Rule 701, tracked automatically as you grant equity

Cake now tracks your position against all three Rule 701 exemption limits automatically, using the grants already on your cap table - so you can see where you stand before you grant or exercise further.

Rule 701 is the SEC exemption that lets US private companies grant equity as compensation, but it carries limits, and crossing them quietly creates real exposure. The new Rule 701 Tracker in Cake Equity watches your position for you.

What you can do:

• See your position across all three exemption tests - $1M in grant value, 15% of outstanding shares, and 15% of total assets - calculated from grants already on your cap table
• Get an early-warning status that flags when you are approaching a limit, before your next grant pushes you over
• Track your progress toward the separate $10M disclosure threshold on its own tab

Grant values use your 409A data, grant-status rules are applied automatically (active, exercised, and lapsed grants count; cancelled ones do not), and you can export the detail to CSV. Available on the Pro plan.

Find the Rule 701 Tracker under Compliance in the Cake app.