Are Decentralized Finance (DeFi) Derivatives Taxed the Same as Centralized Exchange Derivatives?

The underlying tax principles for gains and losses are generally the same: they result in capital gains or losses upon closing the position. However, DeFi derivatives introduce unique complexities like gas fees, tokenized collateral, and specific smart contract interactions.

These additional transaction costs and potential token swaps may introduce separate, smaller taxable events that must be tracked alongside the derivative's main gain/loss.