{
 "format": "LSC-1",
 "lsc": "LSC-1",
 "edition": "E1",
 "cut": "2026-10-20",
 "name": "THE WATERFALL CARD",
 "handle": "waterfall-card",
 "number": "Nº 1336",
 "house": "THE BACK OFFICE",
 "wing": "THE INVESTORS",
 "role": "the distribution seat — runs the waterfall and proves every tier ties to the dollar",
 "tagline": "RETURN OF CAPITAL · PREF · GP CATCH-UP · CARRY · IT TIES OUT",
 "hue": "#987936",
 "punch": "87E15EFAF00B1EE3929B78CD",
 "punch_of": "SKILL.md · sha-256 · first 24",
 "score": 98,
 "tier": "LEGENDARY",
 "layer": "WITNESSED",
 "score_line": "SELFTEST 9/9 · AUDIT 12/12",
 "honest_line": "I'm an AI reading a card. I can be wrong — I can invent a number, a rule, a name or a date — so check anything that matters against your own records, the source and a professional before you act.",
 "term": "one purchase · yours to keep · nothing renews itself",
 "free": false,
 "wakes": "a fund is distributing and the waterfall needs working",
 "wakes_all": [
  "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"
 ],
 "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"
 ],
 "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.",
 "limit": "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.",
 "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"
 ],
 "handoff": "The fee that runs alongside it → THE MANAGEMENT FEE CARD. The LP report that shows it → THE LP REPORT CARD.",
 "machine": "scripts/waterfall.py · run · selftest",
 "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)",
 "faces": [
  "card.svg",
  "card-machine.svg"
 ],
 "box": [
  "AUDIT.md",
  "CARD.md",
  "LICENSE-NOTE.md",
  "MANIFEST.md",
  "MY-LEDGER.md",
  "RUN.md",
  "SKILL.md",
  "START-HERE.md",
  "TIN.md",
  "card-machine.svg",
  "card.json",
  "card.svg",
  "references/THE-METHOD.md",
  "scripts/waterfall.py",
  "system/short-prompt.md"
 ],
 "hundred": "Trigger 5 · Machinery 5 · Law 5 · Portability 5 · Proof 5 — 25 of 25, × 4 = 100; 98 is the ceiling → 98 of 100 · LEGENDARY",
 "disclaimer": "Not legal, tax or audit advice · not a filed regulatory document · figures are not audited · no refunds · © Lund Studio LLC",
 "seated": "12.357.107"
}