Core concepts
Settlement and corporate actions
Ordinary dividends are the normal case. Everything structural follows the issuer’s adjustment of the underlying token.
Dividends flow to YT as described elsewhere. Corporate actions that change the token itself — stock splits, reverse splits, spin-offs, mergers, delistings — follow whatever adjustment the issuer applies to the underlying token, and Unlockable markets adjust with it.
| Event | What happens to the market |
|---|---|
| Ordinary dividend | Accrues to YT and becomes claimable in USDG. Nothing else changes. |
| Stock split or reverse split | Unit counts and prices are multiplied and divided on both PT and YT. Nobody’s value changes. |
| Spin-off | The market adjusts in line with the issuer’s treatment of the token. |
| Cash merger or delisting | The market settles at the event. PT redeems against the final token value; YT collects any final eligible distribution the event produces. |
Early settlement is the safety valve#
When an underlying stops existing in tradeable form, waiting for a maturity date would strand both sides of every split against it. Settling the market at the event instead keeps PT and YT redeemable for exactly what the token itself became.