> ## Documentation Index
> Fetch the complete documentation index at: https://guides.koinx.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Incoming Transaction Labels Explained

> A complete reference for every incoming transaction label in KoinX - when to use each one, why it matters, and how it affects your tax treatment.

<Info>
  **Reference Guide**  ·  **6-8 min read**  ·  Covers all incoming transaction labels  ·  **Affects taxable income calculation**
</Info>

Whenever crypto enters your wallet or exchange account, KoinX records it as an **incoming transaction**.

By default, incoming transactions are labelled as **External Deposit**. This label is suitable for simple transfers between wallets or exchanges that you own. However, not every incoming transaction is just a deposit - you may have received crypto as staking rewards, an airdrop, salary, mining rewards, or even as a loan. While these transactions all increase your wallet balance, they don't have the same tax treatment.

Choosing the correct transaction label helps KoinX understand **why** you received the crypto so it can classify the transaction correctly and generate a more accurate tax report.

<Tip>
  If you're unsure which label to choose, ask yourself **"Why did I receive this crypto?"** The answer usually points you to the correct transaction label.
</Tip>

***

## Rewards & Income

Use these labels when you receive crypto as a reward, payment, or incentive. Depending on your country's tax laws, these transactions are generally treated as taxable income.

<AccordionGroup>
  <Accordion title="Airdrop">
    Use this label when you receive tokens for free through promotional campaigns, community distributions, token launches, governance distributions, or snapshot-based rewards.

    **Why is choosing the correct label important?** If this transaction remains labelled as External Deposit, KoinX may not recognise the tokens as airdrop income. This can result in the income not being reported correctly in your tax report and may lead to under-reporting of taxable income.
  </Accordion>

  <Accordion title="Staking Interest">
    Use this label when you receive rewards for staking your crypto, whether through an exchange or an on-chain staking protocol.

    **Related labels:** Stake, Unstake

    **Why is choosing the correct label important?** Leaving staking rewards labelled as External Deposit may prevent KoinX from recognising them as staking income. As a result, your taxable income and portfolio performance may not be calculated correctly.
  </Accordion>

  <Accordion title="Mining Income">
    Use this label when you receive crypto as a reward for validating blockchain transactions through mining.

    **Why is choosing the correct label important?** If mining rewards remain labelled as External Deposit, they may not be recognised as mining income. This can result in inaccurate income reporting in your tax report.
  </Accordion>

  <Accordion title="Reward">
    Use this label when you receive crypto as cashback, referral bonuses, learn-and-earn rewards, loyalty rewards, or other promotional incentives.

    **Why is choosing the correct label important?** Leaving these transactions labelled as External Deposit may prevent KoinX from identifying them as reward income, resulting in incorrect tax reporting.
  </Accordion>

  <Accordion title="Salary / Consultancy Income">
    Use this label when you're paid in crypto for employment, freelance work, consulting, or other professional services.

    **Why is choosing the correct label important?** If this transaction remains labelled as External Deposit, KoinX may not recognise it as employment or professional income, which can lead to inaccurate income reporting.
  </Accordion>

  <Accordion title="Funding Interest">
    Use this label when you receive funding payments while trading perpetual futures or other derivatives.

    **Why is choosing the correct label important?** Leaving funding payments labelled as External Deposit may prevent KoinX from recognising them correctly during tax calculations.
  </Accordion>

  <Accordion title="Futures Realised Profit">
    Use this label when profits from closed futures positions are credited to your wallet.

    **Why is choosing the correct label important?** Using External Deposit instead of Futures Realised Profit may result in trading profits being classified incorrectly, affecting your tax calculations.
  </Accordion>

  <Accordion title="Options Realised Profit">
    Use this label when profits from closed options positions are credited to your wallet.

    **Why is choosing the correct label important?** Leaving realised options profits labelled as External Deposit may prevent KoinX from correctly identifying profits earned through options trading, resulting in inaccurate tax reporting.
  </Accordion>
</AccordionGroup>

| Transaction Label               | Use this label when                                                                                | Tax Treatment                                                                    |
| ------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- |
| **Airdrop**                     | You receive free tokens through promotional campaigns, community distributions, or token launches. | 🔴 Generally taxable income                                                      |
| **Staking Interest**            | You receive rewards for staking your crypto.                                                       | 🔴 Generally taxable income                                                      |
| **Mining Income**               | You receive crypto through mining activities.                                                      | 🔴 Generally taxable income (or business income, depending on your jurisdiction) |
| **Reward**                      | You receive cashback, referral bonuses, loyalty rewards, or other promotional incentives.          | 🔴 Generally taxable income                                                      |
| **Salary / Consultancy Income** | You're paid in crypto for employment, freelancing, or professional services.                       | 🔴 Generally taxable income                                                      |
| **Funding Interest**            | You receive funding payments from perpetual futures or derivatives trading.                        | 🔴 Generally taxable income                                                      |
| **Futures Realised Profit**     | Realised profits from closed futures positions are credited to your wallet.                        | 🟡 Depends on your local tax regulations                                         |
| **Options Realised Profit**     | Realised profits from closed options positions are credited to your wallet.                        | 🟡 Depends on your local tax regulations                                         |

***

## Loans & Settlements

Use these labels when you receive borrowed assets or assets returned as part of a lending or settlement activity.

