{ "tool_id": "art-754-equity-exit-waterfall", "note": "18 vectors: 6 live Apex vectors (the Apex #141 page defaults and worked cases, incl. the live-01 HTML defaults) + 12 comparator-boundary vectors (non-participating conversion at/past the strict prefProRata > liquidPref trigger, capped participation at/past the strict cap hit, full participation, preferred-role holder, the DIFFERS-01 non-finite refusal). Every output_payload is the committed kernel compute() output and reproduces the payload fixture apex_output through APEX_FIELD_MAP byte-for-byte (Builder-verifies-at-land 2026-10-20: 17 match + 1 expected DIFFERS-01 refusal, Tim extend ruling 2026-10-18T21:20Z); golden_hash is executionHash(policy_parameters, output_payload) per _hash.mjs (OCG JCS-SHA-256). Ported from Apex #141 page fetched 2026-10-06, 37,519 bytes (APEXPORT-141 payload, GRADES PASS-PENDING-XV 2026-10-07T03:0xZ reaudit CONFIRMED, art-754 by APEX-PORT-ARTNUM-ALLOC-1).", "vectors": [ { "name": "live-01-apex-html-defaults", "class": "live", "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 }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 30000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 20000000 } ], "preferred_total_usd": 30000000, "common_pool_usd": 20000000, "your_gross_proceeds_usd": 2500000, "your_net_proceeds_usd": 2450000, "your_taxable_gain_usd": 2400000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "958e1a25f488f2c38785014c225a4e22e8b5df118a67bfd47cbbfa36b51be868" }, { "name": "live-02-fully-participating", "class": "live", "policy_parameters": { "exit_valuation_usd": "50000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "60", "liquidation_preference_multiple": "1", "participation_type": "full", "participation_cap_multiple": "3", "your_role": "common", "your_ownership_pct": "5", "your_option_strike_total_usd": "50000", "your_cost_basis_usd": "50000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "full", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Preferred Participation (pro-rata)", "recipient": "Preferred investors", "amount": 24000000 }, { "label": "Common Pro-Rata", "recipient": "Common stockholders", "amount": 16000000 } ], "preferred_total_usd": 34000000, "common_pool_usd": 16000000, "your_gross_proceeds_usd": 2000000, "your_net_proceeds_usd": 1950000, "your_taxable_gain_usd": 1900000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02)." ] }, "golden_hash": "71f49227a780b3b9f0b81eae4e805d67e181c2ff4f2eed4393536c49dd8b994b" }, { "name": "live-03-capped-participating", "class": "live", "policy_parameters": { "exit_valuation_usd": "50000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "60", "liquidation_preference_multiple": "1", "participation_type": "capped", "participation_cap_multiple": "3", "your_role": "common", "your_ownership_pct": "5", "your_option_strike_total_usd": "50000", "your_cost_basis_usd": "50000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "capped", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Preferred Participation (capped 3×)", "recipient": "Preferred investors", "amount": 20000000 }, { "label": "Common Pro-Rata", "recipient": "Common stockholders", "amount": 20000000 } ], "preferred_total_usd": 30000000, "common_pool_usd": 20000000, "your_gross_proceeds_usd": 2500000, "your_net_proceeds_usd": 2450000, "your_taxable_gain_usd": 2400000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_CAP_PARTICIPATION_HIT" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_CAP_PARTICIPATION_HIT" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Participation cap hit — preferred participation was capped at 3× invested; remaining proceeds split pro-rata." ] }, "golden_hash": "49cf1db690ba701ba006c2fcab5a4ffb29bf0b7b14a229ec1507e9a7bc21f3b5" }, { "name": "live-04-preferred-investor", "class": "live", "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": "preferred", "your_ownership_pct": "5", "your_option_strike_total_usd": "0", "your_cost_basis_usd": "0" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "preferred", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 0, "your_cost_basis_usd": 0, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 30000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 20000000 } ], "preferred_total_usd": 30000000, "common_pool_usd": 20000000, "your_gross_proceeds_usd": 2500000.0000000005, "your_net_proceeds_usd": 2500000.0000000005, "your_taxable_gain_usd": 2500000.0000000005, "break_even_exit_usd": 0, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "27d48b2937e28c09aaa942adfa3aa6cfa92e5b1f414c10f0ad7c286ff0fc5147" }, { "name": "live-05-non-participating-conversion", "class": "live", "policy_parameters": { "exit_valuation_usd": "100000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "20", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 100000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.2, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 20000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 80000000 } ], "preferred_total_usd": 20000000, "common_pool_usd": 80000000, "your_gross_proceeds_usd": 5000000, "your_net_proceeds_usd": 4950000, "your_taxable_gain_usd": 4900000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "278d9c3246875d13e6965e1256b50f20be3205b5f42dce912057281c3f23956f" }, { "name": "live-06-2x-preference", "class": "live", "policy_parameters": { "exit_valuation_usd": "50000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "60", "liquidation_preference_multiple": "2", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 2, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 20000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 30000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 