HelpWallet
Understand fund transfers in dApp transactions
jorge-campo
jorge-campo
and
Fabiomorais87
on Dec 05, 2024

When you interact with a dApp using Wallet, some actions may involve transferring your funds. These fund transfers occur when you approve certain types of transactions, such as sending tokens or granting a dApp permission to manage your assets for specific purposes.

info
The dApp you connect to can only access your funds when you explicitly approve its transaction.

  • Fund transfers in dApp interactions depend on the type of transaction you approve. Not all transactions involve transferring funds.
  • Connecting your wallet to a dApp doesn't automatically authorize any transactions. You need to authorize each action separately.
  • You must pay network fees whenever the Ehtereum blockchain records your actions on the dApp (on-chain transaction). This means you pay network fees for transactions that involve sending funds, granting token allowances or interacting with a smart contract.
  • Double-check transaction details before approving, and disconnect your wallet from dApps afterward to avoid unintended fund transfers.
tip
A smart contract is code that runs on the blockchain and automatically execute transactions when certain conditions are met. dApps provide the user interface to interact with smart contracts running in the background.

Generally, you must pay network fees for on-chain transactions like swapping tokens or minting collectibles. Off-chain actions, such as verifying wallet ownership, don't create a blockchain record and don't incur network fees.

When you approve a transaction in a Status Wallet, you can see the estimated network fees before confirming the action. This helps you understand the total cost of the transaction and decide whether to proceed.

info
If a transaction fails, you still pay gas fees for the network's effort to process it.

Here is an overview of which dApp transactions need gas fees and if they involve a direct transfer of funds.

TransactionAre funds moved?Network fees?Notes
SignSometimesOnly if it leads to an on-chain transactionFunds may be moved in later transactions
SendYesYesDirectly sends funds or assets on-chain
Typed dataSometimesOnly if it leads to an on-chain transactionFunds may be moved in later transactions
Personal signNoNoAn off-chain signature for identity or approval

Be cautious of typed data or sign transactions that may set up future fund transfers. Even if they don't immediately transfer funds, they can authorize the dApp to access your assets later. For example, no funds are transferred when you bid for a collectible in OpenSea, but if you win the auction, the dApp will automatically transfer the funds from your wallet.

Updated by
jorge-campo
jorge-campo
on Dec 05, 2024
Was this article helpful?
Every feedback takes us closer to helping you!