phoenix-waterfall-ledger-semantics

Waterfall ledger semantics define the sequence and rules for distributing capital and carry to LPs and GPs in VC funds. This Skill implements tier-based and ledger-based engines that calculate GP carry limits, LP distributions, and shortfall-based partial clawback behavior to ensure consistent fund outcomes.

Shortfall-based clawback is a mechanism that recaptures GP distributions when fund performance falls short of targets. This Skill specifies how clawback is computed non-time-based using LP shortfall calculations and applies it during liquidation to validate GP carry limits and cross-check truth-case scenarios.

Cross-validate your waterfall implementation by running truth-case tests against documented calculations. This Skill handles JSDoc alignment, validates clawback outcomes in truth-case JSONs like L08, and syncs behavior between server code and docs/calculations.md to catch inconsistencies.

Tier and ledger engines differ in how they compute carry, distributions, and clawback. This Skill covers both approaches: tier-based distributes sequentially by tier, while ledger-based uses cumulative fund performance at liquidation. Each has distinct shortfall calculations and GP carry outcomes.

Yes. This Skill applies when expanding or debugging waterfall truth-case JSONs to validate real-world distribution scenarios. It ensures new truth cases align with clawback behavior, ledger semantics, and cumulative fund performance rules before deployment.