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What you are agreeing to when you approve a token

Before a contract can move your ERC-20 tokens you must approve it. What an allowance is, why unlimited approvals are risky, and how to keep them small.

What it is Permission for a contract to move a specific ERC-20 up to a limit
What it is not A transfer. No tokens move at approval time
Native coins ETH, BNB, POL and other gas coins need no approval

FBT Swap

What you should know

The first time you swap a given ERC-20 token, your wallet asks for two signatures, not one. The first is the approval. It does not move anything — it grants a contract permission to move that token on your behalf, up to an amount you set.

Approvals are the most under-read signature in crypto and the mechanism behind most drained wallets. The theft does not happen at approval time, which is exactly why it works.

Why approvals exist at all

The ERC-20 standard has no way for a contract to pull tokens from you unprompted. Instead the token contract keeps an allowance ledger: owner, spender, amount. A swap router calls transferFrom, the token checks the allowance, and the transfer succeeds only within that limit.

Native coins — ETH, BNB, POL, AVAX — do not need this. They travel with the transaction itself, which is why swapping a native coin is a single signature.

Unlimited versus exact allowances

Many interfaces default to an effectively unlimited allowance so you never approve that token again. It is convenient and it is a standing permission: whatever that contract is, or becomes, can move your entire balance of that token at any future moment.

An exact allowance costs one extra approval per swap in gas and removes that standing exposure. On cheap networks the trade-off is easy; on Ethereum mainnet it is a real cost you weigh.

The attack that uses nothing but approvals

A drainer site shows something harmless — a claim button, a mint, an airdrop check — and requests an approval for a valuable token. Nothing leaves your wallet, so nothing looks wrong. Hours or weeks later the spender calls transferFrom and takes the balance.

The defence is reading the approval screen: which token, which spender address, and what amount. If a page that should not need your USDT is asking for unlimited USDT, that is the whole attack visible in one line.

Keeping the list short

Allowances persist until you change them. Reviewing them periodically and revoking the ones you no longer use removes exposure you are not using, which is the cheapest security improvement available to most wallets.

FBT Swap requests approvals only for the token you are swapping and only for the aggregator router that will execute it. Your wallet shows the spender address; that address is worth a glance every time.

Step by step

How it works

  1. Read the token and the spender

    Check which token the approval is for and which contract address is being authorised. A mismatch with what you are doing is the end of the process.

  2. Choose an amount

    Prefer an exact amount for valuable balances. Reserve unlimited approvals for tokens you trade constantly and whose spender you trust.

  3. Approve, then swap

    The approval is its own on-chain transaction and costs gas. The swap follows as a second signature.

  4. Review later

    Re-check your allowances periodically and revoke anything you no longer use. An unused allowance is pure downside.

At a glance

At a glance

What it is

Permission for a contract to move a specific ERC-20 up to a limit

What it is not

A transfer. No tokens move at approval time

Native coins

ETH, BNB, POL and other gas coins need no approval

Risk

Allowances persist until revoked, including on abandoned contracts

FAQ

Frequently asked questions

Clear answers before you decide.

Does approving a token cost gas?

Yes. An approval is a state change on the token contract, so it is a normal transaction with a normal network fee. It is usually cheaper than the swap that follows.

Is an unlimited approval always dangerous?

It is a standing permission, so the risk equals the trustworthiness of the spender contract for as long as it exists. For a long-lived audited router it is a considered trade-off; for an unknown contract on a site you just found, it is the main way people lose funds.

Can FBT Swap move my tokens with an approval?

The approval you grant goes to the aggregator router contract that executes the swap, not to a custodial account. FBT Swap holds no funds and cannot initiate a transfer without the transaction you sign.

Risk notice

Crypto assets are volatile and on-chain transactions cannot be reversed. You can lose money, including all of it. Nothing here is financial advice.