defenses often mediate trust at the granularity of an entire tool invocation, forcing a brittle choice in mixed-trust workflows: allow external content to influence a call and risk hijacked destinations or commands, or quarantine the call and block benign retrieval-then-act behavior. The key observation behind this paper is that indirect prompt injection becomes dangerous not when untrusted content appears in context, but when it determines an authority-bearing argument. We present \textsc{PACT} (\emph{Provenance-Aware Capability Contracts}), a runtime monitor that assigns semantic roles to tool arguments, tracks value provenance across replanning steps, and checks whether each argument's origin satisfies its role-specific trust contract. Under oracle provenance, \textsc{PACT} achieves 100% utility and 100% security on mixed-trust diagnostic suites, while flat invocation-level monitors incur false positives or false negatives. In full AgentDojo deployments across five models, \textsc{PACT} reaches 100% security on the three strongest models while recovering 38.1--46.4% utility, 8--16 percentage points above CaMeL at the same security level. Ablations show that both semantic roles and cross-step provenance are necessary. \textsc{PACT} reframes agent security as authority binding, and isolates the remaining deployment bottleneck to provenance inference and contract synthesis.

Tool-using LLM agents remain vulnerable to indirect prompt injection because trusted instructions and untrusted observations share one context, allowing malicious content to steer consequential input-filtering defenses. Multi-path consensus defenses still leave a high attack success rate because they examine content or aggregated outputs rather than authorizing effects, especially for the within-tool attack, which preserves the intended tool but manipulates its arguments. Data-Flow Control such as CaMeL provides stronger guarantees, but incurs substantial time latency that limits practical deployment. We introduce ToolFence, which compiles a typed authorization blueprint before execution, enforces it through a deterministic monitor, and when the blueprint is incomplete asks a judge to grant new capabilities rather than adjudicate each concrete call. ToolFence provides two key advantages. First, its fine-grained provenance-aware authorization enables the system to distinguish user-authorized values from untrusted observations, effectively addressing the within-tool attack. Second, its deterministic fast path and capability-level runtime grants substantially reduce the frequency of expensive judge calls, improving runtime efficiency. On AgentDojo with Qwen3-max, ToolFence reduces overall ASR to near zero with only a 3.80 percentage-point clean-utility drop and practical runtime overhead.

LLM agents increasingly rely on external tools, expanding capability while creating a new security boundary: third-party tools may appear benign at the interface level while embedding unsafe behavior in implementation. Existing defenses rely on weak metadata, collapse characterization and policy judgment into a single decision, or use heuristic/LLM enforcement that lacks deterministic, auditable reasoning over task context and multi-tool composition. This paper presents ToolGuardian, a policy-driven framework for securing agent-tool interactions through pre-admission vetting and task-aware runtime authorization. ToolGuardian uses progressive characterization to convert evidence into structured facts: descriptions capture declared intent, system-call traces expose coarse behavior, mock execution reveals observed effects, and source analysis identifies latent behavior. ToolGuardian's core contribution is an Answer Set Programming (ASP)-based declarative policy layer that reasons explicitly over capabilities, effects, task context, and composition. We compare ASP against heuristic and LLM-based policy realizations using identical inputs and output contracts. We evaluate ToolGuardian on 16 MCP-style tools, including 8 malicious variants derived from real open-source tools, and 20 runtime scenarios. For vetting, ASP reaches a deny-class F1 of 0.86 and 88% accuracy using description, syscall, and observed-effect evidence. For runtime authorization, fully specified realizations classify all scenarios correctly, while ablations show that removing compositional and conformance rules substantially degrades performance.