Common contract structures
- Equity — records an agreed purchase or allocation of shares.
- SAFE or investment reserve — records an instrument intended to convert according to its terms.
- Convertible debt — records principal, interest, maturity, and conversion or repayment terms.
- Stock option — records a right that follows the stock option plan and vesting conditions.
How to choose
Use the executed legal instrument as the source of truth. Select the Eqdeal type that matches its economic behavior, not merely the label used informally by the parties.
Pause before recording the contract and obtain appropriate legal or accounting guidance. Eqdeal documentation explains product behavior but does not classify the instrument for you.
Check the economic behavior
Identify whether the instrument represents immediate equity, a future conversion, debt with principal and interest, a reserve, or an option governed by vesting. Then confirm valuation, discount, cap, maturity, class, price, and conversion or repayment rules that the selected workflow supports.
Do not change type to force a result
If the preview does not match the instrument, review the source terms and workflow configuration. Selecting a different contract type merely to obtain a preferred ownership percentage can corrupt later conversion, repayment, and issuance history.