<AccordionGroup>
  <Accordion title="Borrow / Receive Loan">
    Use this label when you borrow crypto from a lending platform, DeFi protocol, or another party. Although the assets are credited to your wallet, they represent borrowed funds that are expected to be repaid.

    **Related label:** Borrow Settlement

    **Why is choosing the correct label important?** If this transaction remains labelled as External Deposit, KoinX may incorrectly treat the borrowed crypto as newly received assets instead of a loan. This can lead to inaccurate tax reporting.
  </Accordion>

  <Accordion title="Lend Settlement">
    Use this label when crypto that you previously lent is returned to your wallet after the borrower repays the loan or the lending period ends.

    **Related label:** Lend

    **Why is choosing the correct label important?** Leaving this transaction labelled as External Deposit may prevent KoinX from recognising it as the return of assets you already owned. This can affect how your lending activity is reflected in your tax report.
  </Accordion>

  <Accordion title="Settlement In">
    Use this label when you receive settlement transactions generated by supported exchanges or trading platforms, such as derivatives or margin settlements.

    **Why is choosing the correct label important?** Settlement transactions can represent different types of activities depending on the platform. Using the correct label helps KoinX classify the transaction accurately and apply the appropriate tax treatment.
  </Accordion>
</AccordionGroup>

| Transaction Label         | Use this label when                                                        | Tax Treatment                            |
| ------------------------- | -------------------------------------------------------------------------- | ---------------------------------------- |
| **Borrow / Receive Loan** | You borrow crypto from a lending platform or another party.                | 🟢 Generally non-taxable                 |
| **Lend Settlement**       | Crypto that you previously lent is returned to your wallet.                | 🟢 Generally non-taxable                 |
| **Settlement In**         | You receive settlement transactions from supported exchanges or platforms. | 🟡 Depends on the underlying transaction |

***

## Returning Your Own Assets

Use these labels when crypto that you already own is returned to your wallet. Since ownership of the assets hasn't changed, these transactions are generally not taxable.

<AccordionGroup>
  <Accordion title="Un-stake">
    Use this label when previously staked assets are returned to your wallet after the staking period ends.

    **Related labels:** Stake, Staking Interest

    **Why is choosing the correct label important?** If the returned assets remain labelled as External Deposit, or the original Stake transaction isn't labelled correctly, KoinX may not recognise the complete staking lifecycle. This can affect cost basis tracking and the tax treatment of your staking activity.
  </Accordion>

  <Accordion title="Receive from Bridge">
    Use this label when assets arrive on the destination blockchain after being bridged from another blockchain.

    **Related label:** Send to Bridge

    **Why is choosing the correct label important?** Leaving this transaction labelled as External Deposit may prevent KoinX from recognising it as part of a bridge transfer. As a result, the transfer may be treated as a regular deposit instead of a movement of assets between your own wallets.
  </Accordion>

  <Accordion title="Receive from Pool">
    Use this label when assets are returned after you withdraw liquidity from a liquidity pool or DeFi protocol.

    **Related label:** Send to Pool

    **Why is choosing the correct label important?** If this transaction remains labelled as External Deposit, KoinX may not recognise that the assets are simply being returned from a liquidity pool. This can affect the tax treatment of your DeFi transactions.
  </Accordion>

  <Accordion title="Collateral Unlock">
    Use this label when collateral that was previously locked against a loan is released back to your wallet after the loan is repaid or your borrowing position is closed.

    **Related label:** Collateral Lock

    **Why is choosing the correct label important?** Leaving this transaction labelled as External Deposit may cause KoinX to treat the returned collateral as newly received assets instead of collateral being released.
  </Accordion>

  <Accordion title="Fixed Deposit Unlock">
    Use this label when the principal amount from a fixed deposit or locked investment is returned after the deposit reaches maturity.

