Cash Is Respected

The Philosophy#

Cash keeps a company operating, but it is not delivered work. Fairly Exact records cash clearly and keeps its negotiation outside the member ledger. Only accepted Contribution Blocks mint member-ledger units.

👉 Cash deserves transparent records and explicit terms.

Separate Records#

• Cash ledger: Records what each member put in for the company — expenses paid on its behalf and cash given directly — with evidence, and how each member’s balance was resolved.
• Funding Block: Records proposed business terms, approvals, professional-review references, and the separate instrument reference.
• Member ledger: Contains only units minted by accepted Contribution Blocks.

A Funding Block does not create repayment, downside, upside, voting, or ownership rights. Those terms belong to a separate professionally prepared instrument.

Balances and Capital#

Members often pay for things before the company can. Each expense, and any cash given directly, adds to that member’s balance. The team resolves each balance later, by reimbursing it or by converting it into a Funding Block, which takes a vote by default.

Cash put in as an investment of at least the Funding Block minimum (team-set, default $5,000) can open a Funding Block directly; whether it does is up to the member putting it in. A balance that grows past the minimum does not automatically convert, issue, repay, or grant anything.

Company stage may inform negotiation, but the Contribution Block stage multiplier never applies to cash.

Optional Downside-Sharing Position#

The framework offers a 50/50 downside-sharing formula as one possible starting point for a difficult conversation. It is not an automatic distribution rule, liquidation preference, or complete financing model. Qualified professionals must document the complete agreement, including priorities, dilution, denominators, and treatment above the proposed recovery threshold.

Why It Matters#

• Honest records: Cash does not disappear into an unlabeled ownership calculation.
• Clear boundaries: A funding negotiation cannot silently change contributor voting or final member-ledger percentages.
• Legible diligence: The cash history, proposed terms, approvals, and actual instrument remain connected.
• Fair negotiation: Both cash and contributed work can be discussed without pretending they are the same input.

In One Line#

Cash Is Respected = record it separately, negotiate it explicitly, and rely on a professionally prepared instrument rather than member-ledger units.