The Transaction Label Hard Fork is used to record incoming assets from hard forks in your integration. If you participated in a hard fork, you will receive new coins, which are either automatically recorded in Exchange or Wallet Integrations or have to be entered manually in Manual Integrations.
🎓 More details on the tax implications and categorization of all transaction labels can be found in the tax results under the menu item “Reports” and in the last pages of your tax report.
How do I create a Hard Fork inflow?
Open your Blockpit Account and click on the menu item Transactions.
Now select + Transaction.
Enter the Date and Time of the transaction.
In case of a manually created transaction directly in the WebApp, use your local time.
If the transaction is imported via CSV/Excel, use the standard exchange time UTC.
Now select the Transaction Label Airdrop.
Now enter the Integration, Asset and Amount. If you paid Fees, enter them with quantity and currency as well.
Tip: In the input fields for assets, you can enter the short name (BTC) or long name (Bitcoin) as a search term to narrow down the search of the displayed list. If your asset is not selectable, you can get more information here.
Finally, click Save to complete the process and display the transaction in the Integration.
❗ If you received assets as the result of a hard fork, the inflow should be recorded in the integration that held the original asset at the time of the hard fork. If the original asset is missing at the time of the hard fork, a corresponding Tip will be displayed in your transaction list.
How do manually created transactions affect my balance?
Manual Integration (CSV/Excel)
Incoming and outgoing transactions created within a manual integration directly affect the displayed asset balance of that integration.
Automatic Exchange or Blockchain Integration (API)
Incoming and outgoing transactions created manually within an automatic exchange or blockchain integration do not affect the automatically imported Synced Balance of that integration. However, they can affect the Calculated Balance and therefore influence the results shown in your tax report.
How are fees considered for Hard Forks?
Example: Hard Fork inflow of 1 BTC with 0.0001 BTC fee.
Fees are mostly considered on the withdrawal side, but can also occur on deposits.
Fees, if paid in the incoming asset, will be considered as follows:
If fees are paid in the incoming asset:
Case1: No additional fee on the deposit side.
Incoming Amount: Net transaction amount (amount excluding fees)
Fees Amount: Enter nothing or 0
Case2: Additional fee on the deposit side.
"If the fee is paid in the incoming currency, the input must be increased by the amount of the fee. The fee will be treated as a separate outflow."
Incoming Amount: Net transaction amount (amount excluding fees) + fee amount
Fee Amount: Enter fee amount as well
Different approach of exchanges to Hard Fork?
A hard fork is generally a split of an existing blockchain (coin) into two independent blockchains (coins). This usually occurs when changes to the blockchain protocol are introduced that are not compatible with previous versions.
Hard forks take place on the blockchain itself (not on exchanges). However, exchanges must adapt to these events and may implement the technical handling of a hard fork differently depending on its outcome.
If a hard fork results in two independent assets that continue to exist, it is important to note that many newly created forked assets are not immediately supported by enough network participants (miners or validators) or may never be listed by exchanges.
If both assets continue to exist and are supported by an exchange, the technical implementation often follows a pattern similar to the following:
Example: Bitcoin Cash (BCH) hard fork on Binance (15 November 2018)
Redistribution of BCH (16 November 2018)
Redistribution of BSV (16 November 2018)
Although BCH continued to exist as the original asset, some exchanges redistributed users' BCH balances as part of their internal migration process and additionally credited the newly created BSV.
As a result, the transaction history may appear to contain a duplicate BCH deposit even though the actual BCH balance did not increase economically.
⚠️ The redistributed BCH is only part of the exchange's technical handling of the hard fork and should generally be excluded from the tax report to avoid double counting.