Two token features work as a pair to convert one instrument into another. The conversion feature sits on a loan or convertible token and prices each conversion. The conversion minter sits on the target token and mints the result for the conversion features it lists. Set a pair up in this order: issue the target token with the conversion minter, issue the loan token with the conversion feature pointing at that target, then add the conversion feature's address to the minter's converters. A conversion fails when the target token has no conversion minter or the minter does not list the conversion feature.
A token feature is a module attached to one token. An account with the token's governance role attaches, detaches and configures it after issuance where the feature allows it, and each entry names any other role an action needs. The DALP Library is the catalogue of instrument templates that ship with the platform, and each entry says which of them include the feature.
Conversion
Turns a holder's balance of a loan or convertible token into newly minted target tokens at a price that a trigger sets. Governance publishes a trigger, the priced offer a holder converts against, such as a financing round. A trigger holds the round price per target token. The custodian can also force a conversion for a holder, without the holder's signature. The effective price is the round price less the discount, rounded down, and limited to the price cap when one is set. The converted principal, plus accrued interest when interest converts, divides by that price to give the target amount, rounded down to the target token's decimals. The loan side then reduces its exposure with the debt method, and the target token's conversion minter mints the result. The call is atomic: a failed mint reverts the principal reduction. Choose it for convertible notes, SAFEs, and warrants. The platform values the loan token one for one in the denomination asset, so a loan token worth less or more than one unit still converts at one. The DALP Library includes it on four templates: Carbon Credit, Convertible Note, SAFE, and Warrant.
The conversion feature on the loan token and the conversion minter on the target token point at each other, and the minter mints only for listed converters.
All fourteen settings are fixed at issuance, except the window, which governance can change later. The Issue asset form shows the first six rows of the table, with the target token first, and an “Include accrued interest” switch for include. The other settings take their defaults, and you set them in the template's feature settings or through the Platform API.
The debt method decides what happens to the loan tokens. Burn destroys the converted principal. Lock moves it to the escrow account, which then holds it. MarkConverted moves nothing: the holder keeps the loan tokens, but converted tokens can no longer be transferred or burned, and “convert all” converts only the unconverted balance. No Library template pins Lock or MarkConverted. MarkConverted also blocks attaching interest yield or fixed treasury yield later, and it rejects a partial conversion while a fixed treasury yield feature is attached.
After issuance, governance publishes and disables triggers and changes the conversion window. The window is a conversion setting, but the Platform API route that updates it is addressed with the feature name conversion-minter. Neither the Console nor the Platform API rotates or detaches the conversion feature, so through the platform no other term changes. On chain, the token's governance role can still replace the whole feature list, conversion included. A holder converts the holder's own balance and, when interest converts, the holder's accrued interest. A full conversion that would close accrual while convertible interest remains first needs that interest drained. The Platform API drains it in up to 10 rounds before it converts. A forced conversion skips that check. The custodian role can force a conversion. Token conversion walks through publishing a round, holder and forced conversions, and what the holder sees.
A holder with 100,000 loan tokens, all with 18 decimals, converts against a trigger with a round price of 2.50. The discount is 20%, the cap is 1.80, accrued interest is 3,000, and interest converts. The discounted price is 2.00, so the cap lowers the effective price to 1.80. The value is 100,000 plus 3,000, which gives 103,000. The holder receives 103,000 divided by 1.80, which is 57,222.22 target tokens. Without the cap the holder would receive 51,500, and without interest 55,555.56.
A conversion that rounds to zero target tokens is rejected, so a decimal mismatch cannot burn principal for nothing. When rounding drops part of a target token, the conversion record keeps that fraction, and Conversion History shows it under the target tokens received. 100 notes with 18 decimals, converted at 0.72 into a target with 0 decimals, give 138 target tokens, and the row shows 0.888888888888888888 lost to rounding. Nothing pays the fraction out. The conversion feature has a second generation, the newer feature implementation that Token features describes. It retires the principal as a booked movement, a movement the token executes outside the fee and rewrite features, so a transaction fee or an external fee on the loan token takes no part of the principal. Both generations share one configuration. The figure on this page shows how the loan and target tokens pair, and the corporate action “conversion” in Corporate actions runs it for a bond.
Each conversion counts once in the totals, by its conversion identifier. For the feature, the platform keeps the number of conversions, the principal converted, the interest converted and the target tokens issued. For each trigger it keeps the number of conversions and the principal converted, and for each holder it keeps the principal converted. A repeated event for a recorded conversion does not change a total.
Conversion minter
Sits on the target token and mints there only for the conversion features on its allow list. A call from any other address is rejected. Each conversion has a unique identifier, and the minter marks it used before it mints, so a replay fails on the loan side and on the target side. It records the recipient, the amount, the loan token, the converter, and the trigger for each issuance. Choose it on any token that other instruments convert into. The DALP Library includes it on two templates: Carbon Credit and Convertible Target Equity. Neither lists a converter.
After issuance, an account with the governance role and the Supply management or admin role adds converters, because an authorised converter mints on the target token. Governance alone removes them. The Console action “Add converter” takes the conversion feature's address on the loan token. A wallet or other contract that is not a conversion feature is rejected. The second generation mints as a booked movement, so a fee on the target token takes no part of the issued tokens. Detaching the minter while a conversion is live leaves every conversion on that pair reverting. Corporate Action covers the conversion as a corporate action.