Spending Limits explained
Let's assume you have a Gnosis Safe with 5 owners and threshold 3. That means that every single transaction has to be signed by at least 3 of the 5 owners.
With the Spending Limits feature, you can define single accounts ("beneficiaries") that can transfer specified funds (ETH or ERC20 tokens) without the need to collect the signatures of 3 of the 5 owners.
Important considerations to keep in mind:
- Setting up and modifying a spending limit for a beneficiary requires a regular Multisig transaction, i.e. in the example, 3 owners need to confirm.
- Spending Limits can be one-time as well as recurring on a daily, weekly, or monthly basis.
- Spending Limits are not a feature of the core Gnosis Safe smart contracts but employ a Gnosis Safe module. Head to the Safe developer portal for more information on contracts and audits.
- Any Ethereum account can be used as a beneficiary.
Please note: Currently, only beneficiaries who are also owners can actually withdraw funds within the spending limit on gnosis-safe.io/app/.
How to set up a spending limit
1. Open your Safe settings and head to "Spending Limit".
2. Click "New Spending Limit".
3. Enter a beneficiary. (Please note again: Currently, only beneficiaries who are also owners can actually withdraw funds afterwards.)
4. Select an asset and an amount.
5. (Optional): Select a reset time of 1 day, 1 week, or 1 month. If you skip that step, the spending limit will be one-time only.
6. Click "Review" and execute the transaction as you would normally do, including collecting confirmations from all owners, if necessary.
After the transaction has been executed successfully, you can review the current Spending Limits in Settings -> Spending Limit.
How to use Spending Limits
1. Make sure you have a Safe with a pending limit set up, as described above.
2. Click "New transaction" -> "Send funds"
3. Enter a recipient address.
4. Select the asset for which you have a valid spending limit.
5. Select whether you would like to do a regular Multisig transaction, or whether you would like to use your spending limit.
6. Enter an amount within the limit.
7. Hit "Review" and execute the transaction. You will notice that you don't have to gather confirmations from other owners of your Safe.
Spending limit transactions will show up on your transaction list.