Ask HN: Design work for a VC fund for LP allocation

I run a web design and engineering studio. A single GP venture firm approached up and wants our work in exchange for the LP allocation in the fund, equal to the arbitrary value of rendered work, namely $50k.

The fund target raise is $38M, 1.5% management fees and 20% carry

Here are some more information I got from him:

"$750,000 is the GP commitment (2% of total raise). I will "assign" the value of our project (ie: $50K) out of the commitment to you. You will then share in profits and losses (as if a GP) pro-rata.

Some details: Investment profits capped at 4x initial investment ($200K total) Legal fees will be split "50/50" — The Firm will actually pay 100% but your half would be docked from "invested amount (project fees waived into Fund)" ie: Let's say legal fees for side letter creation = $2000 —then your "net" investment amount = $49K, etc"

"Fund lifecycle: 10 +/- years from final close to fully exited. On average will begin to see distributions / returns anywhere from 5-7 years into the fund then won't stop until fully exited. "

"The GP commitment is = to LP capital as far as rights, roles, etc — this is option 3 expressed in the legal sense. Essentially as a GP I still have to put up money (essentially my "LP" investment amount). So the entire GP commitment must be returned (1x) before "carry" is instituted (20% of >1x profits) — the benefit of being the GP is I don't pay carry on my portion ($750K) … ie: after the 1x hurdle you too will now share in profits pro-rata (not affected by carry) until you hit the profit cap. This is actually the most advantageous position you can be in regarding VC roles."

"As far as profit-sharing cap — 4x is where I've landed - this is open to discussion but would not be able to do 10x or anything crazy like that. At a 4x cap you would still greatly outperform the market over the course of the fund's life. Let me know your thoughts!"

My gut feel is that I can totally write off this investment given the probablity of return, inflation. 4x cap seems low given the risk imo.

Also, I think rendering work this way might lead to endless revisions "I'm not granting you the LP allocation until it's done on my terms" etc.

What am I missing?