Choose the correct contract type

Compare equity, SAFE, convertible debt, options, and reserves.

Last reviewed: 2026-08-25

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.

When uncertain

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.