> ## Documentation Index
> Fetch the complete documentation index at: https://docs.star.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# ACE

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**Status: Available on request.** [Book a call](https://cal.com/adam-bergeman/founder-call) to set it up.

ACE (Asset Conversion to Equity) is an equity conversion framework by [MetaLeX](https://www.metalex.tech/). Eligible token holders convert a part of their tokens into an **ACE SAFE**: a modified Y Combinator SAFE, denominated in your token instead of dollars. Holders keep their unconverted tokens, so a participant holds both an equity position and a token position.

## How a conversion works

1. The holder opens the round through a link that you share.
2. The holder selects an amount, inside the minimum and maximum ticket sizes that you set.
3. The holder passes nationality and sanctions screening, and KYC/AML verification.
4. The holder signs the SAFE and transfers the tokens.
5. The holder receives a **cyberCert**: an ERC-721 certificate of the SAFE position. It is non-transferable by default.

## The ACE SAFE

| Property       | Behavior                                                                |
| -------------- | ----------------------------------------------------------------------- |
| Denomination   | Purchase amount and valuation cap are set in your token, not in dollars |
| Equity type    | Common stock at conversion                                              |
| Certificate    | An ERC-721 cyberCert, with regulatory legends in the metadata           |
| Round duration | Guaranteed by smart contract. Nobody can close the round early          |
| Funding cap    | The only trigger that closes a round before its end                     |

## What happens to converted tokens

Your company receives the tokens as the SAFE purchase price and holds them under treasury covenants:

* The tokens are **locked** for a set period (one year in the MetaLeX pilot; configurable).
* The company cannot sell, loan, or collateralize them during the lock.
* The company can burn them to reduce supply.
* After the lock, the tokens are a corporate asset for the benefit of all equity holders.

## The valuation cap sets the signal

| Cap                                     | Effect                                                  |
| --------------------------------------- | ------------------------------------------------------- |
| High (for example 500% of token supply) | Modest equity per token. Alignment and insurance        |
| Medium (100% of supply)                 | Parity between token value and equity value             |
| Low (50% of supply)                     | Aggressive equity per token. A reward for the community |

## Eligibility

The MetaLeX pilot runs under Regulation S: non-U.S. persons, verified by zero-knowledge passport proof. Outside the pilot, U.S. accredited investors can participate under Regulation D. The token itself does not become a security: the SAFE is the security, and the token is the payment method.

## When to use it

Use ACE when your backers want a path to real equity but the raise and the early ownership should stay liquid. Conversion is optional for each holder and priced by the terms that you set.