Distributions & waterfall

Distributions are cash or token flows from collections (net of defined deductions) to investors and other participants according to a waterfall defined in pool documentation and implemented in operational and, where applicable, smart-contract logic.

Typical components (illustrative only)

Order and labels vary by pool. A common pattern may include:

Fees — platform, management, or servicing fees as disclosed.
Senior obligations — required payments to designated parties if the structure includes tranching.
Investor pro-rata — distribution to eligible investors per their entitlements.

Timing

Payment dates, record dates, and clawback rules are pool-specific. Delays may occur due to servicing cycles, banking holidays, or on-chain congestion.

Tax withholding

Whether withholding applies depends on your status and jurisdiction. Obtain independent tax advice.

Regulatory and legal refinement. Waterfall diagrams and legal opinions belong in deal documentation. This page is illustrative.