A spending cap is an approval for a smart contract to draw a certain amount of tokens from your wallet.
All ERC20-based decentralized exchanges use the spending cap to facilitate token deposits.
On Everstrike, the spending cap is used to permit the Everstrike Deposit Contract to draw USDT from your wallet.
Why is the spending cap necessary?
Without the spending cap, tokens cannot be deposited to the Everstrike Deposit Contract.
What should I choose as spending cap?
The amount of tokens that you intend to deposit to Everstrike.
How long does a spending cap last?
There is no time limit on a spending cap. It lasts until one of the following happens:
1) You manually revoke it.
2) The approved contract spends the amount of tokens specified in the cap.
Can I revoke a spending cap?
Yes. Most popular wallets (such as Metamask) support revocation of spending caps.
Typically, you can do it directly through your wallet software.
How can I set a spending cap?
Click 'Deposit' next to the asset that you intend to deposit to Everstrike, and specify the desired deposit amount. The Everstrike Frontend UI will prepare a spending cap transaction for you that you can sign within your wallet and publish to the blockchain.
For a step-by-step guide, refer to How to Deposit, Withdraw and Stake On Everstrike.
How long does it take to set a spending cap?
It depends on the blockchain that you are using, but in general it will take less than 20 minutes. The spending cap transaction needs to receive a specific amount of blockchain confirmations to be considered valid and final.