> For the complete documentation index, see [llms.txt](https://hydro.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hydro.gitbook.io/docs/snowflake/allowances-in-snowflake/allowance-management-logic.md).

# Allowance management logic

The `handleAllowance` internal function defines the logic for when an Allowance is being used. Allowance usage is broken down in the Payments Through Snowflake section.

Allowances **must** be set by an `EIN` for a Resolver in order for the Resolver to operate on them. Allowances can be set when the Resolver is added, and they can be changed at any time. Once an allowance is set, a Resolver may withdraw from the `EIN`‘s HYDRO balance up to the quantity of the Allowance.

When executing resolver-initiated payments, `handleAllowance` checks that:

* The `Resolver` is set for the `EIN`
* The balance being used by the `Resolver` is within the `Resolver`‘s allowance.