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What are Fully-Vested Shares?

Vested shares stand for the percentage of shares the founders/employees fully own according to the vesting scheme. Usually, in the first year (i.e. cliff) this will be 0%. While after the second year, which is essentially the first year in a common 4-year vesting period, the founders/employees will own 25% of vested shares. After 5 years of the vesting period (1-year cliff + 4-year vesting) all the shares will be ‘unlocked’, and the shares hereby become fully vested.

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