CoinDCX

LQTH Staking Users: Why is my ETH Invested value Incorrect?

Summary:

The ETH Invested value in the portfolio section does not match the original invested value for users who have pledged ETH in CoinDCX for staking.

What is the original invested value?

The value at which ETH is brought by users. (For example, if user has brought 2 ETH in ETH/USDT market at a price of 1000 USDT, then the invested value will be 2000 in USDT, let’s assume USDT to INR price is 80, then the original invested value is 1,60,000 INR)

What is the value that is now shown on the portfolio?

We have debited the ETH from your portfolio during the course of the LQTH staking product and credited it back once the staking period is complete. While crediting the ETH back, we have ensured that all users get their ETH balance updated accurately. So there is no mismatch in quantity, but the average buying price is now given at 0. (Let us consider the previous example; we have given 2 ETH back to users, but instead of 2000 USDT as invested value the user will see invested value as 0)

What is the impact of this?

Inflated portfolio returns: In the portfolio section, since the Invested value is 0, the unrealized returns appear to be inflated.

Do I, as a user, need to be worried about my taxation?

No, for taxation purposes, CoinDCX supports users with trade reports with all details of how a crypto asset is acquired and sold. This report will contain the original buying price of ETH. While we understand the origins of this issue, we will try to fix the same. It will not affect the functioning of any of our products/services,

Please do reach out to us if you have any other questions.

PS: This will only affect users who have participated in LQTH staking product.

Happy Trading.

Team CoinDCX

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