> For the complete documentation index, see [llms.txt](https://modus-3.gitbook.io/modus-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://modus-3.gitbook.io/modus-docs/overview/profit-waterfall.md).

# Profit Waterfall

<figure><img src="/files/1vxIgmAPoHDJtCNggbur" alt=""><figcaption></figcaption></figure>

1️⃣  After selling a property, the senior lender is paid back first - borrowing costs are factored into the profit calculations.

This leaves a surplus of around 35%/40% of the selling price.

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2️⃣ Modus Members hold a "priority position," ensuring that they receive payment immediately after the senior lender. Your investment plus expected return is secured 2-3x by the surplus remaining.

As a result, the selling price would need to be 15-25% lower than the calculations made by the Modus property team and third-party quantity surveyors engaged by the senior lender for you to not receive your anticipated return.<br>

3️⃣  As the developer gets paid at the end of the waterfall, this creates incentives to maximise project success, as they get what is left over.

4️⃣  Modus then takes a fee for the listing and uses these revenues for operations, development and token burns.