# What is Cliff? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Legal  
> **Canonical Citation:** [https://spidits.com/startup-glossary/cliff](https://spidits.com/startup-glossary/cliff)

## Definition
A Cliff is a specific period at the beginning of a vesting schedule during which no equity is earned.

## Architectural Mechanics & Deep Dive
A Cliff is a specific period at the beginning of a vesting schedule during which no equity is earned. The standard vesting schedule includes a "one-year cliff," meaning that an employee or founder must remain with the company for at least 12 months before earning any equity. If they leave before the cliff, they walk away with zero shares. After the cliff, equity vests monthly or quarterly.

## Industry Applications & Real-World Use Cases
Equity incentive plan structures

## Frequently Asked Questions

### What is a one-year cliff?
It requires an employee to remain at the startup for a full 12 months before any of their allocated equity begins to vest.

### What happens if someone leaves before the cliff?
They forfeit 100% of their stock options or shares, leaving the company with zero equity.

## Related Terminology
- [vesting](https://spidits.com/startup-glossary/vesting)
- [option-pool](https://spidits.com/startup-glossary/option-pool)
- [cap-table](https://spidits.com/startup-glossary/cap-table)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*