DF3F Income-share notes

Playground

Set the terms of a note and a path of income. See what the founder would pay each year, when the cap or the APR ceiling stops payments, and what holders would receive after fees.

The numbers illustrate the protocol rules. They are not an offer or a forecast. The rules are set out in Note terms.

Inputs

Note terms

Raised from investors, in USDC. The cap is a multiple of it.

Guardrail 5-20%.

Times principal. Guardrail 1.5-3x.

Income a year, in USDC, on which nothing is due.

Guardrail 3-10 years.

Income path

Income in year 1, in USDC.

Each later year, from -50% to 100%.

Optional: one unusual year.

That year only, from -100% to 500%.

Consumer mode

Adds an APR ceiling: the present value of all payments at that rate can never exceed the principal.

Engine limit 0.01-30%. Default 10%.

Results

Total paid by the founder
USDC
Multiple of principal
Investor IRR
Cap binds
Effective share of income

Income and payments by year USDC a year
  • Income the founder keeps
  • Paid by the founder
  • Hurdle

Year by year

Amounts in whole USDC

Year Income Paid by the founder Cumulative paid To holders after fees Limit

How the numbers are computed

The page runs a JavaScript port of the DF3F reference model, tested against the model's own test vectors, and nothing leaves your browser. Each year the founder owes share x max(0, income - hurdle). The engine accepts it only up to the cap and, in consumer mode, only while the present value of all payments at the APR ceiling stays within the principal. Holders receive each payment after a servicing fee of 3% and a success fee of 8% on payments above the principal. Investor IRR uses what holders receive; the founder's effective APR uses what the founder pays. Quarterly provisional payments, hardship pauses and the dispute window are left out.