Camelot V3: tax classification of its transactions
How Camelot V3 transactions classify for US tax: 27 verified contract-level rules across 1 chain, covering swap, liquidity add, liquidity remove, each resolving to a category, a treatment, and a confidence score.
Example last verified 2026-08-06 against the live engine. CryptoTaxEdge Team.
What Camelot V3 does on-chain
Camelot V3 is Arbitrum’s native concentrated-liquidity DEX. Swaps are dispositions and LP legs carry the grey-area treatment, with spNFT staking wrappers adding reward-claim shapes on top.
Categories and house treatments
Verified Camelot V3 rules map to these categories from the closed classification taxonomy. Categories flagged as grey areas expose a documented house default and the alternative position, configurable per firm.
| Category | House treatment | Rules |
|---|---|---|
swap | disposal | 15 |
liquidity_add Grey area | disposal | 6 |
liquidity_remove Grey area | disposal | 6 |
Liquidity legs: house default disposal Grey area
Across the 12 verified Camelot V3 liquidity rules, the house default treats each add or remove as a disposition of the assets exchanged for the pool position. The continuity-of-position alternative, under which nothing is realized because the depositor keeps the same economic exposure through Camelot V3, is exposed next to every liquidity verdict and the firm's chosen position is applied consistently across the book.
A real classification
{
"api_version": "v1",
"hash": "0x0024e895e3eb467edb087c5578c25e22aa0145713bd756216daf8f340bfa76fb",
"chain": "arbitrum",
"category": "transfer",
"treatment": "needs_review",
"taxable": null,
"confidence": 60,
"needs_review": true,
"ledger_action": "Review",
"protocol": "Camelot V3",
"description": "Called BrrrrrrrrrrrrrZ2826820544 on unverified contract 0x278d.",
"review_note": "Labeled a swap upstream, but the wallet sent nothing (received-only): a disposal requires giving up an asset. Treated as an incoming transfer. Counterparty wallet ownership could not be verified and the asset flow is ambiguous: a payment or disposal to (or income from) a third party cannot be ruled out; treated as non-taxable pending review.",
"grey_area": null,
"assets": {
"sent": [],
"received": [
{
"symbol": "ARB",
"amount": "178.865255",
"decimals": 18,
"action": "on-behalf-of",
"from": "0xfae2ae0a9f87fd35b5b0e24b47bac796a7eefea1",
"to": "0x278d858f05b94576c1e6f73285886876ff6ef8d2",
"token_address": "0x912ce59144191c1204e64559fe8253a0e49e6548"
},
{
"symbol": "USDC",
"amount": "15.981893",
"decimals": 6,
"action": "on-behalf-of",
"from": "0x278d858f05b94576c1e6f73285886876ff6ef8d2",
"to": "0xfae2ae0a9f87fd35b5b0e24b47bac796a7eefea1",
"token_address": "0xaf88d065e77c8cc2239327c5edb3a432268e5831"
}
],
"gas": null
},
"chain_corrected": {
"requested": "ethereum",
"detected": "arbitrum"
}
}
Verbatim wire response from the live engine. Last verified 2026-08-06 by live replay. Check any transaction yourself in the Classification Explorer.
Verified rules
Behind this page sit 27 verified rules for Camelot V3. Each one binds a specific contract interaction on a specific chain to a category and treatment, with a confidence band earned from repeated on-chain observation and cross-source agreement. Rule coverage by chain: arbitrum (27). A small illustrative sample:
| Chain | Category | Confidence |
|---|---|---|
| arbitrum | liquidity_remove | high |
| arbitrum | liquidity_add | high |
| arbitrum | swap | high |
| arbitrum | liquidity_remove | high |
| arbitrum | liquidity_add | high |
Illustrative sample of the 27 verified rules behind this page: the full mappings are served through the API.
Limitations
What this page does not decide. Coverage reflects the verified Camelot V3 contract set on the chains shown; deployments or peripheral contracts outside that set route to review rather than being guessed. Confidence is a corroboration signal, not an accuracy percentage, and grey-area categories are positions to be set at the firm level, not settled law. Chains: arbitrum.
Frequently asked questions
What tax treatment does this page document?
House treatment follows the CryptoTaxEdge Classification Standard. Categories with no fixed mapping (GAP-3) tell you to read the treatment field on the record rather than infer it from the category name.
Where is the closed vocabulary published?
The versioned Classification Standard at https://cryptotaxedge.com/standard/ enumerates emitted categories and the five-treatment enum. This encyclopedia page is a worked example on top of that Standard.
Are the wire examples still current?
Yes. Each example is verbatim engine output, re-verified on a daily replay against the live engine.
Not tax advice. CryptoTaxEdge is software, not a licensed tax advisor. Classifications and the treatments described here are informational only; verify results and consult a qualified tax professional before filing. IRC section references are general framing. Camelot V3 is a third-party protocol; CryptoTaxEdge is not affiliated with it.