> 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/worked-examples-and-evaluation/failure-delayed-returns-and-other-stress-tests.md).

# Failure, delayed returns and other stress tests

A model should be tested under adverse conditions, not only successful ones. Stress tests reveal whether rights remain understandable and whether protections work when interests conflict.

## **Test 1: No surplus before expiry**

An organisation issues three-year duration compensation rights but generates no distributable surplus during that period. Questions that can follow:

* Do the rights expire without payment?
* Was that possibility clearly disclosed?
* Is any minimum payment owed separately?
* Can rights be extended?
* Who decides?
* Would extension unfairly affect later contributors?

A contingent right can legitimately produce no payment, but it should not have been presented as guaranteed compensation.

## **Test 2: Success immediately after expiry**

A major product becomes profitable shortly after early rights expire. This tests the balance between contractual certainty and retrospective fairness. The organisation should apply its disclosed late-impact policy rather than inventing a rule to favour whichever group currently controls the vote.

## **Test 3: Deliberate postponement**

Current controllers could retain resources until historical rights expire, then distribute them to themselves. Potential safeguards to this problem include:

* Objective distribution conditions.
* Limits on related-party payments.
* Rights to relevant information.
* Approval requirements for material policy changes.
* Independent review.
* Defined treatment of retained earnings.

A fixed expiry date without anti-avoidance protections can create strong incentives for manipulation.

## **Test 4: Revenue collapse**

Revenue falls by half while compensation and financing obligations remain. The model will want to show:

* Available cash.
* How long operations can continue.
* Which obligations are legally due.
* Whether financing can be restructured.
* Whether staffing or activities must change.
* How contributors receive information.

Participation units cannot absorb a cash shortfall unless the underlying agreements actually make those payments contingent.

## **Test 5: Failure before loan repayment**

The organisation closes with insufficient assets to repay all claims. The model should apply plausible legal priorities and recovery assumptions. It should not automatically distribute remaining assets according to contribution units if creditors have superior claims.

## **Test 6: A disputed contribution assessment**

A contributor’s valuation is reduced shortly before a distribution or election. The test should examine:

* Evidence.
* Decision-maker conflicts.
* Appeal timing.
* Whether disputed votes or payments are suspended.
* Available remedies.
* Whether the dispute affects unrelated rights.

The process must be usable before the disputed decision becomes irreversible.

## **Test 7: Departure before payment**

A worker leaves after completing a contribution period but before distribution. The outcome should follow the agreement, not the current group’s preference. The model should also test dismissal immediately before a threshold or vesting date.

## **Test 8: A dominant contributor**

One person’s contribution score gives them a governing majority. Questions include:

* Can they set their own compensation?
* Can they appoint every reviewer?
* Can they amend expiry rules?
* Can other contributors obtain independent protection?
* Does a voting cap or separate consent process apply?

Temporary dominance can still be harmful.

## **Test 9: Acquisition or asset transfer**

An attractive sale offer arrives shortly before rights expire. The model should identify:

* The required approvals.
* Treatment of sale proceeds.
* Outstanding claims.
* Transfer of obligations.
* Residual assets.
* Conflicts of interest.

## **Recording the result**

Each stress test should state:

1. The scenario.
2. The rule applied.
3. The financial outcome.
4. The governance outcome.
5. The parties disadvantaged.
6. Any unresolved issue.

A model should be revised when the result contradicts its intended principles.