How to import/tag Short Sale correctly GMX AVAX

Describe the problem:
Hello rocking tax-brain masses of Koinly.

What is the recommended protocol (tagging, soft deleting, manual CSV, re-whatevering) the profits made from a short sale, so that I can import it properly into Turbo Tax?

For instance I wanted to short $100 worth of AVAX so on GMX

  • I provided $101USDC collateral on the April 30th.
  • GMX Transaction Fee = .04257 AVAX ($0.74USD)
  • GMX Approval Fees = .00161 AVAX ($0.03) and .00129 AVAX ($0.02)
  • I closed the position on May 3rd netting a cool $110.5151USDC
  • GMX Transaction Fee = .02991722 AVAX ($0.51)

or more simply:
$9.52 short term profit - $1.31 fees = $8.21 net

I’m hoping to make hundreds of these transactions in the future and wondering whats the best and smartest way to use Koinly for this so that there is little manual over riding, yet reporting correctly to each form. Also if Koinly isnt ready for this yet, should I set up a separate wallet to perform these transactions, avoid confusing Koinly with them and then manually input them to Turbo Tax?

PS. Tell the team to keep up the great work, making tax time less chaotic.

Here is a screen shot as uploaded via API sync:

Which exchange/wallet is this regarding?
GMX / Metamask Avalanche

How did you import data into this wallet?

What have you tried to fix this so far?
Tried merge, but that made it all into a glaringly incorrect token swap.

1 Like

@Ericgfx hey!

I’ll kickstart this discussion with a way you can represent this in Koinly, but ultimately it would be down to you to decide, and ensure it’s compliant with your tax authority!

IMO the easiest way is to represent this as purely realized gain or loss, whereby you add in a Deposit for a “profit” and Withdrawal for a “loss”


Doing so, you should delete the transactions of USDC(any other asset) which is being sent as collateral/received back.

So in this case, you would delete both Send/Deposits of USDC, and simply enter a Realized Profit of 10.515 USDC or whatever your final net is after fees.

If you have a ton of these, then you should create a simple CSV file using the Futures Template and add in your total Loss/Profit and import it to the wallet directly.

Ah great. That looks like it will keep the capital gains separate for the fees paid.

I assume that if I “soft delete” than I won’t have a problem over writing on subsequent syncs. I’ll give it a test and multiple imports when I get a chance. Thanks Ali

Hi, can you help me model this case:

  1. Sent 0.5 ETH and .25 ETH as collateral to GMX to open a short position.
  2. Next day, closed position at a loss and withdraw collateral as USDC.

If I delete these transactions and just create a Realized Loss transaction, won’t it show that I still have the 0.5 and 0.25 ETH in my wallet when I don’t, and not show the USDC in my wallet when I do.

What if I just tag the Send transactions as a Cost or Lost, and then tag the USDC coming back to me as a Reward? I believe this will result in an accurate snapshot of my wallet holdings and an accurate net loss for tax purposes.

What if I just tag the Send transactions as a Cost or Lost, and then tag the USDC coming back to me as a Reward? I believe this will result in an accurate snapshot of my wallet holdings and an accurate net loss for tax purposes.

The way you propose would make it look like extra income (because of the reward, which is usually taxed differently), and I cant see how this would account for losses. That extra income could have major implications depending on your tax jurisdiction and the value of your collateral.

Disclaimer: I’ve just been thinking this through for my own purposes, but haven’t executed on it yet AND I’m not a tax expert.

I think a better way might be to first fully understand what @Ali_Koinly said in the basic case of using the same collateral (which it appears you do). Then you just need to add a manual tx to do the swap from ETH to USDC at the time of each deposit of collateral.

In your specific case, it would look something like:

  1. Soft delete the two ETH deposit transactions and the one USDC withdrawal transaction
  2. Add a new manual transaction which is a swap between 0.25 ETH to $XXX USDC (valued at time of deposit)
  3. Add a new manual transaction which is a swap between 0.50 ETH to $XXXX USDC (valued at time of deposit)
  4. Finally add the realized profit or loss transactions per @Ali_Koinly’s post above, based on the sum of USDC received from the swaps in steps 2 and 3.

Hopefully that makes sense. Due to some messy tax history, I now have PTSD about these sorts of transactions. I always plan them out beforehand and make sure I can easily cram them into koinly’s rigid interface.

If i’m on an L2 I’ll do extra swaps before depositing just so that there’s a better paper trail, in hopes koinly can automate it. I really hope they can fully automate these GMX transactions by next year, seems doable.


Hi @jpjp,

Thank you a million times over for thoughtfully and thoroughly providing solutions for SDC and the community! I just wanted to shine our light of gratitude for educating everyone here. Additionally, thank you for the feedback regarding the interface!

If you have specific ideas on how we can better evolve the interface, please add them to our feedback page. Our dev team is keen to consistently improve the service!

Additionally, if anyone here would like to receive a notification once GMX has been integrated, add your vote and you’ll be contacted!

Thank you again for sharing your insights with others, jpjp!

Have an awesome day!

@jpjp Thanks so much for taking the time to reply to a stranger! I think your approach makes sense, it results in an accurate PnL and wallet balance. Appreciate it!

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