> For the complete documentation index, see [llms.txt](https://docs.contributionism.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.contributionism.io/governance-and-accountability/selecting-parameters-and-documenting-rules.md).

# Selecting parameters and documenting rules

Contributionist mechanisms often depend on parameters. Examples include eligibility thresholds, participation periods, voting weights and distribution formulas. These parameters should be treated as policy choices requiring justification, not as scientifically established constants.

## **Categories of parameters**

An organisation may need to specify:

**Eligibility parameters**

* Minimum participation.
* Membership requirements.
* Treatment of temporary absence.
* Dates used to determine voting eligibility.

**Valuation parameters**

* Role bands.
* Review periods.
* Performance criteria.
* Treatment of joint work.
* Risk adjustments.

**Financial parameters**

* Distribution conditions.
* Reserve requirements.
* Participation weights.
* Payment caps.
* Return calculations.

**Governance parameters**

* Voting methods.
* Quorum.
* Approval thresholds.
* Delegation limits.
* Leadership terms.

**Lifecycle parameters**

* Expiry.
* Transfer.
* Renewal.
* Departure.
* Death.
* Sale and dissolution.

## **Begin with the purpose of each parameter**

Before choosing a number, state what it is intended to achieve. For example:

* A three-month eligibility period might support onboarding.
* A five-year participation window might recognise delayed impact.
* A reserve policy might protect continuity.
* A voting cap might reduce concentration.

The organisation should then examine whether the parameter actually serves that purpose.

## **Avoid unsupported precision**

A formula that multiplies a risk score by a complexity score can produce an exact number without producing an accurate valuation. If scores are used, document:

* What each score means.
* Who assigns it.
* The evidence.
* How scores map to financial outcomes.
* How uncertainty is represented.
* How disagreements are resolved.

Illustrative parameters in a model should not automatically become contractual promises.

## **Test boundaries and unusual cases**

A formula should produce understandable results when:

* There are no eligible contributors.
* Total contribution weight is zero.
* Someone joins midway through a period.
* A contribution is corrected.
* A right expires between approval and payment.
* Available surplus is negative.
* One person holds most of the weight.
* A payment exceeds the remaining cap.

These cases should be handled explicitly.

## **Use worked examples**

Each important formula should have a plain-language explanation and at least one example. For a capped payment, the example should show:

* The calculated allocation.
* The remaining cap.
* The amount actually paid.
* The treatment of any unused allocation.

For an expiry rule, it should show whether the final distribution occurs before or after expiry.

## **Maintain a parameter register**

A parameter register can include:

* Parameter name.
* Current value.
* Purpose.
* Effective date.
* Decision-maker.
* Supporting reasoning.
* Review date.
* Rights affected.
* Amendment requirements.

This makes changes traceable.

## **Version control**

The organisation should preserve the rules that applied when a right was issued. If the participation duration changes from three years to five years, the system must identify whether that change affects:

* Only new contributions.
* Existing unexpired rights.
* Previously expired rights.

The answer should not depend on whichever version of the spreadsheet is currently open.

## **Review without opportunism**

Review can improve future arrangements. However, people approaching expiry should not be able to extend their own rights automatically, and current participants should not be able to shorten others’ rights merely to increase their own distributions. Material changes require appropriate protections.