IMPORTANT - Perpetual/Derivatives DEXs Taxes Question

KG_88 · May 3, 2024, 4:15am

Describe the problem:

I found out how to add my trade history from APX or other perp DEXs to my koinly account using a CSV i found here: Futures csv format - #3 by Ali_Koinly

However I think when I sent money back and forth (deposited and withdrew) to APX to trade, that those transactions will mess up my taxes.

For example lets say I deposited 1000$ into APX then made 500$ in profit and two weeks later withdrew $1500, that would show up on my Koinly as me sending (basically selling) $1000 USDC and then recieving (basically buying) $1500 USDC. Which obviously isnt the case as im simply just sending USDC between my wallet and my perp dex account (like sending money to coinbase and back).

Which exchange/wallet is this regarding?
Apex and APX Finance, but applies to many other perpetual/derivatives DEXs

If you want more info about the specific perp DEXs I’m talking about their official twitter handles are @APX_Finance and @OfficalApeXdex

What have you tried to fix this so far?
Spent hours researching what to do, my best guess is to edit/change all my APX deposits and withdrawals to transfers, and then import the CSV of my transactions/trade history on APX.

Which I think will remove the issue with me sending money to a perp DEX account being a taxable event, and will show how and when I made profits or losses on said perp DEX account.

This is my best guess and what I’m going to do if nobody responds to this but I’m honestly just not sure.

Carl_Koinly · May 3, 2024, 4:15am

Hey @KG_88

Thanks for reaching out!

When importing futures manually/using a CSV, all you need to do is add the Realised PnL, no need for all the deposits and withdrawals. This is taken from our Futures and Perpetuals article

How do I add a futures transaction?

If you want to create such a transaction yourself:

To add a profit, create a Deposit transaction and set the tag to “Realized P&L”.
To add a loss, create a Withdrawal transaction and set the tag to “Realized P&L”.
If you are trying to add these transactions using a CSV file then simply use the “realized gain” tag on all deposit/withdrawal rows that are related to pnl.

How does aggregation work?

For ex. if you have 2 PnL transactions on the same day:

Profit of 200 USDT
Profit of 300 USDT

This would just be imported as one Realised PnL transaction of 500 USDT

I hope that helps!

KG_88 · May 3, 2024, 4:15am

@Carl_Koinly

I understand, but the same wallet I was using to connect to APX i was using for other stuff as well, so imported it to my koinly account , and now under my transactions it will show my profits and losses on the exchange (only because i imported them through the CSV) BUT it also shows my transfers to and from the perp DEX. (Which are NOT shown as transfers they are shown as deposits and withdrawals which are taxable events events right?)

If you still don’t get it heres a breakdown of what I did and what Im thinking:

Step 1 I imported my wallet to koinly

Step 2 i realized it didn’t show my transaction inside of my perp DEX account

Step 3 I imported my trade history to that wallet using a CSV

Step 4 Should i delete the deposits and withdrawals to and from the perp DEX? (I did not add these myself they were automatically added when I imported my wallet address.)