> For the complete documentation index, see [llms.txt](https://docs.lighter.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lighter.xyz/trading/real-world-assets-rwas/pre-ipo-markets.md).

# Pre-IPO Markets

Pre-IPO markets follow the same design as other RWA markets, with a few important differences.

### Pricing

Pricing is determined only by the internal pricing mechanism.

This mechanism works the same way as for RWA markets, except **Pre-IPO markets do not have price caps**.

### Margin mode and liquidations

Pre-IPO markets operate in **isolated mode only**.

### Funding

Funding works the same way as standard perp markets, the only difference being that the [FundingPremiumMultiplier](/trading/funding.md#funding-rate-calculation) is set to 1/100.

### Conversion and Settlement

Pre-IPO markets are converted to normal markets as soon as there is a stable price feed available, after the IPO.

In cases where the price diverges significantly due to stock splits, the market might be settled before.