Every figure on every statement points back to the clause that authorized it, and to the version of the contract it ran against. The contract isn't paperwork that lives next to the system; it's the thing the system reads to compute the answer.
No formula language, no spreadsheet wiring. Pick a template, answer a handful of plain-English questions, and the wizard assembles the contract: formula, splits, rates, recoupment, reserves. The same building blocks the engine reads to compute every period, structured the same way every time.
When a contract is signed, its terms are locked on that contract: formula, splits, rates, recoupment rules, reserves. If a term needs to change, a new contract is created that supersedes the old one going forward. The old contract remains the authority for every period it covered. Nobody can reach back and edit a past period's terms. Not a tenant admin. Not CleaRoyalty support.
The engine reads your contract, whatever shape it takes, and runs the same calculation the same way every period. Mix and match the building blocks below to model any deal you've ever signed.
Fixed percentage of net receipts every period. The simplest deal, and the most common.
Rate steps up after the artist crosses a lifetime threshold. Tier reached prospectively, never retroactively.
Rate moves on a schedule (say, +5% after year 3). Anchor dates and escalation events live on the contract.
Dollar amount per unit sold, with optional caps and floors. Pairs with bundle allocation for multi-SKU deals.
Pre-paid advance recouped from royalties as they earn. Per-contract or cross-collateralized across an artist's catalog.
A percentage held back for a defined window (refunds, returns) and released on a schedule when the window closes.
Share a single SKU across writers, producers, sub-publishers, collaborators. Splits are part of the contract, not a side spreadsheet.
Bundle revenue split across constituent SKUs by their standalone price. Each SKU then runs its own contract math.
Shared expenses (ad spend, processing fees, returns) allocated across SKUs by revenue share before the royalty calc runs.
When a period's expenses exceed receipts, the deficit carries to the next period before royalties pay out again.
Carry forward advance balance, expense debt, and holdback reserves at cutover, so periods after CleaRoyalty pick up exactly where prior periods left off.
If your deal doesn't fit any template, model it once and the engine runs it the same way every period. No bespoke code per artist.
On a CleaRoyalty statement, no number is an opinion. Tap a line and it opens to the sale that drove it, the clause that authorized it, and the version of the contract that ran. The same trace is what an auditor or counsel sees when they ask "where does this come from?"
Every contract is versioned. Every calculation records the exact version it ran against. Every change is who, what, and when. The artist always knows what was true on every date.