Explain the waterfall from the agreement, not from memory
Rung 8 of 10 · Cognitive verifier
1 · Learn the move · Cognitive verifier
Every LP agreement's waterfall is its own animal, the pref rate, whether it compounds, the catch-up, the promote splits at each hurdle. And getting it 'mostly right' from memory is how sponsors misstate their own deal to an investor. The skill is a cognitive verifier: for each tier, AI restates the term straight from the pasted section with its citation, marks UNKNOWN anything the text doesn't define, and invents no rate or split that isn't in the document. Any illustrative number gets flagged 'ILLUSTRATIVE. Verify against the agreement and a real model' and handed back to you, never asserted as the actual distribution. The agreement governs; the AI is reading it aloud, not interpreting it.
Explain the waterfall in my operating agreement in plain English. [PASTE waterfall section]
2 · Your turn. You write the prompt
An LP asked you to walk them through how they get paid before they wire. You have the distribution-waterfall section of the operating agreement, and you want a plain-language explanation that quotes each tier from the document. Without your AI smoothing over the fact that the section never says whether the preferred return compounds.
Remember: the AI sees only your prompt, not this page. If the situation isn't in your prompt, it doesn't exist.
Optional. These shape the output when you run your prompt below, not your score.