No one “checks” it automatically just because Section 4.7 says GP fair value is binding. But a GP is not unconstrained.

What keeps abuse in check:
- LP diligence and reputation risk
- consistent quarterly / annual reporting expectations
- auditors, if the fund uses audited financials
- fund admin / accounting controls
- conflict and disclosure norms

In practice, marking up a portfolio opportunistically before a new fundraise is dangerous:
- auditors scrutinize methodology changes
- inconsistent valuation policy destroys LP trust
- future LPs often underwrite realized outcomes, not just marks

Best practice is a written valuation policy, applied consistently, with admin / auditor input if changed.

References:
- https://decilegroup.com/articles/venture-capital-transparency
- https://decilehub.com/base/1-general_questions/163586-how-does-audited-vs-gp-certified-financials-in-the-lpa-impact-the-gp-s-ability-to-amend-the-valuation-policy-mid-way