# LP Contribution

An **LP contribution** (or **capital contribution**) is the actual cash transfer made by an LP to a fund in response to a capital call. A contribution is the act; [paid-in capital](/fund-mechanics/paid-in-capital.md) is the running total of all contributions made to date.

## What a Contribution Does

When Gildi records an LP's contribution as settled, three things happen simultaneously:

1. **Unfunded commitment decreases** by the contributed amount.
2. **Paid-in capital increases** by the same amount.
3. **Capital call status** for this LP's line item updates to `paid` (or `partially-paid` for a partial wire).

```
New paid-in capital     = Prior paid-in capital + Contribution amount
New unfunded commitment = Prior unfunded commitment − Contribution amount
```

## Recording Date

The contribution date is the date the funds **arrived in the fund's bank account**, not the date the LP initiated the wire. Gildi records this as the settlement date when the incoming wire is matched to the LP's capital call allocation.

The difference between call due date and settlement date determines whether the LP is on time, early, or in arrears. GPs can view arrears status on the [reconciliation](/for-general-partners/reconcile.md) dashboard.

## Partial Contributions

LPs occasionally wire an amount that does not exactly match their capital call allocation — due to currency rounding, fees, or error. Gildi handles this as a **partial contribution**:

* The partial amount is credited against the LP's outstanding balance.
* The call line item status changes to `partially-paid`.
* The GP is notified of the shortfall and can contact the LP for the remainder or mark the call as settled with a write-off.

## Currency

Contributions are denominated in the fund's base currency. If an LP initiates a wire in another currency, FX conversion happens at their bank before the funds arrive; Gildi records only the received amount in the fund currency.

## Relationship to Other Concepts

* [Unfunded Commitment](/fund-mechanics/unfunded.md) — decreases on each settled contribution.
* [Paid-In Capital](/fund-mechanics/paid-in-capital.md) — the cumulative total of all contributions.
* [Capital Call](/capital-calls/overview.md) — the formal request that triggers a contribution.


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