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Chart of Accounts - OpportunityDAO

Overview​

This document describes the Chart of Accounts (COA) implementation for OpportunityDAO. The COA provides a comprehensive double-entry bookkeeping system to track all financial transactions across the platform.

Account Structure​

Account Types (Based on Accounting Equation)​

Assets = Liabilities + Equity + Revenue - Expenses

Each account has:

  • Code: Hierarchical numbering (e.g., 1000, 1100, 1110)
  • Name: Human-readable name
  • Type: ASSET, LIABILITY, EQUITY, REVENUE, EXPENSE
  • Normal Balance: DEBIT or CREDIT
  • Parent: Optional parent account for hierarchy

Standard Account Hierarchy​

1000 - ASSETS​

1100 - Current Assets​

  • 1110 - Cash and Cash Equivalents - Main platform cash and stablecoins
  • 1120 - Treasury Reserve - Treasury reserve holdings
  • 1150 - [DEPRECATED] Cycle Capital - DEPRECATED - Use journal entries to track cycle capital

1200 - Reserve Wallets​

  • 1210 - Ethereum Wallets - Reserve wallet holdings (Ethereum)
  • 1220 - BSC Wallets - Reserve wallet holdings (Binance Smart Chain)
  • 1230 - Cardano Wallets - Reserve wallet holdings (Cardano)
  • 1240 - Polygon Wallets - Reserve wallet holdings (Polygon)

2000 - LIABILITIES​

2100 - Current Liabilities​

  • 2120 - User Capital Available - User funds available for investment (what we owe users)
  • 2130 - User Capital Deployed - User funds currently in cycles (what we owe users)
  • 2140 - User Profit Available - User profits available for withdrawal (what we owe users)

3000 - EQUITY​

3100 - Retained Earnings​

  • 3110 - Current Period Earnings - Profit/loss for current period
  • 3120 - Prior Period Earnings - Accumulated profit from previous periods

3200 - Founder Capital​

  • 3210 - Founder Contributions - Initial capital from founders
    • 3211 - Founder:{userId}:Contribution

4000 - REVENUE​

4100 - Trading Revenue​

  • 4110 - Cycle Profits - Gross profits from trading cycles
    • 4111 - Cycle:{cycleId}:Profit
  • 4120 - Performance Fees - Fees earned from successful cycles

4200 - Other Revenue​

  • 4210 - Platform Fees - General platform fees (future)
  • 4220 - Interest Income - Interest from stablecoins (future)

5000 - EXPENSES​

5100 - Operating Expenses​

  • 5110 - Development Expenses - Software development costs
    • 5111 - Developer:{userId}:Fees
  • 5120 - Marketing Expenses - Marketing and advertising
  • 5130 - Infrastructure Expenses - Hosting, domains, services
  • 5140 - Professional Services - Legal, accounting, consulting
  • 5150 - Administrative Expenses - General administrative costs

5200 - Trading Expenses​

  • 5210 - Trading Fees - Exchange fees, gas fees
  • 5220 - Slippage Costs - Trading slippage
  • 5230 - Trader Compensation - Trader profit shares
    • 5231 - Trader:{userId}:Share

5300 - Distribution Expenses​

  • 5310 - Affiliate Commissions - Referral commissions paid
    • 5311 - Affiliate:{userId}:Commission
  • 5320 - Treasury Profit Share - Treasury share of cycle profits

Transaction Flow Examples​

Example 1: User Deposits $1,000​

DR 1110 - Cash and Cash Equivalents    $1,000
CR 2120 - User Capital Available       $1,000

Example 2: User Joins Cycle #3 with $500​

DR 2120 - User Capital Available       $500
CR 2130 - User Capital Deployed        $500

Example 3: Cycle #3 Makes $100 Profit (50% to investors, 30% to trader, 10% treasury, 10% affiliates)​

[Record cycle profit]
DR 1110 - Cash and Cash Equivalents    $100
CR 4110 - Cycle Profits                $100

[Return capital to user]
DR 2130 - User Capital Deployed        $500
CR 2120 - User Capital Available       $500

[Investor gets $50]
DR 4110 - Cycle Profits                $50
CR 2140 - User Profit Available        $50

[Trader gets $30]
DR 4110 - Cycle Profits                $30
CR 5230 - Trader Compensation          $30

[Treasury gets $10]
DR 4110 - Cycle Profits                $10
CR 5320 - Treasury Profit Share        $10

[Affiliate gets $10]
DR 4110 - Cycle Profits                $10
CR 5310 - Affiliate Commissions        $10

Example 4: Developer Claims $500 Expense​

[Expense recognized]
DR 5110 - Development Expenses         $500
CR 1110 - Cash and Cash Equivalents    $500

Example 5: User Withdraws $200 Profit​

DR 2140 - User Profit Available        $200
CR 1110 - Cash and Cash Equivalents    $200

Journal Entry Structure​

Each financial transaction creates a journal entry with:

  • Entry Number: Unique sequential ID
  • Date: Transaction date
  • Description: What happened
  • Reference: Link to originating record (depositId, cycleId, claimId, etc.)
  • Status: draft, posted, void
  • Created By: User who created (system or admin)
  • Line Items: Array of debits and credits (must balance)

Each line item has:

  • Account: Which account is affected
  • Amount: How much (always positive)
  • Type: DEBIT or CREDIT
  • Description: Line-specific description (optional)
  • Related Entity: userId, cycleId, opportunityId, etc. (for filtering)

Account Balance Calculation​

  • Assets & Expenses: Balance = Sum(Debits) - Sum(Credits)
  • Liabilities, Equity & Revenue: Balance = Sum(Credits) - Sum(Debits)

Key Features​

  1. Double-Entry Validation: Every journal entry must balance (total debits = total credits)
  2. Immutable History: Posted journal entries cannot be modified (only voided and corrected)
  3. Audit Trail: Full history of who created/posted/voided each entry
  4. Dynamic Accounts: Accounts can be created programmatically (e.g., User:X:CapitalAvailable)
  5. Hierarchical Reporting: Roll up child accounts to parents for reporting
  6. Trial Balance: Verify that Assets = Liabilities + Equity at any point in time

Initial Setup​

Seeding the Chart of Accounts​

The platform includes 42 standard accounts that can be seeded into a new database:

# Preview accounts to be created
./opp seed-chart-of-accounts --dry-run

# Create standard accounts
./opp seed-chart-of-accounts

The seed script:

  • Creates the standard account hierarchy (1000-5999)
  • Skips accounts that already exist
  • Validates parent-child relationships
  • Is safe to run multiple times (idempotent)

Standard Account Count by Type:

  • Assets (1000-1999): 10 accounts
  • Liabilities (2000-2999): 5 accounts
  • Equity (3000-3999): 6 accounts
  • Revenue (4000-4999): 7 accounts
  • Expenses (5000-5999): 14 accounts
  • Total: 42 standard accounts