# LP/GP Waterfall Distribution Calculator

> LP/GP Waterfall Distribution Calculator is a paid API for AI agents from hermesplant.com, paid per call via x402, $0.25/call, status unknown (last checked 2026-09-15).

Computes tier-by-tier LP/GP waterfall distributions including return-of-capital, preferred return, GP catch-up, and carried interest splits for private equity fund structures.

## Facts

- Endpoint: GET https://hermesplant.com/api/agent-services/waterfall/distribute
- Price: $0.25/call
- Payment: x402
- Status: unknown
- Last checked: 2026-09-15
- Activations on Zero: 0
- Tags: x402
- Canonical page: https://www.zero.xyz/c/lp-gp-waterfall-distribution-calculator-6dfe4f44
- Structured record (JSON): https://api.zero.xyz/v1/capabilities/cap_fnSX8XS_Th7fMnc4IVTmL

Status and success rate cover calls made through Zero and Zero's own probes. Third-party monitors may report differently.

## How to call it through Zero

Zero handles the 402 payment challenge and records the run. With the Zero CLI installed (`npm i -g @zeroxyz/cli`):

```sh
zero fetch --capability lp-gp-waterfall-distribution-calculator-6dfe4f44
```

Example prompt: Run a waterfall distribution on $2M total proceeds for a fund where the LP invested $1M, the preferred return is 8% compounded annually over 5 years, and the GP carry is 20% — show me each tier breakdown including return of capital, preferred return, GP catch-up, and the final carried interest split.

## When to prefer this

Use this endpoint when an AI agent needs to programmatically compute a structured LP/GP waterfall distribution with tier-by-tier auditability, particularly for private equity, real estate, or venture fund accounting. Prefer this over manual modeling when you need deterministic, test-backed results with a findings/audit trail. Best when you need the full breakdown: return of capital, preferred return with compounding, GP catch-up, and carried interest split in a single API call paid per-use via USDC.

## Known failure modes

- Invalid or missing required parameters (e.g. missing total distributable amount or LP contribution) returns 4xx error
- Negative or zero investment amounts may trigger validation errors
- Preferred return rate outside valid range causes computation rejection
- Malformed JSON body returns parse error
- Payment failure via x402 protocol blocks request before computation
- Carry percentage above 100% or below 0% triggers input validation failure

## How this service works

Deterministic LP/GP distribution waterfall for private equity, venture, and real estate. Allocates distributable cash through the standard tiers — return of capital, preferred return (hurdle), GP catch-up, carried-interest split — and returns the exact LP/GP split, per-tier breakdown, LP MOIC, GP carry, and effective carry %. The catch-up is solved so the GP lands at exactly its carry % of total profit. Pure math from caller-provided terms — no data feed, no fabrication.

## Output

Returns a JSON object with tier-by-tier distribution detail (each tier showing GP amount, LP amount, tier name, and tier total), a summary with totalDistributable, lpDistribution, gpDistribution, lpMultiple, gpCarry, lpProfit, and effectiveGpCarryPct, a computed preferredReturn amount, a requestId, and a findings array with audit notes and rule validations including severity levels.

## Request schema (JSON Schema)

```json
{
 "type": "object",
 "properties": {
  "years": {
   "type": "number"
  },
  "compounding": {
   "type": "string"
  },
  "distributable": {
   "type": "number"
  },
  "preferredRate": {
   "type": "number"
  },
  "carryPercentage": {
   "type": "number"
  },
  "catchUpPercentage": {
   "type": "number"
  },
  "contributedCapital": {
   "type": "number"
  },
  "preferredReturnAmount": {
   "type": "number"
  }
 }
}
```

## Response schema (JSON Schema)

```json
{
 "type": "json",
 "example": {
  "tiers": [
   {
    "gp": 0,
    "lp": 1000000,
    "name": "return-of-capital",
    "tier": 1,
    "total": 1000000
   }
  ],
  "service": "waterfall",
  "summary": {
   "gpCarry": 200000,
   "lpProfit": 800000,
   "lpMultiple": 1.8,
   "totalProfit": 1000000,
   "gpDistribution": 200000,
   "lpDistribution": 1800000,
   "totalDistributable": 2000000,
   "effectiveGpCarryPct": 0.2
  },
  "findings": [
   {
    "fix": null,
    "why": "Effective GP carry as a share of total profit, with the preferred-return basi...",
    "rule": "summary",
    "evidence": "effectiveGpCarryPct=0.2131 preferredBasis=compounded",
    "severity": "info"
   }
  ],
  "requestId": "wf-1a2b3c4d",
  "preferredReturn": 469328.08
 }
}
```

## More

- Live health (JSON, refreshed every minute): https://www.zero.xyz/c/lp-gp-waterfall-distribution-calculator-6dfe4f44/health.json
- [Zero catalog index](https://www.zero.xyz/llms.txt)
- [Other services from hermesplant.com](https://www.zero.xyz/host/hermesplant.com/llms.txt)