How to implement Celsius loans

Hello, I am wondering how to implement a loan and it’s collateral on Celsius. The API has loaded it like this, I have locked that ADA amount as collateral and received the USDC as loan, but the collateral appears as a deposit.

So this is a weird case as the laws are not specific in this area, though I am unsure of your country as well. Therefore it is up to the user to classify as they want depending on how they chose to treat this kind of transaction. For example, with loans, the collateral should not be taxable, therefore, it should be an internal transfer as if it was staking, but the keyword is should. if someone wants to be super conservative they could do it as a trade. Similar to a LP, you can treat as a deposit or taxable event, or as if you are staking.