From an exit valuation and the preference stack: what preferred takes, what the common pool is, and what your stake nets after strike and tax basis, with the conversion, participation-cap and dilution flags named.
Compensation & BenefitsExit WaterfallZero PIIClient-side only
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Scope & reliance
Liquidation-preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06): non-participating preferred takes the greater of its preference and its as-converted pro-rata share, converting only when the pro-rata share strictly exceeds the preference; full participating preferred takes the preference and then shares pro-rata; capped participating takes the preference plus pro-rata participation up to a cap expressed as a multiple of invested. Taxable gain is computed as max(0, net proceeds − cost basis) per IRC §1001 (fetched 2026-10-06). The preferred-wins warning is Apex #141’s own heuristic: no official threshold exists for it, so the kernel carries it as a flagged flag rather than a rule. The model is single-round and fully-diluted with a single preferred class; seniority stacks, option-pool top-ups, transaction fees, carry and taxes beyond the §1001 gain computation sit outside its scope, and the result is a planning estimate rather than a return.
Exit scenario
Result
Waterfall layers
* Layers appear in payout order. Taxable gain is max(0, net proceeds − cost basis) per IRC §1001; it is not a tax bill.
Execution Hash & §4 Artifact
SHA-256 execution hash (JCS canonical, RFC 8785):
Ask your agent
Copy this paragraph into Claude, OpenClaw, or any MCP-aware agent to run this exact tool, with this sample, and verify the artifact.
Run the AINumbers MCP tool `calc_equity_exit_waterfall`. Task: Model equity exit proceeds after liquidation preference waterfalls for startup employees and founders (NVCA model term sheet conventions; IRC §1001 for the gain computation): the preference stack, non-participating conversion or capped participation, the common pool, your gross and net proceeds, taxable gain and the break-even exit.
Call it with arguments: {"policy_parameters":{"exit_valuation_usd":50000000,"total_preferred_invested_usd":10000000,"preferred_ownership_pct":60,"liquidation_preference_multiple":1,"participation_type":"non","participation_cap_multiple":3,"your_role":"common","your_ownership_pct":5,"your_option_strike_total_usd":50000,"your_cost_basis_usd":50000}}
Verify before trusting: call `verify_execution_hash` on mcp.ainumbers.co (https://mcp.ainumbers.co/mcp) with the parameter `claimed_hash` set to the returned `execution_hash`, passing the full artifact the run returned (the object containing `policy_parameters` + `output_payload` + `execution_hash`; equivalently `policy_parameters` + `output_payload` with `claimed_hash`), not the bare hash string, or re-run the in-page WebMCP tool `calc_equity_exit_waterfall`.
Return the ledger link https://ledger.ainumbers.co/ so a human can re-verify without contacting us.
PII rule: All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only.
Open the tool with the sample prefilled: https://ainumbers.co/chaingraph/art-754-equity-exit-waterfall.html#p=v1.H4sIAAAAAAAA_wEvAdD-eyJleGl0X3ZhbHVhdGlvbl91c2QiOjUwMDAwMDAwLCJ0b3RhbF9wcmVmZXJyZWRfaW52ZXN0ZWRfdXNkIjoxMDAwMDAwMCwicHJlZmVycmVkX293bmVyc2hpcF9wY3QiOjYwLCJsaXF1aWRhdGlvbl9wcmVmZXJlbmNlX211bHRpcGxlIjoxLCJwYXJ0aWNpcGF0aW9uX3R5cGUiOiJub24iLCJwYXJ0aWNpcGF0aW9uX2NhcF9tdWx0aXBsZSI6MywieW91cl9yb2xlIjoiY29tbW9uIiwieW91cl9vd25lcnNoaXBfcGN0Ijo1LCJ5b3VyX29wdGlvbl9zdHJpa2VfdG90YWxfdXNkIjo1MDAwMCwieW91cl9jb3N0X2Jhc2lzX3VzZCI6NTAwMDB9d1Il0i8BAAA