Hi there πŸ‘‹

Before compensating for insufficient scales, we encourage you to understand the 4 reasons for an "insufficient scale" warning, here is our dedicated article.

This will correct the majority of cases.

An offsetting deposit is a deposit equal to the maximum amount of the insufficient balance encountered on a token and platform created at a date prior to the first transaction detected as insufficient balance on that token and platform.

If you have completed the transactions in your Waltio account but information is missing then you should create offsetting deposit transactions to obtain the correct taxable amount.


Otherwise, withdrawals should be deleted because they, are greater than your deposit, which is technically not possible.

Example 1:

  • You deposit 1 000 USDT on Binance on 01/01/2021

  • You withdraw 2,000 USDT on Binance to send it to KuCoin on 02/01/2021

⚠️ You will therefore encounter a shortfall on 01/01/2021 on Binance of an amount equivalent to 1,000 USDT. In other words, when withdrawing 2,000 USDT, you will be short 1,000 USDT in inventory. This transaction is impossible.

Example 2:

  • You deposit 1,000 USDT on Binance on 01/01/2021

  • You withdraw 2,000 USDT from Binance and send it to KuCoin on 02/01/2021

  • You deposit 5,000 USDT on KuCoin on 03/01/2021

  • You withdraw 10,000 USDT on KuCoin on 04/01/2021

⚠️ So you will encounter two insufficient balances: still one of 1,000 USDT on Binance (which we already had in example 1) and the other of 3,000 USDT on KuCoin. So an overall insufficient balance of 4,000 USDT.

Example 3:

  • You deposit 1,000 USDT on KuCoin on 01/01/2021

  • You withdraw 2,000 USDT on KuCoin on 02/01/2021

  • You deposit 5,000 USDT on KuCoin on 03/01/2021

  • You withdraw 10,000 USDT on KuCoin on 04/01/2021

⚠️ We will therefore encounter two insufficient balances: one of 1,000 USDT on KuCoin at the time of the withdrawal on 02/01/2021 and another, still on KuCoin, at the time of the withdrawal of 5,000 USDT on 03/01/2021. That is an overall insufficient balance of 6,000 USDT.

πŸ’‘ The "Platform Balance" tab of your stock record shows you the quantity in stock owned for a token on the platform during the transaction. The "Total Balance" tab gives you the total quantity owned for a token for all your platforms during the transaction.

Now let's take a look at how to create clearing transactions

πŸ’‘ In your stock sheet, you will need to identify insufficient balances (automatically highlighted in red) and then filter on the relevant distribution center.

Example 1:

  • You deposit 1,000 USDT on Binance on 01/01/2021

  • You withdraw 2,000 USDT on Binance and send it to KuCoin on 02/01/2021

β†’ If you consider that you owned the 2,000 USDT at the time of the withdrawal on 02/01/2021, you should create a deposit transaction (an offsetting deposit) of 1,000 USDT on Binance as of 01/01/2021.

Example 2 :

  • You deposit 1,000 USDT into Binance on 01/01/2021

  • You withdraw 2,000 USDT from Binance and send it to KuCoin on 02/01/2021

  • You deposit 5,000 USDT on KuCoin on 03/01/2021

  • You withdraw 10 000 USDT on KuCoin on 04/01/2021

β†’ If you consider that you have owned the 2,000 USDT on Binance and the 10,000 USDT on KuCoin, then you should create the same transaction of 1,000 USDT on Binance on 01/01/2021 (as in our example number 1) and then a second deposit transaction on KuCoin of 3,000 USDT on 03/01/2021

Example 3 :

  • You deposit 1,000 USDT on KuCoin on 01/01/2021

  • You withdraw 2,000 USDT on KuCoin on 02/01/2021

  • You deposit 5,000 USDT on KuCoin on 03/01/2021

  • You withdraw 10,000 USDT on KuCoin on 01/04/2021

β†’ If you consider that you have owned the 2,000 USDT and the 10,000 USDT, then we will automatically suggest a single compensatory deposit of 6,000 USDT on 01/01/2021. (We would normally suggest that you create two clearing deposit transactions of 1,000 USDT on 01/01/2021 and another on 03/01/2021 worth 5,000 USDT, if this method is more convenient for you, then you should add the transactions manually).

If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! πŸ’¬

The Waltio team

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