# Liquidation preferences

<figure><img src="/files/KqCgINebolcoqLDoLULJ" alt=""><figcaption></figcaption></figure>

## Adding an liquidation preference waterfall to an investment

<figure><img src="/files/3SCDIwpPOWU3SCtPclNY" alt="" width="563"><figcaption></figcaption></figure>

1. Click on **Liq Prefs** from the Actions toolbar within an investment's **Performance Case**
2. Turn on **Enable Liquidation Preferences**
3. Specify the following:
   * **Total Liq Pref Owned:** This is the total amount of liquidation preference owned by your fund. For e.g. if you have a 2x Liq Pref on a $2mm investment, you would enter $4mm in this field
   * **Liq Pref Type**: Specify whether your liq pref is participating or non-participating
   * **Liq Pref Cap** (for participating liq prefs only)**:** Specify if there is a liq pref cap
   * **Liq Pref Cap Amount**: If there is a cap, enter the cap amount. For e.g. if you have a 3x cap on a $2mm investment, you would enter $6mm as the cap.
   * **Total Liq Prefs in Front**: The total amount of liq prefs expected senior to our position.
   * **Total Other Liq Prefs Pari Passu:** Amount of liq prefs pari passu to us (not including our own)
   * **Total Liq Prefs Senior:** Total amount of liq prefs that are below or junior to us in the exit waterfall.
4. Once a liquidation pref waterfall has been created, the Exit Event will show a “Liq Prefs Active” sign to signify that there are active Liquidation Prefs in effect.

## Working with multiple cases

If you are working with multiple performance cases, you may want to copy liq prefs from one case to another. From the **Actions** toolbar, click on ***Liq Prefs*** to import a liquidation preference waterfall from another case.


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