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 |