> ## Documentation Index
> Fetch the complete documentation index at: https://new-docs.squads.so/llms.txt
> Use this file to discover all available pages before exploring further.

# How transactions work

> View, track, and manage transactions in your Squad

When a Squad member performs an action that requires approval, such as sending tokens, adding members, or changing settings, it creates a **transaction**. Before a transaction is executed onchain, it goes through an approval process where members review and vote. All transactions appear on the **Transactions** page, split into two tabs: **Vault** and **Config**.

## Transaction statuses

Transactions move through statuses as members vote:

| Status | Meaning |
| - | - |
| Active | Created but not yet approved, rejected, or cancelled |
| Ready | Enough approvals to meet the threshold. Can be executed |
| Executed | Successfully executed onchain |
| Rejected | Rejected by members with Voter permission |
| Cancelled | Cancelled after reaching Ready, once cancel votes reach the threshold. Also shown for transactions invalidated by a change to members, threshold, or time lock |

## Approve or reject

When a member creates a transaction, it starts in **Active** status. If the initiating member has Voter permission, their approval is counted automatically. Other members then review and vote:

1. Navigate to **Transactions** in the sidebar
2. Select the transaction from the list to open **Transaction details**
3. Review the **General**, **Progress**, and **Instructions** tabs
4. Select **Approve** or **Reject**

A transaction moves to **Ready** once it reaches the approval threshold. If your approval reaches the threshold, you have Executor permission, and no time lock is set, you can select **Approve & Execute** to do both at once.

Until a transaction is finalized, the **General** tab shows a **Risk Scanner** card. For Active and Ready transactions in the **Vault** tab, members also see a **Simulation** panel. Select **Simulate** to dry-run the transaction before you vote. Nothing is signed or sent.

### How rejection works

A transaction moves to **Rejected** only when the number of rejection votes makes it mathematically impossible to reach the threshold.

**Example: 5 members, 2-of-5 threshold**

| Rejections | Can still reach threshold? | Status |
| - | - | - |
| 1 | Yes (4 members can still approve) | Active |
| 2 | Yes (3 members can still approve) | Active |
| 3 | Yes (2 members can still approve) | Active |
| 4 | No (only 1 approval possible) | Rejected |

## Execute or cancel

Once a transaction reaches **Ready** status:

1. Navigate to **Transactions** in the sidebar
2. Select the Ready transaction to open **Transaction details**
3. Select **Execute** or **Cancel**

Any member with Executor permission can execute a Ready transaction onchain. A Ready transaction moves to **Cancelled** when the number of cancel votes from members with Voter permission reaches the threshold.

<Info>
  Set [time locks](/app-guide/settings/time-locks) to add a delay before Ready transactions can be executed, giving your team time to review and cancel suspicious transactions.
</Info>

## Batch actions

Approve, reject, or cancel multiple transactions at once:

1. Navigate to **Transactions** in the sidebar
2. Select the **Batch actions** dropdown and choose **Approve**, **Reject**, or **Cancel**
3. Select the transactions you want to act on
4. Select the action button to apply it to all selected transactions

Approve and Reject apply to Active transactions. Cancel applies to Ready transactions. Transactions are executed one at a time.

<Warning>
  Review all selected transactions before confirming a batch action.
</Warning>

## Best practices

* **Review before approving.** Check recipient addresses and amounts carefully. Transactions cannot be reversed once executed.
* **Execute promptly.** Ready transactions should be executed in a timely manner to avoid delays.
* **Communicate with your team.** If you reject a transaction, let your team know why.

<Accordion title="FAQ">
  **What happens if Squad settings change while a transaction is Active?**

  Adding or removing a member, updating a member's permissions, changing the threshold, or changing the time lock invalidates transactions that are still Active. They show as Cancelled and can no longer be approved. A Ready transaction in the **Vault** tab can still be executed. A Ready transaction in the **Config** tab cannot.

  **Why am I getting an "insufficient funds" error?**

  Your Squad's treasury needs enough SOL for transaction fees. If [Fee Relayer](/app-guide/members/fee-relayer) is enabled, fees are paid from the treasury. If disabled, members need SOL in their personal wallets to create and execute transactions.

  **Can I undo an executed transaction?**

  No. Once executed onchain, the action cannot be reversed. Create a new transaction to reverse the effect (for example, sending tokens back to the original address).
</Accordion>


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