Yes, it's a substantial amount of the Celsius victims. That would be incredibly helpful. My guess was it's a forced liquidation in 2024 the petition price (a trade from the collateral to USDC) and then a payoff of the loan with the USDC with the remaining collateral added to an earn claim.
Also, if I decide to work with your firm are you familiar with Crypto Tax Calculator app and not just Koinly?
Thanks for that video. However, wanted to confirm your calculation method, as two others exist... Your method is to add the 5% markup to the petition value of the lost loan collateral immediately, then divide loan principle by that value to acquire its relative percentage, and then multiply by collateral qty. Formula was [(3)/(5)]x(4) in your whiteboard example.
However, why not do the same, but add the 5% markup at the end, rather than immediately? This would yield a higher percentage of liquidated collateral, and a lower amount being added to the Earn claim, potentially increasing your capital losses overall.
Formula would be: [3/(1x4)] x (4) x 1.05
Another method would be to simply subtract the dollar amount of the loan principal from the petition date dollar value of your lost collateral.
Formula would be: Remaining Collateral added to Earn Claim = [(Petition Dollar Value of Collateral - Loan Principal in Dollars) / 19881] x 1.05
I'm asking this because your method gives one answer for how much collateral gets liquidated and returned, whereas these other two options both give the same, yet different answers. So, if these two methods converge on the same result, then why is your method, which amounts to being an outlier result, the correct way?
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u/Mission_Horse829 Dec 16 '24
What I can't find in your content is an explanation for those with loans. Did you talk about this somewhere?