I actually think discounts and participation caps would conceptually be much better if they were tied to IRR, as long as there are boundaries on each end. I get

I actually think discounts and participation caps would conceptually be much better if they were tied to IRR, as long as there are boundaries on each end. I get that in practice fixed values are used because they make the math easier and save lawyer hours, but it's a horrible misalignment of incentives.