Carta Collective

In regards to fractional shares, the way Carta calculates this is by carrying forward any partial share to the next tranche until the partial share adds up to a full share rather than loading it at the beginning or end.

For example, if a holder has 333 shares with a 3-year vesting schedule 20/30/50 that would mean this person would vest 66.6 shares year 1, 99.9 shares year 2, and 166.5 shares year 3. In order to make these yearly amounts become whole instead of fractional, that would appear as 66 shares vested in year 1, 100 shares in year 2, and 167 shares in year 3.

Tranche 1 - 66.6 rounddown > 66 shares with .6 carried forward
Tranche 2- 99.9 + .6 carried forward = 100.5 rounddown > 100 shares with .5 carried forward
Tranche 3 - 166.5 + .5 carried forward = 167