In the context of decentralized finance (DeFi) and blockchain platforms, an approval transaction refers to a specific type of transaction that grants permission for a smart contract to access and utilize a specific amount of tokens on behalf of a user.

On platforms like Ethereum, your tokens are yours and only you can initiate a transfer. But when you want to interact with a decentralized application (dApp) or a DeFi protocol, you often need to let that application move tokens on your behalf.

Before the dApp can use your tokens (e.g., for trading on a decentralized exchange or staking in a protocol), you first send an "approval" transaction. This tells the blockchain that you're okay with the dApp accessing up to a specified amount of a specific token from your wallet.

You can set the approved amount to whatever limit you desire. Some users approve the exact amount they plan to use, while others may approve a larger amount for convenience, so they don't have to approve again in the future. However, for security reasons, it's generally advised to only approve amounts you're planning to use.

It's worth noting that approvals can typically be modified or revoked by the token holder. There are also tools and services that allow users to check what approvals they have outstanding and to revoke unnecessary ones.

Overall, approval transactions are a security feature ensuring that tokens are not moved or used without the explicit consent of the owner.

On Primex, you will have to sign the approval transaction anytime you interact with a new smart contract (such as lending to a new Credit Bucket, opening a particular type of position, or creating a new type of order), spend a new asset or increase the asset spending limit.