Settlement Fund Shortfall UI

Quick answer

Fund shortfall UI makes award reductions explicit before money leaves escrow—not silent rounding on disbursement batches. Design DEF-FUND- deficit states* when certified claims exceed AMT-POOL-, RED-PR- pro rata reduction runs that apply plan-approved haircuts (uniform percentage, tier floor, or subclass-specific caps), and SIM-SHORT- what-if simulations* tied to subclass allocation, distribution schedules, and escrow balances. Every RED-PR-* must version LOG-RED-, require counsel APP-RED-, and drive claimant NTF-AWD-* copy before disbursement executes. Without this UI, administrators over-commit WAVE-* tranches, trigger clawbacks, or fail final accounting when bank cash cannot support FIN-AWD-* totals. Start from the Figma guides hub and pair with contested reserves, fund reconciliation, counsel payout approval, and court monitor reporting.

Who this is for

Product designers building allocation and treasury modules where claim counts can exceed settlement fund caps.
Settlement administrators running SIM-SHORT-* before each WAVE-* and publishing RED-PR-* to claimant portals.
Class counsel approving haircuts that satisfy the plan of allocation and fairness order.

Shortfall lifecycle overview

ShortfallProgram — DEF-FUND-992 · gap: $2.1M · Status: RED-PR pending approval
├── Triggers:
│   ├── CERT-CNT-* exceeds plan estimate · [subclass](/designing-breach-settlement-subclass-allocation-and-pro-rata-distribution-ui-in-figma/) overflow
│   ├── [Lien offsets](/designing-breach-settlement-lien-and-third-party-creditor-offset-ui-in-figma/) reduce net fund faster than modeled
│   ├── [Attorney fees](/designing-breach-settlement-attorney-fee-allocation-and-incentive-award-ui-in-figma/) and [admin fees](/designing-breach-settlement-claims-administrator-fee-and-expense-recovery-ui-in-figma/) draw down AMT-POOL-*
│   ├── [Appeal stayholdbacks](/designing-breach-settlement-appeal-and-mandamus-review-ui-in-figma/) lock cash outside payable pool
│   ├── Interest shortfall vs plan assumption · [escrow ALLOC](/designing-breach-settlement-claims-fund-escrow-and-interest-allocation-ui-in-figma/)
│   └── SIM-WAVE-* detects gap before TRN-DISB-* queue build
├── ID namespace:
│   ├── DEF-FUND-* (program-level deficit snapshot)
│   ├── DEF-SUB-* (subclass deficit · may roll up to DEF-FUND-*)
│   ├── RED-PR-* (approved reduction run)
│   ├── SIM-SHORT-* (simulation only · no ledger effect)
│   ├── PCT-RED-* · AMT-RED-* (haircut math outputs)
│   ├── FIN-AWD-PRE-* · FIN-AWD-POST-* (before/after award)
│   ├── LOG-RED-* · APP-RED-* (audit + counsel approval)
│   └── NTF-AWD-* (claimant determination notice link)
├── Reduction models (plan-driven):
│   ├── Uniform %: all payable claims × (1 − PCT-RED-*)
│   ├── Pro rata dollar: scale to fit AMT-POOL-* exactly
│   ├── Tier floor: never below MIN-TIER-* per subclass
│   ├── Waterfall cut: reduce SUB-C before SUB-A
│   └── Hybrid: % cap + floor · requires formula disclosure
├── Workflow:
│   ├── Detect DEF-FUND-* · block naive WAVE-* auto-run
│   ├── Run SIM-SHORT-* scenarios · export to counsel
│   ├── Counsel APP-RED-* · lock LOG-RED-* version
│   ├── Apply FIN-AWD-POST-* · queue NTF-AWD-* · update portal
│   ├── Execute WAVE-* against reduced totals · reconcile bank
│   └── Report haircut in [final accounting](/designing-breach-settlement-final-accounting-and-court-closure-ui-in-figma/)
└── Outcomes:
    ├── No disbursement exceeds funded pool
    ├── Claimants receive explainable reduction math
    └── Court monitor sees DEF-FUND-* resolution path

State	WAVE-* queue	Claimant portal
No deficit	Normal	Standard FIN-AWD-*
SIM-SHORT- only*	Unchanged	Hidden from claimants
DEF-FUND- open*	Block or cap	“Award under review”
RED-PR- approved*	Uses POST amounts	Itemized haircut
Partial cure (new funding)	Re-run SIM	Supplemental notice

Verdict: Never apply RED-PR- to claims with active RES-CLM- without plan text— pair with contested escrow rules first.**

SIM-SHORT-* simulation and counsel review UI

SimulationRun — SIM-SHORT-992-012 · scenario: uniform 8.4% · Status: Draft
├── Inputs (read-only snapshot):
│   ├── AMT-POOL-* per SUB-* · BAL-ESC-* · pending fee draws
│   ├── CERT-CNT-* · sum FIN-AWD-PRE-* · exclude RES-CLM-*
│   ├── Scheduled WAVE-* from [distribution plan](/designing-breach-settlement-distribution-schedule-and-tranche-disbursement-planning-ui-in-figma/)
│   └── Plan flags: MIN-TIER-* · haircut order · cy pres fallback
├── Scenario tabs:
│   ├── Uniform PCT-RED-* slider · live gap closure
│   ├── Pro rata scale · exact pool fit
│   ├── Subclass waterfall · SUB-* impact chart
│   └── Delay WAVE-* · wait for [interest](/designing-breach-settlement-claims-fund-escrow-and-interest-allocation-ui-in-figma/) accrual
├── Outputs:
│   ├── FIN-AWD-POST-* preview table · export CSV
│   ├── Claimants below MIN-TIER-* flagged · block scenario
│   ├── Court exhibit PDF · hash for filing
│   └── Compare to prior LOG-RED-* if re-run
└── Actions:
    ├── Submit for APP-RED-* · dual counsel sign-off
    ├── Discard · no ledger write
    └── Promote to RED-PR-* · immutable LOG-RED-* bundle

Use sliders for PCT-RED-* exploration and tables for per-subclass impact. Pair inline alerts when MIN-TIER-* violations block approval.

