> ## Documentation Index
> Fetch the complete documentation index at: https://docs.equa.cc/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Equity management terminology used across the Equa platform

# Equa Glossary of Terms

> **Source:** Confluence KnowledgeBase — "Equa Glossary of Terms"
> **Status:** DRAFT — to be enriched from Confluence glossary page

## Equity & Cap Table

| Term                   | Definition                                                                                                                             |
| ---------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| **Cap Table**          | Capitalization table — a record of all equity ownership in a company, including shares, options, warrants, and convertible instruments |
| **Fully Diluted**      | Total share count assuming all outstanding options, warrants, and convertible instruments are exercised or converted                   |
| **Par Value**          | The nominal face value assigned to a share of stock as stated in the corporate charter                                                 |
| **Authorized Shares**  | The maximum number of shares a company is authorized to issue per its corporate charter                                                |
| **Outstanding Shares** | Shares that have been issued and are held by shareholders                                                                              |
| **Security Type**      | A class of equity (e.g., Common Stock, Preferred Stock Series A) with defined rights and preferences                                   |
| **Legend**             | Restrictive text placed on a stock certificate describing transfer limitations                                                         |

## Options & Vesting

| Term                 | Definition                                                                                                  |
| -------------------- | ----------------------------------------------------------------------------------------------------------- |
| **ESOP**             | Employee Stock Option Plan — a pool of options reserved for employee compensation                           |
| **Option Pool**      | A block of shares set aside for future equity grants to employees and advisors                              |
| **Vesting**          | The process by which an employee earns the right to exercise options over time                              |
| **Cliff**            | A minimum period (typically 1 year) before any options vest; at the cliff date, a lump sum of options vests |
| **Vesting Schedule** | The timeline defining when and how many options become exercisable                                          |
| **Exercise**         | The act of purchasing shares by paying the strike price of vested options                                   |
| **Strike Price**     | The price at which an option holder can purchase shares                                                     |

## Convertible Instruments

| Term                    | Definition                                                                                                                                   |
| ----------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |
| **Convertible Note**    | A debt instrument that converts to equity upon a qualifying event (typically a funding round)                                                |
| **SAFE**                | Simple Agreement for Future Equity — a contract giving the investor the right to future equity                                               |
| **Pre-Money SAFE**      | A SAFE where the valuation cap does not include the SAFE amount itself                                                                       |
| **Post-Money SAFE**     | A SAFE where the valuation cap includes the SAFE amount, giving a deterministic ownership percentage                                         |
| **Valuation Cap**       | The maximum company valuation used to calculate the conversion price for a convertible instrument                                            |
| **Discount Rate**       | A percentage discount applied to the conversion price, rewarding early investors                                                             |
| **Conversion Price**    | The price per share at which a convertible instrument converts to equity: `min(cap / total_units, valuation / total_units) * (1 - discount)` |
| **Qualified Financing** | A funding round meeting minimum thresholds that triggers automatic conversion of convertible instruments                                     |

## Organization & Permissions

| Term                      | Definition                                                                                     |
| ------------------------- | ---------------------------------------------------------------------------------------------- |
| **Entity**                | A legal entity (corporation, LLC, etc.) managed on the Equa platform                           |
| **Organization**          | An Equa account representing a company or entity, containing members, cap table, and documents |
| **Member**                | An individual associated with an organization (founder, employee, advisor, investor)           |
| **RBAC**                  | Role-Based Access Control — permission model where access is determined by assigned roles      |
| **Cascading Permissions** | Equa's permission inheritance model where child entities inherit from parent entities          |

## Platform Concepts

| Term             | Definition                                                                                            |
| ---------------- | ----------------------------------------------------------------------------------------------------- |
| **Equanaut**     | Equa's AI assistant powered by the Equabot gateway                                                    |
| **Data Room**    | A secure virtual space for sharing confidential documents with external parties (investors, auditors) |
| **Equa Cash**    | Referral credit system on the Equa platform                                                           |
| **Shareholding** | A specific equity holding — a quantity of a particular security type held by a member                 |
| **Holding**      | A record of ownership of a convertible instrument                                                     |