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content/terraform-docs-common/docs/cloud-docs/dynamic-provider-credentials/index.mdx

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Using static credentials in your workspaces<!-- BEGIN: TFC:only name:stacks-tfe --> or Stacks<!-- END: TFC:only name:stacks-tfe --> to authenticate providers presents a security risk, even if you rotate your credentials regularly. Dynamic provider credentials improve your security posture by letting you provision new, temporary credentials for each run.
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You can configure dynamic credentials for each HCP Terraform workspace<!-- BEGIN: TFC:only name:stacks-tfe --> or Stacks<!-- END: TFC:only name:stacks-tfe -->. This workflow eliminates the need to manually manage and rotate credentials across your organization. It also lets you use the cloud platform’s authentication and authorization tools to scope permissions based on metadata, such as a run’s phase, its workspace, or its organization.
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You can configure dynamic credentials for each HCP Terraform workspace<!-- BEGIN: TFC:only name:stacks-tfe --> or Stack<!-- END: TFC:only name:stacks-tfe -->. This workflow eliminates the need to manually manage and rotate credentials across your organization. It also lets you use the cloud platform’s authentication and authorization tools to scope permissions based on metadata, such as a run’s phase, its workspace, or its organization.
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## How dynamic credentials work
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