20000000 } ], "preferred_total_usd": 30000000, "common_pool_usd": 20000000, "your_gross_proceeds_usd": 2500000, "your_net_proceeds_usd": 2450000, "your_taxable_gain_usd": 2400000, "break_even_exit_usd": 21000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "1bd5c0352b4b8bee59345ef4002f4c8d04b2aedcb39e51186515ed4149c4bb8b" }, { "name": "live-07-employee-options", "class": "live", "policy_parameters": { "exit_valuation_usd": "50000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "60", "liquidation_preference_multiple": "1", "participation_type": "full", "participation_cap_multiple": "3", "your_role": "employee", "your_ownership_pct": "2", "your_option_strike_total_usd": "100000", "your_cost_basis_usd": "100000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "full", "participation_cap_multiple": 3, "your_role": "employee", "your_ownership_fraction": 0.02, "your_option_strike_total_usd": 100000, "your_cost_basis_usd": 100000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Preferred Participation (pro-rata)", "recipient": "Preferred investors", "amount": 24000000 }, { "label": "Common Pro-Rata", "recipient": "Common stockholders", "amount": 16000000 } ], "preferred_total_usd": 34000000, "common_pool_usd": 16000000, "your_gross_proceeds_usd": 799999.9999999999, "your_net_proceeds_usd": 699999.9999999999, "your_taxable_gain_usd": 599999.9999999999, "break_even_exit_usd": 15000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02)." ] }, "golden_hash": "7be1c1342e0d76c789ce82f1afb09ee0f45f3fa7549fc704b16fb6fb3fdd172c" }, { "name": "b-c1-exit-val-0", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "0", "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" }, "output_payload": { "refusal_reason": "REFUSED_NON_POSITIVE_EXIT", "exit_valuation_usd": 0, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": null, "layers": null, "preferred_total_usd": null, "common_pool_usd": null, "your_gross_proceeds_usd": null, "your_net_proceeds_usd": null, "your_taxable_gain_usd": null, "break_even_exit_usd": null, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_INPUT_REFUSED" ], "warnings": [ "ART754_INPUT_REFUSED" ], "notes": [ "Apex #141 alerts \"Enter a positive exit valuation.\" when exitVal <= 0 (page line 351); the port returns a structured refusal (DIFFERS-03)." ] }, "golden_hash": "9be61ae1f013f2876c136e94e2cb3ef6482213b16a28e733621d8c393123a745" }, { "name": "b-c1-exit-val-1", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "1", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 1, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 1 } ], "preferred_total_usd": 1, "common_pool_usd": 0, "your_gross_proceeds_usd": 0, "your_net_proceeds_usd": 0, "your_taxable_gain_usd": 0, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02)." ] }, "golden_hash": "a45cb4f56ffd640d698462f911d78074a52b2d7886487757a6041f3dbbdf83ec" }, { "name": "b-c3-pro-rata-eq-pref", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "10000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "100", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 10000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 1, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 } ], "preferred_total_usd": 10000000, "common_pool_usd": 0, "your_gross_proceeds_usd": 0, "your_net_proceeds_usd": 0, "your_taxable_gain_usd": 0, "break_even_exit_usd": 0, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02)." ] }, "golden_hash": "7e1b9f2fd1d85bf92a5e038e94579e4b1b85cbe2b7231369b5b6ab4402a571c0" }, { "name": "b-c3-pro-rata-gt-pref", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "10000001", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "100", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 10000001, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 1, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 10000001 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 0 } ], "preferred_total_usd": 10000001, "common_pool_usd": 0, "your_gross_proceeds_usd": 0, "your_net_proceeds_usd": 0, "your_taxable_gain_usd": 0, "break_even_exit_usd": 0, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "2fed3fe70e6788a2f860b3f23fa0fdab6ecbed52822fe952d1ae6228f27d3be0" }, { "name": "b-c7-cap-hit", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "100000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "60", "liquidation_preference_multiple": "1", "participation_type": "capped", "participation_cap_multiple": "2", "your_role": "common", "your_ownership_pct": "5", "your_option_strike_total_usd": "50000", "your_cost_basis_usd": "50000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 100000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "capped", "participation_cap_multiple": 2, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Preferred Participation (capped 2×)", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Common Pro-Rata", "recipient": "Common stockholders", "amount": 80000000 } ], "preferred_total_usd": 20000000, "common_pool_usd": 80000000, "your_gross_proceeds_usd": 10000000, "your_net_proceeds_usd": 9950000, "your_taxable_gain_usd": 9900000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_CAP_PARTICIPATION_HIT" ], "warnings": [ "ART754_CAP_PARTICIPATION_HIT" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Participation cap hit — preferred participation was capped at 2× invested; remaining proceeds split pro-rata." ] }, "golden_hash": "891003c4ba2afa523623296cedd9d2673ac38ebc94adc422a6041ba7d7343704" }, { "name": "b-c7-cap-not-hit", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "20000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "60", "liquidation_preference_multiple": "1", "participation_type": "capped", "participation_cap_multiple": "3", "your_role": "common", "your_ownership_pct": "5", "your_option_strike_total_usd": "50000", "your_cost_basis_usd": "50000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 