It is indeed possible to set timeout for individual command and also for commands globally but that is probably not what you are looking for, the default timeout for both is infinity.
A better option is to set the timeout for the data provider interface, i.e. the time allowed for a data provider to respond to callbacks from ConfD.
The data provider timeout is configurable in confd.conf:
/confdConfig/capi/queryTimeout (xs:duration) [PT120S]
Timeout for a daemon to respond to a worker socket query, see confd_lib_dp(3). If the daemon fails to respond within the given time, it will be disconnected.
If you do want to change the command timeout, the following option in the cli-spec can be used:
The "timeout" element makes it possible to add a custom command timeout (in seconds) to the specified built-in command.
The "src" attribute is mandatory. It specifies which command to add the timeout to. cmdpathType is a space-separated list of commands, pointing out a specific sub-command.
There is also a variant that set the global timeout for all commands:
The "timeout" element is a timeout for the command in seconds. Default is infinity.