Trade Restriction Explainer

WHAT IT DOES

Trade Restriction Explainer analyzes a token's trade restrictions and explains the risk of being unable to buy, sell, or transfer before you invest. The tool reads the token contract to detect transfer restrictions, buy restrictions, sell restrictions, holder limits, time locks, and owner address. It then identifies concerning patterns — restrictions that appear overly complex, owner-controlled restrictions, restrictions that could trap holders, or restrictions that don't match the token's stated purpose. The tool then uses AI to generate a plain-language explanation of the trade restrictions: what restrictions are in place, who they affect, how they limit trading, and the risk of being unable to buy or sell. Results include a risk level, safety score (0-100), total supply, holders, detected restriction types, owner address, flags, and a comprehensive AI-generated explanation. The tool operates entirely read-only — no transactions are sent, no signatures are required. The AI assessment is designed to help you understand the risks of a token's trade restrictions before you invest.

HOW TO USE

Connect your EVM wallet using the "Connect" button in the header. Select the network where the token is deployed from the dropdown menu. Enter the token contract address you wish to analyze. Optionally enter the token name if you know it. Click "Explain trade restrictions" to begin the analysis. The tool reads the token contract to detect transfer restrictions, buy/sell restrictions, holder limits, time locks, and owner data, and sends the data to the AI for a plain-English restriction explanation. Results appear within seconds, showing the token contract, chain, risk level, safety score, total supply, holders, detected restriction types, owner address, flags, and a comprehensive AI-generated explanation written in clear, conversational language.

TRADE RESTRICTION DETECTION AND RISK SCORING

The tool uses a pattern-based approach to detect trade restrictions from the contract bytecode. It scans for restriction-related keywords: transfer limits (transfer with limit/restrict), buy restrictions (buy with limit/restrict/pause), sell restrictions (sell with limit/restrict/pause), holder limits (holder with limit/max), and time locks (timelock, time, delay). The total supply is read from the contract, and the holder count is estimated. The number of restriction types is counted (0-5). The safety score (0-100) starts at 50 and is adjusted based on: number of restrictions (0: +30, 1: +10, 2: -10, 3+: -20), buy and sell restrictions together (-10), time lock (-5), and risk level penalties. The risk level is determined by: multiple restrictions (3+ types) — High risk, both buy and sell restrictions — High risk, one restriction — Medium risk, no restrictions — Low risk. The AI receives all this data and is prompted to explain the trade restrictions in plain language — stating what restrictions are in place, who they affect, how they limit trading, and the risk of being unable to buy or sell. The AI is also instructed to state plainly what it cannot verify — that it reads the restriction functions from the contract, not the owner's off-chain intent, future behavior, or the legitimacy of the restrictions.

WHAT IT CANNOT SEE

This tool cannot definitively determine if trade restrictions are safe — only reads the restriction functions and configuration. It cannot detect off-chain coordination or malicious intent not reflected in on-chain data — a token with reasonable restrictions could still be a scam. The tool cannot predict future restriction changes — a token without restrictions could add them later. Legitimate contracts may have trade restrictions for valid reasons — some tokens use restrictions for compliance or security. The tool cannot verify the identity or trustworthiness of the contract owner — it only reads the owner address. The tool cannot detect if the restrictions are properly implemented. The tool cannot detect if the owner is using restrictions to manipulate the token. The tool cannot predict the future performance of the token. The tool cannot verify that the restrictions are correctly enforced.

PLEASE NOTE

Trade Restriction Explainer supports EVM-compatible chains only (Ethereum, BSC, Polygon, Arbitrum, Optimism, Avalanche, and others). The tool is read-only and never requests wallet signatures or transaction approvals. Restriction assessments are AI-generated from on-chain data — always verify token trade restrictions through block explorers, official documentation, and independent research before investing. The AI assessment is for informational purposes only and does not constitute financial or legal advice. Trade restrictions can be used for legitimate purposes or to trap holders — always consider whether the restrictions appear reasonable and who has control over them before investing.