How to use DeFi (Decentralized Finance) functions

This page explains how to use our DeFi (Decentralized Finance) functions.

We have confirmed that there is a delay in reflecting some histories across multiple chains, including Arbitrum. As it is expected to take some time for the histories to be reflected, we apologize for any inconvenience this may cause and kindly ask you to try synchronizing after a few days. If it takes more than two days for the histories to be reflected, please contact our support desk. (May 7, 2024)

Started Support for OpenSea for NFT Transactions in DeFi Functionality (as of August 18, 2023)

  • We have started to support the history of purchasing/selling multiple NFTs in a single payment as of March 4, 2024. However, as there are exceptional cases depending on the transaction, we plan to check and improve on a case-by-case basis if you contact support when an issue arises. For more details, please refer to DeFi: How to handle multiple NFTs purchased/sold in a single transaction in the DeFi transaction. 
  • Regarding the history of NFT exchange, there are no clear rules for calculating profit and losses, so automatic support is not provided.

Others

  • Curently order book based decentralized exchanges like dYdX,  and NFT related transactions are not fully supported. Please select "Fee Only" as a transaction type to exclude the transaction and then add transactions by custom file manually.
  • Also, as of 16th Mar 2023, we have temporarily suspended support for ERC1155 at Avalanche.
  • We've identified an issue where certain Avalanche transaction history information is not available through the API. Our development team is working on a solution, but we can't provide a specific update schedule. If urgent, consider manually editing the transaction history using convert function or excluding it in the DeFi overview and adding necessary details using a custom file.


1. What are DeFi functions

When you add a wallet address, within cryptact's supported network, it will sync the transaction history.  The transactions that the system can identify will be automatically recognized, their details will be reflected, and profit and loss calculations will be performed automatically. In contrast, transactions that cannot be automatically identified, and non-DeFi deposit and withdrawal transactions, will be categorized as "unclassified," and manual identification will be required.

Please note:

It's important to mention that this does not provide 100% automatic support for your DeFi transactions. For transactions that cannot be automatically identified, you will need to manually select the transaction type. However, this should significantly reduce the workload of identifying transactions from deposit and withdrawal records and documenting them in custom files.

 

1.1  Cryptact's supported networks

  • BNB Smart Chain
  • Ethereum
  • Polygon
  • Avalanche
  • Fantom
  • Optimism
  • Arbitrum
  • Oasys
  • Astar
  • Polygon zkEVM

  • Base

  • Astar zkEVM

  • DM2 Verse

  • GESO Verse

  • DeFiVerse

  • Yooldo Verse

  • Blast
  • ZKsync Era

* We also plan to gradually introduce support for other networks.

*We have started to support EVM wallet for Astar.

 

1.2  DeFi coverage test

Check your wallet from this link

You can assess the actual level of manual intervention required before purchasing a plan, ensuring confirmation of the auto-recognition rate for DeFi transactions.

 

2.  Add your wallet address

Let's log in to cryptact and try out the functionality in practice!

First, please add your wallet address that you use for your DeFi. Once this is done, cryptact automatically fetches all historical transactions associated with it. For more details on how to register your wallet address, please refer to this link.

 


3.  What are "Unclassified" DeFi transactions

The system analyzes the transactions associated with the wallet address and attempts to identify the associated smart contracts. The system then attempts to determine the background for each transaction. If it can recognize the transaction type, it updates the transaction detail and run the PNL calculation for it automatically. If the system cannot recognize their transaction types or if they are not DeFi, they will be temporarily marked as "Unclassified". "Unclassified" transactions are excluded from the PNL calculation. To include them, you will need to manually specify the transaction types.

To review "unclassified" transactions, you can go to the "DeFi" page and use the filtering function to select "Unclassified" → "All." 

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There are 4 types of unclassified transactions:

  • Transfer・・unclassified transfers are deposits/withdrawals in your wallets that are not determined automatically for their transaction types.

