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Introduction to Vesting:
- Vesting is commonly included in portfolios of depository receipts, options, stock appreciation rights (SAR), and economic ownership rights.
- Bonds and convertible loan agreements often do not have vesting.
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Setting Up Vesting:
- You can set up a vesting schedule yourself.
- A standard vesting schedule might be four years with a one-year cliff. This is referred to as a "four year plus one including one year cliff" schedule.
- Linear vesting means 25% of the total vests each year over four years.
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Vesting Options:
- Linear Vesting:
- Vest 25% per year over four years.
- Non-Linear Vesting:
- Preset schedules:
- First option: 15% in the first year, 25% in the second year, 30% in the third year, and 100% by the fourth year.
- Second option: 15% in the first year, 20% in the second year, 30% in the third year, and 35% in the fourth year.
- Preset schedules:
- For this example, choose a four-year linear vesting on a monthly basis, resulting in 48 months of vesting with a 12-month cliff.
- Linear Vesting:
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Impact of the Cliff:
- The cliff means no vesting occurs in the first 12 months.
- After the first year, 25% of the total amount vests.
- Post-cliff, vesting occurs monthly.
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Adding the Vesting Schedule:
- Add the vesting schedule to your portfolio settings.
- Refresh the screen to display the vesting model.
- The dashboard should show the default vesting added to transactions.
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Managing Vesting and Portfolio Settings:
- You can choose different vesting schedules or adjust the start date of vesting.
- Manage portfolio settings by adjusting visibility, trading permissions, attachments, share links, and vesting details.
By following these instructions, you can effectively set up and manage vesting schedules in your portfolio, ensuring that the vesting process aligns with your investment strategy and goals.
🎥 Video instruction:
You can also watch the instructions via the video below:
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