> ## Documentation Index
> Fetch the complete documentation index at: https://docs.royaltyport.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Balances

> Contracts that create multiple separate recoupment balances, where specific costs can only be recovered from defined revenue streams

<Info>
  Structured data fields are by definition an abstraction of legal language. When in doubt, use [citations](/projects/contracts/contract-details/citations), the [AI chat](/projects/ai-chat), and the actual contract text to validate the structured data against your own interpretation.
</Info>

## Overview

The Balances extraction identifies contracts that explicitly create **multiple separate recoupment balances** — situations where certain costs can only be recouped against a specific subset of revenues, rather than against all revenues combined.

**Most contracts have a single shared balance** and will return no entries here. A balance is only extracted when the contract explicitly ring-fences costs to specific revenue streams (e.g. "video costs recoupable solely from video income", or "Album X costs recoupable only from Album X revenues").

## When Balances Are Extracted

A balance is extracted when the contract language explicitly creates segregation between a cost pool and a revenue subset — meaning a deficit in that cost pool cannot be satisfied by revenues outside that subset.

## When Balances Are Not Extracted

No balances are extracted when:

* All costs are recoupable from all revenues (a single cross-collateralized balance)
* The contract has no recoupable costs (flat fee, non-recoupable advances)
* The contract tracks costs in a named account administratively, but does not restrict which revenues can satisfy it
* Language describes a recoupment waterfall (recouped first from X, then from Y) rather than true ring-fencing

## What Gets Extracted

Each balance entry contains:

| Field       | Description                                                                                                       |
| ----------- | ----------------------------------------------------------------------------------------------------------------- |
| Title       | Short name for the balance (e.g. "Video Balance", "Album X Balance", "Carter Account")                            |
| Description | What income and costs belong to this balance                                                                      |
| Reasoning   | The AI's explanation of why this is a separate balance, citing the contract language that creates the segregation |
| Citations   | The specific contract clauses that establish the balance                                                          |

## Viewing Balances

Each balance card shows:

* **Title** — the name of the balance, with citation indicators you can hover to see the source clause
* **Description** — a plain-language explanation of the balance; long descriptions can be expanded by clicking **Read more**
* **Reasoning** — click the **Reasoning** toggle to see the AI's explanation of how this balance was derived from the contract language

## Editing Balances

Click the edit icon to:

* Add balance entries
* Modify titles or descriptions
* Remove incorrectly extracted balances