Li-Ion Battery cycles

Hi, I am using a li ion battery with 200mAh capacity, 3.7V. No of cycles 500.Lets assume that the battery has discharged from 4.2V peak to 4.05V. Here I recharge the battery again to 4.2V. Will this be considered as one cycle. ??Here the battery continuously connected to the charger so the charging cycle gets initiated once the battery voltage drops below 4.05V. Max no cycles allowed as per the datasheet of the battery is 500. I want to know whether this technique will reduce the life time of the battery.