> ## Documentation Index
> Fetch the complete documentation index at: https://docs.equa.cc/llms.txt
> Use this file to discover all available pages before exploring further.

# Convertible Instruments Guide

> Learn how to manage SAFEs, convertible notes, and conversion workflows in Equa

# Convertible Instruments

> **Status:** DRAFT
> **Last Updated:** 2026-02-22
> **Audience:** End users (company administrators, founders, legal/finance teams)

***

## What This Feature Does

Convertible instruments let you track SAFEs (Simple Agreement for Future Equity), convertible notes, and other agreements that can later convert into equity. You can add instruments to a funding block, attach notes (e.g., individual investments), and run conversions so that note holders receive shares according to your terms.

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## Why It Matters

Early-stage companies often raise with SAFEs or notes instead of issuing shares immediately. Keeping these in Equa gives you one place for your cap table, conversion triggers, and post-conversion ownership—so when you're ready to convert, the process is clear and auditable.

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## Prerequisites

Before you begin, make sure you have:

* [ ] An active Equa account with permission to manage the organization's capitalization
* [ ] A capitalization block (funding round) already created for your organization
* [ ] Decided instrument type (e.g., SAFE, convertible note) and key terms

***

## Step-by-Step Walkthrough

### Step 1: Open Convertible Instruments

1. Select your **organization** in the sidebar.
2. Go to **Capitalization**, then open the **funding block** (e.g., Seed, Series A) you want to add convertibles to.
3. In the block, click **Convertible instruments** to open the list.

### Step 2: Add a New Convertible Instrument

1. On the Convertible instruments page, click **New instrument** (or **Add SAFE** / **Add note**, depending on UI).
2. Choose the **instrument type** (e.g., SAFE, convertible note).
3. Enter the main terms (e.g., valuation cap, discount, principal, maturity if applicable).
4. Save the instrument.

### Step 3: Add Notes to an Instrument

1. Open an existing instrument from the list (click its row or **View**).
2. On the instrument detail page, go to the **Notes** section.
3. Click **Add note** and enter holder, amount, and any note-specific terms.
4. Save. The note appears under that instrument.

### Step 4: Run a Conversion

1. Open the **instrument** that has notes ready to convert.
2. Open a **note** and go to **Conversion** (or use the conversion action from the instrument view).
3. Follow the conversion flow: confirm conversion terms, number of shares, and any rounding rules.
4. Complete the conversion. The note converts to equity and the cap table updates.

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## Common Tasks

### How to Edit an Existing Instrument

1. Navigate to **Organization > Capitalization > \[block] > Convertible instruments**.
2. Click the instrument you want to change.
3. Click **Edit** and update the terms (e.g., valuation cap, discount).
4. Save. Existing notes keep their link to the instrument.

### How to Edit or Add a Note

1. Open the instrument from the convertible instruments list.
2. To add: click **Add note** and fill in holder and amount.
3. To edit: open the note and click **Edit**, then change fields as needed and save.

### How to View Conversion History

1. Open the instrument or note that was converted.
2. Check the **Conversion** or **History** section for the conversion date, share count, and resulting shareholding.

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## Tips and Best Practices

* **Keep blocks tidy:** Use one funding block per round (e.g., "Seed 2024") and add all SAFEs/notes for that round to the same block.
* **Document terms:** Enter valuation cap and discount (and maturity for notes) when you create the instrument so conversion calculations are correct later.
* **Review before converting:** Run through the conversion screen once in test mode if available, or double-check share counts and rounding before confirming.

<Tip>
  If you use standard SAFE templates (e.g., YC post-money SAFE), align the fields in Equa with your signed documents so conversion matches your legal terms.
</Tip>

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## Troubleshooting / FAQ

<AccordionGroup>
  <Accordion title="Why can't I see Convertible instruments?">
    You need access to the organization and to the specific capitalization block. If you don't see **Capitalization** or **Convertible instruments**, your role may not include cap table or finance permissions. Ask an org admin to update your role.
  </Accordion>

  <Accordion title="I get an error when running a conversion">
    Common causes: (1) The note or instrument is missing required terms (e.g., valuation cap). (2) The target security or share class doesn't exist in the block. (3) A required approval or step in your process hasn't been completed. Check the error message and fix the missing data, then try again.
  </Accordion>

  <Accordion title="How do I handle multiple notes under one SAFE?">
    Create one instrument (e.g., "Seed SAFE") and add multiple notes for each investor or amount. Each note can have its own principal and conversion terms; conversion can be run per note or in bulk depending on your workflow.
  </Accordion>
</AccordionGroup>

***

## Related

* [Spec: Convertible instruments](/specs/006-convertible-instruments/spec)
* [Managing Your Cap Table](/guides/managing-your-cap-table) — Cap table and security types
* [Issuing Equity](/guides/issuing-equity) — Issuing shares and certificates
* [Creating Agreements](/guides/creating-agreements) — Governing documents and categories
* [Guides index](/guides/index)