Token Approval Risk Explainer

WHAT IT DOES

Token Approval Risk Explainer reads pending approval transaction data from your wallet or a transaction hash, decodes the function (approve, setApprovalForAll, or permit), and extracts the token contract address, spender address, and approval amount or scope. It checks your current wallet balance for the token being approved and determines the risk level: LOW for limited approvals, MEDIUM for moderate approvals, and HIGH for unlimited or effectively unlimited approvals. The tool provides a clear explanation of what the approval allows the spender to do and what risks to consider.

HOW TO USE

When your wallet prompts you to sign an approval transaction, copy the transaction hash from your wallet or the requesting dApp. Open the Token Approval Risk Explainer, connect your EVM wallet, and paste the transaction hash into the input field. Click "Look up transaction" to fetch the approval details and generate a risk analysis. Alternatively, click "Manual entry" to enter the token contract address, spender address, amount, and function type directly. The tool will display the token contract, spender, amount, current balance, and a risk level with a colored badge (LOW, MEDIUM, or HIGH). Review the AI explanation to understand the risk, then verify the details in your wallet before signing.

TECHNICAL SECTION — APPROVAL RISK ASSESSMENT

The tool fetches transaction data from the blockchain using the connected wallet's provider. It decodes the function signature and arguments for approve, setApprovalForAll, and permit calls. For approve and permit, it extracts the spender address and the approval amount. For setApprovalForAll, it extracts the operator address and the boolean approval value. The tool also checks the user's current balance of the token being approved. It then applies risk heuristics: setApprovalForAll with true is flagged as HIGH risk; approve with the max uint256 value or an amount more than 10 times the balance is flagged as HIGH risk; specific finite approvals are flagged as MEDIUM risk; zero approvals are flagged as LOW risk. The AI layer receives the decoded data and provides a plain-language risk assessment. This approach helps you understand the potential impact of an approval before you sign.

WHAT IT CANNOT SEE

This tool cannot read the actual intent behind an approval transaction. It cannot determine if the spender address is malicious without an external database. It cannot detect if the approval amount is truly unlimited versus a large but finite number without comparing to the wallet balance. It cannot predict if the spender will use the approval. It cannot detect if the approval has been revoked at the time of the check. It cannot verify if the token contract is legitimate. The user must still verify the transaction details in their wallet before signing. The AI explanation is generated from on-chain data and does not constitute financial advice or a security guarantee.

PLEASE NOTE

EVM chains only. Explanations are AI-generated from data the app reads on-chain—always review what you are actually signing in your wallet before approving it. The wallet's own signature prompt remains the final and only protection against unwanted approvals. This tool is read-only; it never sends transactions or signs anything on your behalf.