20000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "capped", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Preferred Participation (capped 3×)", "recipient": "Preferred investors", "amount": 6000000 }, { "label": "Common Pro-Rata", "recipient": "Common stockholders", "amount": 4000000 } ], "preferred_total_usd": 16000000, "common_pool_usd": 4000000, "your_gross_proceeds_usd": 500000, "your_net_proceeds_usd": 450000, "your_taxable_gain_usd": 400000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02)." ] }, "golden_hash": "6ae1d6ba79e4142b0ea5f2bbe208bbd6faa8068da1c5647a8718f5e9f5f2aa85" }, { "name": "b-c11-common-pct-0", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "50000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "100", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 1, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 50000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 0 } ], "preferred_total_usd": 50000000, "common_pool_usd": 0, "your_gross_proceeds_usd": 0, "your_net_proceeds_usd": 0, "your_taxable_gain_usd": 0, "break_even_exit_usd": 0, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "f82a5b112bf0763c6ebca8e8342fc1c611e33484a9b4fe1ecc783564bdcd41be" }, { "name": "b-c13-net-floor-0", "class": "boundary", "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": "0.1", "your_option_strike_total_usd": "500000", "your_cost_basis_usd": "50000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.001, "your_option_strike_total_usd": 500000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 30000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 20000000 } ], "preferred_total_usd": 30000000, "common_pool_usd": 20000000, "your_gross_proceeds_usd": 50000, "your_net_proceeds_usd": 0, "your_taxable_gain_usd": 0, "break_even_exit_usd": 510000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "a9f3a0db8a61b5f93e49ba23de5742775ef2e37dd8360a57faadae617cb55b22" }, { "name": "b-c14-gain-floor-0", "class": "boundary", "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": "0.1", "your_option_strike_total_usd": "0", "your_cost_basis_usd": "500000" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 50000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.001, "your_option_strike_total_usd": 0, "your_cost_basis_usd": 500000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 30000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 20000000 } ], "preferred_total_usd": 30000000, "common_pool_usd": 20000000, "your_gross_proceeds_usd": 50000, "your_net_proceeds_usd": 50000, "your_taxable_gain_usd": 0, "break_even_exit_usd": 10000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC", "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "d9fb435386e9e0b2bb274a0fa5d1ebc5396068e9e16f04949ab9dfed5e7bb5a3" }, { "name": "b-c15-pref-wins", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "15000000", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 15000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.6, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Preferred Liquidation Preference", "recipient": "Preferred investors", "amount": 10000000 }, { "label": "Common Pro-Rata", "recipient": "Common stockholders", "amount": 5000000 } ], "preferred_total_usd": 10000000, "common_pool_usd": 5000000, "your_gross_proceeds_usd": 625000, "your_net_proceeds_usd": 575000, "your_taxable_gain_usd": 525000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "warnings": [ "ART754_PREF_WINS_WARNING_HEURISTIC" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Preferred investors captured more than common pool — Apex #141 warns the common position is significantly diluted. No official threshold exists for this warning (DIFFERS-02)." ] }, "golden_hash": "41d054bda017cf11d49ad4f84cce1d3ff1b6acd964d452767531bb4cdf799570" }, { "name": "b-c15-pref-not-wins", "class": "boundary", "policy_parameters": { "exit_valuation_usd": "100000000", "total_preferred_invested_usd": "10000000", "preferred_ownership_pct": "20", "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" }, "output_payload": { "refusal_reason": null, "exit_valuation_usd": 100000000, "total_preferred_invested_usd": 10000000, "preferred_ownership_fraction": 0.2, "liquidation_preference_multiple": 1, "participation_type": "non", "participation_cap_multiple": 3, "your_role": "common", "your_ownership_fraction": 0.05, "your_option_strike_total_usd": 50000, "your_cost_basis_usd": 50000, "liquidation_preference_usd": 10000000, "layers": [ { "label": "Pro-Rata (Preferred converts to common)", "recipient": "All stockholders", "amount": 20000000 }, { "label": "Pro-Rata Common", "recipient": "Common stockholders", "amount": 80000000 } ], "preferred_total_usd": 20000000, "common_pool_usd": 80000000, "your_gross_proceeds_usd": 5000000, "your_net_proceeds_usd": 4950000, "your_taxable_gain_usd": 4900000, "break_even_exit_usd": 11000000, "switches": { "apex_faithful_mode": false, "refuse_non_finite_input": true, "pref_wins_warning_threshold": 0.5 }, "compliance_flags": [ "ART754_NON_PARTICIPATING_CONVERSION" ], "warnings": [ "ART754_NON_PARTICIPATING_CONVERSION" ], "notes": [ "Liquidation preference mechanics follow NVCA model term sheet conventions (fetched 2026-10-06).", "Taxable gain is computed as max(0, net proceeds - cost basis) per IRC §1001 (fetched 2026-10-06).", "Non-participating preferred converted to common — pro-rata share exceeded liquidation preference." ] }, "golden_hash": "278d9c3246875d13e6965e1256b50f20be3205b5f42dce912057281c3f23956f" } ] }