Capital Operations

Generate commitments, distribute capital, and manage the waterfall engine.

Commitment Workflow
Capital IN — invite stakeholders to commit capital to a funding round.
1

Invite Stakeholders

Select a funding round and invite stakeholders to participate. Pro-rata allocation is calculated automatically from cap table ownership.

2

Stakeholders Commit

Stakeholders review the invitation and either commit (with an amount) or pass. They can also commit a different amount than the pro-rata suggestion.

3

Admin Approves

The admin reviews committed amounts and approves or rejects each commitment.

4

Generate Transaction

Approved commitments are converted into security transactions (issuance type). This is what actually updates the cap table.

Re-invite: If a stakeholder passes, you can re-invite them later. The commitment status resets to "invited".
Distribution Methods
Capital OUT — four ways to allocate distributions to stakeholders.

Pro Rata

Distribute proportionally based on each stakeholder's ownership percentage. Calculated from the full cap table (all rounds).

Per Share

Fixed amount per unit/share. Total distribution is computed from units × amount per share.

Custom

Admin enters a custom amount for each stakeholder. Full manual control over the allocation.

Waterfall

American (whole-fund) waterfall with 6 tiers: return of capital, preferred return, participation, GP catch-up, carry split, residual.

Waterfall Engine
American (whole-fund) waterfall with cumulative state.

The waterfall engine reads all prior distributions from the transaction ledger to determine where in the waterfall to allocate the current distribution. This means it's fully cumulative — it knows what each stakeholder has already received.

1

Return of Capital (RoC)

Each stakeholder receives their invested capital back. Securities with liquidation preference get a multiplier (e.g., 2× = double their investment). Ordered by security seniority.

2

Preferred Return

Annualized hurdle rate on invested capital. Calculated as: invested × ((1 + rate)^years - 1). Years derived from the first issuance date.

3

Participation

Stakeholders holding securities with participation rights share pro-rata in the remaining pool. Capped by Participation Cap × invested if a cap exists.

4

GP Catch-up

GP stakeholders (those with carried interest) receive their Catch-up Rate % of remaining until their carried interest target is met.

5

Carry Split

GP takes their carried interest percentage, the rest goes pro-rata to LPs by units.

6

Residual

Whatever remains is distributed pro-rata to all stakeholders by units.

Preview Before Generating: The preview shows a breakdown per waterfall tier for each stakeholder. You can see exactly how much comes from RoC, preferred return, catch-up, carry, and residual before generating the actual transactions.
Stakeholder Terms: Stakeholder economic terms (carried interest, preferred return rate, catch-up rate) can be modified at any time. The waterfall engine self-corrects through cumulative calculation — it always reads the current terms and accounts for past distributions.
Distribution Types
The business reason for the distribution.

Capital Return

Returning invested capital to stakeholders. Creates "distribution" transactions.

Dividend

Profit distribution to shareholders. Creates "dividend" transactions.

Interest

Interest payments on debt instruments (bonds, convertible notes). Creates "interest" transactions.

Exit Proceeds

Distribution from an exit event (acquisition, IPO). Creates "distribution" transactions.