    Examples are:

    • Deposits and withdrawals from the exchange to the wallet
    • ICO Participation from the wallet
    • Received cryptocurrencies that are unrelated to Defi through airdrops, hard forks, etc
    • Buying and selling of cryptocurrency through wallets between individuals
  • Risky・・Within cryptocurrency users' wallets, risky transactions, such as airdrops intended to lure users to phishing sites, may be deposited without the investor's intent. We have introduced a feature that detects potentially risky transactions as “Risky Transactions.” (* Please note that this feature does not assess the value of tokens. It is only applicable to tokens without a market price, while tokens that do have a price should be treated as “Bonus” for profit and loss calculations. Therefore, please be aware that excluding risk transactions must be done at the own discretion.) Response to Scam tokens
  • Unknown transaction type・・unknown transactions are DeFi transactions for which the system could not identify the transaction types. The system refers to the smart contracts associated with the transactions and attempts to identify their transaction types. If the system cannot determine the transaction type, the transaction is flagged as "Unclassified - Unknown transaction type". 
  • Others・・others are irregular transactions or transactions that can't be reflected in the PNL calculation properly due to incorrect edits made in "Unclassified - Transfer" and "Unclassified - Unknown transaction type".

    Examples are:

    • Even though the ASSET MOVEMENTS column only shows "withdrawal" history, "Swap" ( Exchange of one cryptocurrency to another) was selected
    • Even though the ASSET MOVEMENTS column only shows "deposit" history, "withdrawal" related transaction type was selected
    • Even though there is no "Add Liquidity" transaction, "Remove Liquidity" was selected

*We're enhancing DeFi transaction recognition by expanding our transaction type dictionary and syncronizing wallet addresses, which might change "unclassified" transactions. If you've chosen transaction types for those, the system uses your selections for pnl calculation.

 

4.  How to address "Unclassified" DeFi transactions

4-1.  How to address "Unclassified transfers"

Because the system cannot automatically determine their transaction types, you need to manually select the transaction types to resolve the "Unclassified" status.

Let's start by moving to the assistant screen.  *Details about the "assistant" feature can be found this link.

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Once you are on "assistant" screen, click "Classify" on "Let's handle your DeFi transactions" section.

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You will automatically see only "Unclassified - Transafer" transactions on "DeFi" page.

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Additional Note: You can also manually select "Unclassified" → "Transfer" from the filtering options, without navigating to the "assistant" screen, to display only the "Unclassfified - Trasnfer" transactions. 

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For each transfer, select the reason by clicking the appropriate button (the below table gives the outlines for each option).

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If you are unsure which transaction type to select, please refer to the following help page.

DeFi: PNL calculation for each transaction type for Japan

 

After selecting the reason for the transfers, click "Sync all". Your selection will be reflected in the system, and the status is updated from "Unclassified" to "Classified".

スクリーンショット 2023-10-11 111139.png


 

4-2.  How to address "Unclassified - Risky"

Because the system cannot automatically determine their transaction types, you need to manually select the transaction types to resolve the "Unclassified" status.

▼Let's start by moving to the assistant screen.  *Details about the "assistant" feature can be found this link.
スクリーンショット 2023-08-03 093850.pngOnce you are on "assistant" screen, click "Classify" on "Let's handle your DeFi transactions" section.
スクリーンショット 2023-10-11 105922.png ▼You will automatically see only "Unclassified - Rikey" transactions on "DeFi" page.
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Additional Note: You can also manually select "Unclassified" → "Risky" from the filtering options, without navigating to the "assistant" screen, to display only the "Unclassfified - Risky" transactions. 

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 ▼Next, select from "Bonus, Fee only, and Other" for each transaction. Click on "Bulk Edit" to edit all Risky transactions displayed on the page at once.

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If you are unsure which transaction type to select, please refer to the following help page.

DeFi: PNL calculation for each transaction type for Japan


 

4-3.  How to address "Unclassified - Unknown transactions"

Since the system cannot automatically determine their transaction types, you need to manually select the transaction types to resolve the "Unclassified" status.

