Blockpit Unlabeled

Unlabeled Transactions
in Blockpit?

Blockpit cannot automatically classify many DeFi transactions. The missing assignment distorts the tax calculation. TX-Partner identifies and corrects unlabeled transactions.

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The Problem in Numbers

A DeFi-active portfolio with multiple chains. Blockpit imports the transactions but cannot automatically assign many:

0
Typically unlabeled
In DeFi-active portfolios, 30%+ of all transactions are affected
Outgoing = Sale
Unlabeled outgoing
Blockpit treats unlabeled outgoing as sales
Incoming = 0 €
Unlabeled incoming
Cost basis 0 € – later sale will be fully taxed
Screenshot

The Problem in the Blockpit Transaction List

Unlabeled transactions are marked with a notice in the transaction list. Blockpit has imported the transaction but cannot automatically assign the type – the classification is missing.

Blockpit transaction list shows unlabeled outgoing transactions that are treated as sales
Blockpit transaction list: Unlabeled outgoing transactions are treated by Blockpit as sales

The 3 Most Common Causes of Unlabeled Transactions

Blockpit reliably recognizes standard transactions like purchases and sales on exchanges. As soon as DeFi, bridges, or unknown tokens come into play, automatic recognition reaches its limits.

01_DEFI_CONTRACTS

DeFi Smart Contracts

Complex interactions like lending, yield farming, or liquidity pools are not fully interpreted by Blockpit. The smart contract call is imported but not classified.

02_BRIDGE_TRANSFERS

Bridge & Cross-Chain Transfers

Token transfers between chains (e.g., Ethereum to Polygon, Solana to BSC) create multiple transactions. Blockpit does not automatically recognize the connection.

03_UNKNOWN_TOKENS

Unknown Tokens & Airdrops

New tokens, scam airdrops, or project-specific rewards are not recognized in Blockpit's database and remain unlabeled. Nevertheless, they can be tax-relevant.

Why This Matters

Unlabeled Doesn't Mean Irrelevant

Crypto tax tools calculate based on classified transactions. If transactions remain unlabeled, they are either missing from the tax calculation or incorrectly assigned. Both distort the result.

1

Crypto Documentation

Transaction history in crypto tax tool

2

Tax Calculation

Crypto tax tools & tax advisors

3

Compliance

DAC8, tax authority, tax advisor

If transactions remain unlabeled, Blockpit treats outgoing as sales and sets the cost basis for incoming at 0 € – both significantly distort the tax calculation.

Detail View

Blockpit Fallback Notice: Manual Classification Required

When Blockpit displays the note "Fallback" on a transaction, it means: Blockpit could not automatically classify the transaction. The transaction requires manual review and correct assignment.

Blockpit fallback notice on a transaction requiring manual classification
Blockpit fallback notice: The note "Fallback" signals that manual classification is required

What the Fallback Notice Means

When Blockpit shows "Fallback" as a note on a transaction, automatic classification did not work. This particularly affects DeFi interactions, smart contract calls, and unknown tokens. Without manual correction, unlabeled outgoing are treated as sales and unlabeled incoming with cost basis 0 € – both significantly distort the tax calculation.

TX-Partner Approach

Every Transaction Correctly Classified

TX-Partner analyzes unlabeled transactions in the context of the entire crypto documentation. The crypto documentation is prepared so that every transaction is correctly classified – from DeFi interactions to bridge transfers to unknown tokens.

Correct classification is the foundation for correct tax calculation.

Identify Transaction Types

Every unlabeled transaction is analyzed and correctly classified.

Assign DeFi Protocols

Lending, farming, staking – correctly labeled in the tool.

Link Bridge Transfers

Establish and correctly represent cross-chain connections.

Blockpit-Compatible Labels

Ensure correct assignment in the tool so the tax calculation is accurate.

Frequently Asked Questions

What does "Unlabeled" mean in Blockpit?

Blockpit marks transactions as unlabeled when it cannot automatically recognize the type. This particularly affects DeFi interactions, smart contract calls, and unknown tokens. These transactions are often not correctly considered in the tax calculation.

How many unlabeled transactions are normal?

It depends on the portfolio. With pure exchange portfolios, there are hardly any unlabeled entries. With DeFi usage, 30-50% of transactions can be affected. Each one should be correctly classified, as it can be tax-relevant.

Detailed guide on classifying unlabeled transactions:

Blockpit Unlabeled Transactions: Complete Guide

Systematically Classify Unlabeled Transactions

TX-Partner analyzes your Blockpit data, identifies unlabeled transactions, and classifies them correctly for tax calculation.

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Related Blockpit Issues

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