To understand what a SAFE is, it is important to know what it is not. It is not a debt instrument. Nor are they common shares or convertible bonds. However, SAFE`s convertible bonds are similar, as they can both provide equity to the investor in a future preferential share cycle and contain valuation caps or discounts. However, unlike convertible bonds, there is no interest and has no maturity date and, in fact, they may never be triggered to convert safe into equity. There is no obligation for the company to repay the investment or guarantee that the investor benefits from equity. The investment shall be converted into equity if, and only, the trigger for the conversion of the SAFE is obtained on the basis of subsequent qualified financing from the company.