A Conversion Discount can be used to determine the price per share at which a convertible note or SAFE will convert into equity of the Company. In the case where a convertible instrument uses a conversion discount, the instrument will convert at a price per share equal to the price per share paid by new money investors for shares issued by the company in the transaction multiplied by one minus the Conversion Discount (e.g. if there is a 20% Conversion Discount and new investors pay $1.00 per share, then the instrument would convert at a price per share of $0.80).