Transaction Labelling & Tax Treatment

A description of our labelling methods and tax treatment of transactions is described here.

There is quite a lot of detail, but some high level points to keep in mind:

1. We generally treat trades as disposals of the token being sent (which realises a gain/loss).

2. Where a liquidity pool token is employed, we treat deposits into liquidity pools as disposals of the tokens being sent (which realises a gain/loss). We treat withdrawals from liquidity pools as disposals of the liquidity token.

3. We do not consider staking a taxable event.

4. When a token is borrowed, we add the market value of the borrowed amount - at the time of borrowing - to the cost basis table for that token. When a loan is repaid, we reduce the cost basis for that token (by an amount that depends on the capital gains method selected, i.e. FIFO, LIFO or HIFO).