The Cornerstone LPA does **not default to only one** waterfall in the abstract: **v3 supports both**:

- **American / deal-by-deal**
- **European / whole-of-fund**

That said, for most **first-time or emerging managers**, Decile generally recommends **defaulting to the European / whole-of-fund waterfall** because it is more LP-friendly and simpler to defend. Start Fund also uses a **European waterfall**.

References:
- https://decilehub.com/base/7129-ai_toolkit_feedback/163743-cornerstone-lpa-standard-docs-faster-cheaper-setup-gp-edits-economics-only
- https://decilehub.com/base/1-general_questions/164013-cornerstone-lpa-v3-section-3-2-offers-a-choice-between-deal-by-deal-american-and-whole-of-fund-european-distribution-for-a-first-time-manager-raising-a-sub-25m-fund-which-does-decile-recommend-defaulting-to-and-what-clawback-and-escrow-mechanics-attach-to-the-american-option
- https://decilehub.com/base/1-general_questions/90454-does-start-fund-use-american-or-european-waterfall