LARP – Revenue infrastructure for serious founders

Is this legal?

Yes. LARP facilitates mutual service agreements between consenting, verified business entities. Each agreement specifies genuine deliverables and genuine consideration, and each party independently recognizes revenue under ASC 606 upon satisfaction of its performance obligation. Bilateral commercial arrangements — including reciprocal vendor relationships, strategic partnerships, and vendor financing — are longstanding and lawful features of commercial practice, and are widely used by public companies today.

Customers are solely responsible for determining whether their use of the platform complies with applicable accounting standards, disclosure obligations, and securities law. LARP does not provide accounting, legal, or tax advice. Our platform records what our customers instruct it to record.

How is this different from round-tripping?

Round-tripping refers to sham transactions with no economic substance, entered into for the purpose of inflating reported results. LARP requires that all agreements specify genuine deliverables. Determining whether a given arrangement has economic substance is the responsibility of the customer and its auditors.