> For the complete documentation index, see [llms.txt](https://docs.buidl.one/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.buidl.one/whitepaper/how-it-works.md).

# How it works?

Funds allocated to the stream will not be deposited straight away, money is counted on a regular basis every second in proportionate installments. Investors can use their voting ticket to reject project funding if they are not happy with the overall results of the start-up.

## Project life cycle

We created a visual schema to show the life cycle of the project in build1 protocol. We cover all three phases - fundraising, execution and distribution.

![Lifecycle of project in time](/files/Zq7J0j9HcOALL3IkYUsi)

### Fundraising period

| Type          | Voting power weight   |
| ------------- | --------------------- |
| Seed          | Invested funds \* 2.5 |
| Private       | Invested funds \* 1.9 |
| Public limted | Invested funds \* 1   |

### Distribution period

| Type             | Period           | Purpose                                     |
| ---------------- | ---------------- | ------------------------------------------- |
| Seed funds       | Instant          | Instant payout for initial project expences |
| Linear cash flow | Milestone period | Allows to secure investors unused funds     |

### Execution period

| Type        | Period                | Purpose                                                            |
| ----------- | --------------------- | ------------------------------------------------------------------ |
| Voting pool | Entire project period | Suspend the project funding when it reaches 51% of rejection votes |
| Milestone   | 1-3 months            | Keeps track of the schedule, deadlines and fund usage.             |