Definition
What is vesting cliff?
A cliff is the initial period — usually 12 months — during which no shares vest. At the cliff date a block vests at once (typically 25% on a four-year schedule), then the rest vests monthly.
The cliff protects the company if someone leaves very early: a cofounder or employee who departs after six months on a one-year cliff leaves with no vested equity.
Use the vesting calculator to see how much equity has vested at any month for a given schedule and cliff.
Try the free vesting calculator →
Common questions
What happens if I leave before the cliff?
Under a standard cliff, nothing has vested, so you leave without vested equity from that grant.
General information, not legal, tax or investment advice.