⚙️Understanding Equity Events

Group Deposits, Exits, Distributions

Understanding Equity: Your slice of the pie. Think of your Group 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 Group Vault during Group Deposits, you earn a slice based on your contribution and the Vault'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 Vault you own compared to others (e.g., 20%).

• Equity Value: The value of your slice in 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 Group Deposits, payouts, and the Vault'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 Vault and benefits from its growth

• Members leave? Their slice goes back to the group, and everyone else's slice gets a little 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 grows as well.

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!