Fund economics
Clawback
A clawback is a provision that can require the GP to return carry it already received if later fund results mean it was paid more than it was entitled to under the agreed waterfall.
Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.
Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.