Glossary

Vesting Cliff

The Vesting Cliff refers to when equity granted to an employee or other service provider becomes fully or partially vested in one lump sum on a specified date rather than becoming partially vested in incremental amounts over a specified period (as in Incremental Vesting). A Vesting Cliff is often coupled with Incremental Vesting and forms the initial part of the standard 4-year vesting schedule.