How to add loan and liquidation transactions for loan vaults

This article applies to US customers only.

CoinTracker may not automatically track activity inside your loan vaults, such as collateral deposits, returns, and liquidations. You can record these transactions manually by creating a vault wallet and editing your existing transactions to reflect the correct movement of those funds.   

Add a new wallet for loan vaults

To represent loan vaults you can add a new wallet to your account by importing a CSV with a placeholder transaction. This ensures the wallet is created but remains empty to help organize and track loan vault transactions within your portfolio.

Steps to create the empty wallet

Step 1: Prepare the CSV

Download the CoinTracker CSV template to create a file and add a single placeholder transaction. Feel free to use the example transaction shown below.

The headers must match the template exactly as follows:

Step 2: Import the wallet with the CSV

1. Navigate to the Wallets page, and select Add wallet.
2. Enter Import into the search and select CSV.
3. Enter a wallet name.
4. Choose the file you want to import and select Import to complete.
5. On the Wallets page, select the [...] icon on the wallet you created and then select View transactions.
6. Select the [...] icon next to the placeholder transaction you want to delete.
7. Select Delete transaction.

For the wallet name, choose something that will easily identify which vault or location this represents.

Edit collateral transactions

Track collateral sent to the vault

When you send crypto as collateral for a loan, you intend to get it back — so it shouldn't be treated as a taxable event. To track this correctly, edit the transaction and assign the vault wallet as the destination.

1. Go to your Transactions page and find the Send transaction that represents the funds being sent for collateral.
2. Select the [...] icon next to the transaction.
3. Select Edit transaction.
4. Set the receiving wallet to the vault wallet you created (e.g., "ETH Vault").
5. The category will change to Transfer.
6. Select Save.

Track collateral returned from the vault

When your collateral is returned after repaying the loan, edit the receive transaction so it shows the collateral coming back from the vault. This ensures no gain or loss is calculated.

1. Go to your Transactions page and find the Receive transaction that represents the collateral being returned.
2. Select the [...] icon next to the transaction.
3. Select Edit transaction.
4. Set the sending wallet to the vault wallet.
5. The category will change to Transfer.
6. Select Save.

Handle loan liquidation

If your collateral was liquidated while in the vault, you can manually add a transaction to represent it.

1. Create a Send transaction for the liquidated amount.
   • Set the transaction date to the liquidation date.
   • Use the appropriate vault wallet you created as the Sending wallet.
2. Change the transaction category to Liquidation to accurately reflect the event.

Loan funds received

Manual transactions don’t update balances automatically like synced transactions, so the balance may not reflect changes, such as a reduction when tracking collateral.

To track loan transactions:

• Tag received loan funds as Borrow.
• Tag loan repayments as Loan Repayment.

Learn more about tag definitions and tax implications. For more on crypto-collateralized loans, see our crypto lending overview.

Fees

Additional fees may apply to crypto-collateralized loan activity. If not already included in your transactions, you can add them manually as Send transactions, tagged as Interest expense to reflect loan interest payments.

Example: Loan liquidation scenario

1. Collateral sent: You send 10 ETH to a vault as collateral.
2. Liquidation: Due to a drop in crypto prices, 6 ETH is liquidated, resulting in a gain/loss.
3. Remaining collateral: You receive back the remaining 4 ETH.

Note: This example doesn't include fees, penalties, or other charges. You may need to add these manually to your transactions.

Steps to track this in CoinTracker

1. Create a vault wallet (e.g., ETH Vault) and import it via CSV using the steps in the Add a new wallet for loan vaults section. You'll assign vault transactions to this wallet.
2. Send transaction to vault: If 10 ETH is sent to the vault, edit the Send transaction to show the ETH Vault wallet is receiving those funds, or manually add the transaction if it's missing.
3. Receive transaction from vault: For the remaining 4 ETH returned to you, edit the Receive transaction to show it as coming from the ETH Vault wallet.
4. If you recreate automatically synced transactions, mark the originals as Ignore to avoid duplicates.
5. Account for liquidation: For the 6 ETH that was liquidated, create a manual transaction to show the ETH leaving the wallet. The date of this transaction should be the actual date of the liquidation. This is the only transaction in this sequence that will have a gain/loss calculation.

CoinTracker is provided for informational purposes and is not intended as tax, audit, accounting, investment, financial, or legal advice. For financial, tax, or legal advice, please consult your own professional. See our full disclaimer.