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There are many ways, and here is an example of what you said.
How to distinguish between fail by timed out and fail by user defined?
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Example:
Fail 1: I load web but It return timeout and return fail. It's a fail by timed out.
Fail 2: I load web and It return something like (Not correct login) => it's a fail by user defined.How to distinguish between fail by timed out and fail by user defined?
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You can execute page load inside function call like on video:
https://youtu.be/llIoGddfhHA
You can also set variable before and after actions execute.
Same approach for user defined fails and system fails.