Description
Choose the lower of supplied SAFE cap and discount prices, using an explicit policy for exact ties.
Equity percentages depend on the share base, issuance timing and security terms. A primary investment, option-pool expansion, vesting rule and liquidation preference change different parts of ownership or payout arithmetic; a local formula does not establish legal rights.
Choose the lower of supplied SAFE cap and discount prices, using an explicit policy for exact ties.
When to use this tool
Use Safe Cap Discount Tie Token when checking one explicit equity, vesting or payout convention.
How to use the tool and how it works
- Enter capPrice, discountedPrice, equalityPolicy. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read chosenPrice, selectedBasis, tied. Inspect tied before interpreting the associated values.
Require positive capPrice and discountedPrice and equalityPolicy exactly cap or discount. chosenPrice is their minimum; selectedBasis identifies the lower price, using equalityPolicy only for exact equality; tied records that equality.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| capPrice | Cap Price | Required. Finite number; strictly above 0. |
| discountedPrice | Discounted Price | Required. Finite number; strictly above 0. |
| equalityPolicy | Equality Policy | Required. Text; one of "cap", "discount"; maximum UTF-16 length 8192. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| chosenPrice | Chosen Price | Required. Finite number. |
| selectedBasis | Selected Basis | Required. Text; maximum UTF-16 length 8192. |
| tied | Tied | Required. Boolean. |
{
"input": {
"capPrice": 2,
"discountedPrice": 2,
"equalityPolicy": "cap"
},
"output": {
"chosenPrice": 2,
"selectedBasis": "cap",
"tied": true
}
}Limitations and assumptions
- Prices must share a currency per share. This only compares supplied candidate prices; it does not derive SAFE conversion prices or interpret financing documents.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile the complete capitalization table and relevant agreements before using a local share or payout term in a financing decision.
References
Similar or alternative tools
- Option Pool Shuffle Pre Post Money Gap
Solve a pre-money option-pool top-up and investor issuance for a specified post-round pool fraction.
- Funding Round Ownership Factor
Calculate post-money value and old/new ownership fractions for a simple primary equity investment.