Understanding Staking Spending Cap

when staking cgx tokens on forkast, users are required to approve a spending cap, which allows the staking smart contract to access a specified amount of cgx from their wallet this is a standard blockchain security mechanism that ensures the contract can only interact with the approved amount of tokens these mechanisms are designed to protect users and optimize transaction efficiency what is a spending cap? a spending cap determines how many tokens a smart contract can access from your wallet for staking or transactions this is a security feature that prevents unauthorized access and ensures that tokens can only be used with your explicit approval why does forkast ask for a spending cap approval? the staking smart contract cannot access or transfer your cgx without approval you must approve a spending cap before staking, as this sets the maximum number of tokens the contract can use even if you set a high cap, the contract cannot take more than you authorize when signing transactions if you do not want to reapprove the cap every time, you can select "max" , which acts as a one time approval this allows seamless future staking without needing to repeat the approval process why is it necessary? security without a cap, a malicious or compromised contract could acces or drain your tokens user control the user decides how much they are comfortable allowing the contract to access gas efficiency if you plan multiple transactions, setting a reasonable cap prevents the need for constant re approvals what is high price impact? during swaps or transactions, you may see a "high price impact" warning this happens when your trade significantly affects the token price due to liquidity conditions why does high price impact happen? market volatility – price fluctuations can lead to higher slippage risks how does this protect you? the warning alerts you if a transaction might execute at a bad rate prevents you from losing value due to trade execution ensures that your final transaction price doesn’t drastically change from what you expected