This help page provides guidance on how to handle profit and loss calculations for each type of transaction in the DeFi feature for Canada.
What is Cryptact’s DeFi Feature? (Reference: How to use DeFi functions)
When you add a wallet address to cryptact, the transaction history for that wallet address will automatically be reflected in cryptact for supported networks. Transactions that the system can identify will be automatically recognized, and the profit and loss calculations will be done automatically. However, transactions that cannot be automatically classified, as well as deposits and withdrawals that are not related to DeFi transactions, will be classified as "Unclassified," requiring manual classification.
This help page provides explanations on how profit and loss calculations are handled for each type of transaction when automatically identified and introduces the types of transactions that can be selected for transactions that were not automatically classified.
Table of contents:
- Unclassified "Transfers" (Deposit)
- Unclassified "Transfers" (Withdrawal)
- Unclassified"Risky"
- Unclassified "Unknown transactions" and "Other"
1. Unclassified "Transfers" (Deposit)
| Transaction Type | Outline |
Impact to PNL Calculation |
| Self | A deposit from your other wallet or from the exchange |
As it is not necessary for profit and loss calculation, it will be excluded and not shown on the transaction page. |
| Receive | A cryptocurrency receipt as a result of a purchase/swap, or peer to peer trading |
Bought at market value |
| Bonus | Other than above. A cryptocurrency receipt as the result of staking reward, airdrop, or other types of rewards | Considered as Income at market value |
| Fee Only | Reason for the deposit is unknown, or ICO reward |
It will be excluded and not shown on the transaction page. |
2. Unclassified "Transfers" (Withdrawal)
| Transaction Type | Outline |
Impact to PNL Calculation |
| Self | A withdrawal to your other wallet or to the exchange |
As it is not necessary for profit and loss calculation, it will be excluded and not shown on the transaction page. If there is a fee associated with the withdrawal, the fee portion alone is automatically reflected as transfer fee (Type:SENDFEE) |
| Pay | Sell crypto on exchanges/peer to peer trading |
Capital gain/loss event as sale at market value |
| Loss | A cryptocurrency withdrawal which qualify as a loss or an expense |
Deduct its cost basis from Income as a loss (Type:LOSS) |
| Fee Only | Reason for the withdrawal is unknown, or ICO reward |
It will be excluded and not shown on the transaction page. If there is a fee associated with the withdrawal, the fee portion alone is automatically reflected (Type:DEFIFEE)* |
*DEFIFEE・・・It will always be processed as a loss.
3. Unclassified "Risky"
| Transaction Type | Outline |
Impact to PNL Calculation |
| BONUS | Coins that are not Scam token, but rather regular airdrops or coins that have a market value |
Considered as Income at market value |
| Fee Only | The coin sent to you is a Scam token. *You are responsible for determining whether or not it is a Scam Coin. |
It will be excluded and not shown on the transaction page. |
| Other | Other than above | 4. Unclassified "Unknown transactions" and "Other" |
4. Unclassified "Unknown transactions" and "Other"
If the "Other" transactions cannot be resolved despite selecting the correct transaction type with reference to the following transaction types, please refer to the help page below.
| Transaction Type | Outline |
Impact to PNL Calculation |
| Bonus | A deposit as the result of an airdrop or other type of reward |
・Considered as Income at market value ・If there is a withdrawal with the same transaction hash, the withdrawal is excluded from the above |
| Loss | A withdrawal which qualifies as a loss or an expense |
Deduct its cost basis from Income as a loss (Type:LOSS) |
| Pay |
A payment for the purchase of services or goods |
Capital gain/loss event as a sale at market value |
| Fee Only |
・The reason for the deposit/withdrawal is unknown and want to only include the fee portion in the PNL calculation ・Transfer within your own accounts ・Bridges (transfer coins to be used on another chain/receive back coins from another chains) |
・The original transaction is excluded ・The fee portion alone is reflected as DEFIFEE |
| Swap/NFT trade |
Exchange of one cryptocurrency to another * To select this type, the deposit/withdrawal history must be present in the ASSET MOVEMENTS column. |
Capital gain/loss - The transaction history will show as either Buy or Sell - Liquid staking is reflected as a swap by default. If you don't want to reflect it as a swap, please update it to Fee Only. |
| ICO reward |
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※We currently do not handle ICO reward. Please select "Fee Only" and add the ICO reward manually as custom trades. |
| Harvest | Received an interest-like income from the locked coins | Considered as Income at market value |
| Add Liquidity | Deposited a coin pair into a liquidity pool |
No impact to PNL at the time of deposit |
| Remove Liquidity | Withdrew the coin pair from the liquidity pool |
・For each coin, determine the type based on the difference in the # of coins deposited and withdrawn deposited < withdrawn ＝> considered as a income at market value (BONUS) deposited ＞ withdrawn ＝> deduct its cost basis from Income as a loss (Type:LOSS) |
| Enter Staking | Deposited coins for staking |
・No impact to PNL at the time of deposit * If you have a confirmed staking reward from your previously staked coins, the reward is considered Income (it will be shown as STAKING) |
| Leave Staking | Withdrew coins from staking pool |
・Withdrawn - Deposited => considered a staking reward (STAKING) at market value ・If the staked coin and the reward coin differ, only consider the staking reward as Income (STAKING) |
| Enter LP Staking | Deposited LP tokens for staking | ・No impact to PNL at the time of deposit |
| Leave LP Staking | Withdrew LP tokens from staking pool |
・Withdrawn - Deposited => needs to be recognized as a staking reward * We currently do not handle staking rewards for LP tokens. Please manually upload them as custom trades separately. |
| Enter Lending | Started lending coins |
No impact to PNL at the time of starting lending |
| Leave Lending | Received back the loaned coins |
Returned - Loaned => considered a lending interest (LENDING) at market value |
| Borrow | Borrowed coins |
・No impact to PNL at the time of borrowing ・Position in borrowed coins increases |
| Return | Return the borrowed coins |
Borrowed amount - (Book value of the coin x quantity) => considered as a capital gain/loss |
| Approve | The fee (gas fee) that incurs when a transaction is approved and sent | The fee portion is considered a loss (will be shown as DEFIFEE) |
| Wrap |
The fee portion alone is reflected in the PNL calculation * For details on how wrapped tokens are handled, please refer to this link. |
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| Unwrap |
The fee portion alone is reflected in the PNL calculation * For details on how wrapped tokens are handled, please refer to this link. |
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| Bridge |
※We currently do not handle bridge trades. Please select "Fee Only" and add the bridge trades manually as custom trades. |