Clear Rules for Distribution

Property development produces significant returns, but clarity around how those returns are distributed is essential. Modus uses a profit waterfall to ensure every investor understands exactly where they stand in the order of payments. This structure removes ambiguity and creates trust between investors, lenders, and developers.

Senior Lenders First

When a property is sold, the senior lender is repaid first. Borrowing costs are included in the calculations to make sure the project is fully secured. Once the senior lender has been paid, around 35 to 40 percent of the selling price remains as surplus. This remaining capital is then distributed down the waterfall.

Priority Position for Modus Members

Modus Members hold a priority position immediately after the senior lender. Their investment plus expected returns are secured by the surplus, typically covered two to three times over. For an investor not to receive their anticipated return, the property would need to sell 15 to 25 percent below the valuation set by Modus and confirmed by independent quantity surveyors engaged by the lender.

Developers Last in Line

The developer receives payment only after lenders and investors have been satisfied. This structure creates strong incentives to deliver projects successfully, since the developer’s profit depends on performance. It ensures that Modus Members always come ahead of the developer in the payment order.

Building Confidence with Transparency

The profit waterfall is more than a distribution method. It is a framework that guarantees fairness and aligns incentives across all parties. Modus also takes a small fee at the end of the process to cover operations, development, and token management, including token burns. With every participant knowing exactly where they stand, confidence in the process grows stronger.