# Proceeds from Investments
# Should The LAO members expect to receive any profit by contributing to The LAO?
Investments contemplated by The LAO are inherently speculative and are made by The LAO members or their express designees and agents. The results of The LAO's investments will likely vary from period to period, and investments made by The LAO will involve a high degree of financial and market risk that can result in a complete loss of any member's contribution to The LAO.
# If I'm a member of The LAO, what interest do I receive in any projects that receive financing from The LAO?
The LAO will be the record holder of all securities and/or any other rights secured via The LAO-related investments. Members, acting via a majority vote, will have the right to determine the amount, timing, and form of all distributions related to proceeds from those investments.
# How will proceeds be distributed?
Members will receive proceeds, if any, on a pro-rata basis based on the number of LAO Units each member holds.
If a member rage quits, the member will be entitled to receive proceeds from any investments made by The LAO prior to the member's withdrawal of capital to the extent permitted by law or the terms of an investment (e.g., if The LAO makes an investment in securities with transfer restrictions, The LAO itself will be the record holder until those restrictions lift). However, the member will not be entitled to distribution with respect to any investments made by The LAO after the date the member quits The LAO.
Please note, that prior to proceed distribution, members must provide a copy of the applicable Form W-9 or Form W-8, when requested by the service provider.
# Will proceeds be paid in Ether, Dai, or cash?
Members have the right to determine how proceeds will be paid.
# Can The LAO recycle or reinvest proceeds?
Members acting by a majority vote may reinvest or retain for investment any proceeds to effect The LAO investments, pay expenses (outlined here or otherwise provided for in The LAO's Operating Agreement), or create reserves.
# If a member votes against a proposed deal, but does not “rage quit,” will he or she still benefit from possible future profits? In other words, are all projects’ possible future returns shared equally amongst the members?
Yes, the member would benefit from the future profits even if the member voted against the investment. In effect, you're agreeing to the will of the voting members and if you don't like the decision you have the right to rage quit all or part of your undeployed Ether.