# LP Commitment

An **LP commitment** is the legally binding amount a single Limited Partner agrees to invest in a fund, recorded in the [subscription document](/fund-mechanics/subscription-document.md) signed at close. It is the GP's right to call up to this amount from the LP over the fund's life.

## The LP Commitment Record in Gildi

Each LP in Gildi has a commitment record that tracks:

| Field                 | Description                                 |
| --------------------- | ------------------------------------------- |
| Commitment amount     | Total amount committed (fund base currency) |
| Admission date        | Which close the LP joined at                |
| Fee waiver            | Any negotiated management fee discount      |
| Side letter reference | Link to any executed side letter            |
| Paid-in capital       | Running total of all settled contributions  |
| Unfunded commitment   | Remaining callable amount                   |

The paid-in and unfunded balances update automatically each time a capital call is settled.

## Currency and Fund Enforcement

Commitments are denominated in the fund's base currency. Gildi enforces single-currency funds: all LP commitments must be in the same currency as the fund. There is no currency conversion at the commitment level.

## Commitment vs LP Ownership Percentage

The LP's ownership percentage at any point in time is:

```
LP ownership % = LP commitment / Total fund commitment
```

This percentage is used to calculate the LP's pro-rata share of each capital call and each distribution. It dilutes when new LPs join at a subsequent close and the total fund commitment grows.

## Transfers and Amendments

LP commitments are generally not transferable without GP consent. Gildi supports:

* **Commitment transfer** — full transfer of the commitment to a new LP entity, with all historical paid-in/unfunded balances carrying over.
* **Partial transfer** — splitting the commitment between the original LP and a new entity.
* **Amendment** — a GP-approved reduction in commitment amount (rare; requires formal amendment to the subscription document).

All changes produce a full audit trail in Gildi's commitment history.

## Relationship to Other Concepts

* [Commitment](/fund-mechanics/commitment.md) — the fund-level and conceptual view.
* [Unfunded Commitment](/fund-mechanics/unfunded.md) — the uncalled portion.
* [Paid-In Capital](/fund-mechanics/paid-in-capital.md) — the contributed portion.
* [Contribution](/fund-mechanics/contribution.md) — each individual cash payment.


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