How Does the Use of Collateral (E.g. Stablecoins) in DeFi Futures Affect Tax Basis?
The posting of collateral, such as stablecoins, is generally not a taxable event in itself, as it is just a deposit. However, if the collateral is liquidated to cover losses, that liquidation is a taxable event.
The tax basis of the collateral is used to determine the gain or loss upon liquidation, and this gain/loss is separate from the derivative's profit/loss.
