> 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 uses only the [internal pricing mechanism](/trading/internal-pricing-mechanism.md#prelaunch-and-pre-ipo-markets): the index price is the uncapped internal price, and the internal component used for mark pricing is capped relative to the index price (±1/L, where L is the market's maximum leverage). Before the first trades, the market starts from a reference price set at listing.

### Margin mode

Pre-IPO markets support both cross and isolated margin in the current configuration (`market_margin_mode = 0`). Query `orderBookDetails` for the current margin mode and liquidation fee.

### Funding

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

### Delisting After an IPO

Pre-IPO markets are quoted in market cap: one unit tracks one share out of an assumed total of 1 billion shares, so a price of $$1$$ represents $$1$$B of the company's fully diluted valuation.

Pre-IPO markets do not convert to share price markets. Once the company lists publicly, the market is delisted and settled at least 1 day after the IPO, at:

$$
\text{Settlement Price} = \frac{\text{Share Price} \times \text{Fully Diluted Share Count}}{1{,}000{,}000{,}000}
$$

$ANTHROPIC will settle and be delisted 5–10 minutes before market close on the first Friday following the IPO.

**Source document.** The fully diluted share count is taken from the company's final prospectus (Form 424(b)) if it is filed before the first official opening trade of the listed shares; otherwise from the most recent amended registration statement (S-1/A or equivalent) filed before that time.

**Fully diluted share count.** Where the source document states a total as-converted, fully diluted share count, that figure is used. Shares with no economic rights (e.g., single control shares) are not counted. In all cases, the count excludes shares reserved for future grants under equity plans and new shares issued after the IPO.

If the source document does not state such a total, the count is the sum of the following, as stated in that document:

* all shares outstanding immediately after the offering, across every share class;
* all outstanding stock options, regardless of exercise price;
* all outstanding restricted stock units; and
* all outstanding convertible securities (such as convertible notes and warrants), counted as the number of shares they convert into at their fixed conversion price, regardless of ownership caps or when they convert.

**The share count is fixed.** It is set once from the source document and does not change with later issuance, buybacks, option exercises or RSU vesting. Because the count is fully diluted, the implied market cap may differ from the market cap shown by public data providers, which typically use the current count of basic shares outstanding.

If an IPO is delayed or withdrawn, the market keeps trading under the pre-IPO methodology. In cases where the price diverges significantly due to stock splits, the market may be settled earlier.

#### Worked example

Illustrative numbers only. Suppose the fully diluted share count is set at $$16{,}200{,}000{,}000$$. One unit then represents $$16.2$$ shares.

| Moment                                | Share price | Market price                    |
| ------------------------------------- | ----------- | ------------------------------- |
| Day before listing                    | — (pre-IPO) | $$1{,}800$$                     |
| Listing opens                         | $$$115.00$$ | $$115 \times 16.2 = 1{,}863$$   |
| Settlement (at least 1 day after IPO) | $$$116.00$$ | $$116 \times 16.2 = 1{,}879.2$$ |

The price does not drop from $$1{,}800$$ to $$$115$$: it stays in market cap units, so the move from $$1{,}800$$ to $$1{,}863$$ is the valuation changing ($$+3.5%$$). A long position of 1 unit opened at $$1{,}800$$ settles at $$1{,}879.2$$.


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