Also known as Vesting cliff
A cliff is an initial period during which no equity vests at all, then, on the cliff date, a chunk vests at once.
Key takeaways
A cliff is an initial period during which no equity vests at all, then, on the cliff date, a chunk vests at once. The standard is a one-year cliff on a four-year schedule: leave before month twelve and you get nothing; stay past it and 25% vests immediately, with the rest vesting monthly.
An employee with a one-year cliff who leaves at month eleven walks away with zero equity; the same person leaving at month thirteen keeps 25% plus one extra month.
The cliff protects the company from handing equity to people who don't stick around, a hedge against bad hires and quick departures. For employees, it means the first year is all-or-nothing, so timing a departure matters. Founders should understand cliffs on both sides: what they grant and what they hold.