THE BACK OFFICE · THE INVESTORS · Nº 1336 · EDITION 1 ·Liquid error (snippets/rm-waterfall-card line 27): comparison of String with 0 failed
LUND CARDS · THE BACK OFFICENº 1336
THE CARD AS TEXT · FOR EYES AND FOR MACHINES
THE WATERFALL CARD · the distribution seat — runs the waterfall and proves every tier ties to the dollar
WAKES WHEN a fund is distributing and the waterfall needs working · a person asks 'run the waterfall', 'how much carry', 'split this distribution' · a GP/LP split needs checking that it sums to the distributable amount
THE LOOP
return · capital to the LPs first
prefer · the preferred return, compounded on contributed capital
catch up · the GP to its carry share of profit (100% catch-up math)
split & tie · the residual on the carry split, and prove LP + GP equals the distributable amount
NEVER
Leaves a waterfall that doesn't tie — LP plus GP must equal the distributable amount, always
Files a regulatory document or submits anything to a regulator, an LP, or an auditor on anyone's behalf
Certifies a NAV, a valuation, or any figure as final or audited — every figure is a working number for review
Gives tax, legal, or audit opinions — those belong to the fund's CPA, counsel, and auditor
IT MAKES run — runs the four tiers from your terms, computes the catch-up, proves it ties; selftest — 9 checks that prove the machine.
THE LAW A card builds and checks the fund artifact — the NAV, the allocation, the report, the reconciliation. It never files a real regulatory document, never gives tax, legal, or audit opinions, never certifies a NAV or a valuation as final, never presents an estimated figure as audited, and never replaces the fund's administrator, auditor, and counsel.
PROOF SELFTEST 9/9 · witnessed in Claude 2026-10-20 on the studio’s own example inputs · the dated run in the box (RUN.md) · Edition 1.
THE SEAL 98 of 100 · LEGENDARY · WITNESSED · Trigger 5 · Machinery 5 · Law 5 · Portability 5 · Proof 5
IT CAN BE WRONG an AI reading a text file: it can be wrong and can invent a number, a rule, a name or a date; check what matters against your own records and the source; the risk is yours. LICENSE-NOTE.md rides in the packet and is the licence.
THE PUNCH · SHA-256 OF SKILL.MD · 87E15EFAF00B1EE3929B78CD
CITE THIS CARDTHE WATERFALL CARD, Edition 1. Lund Studio LLC, Westminster, Colorado. https://lundr.tech/?view=waterfall-card. Punch 87E15EFAF00B1EE3929B78CD. Retrieved 2026-10-20.
What it is.
Runs the waterfall and proves every tier ties to the dollar. Use when a fund is distributing and the waterfall needs working. Not for certifying a NAV or giving tax advice. For the fee that runs alongside it → THE MANAGEMENT FEE CARD.
It carries a machine that shows its working: run — runs the four tiers from your terms, computes the catch-up, proves it ties; selftest — 9 checks that prove the machine — 9 checks in its selftest, run in the open below. It never leaves a waterfall that doesn't tie — LP plus GP must equal the distributable amount, always; never files a regulatory document or submits anything to a regulator, an LP, or an auditor on anyone's behalf; never certifies a NAV, a valuation, or any figure as final or audited — every figure is a working number for review; never gives tax, legal, or audit opinions — those belong to the fund's CPA, counsel, and auditor.
The house law, written into the card.
It is in the card itself, so the AI follows it.
THE HOUSE LAW · THE BACK OFFICEA card builds and checks the fund artifact — the NAV, the allocation, the report, the reconciliation. It never files a real regulatory document, never gives tax, legal, or audit opinions, never certifies a NAV or a valuation as final, never presents an estimated figure as audited, and never replaces the fund's administrator, auditor, and counsel.
THE LIMIT, ON THE TINIt models the standard 100% catch-up waterfall from your terms. The LPA governs the real waterfall; a European vs American deal, clawback, and side letters are counsel's and the administrator's.
The method.
Return. Capital to the LPs first.
Prefer. The preferred return, compounded on contributed capital.
Catch up. The GP to its carry share of profit (100% catch-up math).
Split & tie. The residual on the carry split, and prove LP + GP equals the distributable amount.
What it does once your AI has it.
run Runs the four tiers from your terms, computes the catch-up, proves it ties
selftest 9 checks on the studio’s own example inputs; it must print selftest 9/9
What it will never do.
It never leaves a waterfall that doesn't tie — LP plus GP must equal the distributable amount, always; never files a regulatory document or submits anything to a regulator, an LP, or an auditor on anyone's behalf; never certifies a NAV, a valuation, or any figure as final or audited — every figure is a working number for review; never gives tax, legal, or audit opinions — those belong to the fund's CPA, counsel, and auditor.
Where it hands off: The fee that runs alongside it → THE MANAGEMENT FEE CARD. The LP report that shows it → THE LP REPORT CARD.
It is an AI reading a text file: it can be wrong, so check what matters against your own records and the source. The holder brings their own AI; no endorsement by Anthropic or any other AI company is claimed. Names of other companies and standards are used only to say what the card works with.
What’s in the buy.
