If that's true I take it all back, but the way I read "long-term residual" was that even after you paid it back they still got a piece of the action.
Once Return Cap is fully repaid the founder can run the business profitably forever and not pay us anything more. We do typically prefer an option for a % only if the business is sold but can do a deal (with a higher Return Cap) that excludes this easily.
"Our default terms now include a residual “stake” for Earnest after the Return Cap has been fully repaid."