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• When should exceptions be used?
• Which exceptions should be considered friendly, and which ones system errors?
• Which exceptions should be delivered to a user?

Minds\Core\Exceptions\ApiException

eg:

class InvalidMethod extends ApiException
{
    private $message = "This method is not allowed";
}

Minds\Core\Exceptions\UserException

Sentry should not catch these errors and the API should cleanly report the error message.

class InsufficientBalance extends UserException
{
    private $message = "You do not have enough tokens to fulfill this transaction";
}

Minds\Core\Exceptions\ApplicationException

Sentry should log, and the API may return a generic message.

class DatabaseException extends ApplicationException
{
    private $message = "The database couldn't be communicated with";
}

Minds\Core\Exceptions\Exception

Sentry should log, and the API should return a traceable error code.

class Exception extends \Exception
{
    private $message = "There was unknown error";
}

changed the description 2 times within 1 minute

I recently used InvalidParameterException when the user select a date older than 3 months for a scheduled activity. In my understanding, this is not the correct use of exceptions, since technically, it feel just like a sort of flow control. The same occurs to me, for instance, with InsufficientBalance extends UserException. Is this really an exception or just a scenario where the endpoint should inform something to the user that the operation couldn't be completed? For me, it resembles more to a normal endpoint response.

I think @juanmsolaro has hit the nail on the head there.