SKILL.md — the door your AI reads first: when it wakes, when it does not, the loop, the never-lines, the house law
CARD.md — the whole card in ten sections, §0 to §9 · TIN.md — what is on the tin, in nine lines
scripts/waterfall.py — the machine, Python standard library only, offline; selftest 9/9
RUN.md — the dated run: the selftest as it printed when the card was cut, with the date and the host
references/THE-METHOD.md — the method in plain words, in the card’s own voice
START-HERE.md and system/short-prompt.md — the doors, for any AI with or without skills
MY-LEDGER.md — the card’s memory, on your own machine · LICENSE-NOTE.md — the licence
PROOF · SELFTEST 9/9 · AUDIT 12/12 · WITNESSED IN CLAUDE 2026-10-20 ON THE STUDIO’S OWN EXAMPLE INPUTS · THE TEST PROMPTS IN FRESH CHATS OWED · EDITION 1 · PUNCH 87E15EFAF00B1EE3929B78CD
ON EVERY DOOR · A CARD FOR YOUR AI, A FILE FOR YOUR COMPUTER
In Claude: turn on code execution under Settings › Capabilities, then Customize › Skills › + › Create skill, and upload the zip as it is — START-HERE.md in the box walks you through it, and tells you how to keep the ledger. In ChatGPT, Gemini and the rest: a Project, a GPT or a Gem with the card’s files attached and the short door in the box pasted as its instructions. The words run anywhere an AI reads Markdown; the machines run wherever the host runs Python. Witnessed in Claude only. The host marks →
Take it.
Nº 1336 —Liquid error (snippets/rm-waterfall-card line 116): comparison of String with 0 failed
Sold as is under the term printed. A card instructs an AI you operate; results depend on your model, your files and your judgement. Not medical, legal, tax or financial advice, never the person’s boss, and not a licence to practise. Not investment advice, not an appraisal and not an offer to sell securities. The terms →
One payment. The file is yours to keep and keeps working at its edition; new editions issued in the year after you buy reach you by email as replacement files. Tax is added at checkout where it applies. Nothing auto-renews.
AFTER YOU PAY · SIGN IN WITH THE EMAIL YOU PAID WITH · THE CARD OPENS ON MY CARDS → · CHECKED AGAINST ITS FINGERPRINT · NOTHING TO WAIT FOR
A TERM, NOT A SUBSCRIPTION: NOTHING RENEWS ITSELF AND NOBODY IS CHARGED AGAIN. WHEN A TERM ENDS THE FILES STAY ON YOUR COMPUTER AND STAY READABLE — FREEZE, NOT LOSS.
THE MACHINE · IN THE OPEN · FROM THE STUDIO’S RUN OF 2026-10-20
waterfall.py, showing its working.
A small Python program, standard library only. Your AI runs it; you can too. The block below is the machine’s selftest as it printed when the studio ran it from inside the packet, in Claude, on 2026-10-20.
run
runs the four tiers from your terms, computes the catch-up, proves it ties · run TERMS.txt
selftest
9 checks that prove the machine; it must print selftest 9/9
selftest · AS PRINTED
$ python3 scripts/waterfall.py selftest
wrote WATERFALL.md — LP $900,000 / GP $100,000
wrote WATERFALL.md — [FILL] inputs
REFUSED: carry must be between 0 and 1, got 1.5
wrote WATERFALL.md — LP $900,000 / GP $100,000
wrote WATERFALL.md — LP $900,000 / GP $100,000
selftest 9/9
THE SELFTEST RUNS ON THE STUDIO’S OWN EXAMPLE INPUTS, INVENTED FOR THE TEST; NO REAL COMPANY, PERSON OR ACCOUNT IS NAMED.
QUESTIONS AT THE TABLE
Asked before the wire.
What does it need from me?
Your own files and figures, on your own disk. It starts by asking for them: capital to the LPs first. If something it needs is missing, it marks it and says so — it never fills a gap with a guess.
Does it send anything anywhere?
No. The machine is a standard-library Python program that runs on your own computer and sends nothing anywhere; the words run wherever an AI reads Markdown. No server, no account, no key.
What is on the record?
The machine's selftest (9/9), run from inside the packet in Claude on 2026-10-20 on the studio's own example inputs and printed below as it ran; the twelve-check audit (AUDIT.md, 12/12); MANIFEST.md with every file hashed. RUN.md in the box is that run, dated. Still to come, as the next receipt: the card's test prompts asked in fresh chats with the card installed. The punch on the face is the SHA-256 of SKILL.md, so a downloaded copy can be checked against this room.
Can it be wrong?
Yes — it is an AI reading a text file: it can be wrong and can invent a number, a rule, a name or a date; check what matters against your own records and the source; the risk is yours. It models the standard 100% catch-up waterfall from your terms. The LPA governs the real waterfall; a European vs American deal, clawback, and side letters are counsel's and the administrator's.
What will it never do?
It never leaves a waterfall that doesn't tie — LP plus GP must equal the distributable amount, always; never files a regulatory document or submits anything to a regulator, an LP, or an auditor on anyone's behalf; never certifies a NAV, a valuation, or any figure as final or audited — every figure is a working number for review; never gives tax, legal, or audit opinions — those belong to the fund's CPA, counsel, and auditor.
