# Equity

> Equity organizes who contributes capital, who controls it, and who receives return

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:investment-capital:equity` |
| Family | Investment & Capital |
| Domain | Economics |
| Era | Institutional Age → Agentic Age |
| Kind | financial-instrument |
| Archetype | The Promise |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

Equity is a financial instrument in the Investment & Capital family, defined here by the function it performs in the property system rather than by label alone.

## What it actually does

Equity organizes who contributes capital, who controls it, and who receives return.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access to capital, yield, liquidity, risk allocation
- **Inputs:** capital, terms, collateral or cash flow, counterparties, risk assumptions
- **Outputs:** funding, cash-flow claims, obligations, risk allocation
- **Dependencies:** Land, Authority, Information, Capital, Time

## Archetypal reading

- **Essence:** Equity organizes who contributes capital, who controls it, and who receives return
- **Gift:** Clarity about equity makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When equity is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when equity is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where equity appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Equity reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Equity changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Equity changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Equity can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Promise enters the reading through Equity. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** What future is being pledged through Equity, and who receives protection if conditions change?

**Guidance:** Separate access from cost, payment from principal, and temporary liquidity from permanent viability.

## Game function

Moves Capital now and creates a future Claim with explicit priority and failure consequences. Initiative 1.

## Relationships

- **Property Tax is evidenced by Equity.** Property Tax is evidenced by Equity through a change in rights, information, cash flow, priority, timing, or physical use.
- **Equity is administered through Leverage.** Equity is administered through Leverage through a change in rights, information, cash flow, priority, timing, or physical use.
- **Equity is administered through Buyer.** Equity is administered through Buyer through a change in rights, information, cash flow, priority, timing, or physical use.
- **Preferred Equity has priority over Equity.** Preferred Equity has priority over Equity through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Equity through the lineage of Investment & Capital: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Equity: a luminous claim-line descending from a built form into layered earth and extending across a long brass timeline; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty, financial risk. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [Dodd-Frank Act Rulemaking: Asset-Backed Securities](https://www.sec.gov/spotlight/dodd-frank/assetbackedsecurities.shtml) — U.S. Securities and Exchange Commission; ABS and RMBS securitization, tranching, disclosure.
- [Comptroller's Handbook — Commercial Real Estate Lending](https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/commercial-real-estate-lending/pub-ch-commercial-real-estate.pdf) — Office of the Comptroller of the Currency; CRE lending, DSCR, debt yield, cap rate, valuation, risk.
