How We Calculate Profit and Loss

When you receive crypto, we record its value at that moment in your reporting currency (for example, CAD). It’s called Adjusted Cost Base (ACB).

When you later use, sell, or convert this crypto, we check its current value at that exact moment. This is the Fair Market Value (FMV) – the amount the asset is worth right now.

Your profit or loss is the difference between these two values, after accounting for fees.

‍Profit (gain) = FMV at disposal – ACB – fees
Loss = when the FMV at disposal is lower than the ACB

To put it simply:
- if the value went up since you received the asset – you have a profit,
- if it went down – you have a loss.

Before explaining fees, it’s important to understand two actions the system tracks:

- Acquisition – when you receive crypto.
This is when your ACB is created or increased.
- Disposal – when you use crypto.
This is when FMV is recorded and profit or loss is calculated.

Some fees are directly tied to the transaction itself – for example, network fees or service fees.

These fees affect the asset’s cost:
- On disposal, they reduce what you receive.
- On acquisition, they increase your ACB, because they raise the cost of getting the asset.

Administrative fees that are not linked to a specific asset (such as identity verification fees) are treated as regular operating expenses and do not affect profit or loss.

You only create a real gain or loss when you actually use the crypto.
This is called realized profit or loss, and it appears on your dashboard as Total Realized P/L (YTD).

If you still hold the asset, any increase or decrease in value is unrealized – it’s only a potential result.

We show this through the valuation of your balances, but it is not added to your P/L total.

You receive 1,000 USDT when the rate is 1.40 CAD.
Your cost is: 1,000 × 1.40 = 1,400 CAD
Later, you use 1,000 USDT to pay an invoice when the rate is 1.60 CAD.
Value at disposal: 1,000 × 1.60 = 1,600 CAD
Fee: 10 CAD
‍Realized P/L = 1,600 – 10 – 1,400 = +190 CAD gain