Definition
First-party cover
Pays for your own losses: business interruption, data restoration, model retraining, runaway infrastructure costs.
From the episode “Insure Your AI Agent: This PhD Built The Policy”Hear it on the podcast1 episode
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Related terms in Finance & Markets
Exchange Fund (Private Market)A pooled investment fund into which shareholders contribute concentrated stock positions in exchange for LP (limited partner) interests representing a proportional share of the diversified pool - without triggering a taxable sale. Exchange funds have existed in public markets for decades (Eaton Vance manages over $500 billion in exchange fund assets), allowing public company executives to diversify concentrated positions tax-free. Collective Liquidity is the first exchange fund to accept private company shares, requiring significant legal and tax structuring to enable the mechanism in the illiquid private market. The key tax advantage: a contribution to an exchange fund is not a sale, so no capital gains tax is owed at the time of exchange. The tax is deferred until the LP interest itself is eventually sold, and the deferred tax compounds over the holding period - generating approximately 2x the after-tax wealth over seven years compared to selling shares immediately and reinvesting after taxes.FAR (Federal Acquisition Regulation)The primary rulebook governing federal government purchasing above $250K. OTAs exist specifically to bypass it when speed and flexibility are priorities.FERPAThe US federal law governing the privacy of student education records.Financial GeneralistCJ Follini's concept of the investor or financial professional who understands the full spectrum of financial instruments, asset classes, tax strategies, and planning tools — rather than deferring entirely to hyper-specialists for each domain. The financial generalist knows enough about real estate, venture capital, estate planning, retirement accounts, tax optimization, and debt management to ask the right questions, identify the right specialists, and make integrated decisions. CJ argues this is the model the AI era rewards: LLMs and agentic AI are themselves generalist technologies, and the human who can orchestrate specialist agents across financial domains outperforms the human who outsources each domain to a separate professional with misaligned incentives.Fixed ExpensesCosts you pay regardless of revenue: payroll, rent, legal, accounting.Front OfficeThe patient-facing operational layer of a practice: phones, scheduling, eligibility, referrals, prior authorizations, intake.FundamentalsThe full financial statements behind the headlines: income statement, balance sheet and cash flow statement.GarnishmentA court-ordered process that takes part of a debtor's wages to pay a judgment.