The risk associated with a startup is high, so I hope that a high risk will be accompanied by a high upside potential. In this context, I would like my SAFE to be subsequently „converted“ into equity. As soon as someone decides to invest in the company during a „price cycle“, my SAFE is converted into shares of the company. Equity financing is defined in the SAFE as „a bona foit transaction or series of transactions with the primary purpose of raising capital, in which the company issues and sells preferred shares as a fixed valuation of the advance“. Unlike a convertible bond, there is no threshold or minimum amount for equity financing. To complicate matters a bit, a SAFE sometimes has a discount. Since safe arrives later in front of each investor, the SAFE investor might want safe to be converted into equity with a discount on the subsequent funding cycle. Discounts are usually between 10 and 30%. To illustrate, I modeled what a 50% discount will look like.