Eligibility
Dilution protection can be set on a contract, an individual investor, an option pool, or an option offer, whether or not that position already holds issued shares. It is commonly applied to a position that already has issued shares, so that later financing rounds do not reduce its percentage.
Set dilution
- Open the relevant contract, investor row, option pool, or option offer.
- Choose "Mark as dilutable" or "Mark as non-dilutable" (shown as "Mark investor as..." for a single investor).
- Confirm the action in the dialog. It applies immediately; there is no draft or pending state.
- Reconcile the resulting ownership with your financing terms.
Why the action may be unavailable
- Changing a single investor, pool, or offer needs Company editor access; changing every investor on a contract at once with one action needs Company administrator access.
- The contract, investor, pool, or offer has not been created yet.
Verify the result
After confirming, check the contract or investor's dilution badge (Dilutable or Non-dilutable) and, on the next issuance, confirm that non-dilutable positions received the top-up shares or reserves needed to preserve their percentage while other positions absorbed the dilution.
Correct the source, not the output
If the result does not match your financing terms, stop and review valuation, investment amount, contract type, investor identity, and included reserves or pools before changing the dilution flag again. Do not toggle dilution merely to force a target percentage.