Token allowance is a commonly used feature of blockchain transactions. It is needed for INX to move your tokens if they are sold. Token allowance is granted using the ‘ERC20 approve’ method, which allows an address to transfer tokens, without revealing the private key of your wallet.
Before selling your security tokens you must grant an allowance for each token separately. This allows INX to transfer tokens from your wallet to the buyer’s wallet.
To grant an allowance, simply click the ‘grant allowance’ button on the platform. This will prompt your wallet to open with the 'allowance' transaction details for you to confirm and wait for the process to be completed.
The transaction is done on the blockchain of each asset (Ethereum, Avalanche etc.) which means it costs gas fees and may take a few minutes.
By default, the allowance amount is set to allow future orders without needing to grant additional allowances.
This simplifies the trading process and reduces the amount of gas fees you will need to pay as a result of granting multiple allowances.
If you do choose to edit the allowance, this can be done before confirming the allowance in your wallet's UI.