Let's start by moving to the assistant screen.  *Details about the "assistant" feature can be found this link.

スクリーンショット 2023-08-03 093850.png

Once you are on "assistant" screen, click "Classify" on "Let's handle your DeFi transactions" section.

スクリーンショット 2023-10-11 111741.png

Only "Unclassified - Unkwon transaction type" transactions will be displayed.

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Additional Note: You can also manually select "Unclassified" → "Unknown transaction type" from the filtering options, without navigating to the "assistant" screen, to display only the "Unclassfified - Unknown transaction type" transactions. 

スクリーンショット 2023-10-11 112015.png

For each transaction, select the transaction type from the pull-down menu (the below table gives the outlines for each option).

 

You will see the transaction types that seem most likely in the "Suggested" section. If you wish to apply, click "Accept". *Be sure to check the transaction details yourself.

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You can refer to the information in the link in the DEFI TRANSACTION column and the DETAIL column to make your selection.

スクリーンショット 2023-10-11 112818.png

If you are unsure which transaction type to select, please refer to the following help page.

DeFi: PNL calculation for each transaction type for Japan

 

After selecting the transaction types, click "Sync all". Your selection will be reflected in the system, and the status is updated from "Unclassified" to "Classified".

スクリーンショット 2023-10-11 113140.png

 

4-4.  How to address "Unclassified - Other"

Since the system cannot automatically determine their transaction types, you need to manually select the transaction types to resolve the "Unclassified" status.

Let's start by moving to the assistant screen.  *Details about the "assistant" feature can be found this link.

スクリーンショット 2023-10-11 173043.png

 

Click on "Classify" on "Let's handle your DeFi transactions".

スクリーンショット 2023-10-11 173205.png

 

Only "Unclassified - Others" transactions will be displayed.

スクリーンショット 2023-10-11 173345.png

 

Additional Note: You can also manually select "Unclassified" → "Others" from the filtering options, without navigating to the "assistant" screen, to display only the "Unclassfified - Others" transactions. 

スクリーンショット 2023-10-11 173458.png

 

For each transaction, select the transaction type from the pull-down menu. You can refer to the information in the link in the DEFI TRANSACTION column and the DETAIL column to make your selection.

スクリーンショット 2023-10-11 173746.png

If you are unsure which transaction type to select, please refer to the following help page.

DeFi: PNL calculation for each transaction type for Japan

 

After selecting the transaction types, click "Sync all". Your selection will be reflected in the system, and the status is updated from "Unclassified" to "Classified".

スクリーンショット 2023-10-11 173914.png

 


5.How to edit "Classified" DeFi transactions

Please take the following steps if you wish to edit DeFi transactions that are already in "Classified" status. Transactions that were automatically recognized by the system and transactions that you manually recognized (manually selected the transaction types) can both be edited using the following steps.

 

1. Select the DeFi transaction that you wish to edit. Click "Classified". You can filter transactions based on whether they were automatically recognized by the system or manually recognized (manually selected the transaction types).

スクリーンショット 2023-08-02 165451.png

2. Click the "Edit" button.

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3. Select the transaction type.

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4. Click "Sync All".

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5. The newly selected transaction type is reflected in the system.

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6.  Check "Transactions"

Once all the "unclassified" transactions are resolved in the "DeFi Transactions" page,  proceed to review all transaction history, including DeFi transactions, on the "Transactions" page. If you see the guidance "Troubleshoot and optimize" as shown in the image below, it indicates either ongoing "DeFi unclassified" or "invalid transactions".

Transactions categorized as "Unclassified" on DeFi page,  or "Invalid" on transaction page are not automatically included in profit and loss calculations (due to insufficient information). In cryptocurrency profit and loss calculations, they are excluded. Therefore, it's essential to resolve these categorizations.

スクリーンショット 2023-10-11 174838.png

Disclaimer

As stated in the Terms of Use, Cryptact is not responsible for the calculated pnl. In addition, the information provided here is only a tentative description and does not take into account individual circumstances. If you have any questions about taxation, please contact your tax advisor.