Answer:

One way to protect the security of your target database is to use the HTTPS protocol. For more information see How do I specify the HTTPS transport-layer security for Foxhound?

Another technique is to create a new user id on the target database with no privileges other than CONNECT, and use that user id for Foxhound to connect:

-- Run this command on the target database:

GRANT CONNECT TO FOXHOUND IDENTIFIED BY SQL;

-- Set up a connection string like this on the String tab of the Foxhound Menu:

Name:   ddd12
String: ENG=ddd12; DBN=ddd12; UID=FOXHOUND; PWD=SQL; DRIVER=SQL Anywhere 12; 

The Display Schema feature should work OK with the new "FOXHOUND" user id. The Monitor Database feature should also work, but Foxhound's own performance might suffer because Foxhound can't create the three high-performance procedures on the target database it needs to gather performance data efficiently; in this case the Monitor page will display "SPs are OK: NNN" instead of "SPs are OK: YYY".

You can install those three procedures on the target database yourself; for step-by-step instructions see Help - Introduction - Connecting to Target Databases.

See also...
How do I specify the HTTPS transport-layer security for Foxhound?
Help - Introduction - Connecting to Target Databases