diff --git a/docs/DESIGN.md b/docs/DESIGN.md
index ce8a52c..8f049a9 100644
--- a/docs/DESIGN.md
+++ b/docs/DESIGN.md
@@ -883,21 +883,46 @@ extension (e.g. linear ownership) or be rejected at design time.
 
 ### Schema additions
 
-**Iter 18a — mode wrappers on `Type`.**
+**Iter 18a — parameter modes on `Type::Fn`.**
+
+The form-A surface for fn signatures gains mode wrappers:
 
 ```
-Type::Borrow(Box<Type>)   ; `(borrow T)` in form-A
-Type::Own(Box<Type>)      ; `(own T)` in form-A
+(fn-type (params (borrow (List Int))) (ret (con Int)))
+(fn-type (params (own (List Int))) (ret (own (List Int))))
 ```
 
-Both are transparent for unification (they erase to their inner
-`Type` for HM purposes) but carry binding mode metadata for the
-RC pipeline. Skipped during JSON serialisation when absent so
-canonical hashes of every pre-18a fixture stay bit-identical.
+Internally, this is *not* a new `Type` variant. Modes are
+metadata on `Type::Fn`:
+
+```rust
+Type::Fn {
+    params: Vec<Type>,
+    param_modes: Vec<ParamMode>,   // same length as params
+    ret: Box<Type>,
+    ret_mode: ParamMode,
+    effects: Vec<String>,
+}
+
+enum ParamMode { Implicit, Own, Borrow }   // default: Implicit
+```
+
+`Implicit` is the legacy (pre-18a) state — semantically
+equivalent to `Own` but printed bare (`(con T)`, no wrapper).
+`Own` and `Borrow` are explicitly annotated. The implementation
+keeps `Type` itself unchanged, so unification, occurs, apply,
+and ~190 other `Type` match-arms in the typechecker need no new
+branch.
+
+JSON canonical hash for every pre-18a fixture stays bit-
+identical: `param_modes` is skipped when every entry is
+`Implicit`, `ret_mode` is skipped when `Implicit`. Existing
+modules emit the same bytes as before.
+
 The legacy `(con T)` form is treated as `(own T)` semantically
 throughout the 18-series; a later iter (deferred) makes the
-explicit annotation mandatory and rejects bare `(con T)` for
-boxed parameter types.
+explicit annotation mandatory and rejects `Implicit` for boxed
+parameter types.
 
 **Iter 18c/18d — new `Term` variants.**