Protecting Margin with Policies

The Policy Engine is where you set the guardrails on commerce actions. A policy watches for one kind of change — a discount, a downgrade, a seat change, a cancellation — and returns a decision: allow, warn, require approval, or block, with a reason. Your team moves fast, and the rules keep margin from quietly leaking away.

This walkthrough builds two guardrails live.

Where to find it

Go to Rules & Automation → Policy Engine. Policies are evaluated top to bottom by priority, and the first block-severity match stops the action.

Build a discount cap

1. Select Add Policy, then choose the Discount Cap type.

2. Name it, and set the Maximum Discount — for example, 15%.

3. Choose the enforcement action. Require Approval lets the deal proceed but routes anything over the cap for a manager's sign-off, so nothing stalls and nothing slips through.

4. Save. From now on, discounts above the cap route for approval automatically.

Protect revenue on downgrades

1. Add another policy and choose Downgrade Protection.

2. Set the MRR Impact Threshold — the monthly recurring revenue a downgrade would have to exceed before the policy fires (for example, $5,000).

3. Leave enforcement on Block to stop high-value downgrades outright above the line, or use Require Approval to review them first.

4. Save. High-value downgrades now stop for review before they ever take effect.

Enforcement actions

• Allow — no restriction.

• Warn — allow, but surface a warning.

• Require Approval — allow, pending a manager's sign-off.

• Block — prevent the action outright.

Tip: Policies apply across every channel — storefronts, CSR flows, and AI agents all honor the same guardrails, so a discount cap set once holds everywhere.

Learn more: Rules Overview · Creating and Managing Rule Sets.