CONVERTIBLE BONDS

Convertible Bond Events

ISSUANCE COUPON_PAYMENT TRANSFER CONVERSION MATURITY

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Convertible Bond Smart Contract Data Flows

ISSUANCE

1. Issuer approves convertible bond offering with conversion ratio and price.

2. Admin whitelists investors in Authorization Module.

3. Transfer Agent Module mints bond tokens to investor wallets.

4. Investors wire purchase price to issuer off chain.

5. Bond Token stores conversion terms in contract metadata.

COUPON_PAYMENT

1. Bond reaches scheduled coupon date.

2. Admin calls Transfer Agent Module with coupon rate.

3. Transfer Agent Module reads all holder balances from Bond Token.

4. Transfer Agent Module calculates coupon per holder.

5. Paying agent wires coupon to each holder off chain.

TRANSFER

1. Seller and buyer agree on price off chain.

2. Broker submits transfer to Transactional Module.

3. Authorization Module verifies both parties whitelisted.

4. Transfer Agent Module moves bonds from seller to buyer.

5. Buyer wires price to seller off chain.

CONVERSION

1. Holder elects to convert bonds to equity.

2. Holder submits conversion request to Transactional Module.

3. Transfer Agent Module reads conversion ratio from bond metadata.

4. Transfer Agent Module burns bond tokens from holder wallet.

5. Transfer Agent Module calculates equity shares = bond par × conversion ratio.

6. Transfer Agent Module mints equity shares on Equity Token to holder wallet.

7. Holder now owns common stock instead of bonds.

MATURITY

1. Bond reaches maturity date.

2. Admin calls Transfer Agent Module.

3. Transfer Agent Module reads all remaining holder balances.

4. Transfer Agent Module burns all bond tokens.

5. Paying agent wires par value to each holder off chain.

6. Bond contract marked inactive.