diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0016-rental-income-vs-liquid-cash.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0016-rental-income-vs-liquid-cash.md deleted file mode 100644 index 42f5704..0000000 --- a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0016-rental-income-vs-liquid-cash.md +++ /dev/null @@ -1,204 +0,0 @@ -# CORPUS-0016 -## Rental Income Versus Liquid Cash -### Status: Training Corpus Seed -### Layer: Layer_1--Worked_Examples -### Purpose: Teach that recurring income from property or rights is not the same as immediately usable cash -### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0016-rental-income-vs-liquid-cash.md - ---- - -## 0. Scenario - -A trader in Ostia receives rental income from a small building share. - -He appears economically stronger than a trader with no property income. - -But rental income arrives over time. - -It may not provide the coin needed for an immediate venture. - -The trader may be income-rich but cash-poor. - ---- - -## 1. Basic Situation - -The trader has: - -| Item | Value | -|---|---:| -| Coin in hand | 6 asses | -| Rent expected in ten days | 20 asses | -| Minimum coin needed for current venture | 14 asses | -| Current opportunity window | today or tomorrow | - -The trader has expected income. - -He does not have enough liquid cash now. - ---- - -## 2. Incorrect Calculation - -A weak model may reason: - -```text -coin in hand = 6 asses -expected rent = 20 asses -total resources = 26 asses -venture requires = 14 asses -venture possible -``` - -This is wrong if the rent is not available before the opportunity expires. - -Expected income is not the same as usable cash. - ---- - -## 3. Correct Liquidity View - -The trader's immediate liquid position: - -```text -coin available now = 6 asses -current venture threshold = 14 asses -shortfall = 8 asses -``` - -The future rent may improve his position later. - -It does not automatically fund the current action. - ---- - -## 4. Possible Responses - -The trader may: - -- wait for rent and miss the opportunity -- borrow against expected rent -- sell the rent claim at a discount -- pledge the building share -- find a partner with coin -- reduce the venture size -- use non-coin settlement -- seek delayed payment terms from the seller - -The rent expectation creates options. - -It does not itself create immediate coin unless another actor accepts it as credible value. - ---- - -## 5. Discounted Claim Example - -A lender agrees to advance coin against the expected rent. - -| Item | Value | -|---|---:| -| Rent expected in ten days | 20 asses | -| Coin advanced now | 16 asses | -| Discount / lender return | 4 asses | - -The trader gains usable cash now. - -But he gives up part of the future income. - -The cost of liquidity is 4 asses. - ---- - -## 6. Venture With Rent-Backed Advance - -The trader uses the 16 asses advance to fund the venture. - -| Item | Value | -|---|---:| -| Coin advanced against rent | 16 asses | -| Venture total cost | 14 asses | -| Sale value | 22 asses | -| Venture arithmetic profit | 8 asses | - -But the rent claim was discounted by 4 asses. - -Adjusted result: - -```text -venture profit: 8 asses -liquidity cost: -4 asses ------------------------------ -net improvement: 4 asses -``` - -The venture still succeeds, but liquidity had a cost. - ---- - -## 7. Risk Variant - -If the tenant delays rent: - -- the lender may press the trader -- credit terms may worsen -- reputation may suffer -- the trader may need another settlement source -- future income becomes uncertain - -A rent stream is useful only if it can be collected or trusted. - ---- - -## 8. Correct Model Behavior - -The model should separate: - -| Category | Meaning | -|---|---| -| coin_in_hand | immediately spendable coin | -| expected_income | income due later | -| liquidity_gap | shortfall before action threshold | -| claim_value | value others may recognize | -| discount_cost | loss taken to convert future income into current coin | -| collection_risk | risk that future income fails or delays | -| venture_result | result of the trade itself | -| net_result | venture result adjusted for liquidity cost | - -Rental income can support action, but only through timing, credit, or conversion. - ---- - -## 9. Incorrect Model Behavior - -The model should not: - -- treat expected rent as current coin -- ignore timing of income -- ignore discount cost -- ignore collection risk -- assume every income stream can be borrowed against -- ignore the difference between wealth and liquidity -- calculate venture profit without liquidity conversion cost -- assume property income always makes an actor ready to act - ---- - -## 10. Layer-0 Concepts Used - -This example uses: - -- `Layer_0/CORPUS-0003-money-has-purchasing-power` -- `Layer_0/CORPUS-0005-profit-is-sale-minus-total-cost` -- `Layer_0/CORPUS-0006-delay-is-economic-cost` -- `Layer_0/CORPUS-0009-liquidity-differs-from-wealth` -- `Layer_0/CORPUS-0010-credit-depends-on-trust` -- `Layer_0/CORPUS-0021-assets-can-be-productive-or-passive` -- `Layer_0/CORPUS-0022-rights-can-have-economic-value` -- `Layer_0/CORPUS-0023-ownership-use-and-income-can-separate` -- `Layer_1/CORPUS-0009-credit-allows-action-without-coin` - ---- - -## 11. Success Condition - -If the model sees expected rental income and asks whether it is available now, collectible, pledgeable, discountable, or delayed before treating it as economic capacity, this file is functioning correctly.