    **Related label:** Fixed Deposit Lock

    **Why is choosing the correct label important?** If this transaction remains labelled as External Deposit, KoinX may not distinguish between the returned principal and any interest earned. This can result in incorrect tax treatment.
  </Accordion>
</AccordionGroup>

| Transaction Label        | Use this label when                                                  | Tax Treatment                         |
| ------------------------ | -------------------------------------------------------------------- | ------------------------------------- |
| **Unstake**              | Previously staked assets are returned to your wallet.                | 🟢 Generally non-taxable              |
| **Receive from Bridge**  | Assets arrive on the destination blockchain after a bridge transfer. | 🟢 Generally non-taxable              |
| **Receive from Pool**    | Assets are returned after withdrawing from a liquidity pool.         | 🟢 Generally non-taxable              |
| **Collateral Unlock**    | Previously locked collateral is released back to your wallet.        | 🟢 Generally non-taxable              |
| **Fixed Deposit Unlock** | Your fixed deposit matures and the principal amount is returned.     | 🟢 Principal is generally non-taxable |

***

## Refunds & Adjustments

Use these labels when you receive funds back because of a refund, reversal, or correction. These transactions generally don't create taxable income.

<AccordionGroup>
  <Accordion title="Refund">
    Use this label when you receive crypto or fiat back because a transaction was cancelled, reversed, refunded, or adjusted by an exchange, merchant, or another platform.

    **Why is choosing the correct label important?** If this transaction remains labelled as External Deposit, KoinX may incorrectly treat the refunded amount as newly received assets instead of the return of your own funds. This can result in inaccurate tax reporting.
  </Accordion>
</AccordionGroup>

| Transaction Label | Use this label when                                                                                             | Tax Treatment            |
| ----------------- | --------------------------------------------------------------------------------------------------------------- | ------------------------ |
| **Refund**        | You receive crypto or fiat back because of a cancelled order, refunded fee, overpayment, or similar adjustment. | 🟢 Generally non-taxable |

***

## Before you generate your tax report

<Warning>
  **Review any transactions still labelled as External Deposit before generating your tax report.** If they actually represent borrowed funds, returned assets, refunds, or any other specialised crypto activity, update the label accordingly.
</Warning>

Using the correct transaction labels helps KoinX accurately classify your transactions, apply the appropriate tax treatment, and generate a more reliable tax report.

***

## Frequently asked questions

<AccordionGroup>
  <Accordion title="What's the difference between Staking Interest and Unstake?">
    Staking Interest is the reward you earn for staking - it's generally taxable income. Unstake is the return of your original staked principal once the staking period ends - since you already owned those assets, it's generally non-taxable. Both labels need to be applied correctly to preserve the full staking lifecycle and cost basis.
  </Accordion>

  <Accordion title="I received crypto but I'm not sure if it was a loan or a deposit. What should I do?">
    Ask yourself whether the crypto is expected to be repaid. If yes, it's likely Borrow / Receive Loan. If the crypto is simply moving between your own wallets or exchanges with no repayment expected, External Deposit is usually correct.
  </Accordion>

  <Accordion title="Are Futures and Options Realised Profits always taxable?">
    Not always - the tax treatment for realised futures and options profits depends on your local tax regulations, unlike labels such as Airdrop or Staking Interest which are generally treated as taxable income across most jurisdictions.
  </Accordion>

  <Accordion title="Why does the label matter if the crypto still shows up in my wallet either way?">
    The label doesn't change the blockchain transaction itself, but it changes how KoinX interprets it for tax purposes. For example, a loan and an airdrop both increase your wallet balance, but one is a liability that isn't taxed and the other is taxable income - the label is what tells KoinX which is which.
  </Accordion>

  <Accordion title="What if none of these labels match my transaction?">
    If you can't find a label that fits, leaving it as External Deposit is safer than guessing at an unrelated label. You can also check the Outgoing Transaction Labels Explained or Understanding Paired Transaction Labels guides in case the transaction is better understood as part of a linked pair.
  </Accordion>
</AccordionGroup>

***

## What's next?

<CardGroup cols={2}>
  <Card title="Outgoing Transaction Labels Explained" icon="arrow-up" href="/guides/outgoing-transaction-labels">
    Labels for staking, lending, bridge transfers, repayments, and fees on the outgoing side.
  </Card>

  <Card title="Understanding Paired Transaction Labels" icon="link" href="/guides/paired-transaction-labels">
    How linked transactions like staking/unstaking work together and why both sides need labelling.
  </Card>
</CardGroup>

<Card title="Ready to review your transaction labels?" color="#6366f1" icon="rocket" href="https://app.koinx.com/tax-report">
  Head to your Transactions page in KoinX and update any incoming transactions still labelled as External Deposit.
</Card>