💡 Understanding Equity: Your slice of the pie. Think of your Fund like a delicious pizza. Each member owns a slice, and the bigger the slice, the bigger their ownership share.
Member Equity:
When you contribute to the Fund during Funding Rounds, you earn a slice based on your contribution and the Fund's value.
Track your slice size (equity percentage) in the Member tab!
Payouts or new members affect your slice size - it all gets recalculated to keep things fair.
Two Ways to View Your Slice:
Equity (%): How much of the Fund you own compared to others (e.g., 20%).
Equity Value: The value of your slice in (USD/SOL/ETH) based on the total Vault value (e.g., 5 ETH).
How We Calculate Your Slice:
It's like a recipe! We consider your contributions through Funding Rounds, payouts, and the Fund's overall value. These are Equity Events that Lore tracks automatically, replacing what would have been a very complicated excel sheet.
See a step-by-step example here!
Example: Alice Receives A Payout: After Alice's payout, the equity distribution is then as follows:
Alice: 33.3% * 30 ETH + 0 ETH = 10 ETH; payout 10 ETH -> 0%
Bob: 33.3% * 30 ETH + 0 ETH = 10 ETH -> 40%
Charlie: 33.3% * 30 ETH + 0 ETH = 10 ETH -> 40%
David: 0% * 30 ETH + 5 ETH = 5 ETH -> 20%
Equity Changes Over Time:
Imagine the pizza grows in value - everyone's slice gets bigger! (Yay!)
New members join? The pizza expands, and everyone gets a slightly smaller slice (but still delicious!). Although each slice is a bit smaller, everyone still owns a part of the Fund and benefits from its growth
Members leave? Their slice returns to the group, and everyone else's slice gets slightly bigger.
This system ensures that new members can join the Group as it grows while maintaining fairness for existing members. Equity Events are at the heart of the Co-Ownership Framework. Everyone's ownership reflects their contribution, and as the Vault grows, everyone's slice also grows.
✅ Remember:
Equity ensures everyone gets a fair share based on their contributions.
It changes dynamically to reflect the Vault's activity.
We have the recipe down to a science, so you can focus on enjoying the Group pie!