RED-PR-* execution and portal messaging UI

ReductionRun — RED-PR-992-003 · LOG-RED v2.1 · Status: Applied
├── Pre-checks:
│   ├── APP-RED-* signatures · effective datetime
│   ├── No overlapping RED-PR-* on same CLM-* without supersede flag
│   ├── [Status portal](/designing-breach-settlement-claim-status-portal-and-claimant-dashboard-ui-in-figma/) banner template loaded
│   └── Disbursement queue rebuilt from FIN-AWD-POST-*
├── Claimant-facing NTF-AWD-*:
│   ├── Plain language: why reduction happened (more valid claims than fund)
│   ├── Before/after table · link plan excerpt if public
│   ├── FAQ anchor · [call center script](/designing-breach-settlement-call-center-and-agent-script-ui-in-figma/) alignment
│   ├── Dispute path · [appeals](/designing-breach-settlement-claims-dispute-and-appeals-ui-in-figma/) if plan allows math challenge
│   └── Accessibility: no color-only loss indicators
├── Admin:
│   ├── Bulk regenerate NTF-AWD-* for changed CLM-* only
│   ├── Audit: who viewed reduction notice · timestamp
│   └── Rollback: blocked after TRN-DISB-* unless court order
└── Integrations:
    ├── [Counsel approval queue](/designing-breach-settlement-counsel-review-and-payout-approval-ui-in-figma/)
    ├── [Fund reconciliation](/designing-breach-settlement-fund-reconciliation-and-bank-matching-ui-in-figma/) expected outflow
    └── [Post-disbursement QA](/designing-breach-settlement-post-disbursement-qa-and-audit-sampling-ui-in-figma/) sample includes RED-PR-* cohort

DEF-SUB-* vs DEF-FUND-* rollup UI

Layer	When to use	UI owner
DEF-SUB-*	One subclass over-allocated	Subclass admin
DEF-FUND-*	Whole program gap	Treasury + counsel
RED-PR-SUB-*	Haircut scoped to SUB-*	Same as DEF-SUB-*
RED-PR-GLOBAL-*	Cross-subclass uniform cut	Program counsel

Rollup dashboard should show unexplained gap when sum of DEF-SUB-* ≠ DEF-FUND-*— usually fee timing or escrow hold mismatch.

Comparison: reduction strategies

Strategy	Claimant fairness	Ops complexity	Court risk
Uniform %	Easy to explain	Low	Low if plan allows
Pro rata scale	Mathematically exact	Medium	Medium · formula disclosure
Tier floor	Protects minimum tiers	High	Lower objection risk
Delay WAVE-*	No haircut yet	Treasury strain	Timing objections
Cy pres redirect	N/A for cash subclasses	Legal heavy	Plan amendment risk

Common mistakes

Applying RED-PR- after partial WAVE- paid at PRE amounts**— creates mixed FIN-AWD-* on one CLM-*; rebuild queue from snapshot.
SIM-SHORT- using stale CERT-CNT-**— haircut too small; second RED-PR-* erodes trust.
Hiding DEF-FUND- from court monitor dashboard*— material misstatement in monitor reports.
Reduction on provisional pay without clawback path— net negative awards confuse portal UX.
No LOG-RED- versioning*— external auditor cannot reproduce FIN-AWD-POST-*.

Recommended workflow

Wire SIM-SHORT- to WAVE- planning** · auto-flag when sum FIN-AWD-PRE-* > fundable BAL-*.
Run scenarios with counsel · pick RED-PR-* model · obtain APP-RED-* before any portal change.
Publish NTF-AWD- and waiting period* if plan requires · then rebuild disbursement batches.
Reconcile reduced outflows · update DEF-FUND-* to zero or document residual cy pres path.
Archive LOG-RED- in final accounting* exhibit pack.

FAQ

Can RED-PR-* apply only to new claimants?

Only if plan permits late-claim tiering— most plans require uniform pro rata among certified class; UI must enforce plan flag.

What if funding arrives after RED-PR-*?

Run supplemental RED-PR- or RESTORE- uplift**— never silently increase awards without notice and LOG-RED-* successor version.

Interaction with subclass DEF-SUB-*?

Subclass deficit may be cured locally— program DEF-FUND-* still needed when multiple SUB-* roll up.

Appeal during RED-PR-*?

STY- may freeze POST amounts*— do not disburse until appeal scope clears.

Tax reporting after haircut?

1099 uses actual paid amount— pair with tax reporting UI using FIN-AWD-POST-*.

Claimants who already received full PRE award?

Clawback or offset in later tranche— surface in clawback UI with clear portal timeline.

Next steps

Design breach settlement subclass allocation and pro rata distribution UI in Figma — DEF-SUB-* inputs
Design breach settlement distribution schedule and tranche disbursement planning UI in Figma — SIM-WAVE-* shortfall
Design breach settlement plan of allocation and award chart UI in Figma — authoritative tier tables
Design breach settlement payment disbursement and payout tracking UI in Figma — POST-award execution
Design breach settlement fairness hearing and class objection UI in Figma — haircut objections

Designing breach settlement fund shortfall and pro rata reduction UI in Figma: DEF-FUND-* triggers, RED-PR-* haircuts, and SIM-SHORT-* what-if runs