Pencel

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FAQ ​

Answers to the most common questions about Pencel.

General ​

Do I need to be online to use Pencel? ​

Yes. Your workspace data (agents, workflows, memories, artifacts) is stored locally on your machine, but agents need an internet connection to communicate with AI providers (Anthropic, Google, OpenAI). Without internet access, agents cannot think, respond, or execute workflow steps.

You can still browse your workspace, review past runs, and edit configurations offline. You just can't run anything that requires an AI model.

Can I use my company's API keys? ​

Yes. Any valid API key works, whether it's from a personal account or a company account. Usage and billing go through whatever account issued the key.

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If your company has negotiated enterprise pricing with a provider, using the company key means you benefit from those rates. Check with your IT or finance team for the appropriate key.

Can multiple people share a workspace? ​

Currently, Pencel is a single-user application. Each installation has one workspace tied to one machine. There is no shared access or multi-user collaboration at this time.

Collaboration features are on the roadmap for a future release.

How do I update Pencel? ​

Pencel checks for updates automatically when you launch the app. When a new version is available, you'll see a notification with the option to install the update.

You can also download the latest version manually from the Pencel website at any time.

Data and Privacy ​

Is my data sent to Pencel servers? ​

Your workspace data (agents, workflows, memories, artifacts, chat history) always stays on your machine — it is never sent to Pencel's servers.

How your prompts reach the AI provider depends on how you use AI:

  • With your own API key (recommended for maximum privacy): prompts go directly from your machine to the provider (Anthropic, Google, or OpenAI). Pencel is not in the middle.
  • With Pencel-managed credits (Pro Desktop or invite credits): prompts are relayed through Pencel's managed proxy (llm.pencel.ai) so usage can be metered. The content passes through Pencel to reach the provider and is not persisted.

Pencel also runs minimal backend services at api.pencel.ai for account sign-in and, only if you explicitly opt in, anonymous usage analytics. Analytics is off by default and never includes your content. See Data Handling for the full picture.

What LLM data is retained by providers? ​

Each provider has its own data retention policy for API usage:

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API data policies change over time. Review each provider's current policy if data retention is a concern for your organization. Most providers do not use API data for model training, but confirm this with the specific provider.

How do I export my data? ​

Your workspace lives in a SQLite database file on your machine. This single file contains all your agents, workflows, guidelines, memories, run history, and settings.

You can also export individual artifacts from the Artifacts section of your workspace.

Where is my data stored? ​

Pencel stores your workspace database in the standard application data directory for your operating system:

  • macOS — ~/Library/Application Support/Pencel/
  • Windows — %APPDATA%/Pencel/
  • Linux — ~/.config/Pencel/

API keys are stored separately in your OS keychain (not in the database).

Agents and Workflows ​

What happens if a run fails midway? ​

The run is marked as "Failed" on the Jobs page (/jobs). Open the job, then the run, to inspect the event log and see exactly which step failed and why. Steps that completed before the failure retain their outputs.

To retry, fix the underlying issue (e.g., a broken connection, unclear instructions) and run the workflow again.

Can I stop a running workflow? ​

Yes. Go to the Jobs page (/jobs), open the active run, and click Cancel. The current step will stop and the run will be marked as "Cancelled."

Can agents talk to each other? ​

Yes. An agent can use the spawn_sub_agent tool to create a child agent for a specific subtask. The sub-agent works independently, returns its results, and the parent agent continues. This is useful for workflows that need different expertise at different stages.

Sub-agents inherit the parent's context but cannot ask for human input — only the top-level agent can pause and wait for your approval.

How many agents can I create? ​

There is no limit. Create as many agents as you need for different roles and tasks. Each agent has its own model, instructions, risk settings, and guidelines.

Can I use the same agent in multiple workflows? ​

Yes. Agents are reusable. You can assign the same agent to steps across different workflows. The agent's behavior is determined by its instructions and guidelines, plus the specific step instructions in each workflow.

Models and Costs ​

Which model should I use? ​

It depends on the task. See Supported Models for detailed guidance. In short:

  • Claude — Best for complex writing and reasoning
  • Gemini 2.5 Flash — Best for fast, affordable research tasks
  • GPT-4o — Good general-purpose option
  • GPT-4o mini / Gemini 2.5 Flash — Best for simple, high-volume tasks

Can I switch models after creating an agent? ​

Yes. Open the agent, change the Preferred Model field, and save. Future runs and conversations with that agent will use the new model. Past runs are not affected.

How are costs calculated? ​

Costs are based on the number of tokens processed by the AI model. Each provider charges per token (usually per million tokens), with input tokens and output tokens priced differently. Pencel tracks token usage per run and shows the cost in each run's detail on the Jobs page (/jobs).

How you pay depends on which path you use:

  • Bring your own key (BYOK / Free plan): you pay the AI provider directly for the tokens your agents consume; Pencel adds no usage fee on top.
  • Pencel-managed credits (Pro Desktop): a Pro Desktop subscription ($49/month or $468/year) includes 150 AI credits per month that cover managed access to Claude, GPT, and Gemini — no provider API key needed. Different models consume credits at different rates. When your monthly credits run out you can buy top-up credits or switch to your own API key to continue at no extra Pencel cost.

Troubleshooting ​

Why is a provider showing as "Unavailable"? ​

The circuit breaker has tripped for that provider. This usually means the provider returned several errors in a row (rate limits, network issues, or outages). Pencel automatically retests the provider periodically. Once the provider recovers, the status will return to "Healthy."

See Troubleshooting for more common issues and solutions.

I set up a connection but my agent can't use it. ​

Make sure the agent is running in Action Mode (which is the default for workflow steps). Agents in chat mode do not use external tools. Also verify that the connection status shows "Connected" in the Connections section.