# Convertible Note Conversion Engine AI Agent Connect

> Convertible Note Conversion Engine handles the heavy lifting for convertible note math. It calculates conversion shares, effective prices, and investor equity percentages by processing principal, interest, valuation caps, and discount rates. Your AI client can model different financing scenarios or evaluate MFN clauses without manual spreadsheet errors.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_AmbligF3slyoYzJVwPUPoaaSWgXGauryr97R4RMs/ai-agent-connect
- **Tags:** convertible-notes, equity, valuation-cap, dilution, cap-table

## Description

Managing convertible notes shouldn't involve manual math errors in a spreadsheet. This MCP gives your AI client the ability to run precise financial models for note conversions. You can feed it principal amounts, interest rates, valuation caps, and discount rates to get immediate answers on conversion shares and equity ownership. 

Whether you are looking at a single note or need to see how a whole round of notes impacts your cap table, this tool handles the math. You can test how different valuation caps change your dilution or check if a Most Favored Nation clause applies to a specific holder. It turns your agent into a specialized financial analyst that understands the relationship between debt, interest, and equity conversion.

## Tools

### aggregate_multiple_notes
This tool sums the impact of several convertible notes converting at the same time. It calculates the total dilution caused by a group of notes.

### calculate_mfn_adjustment
This tool evaluates Most Favored Nation clauses. It determines if a note holder is entitled to switch to better terms based on new issuances.

### compare_scenarios
This tool models different financing outcomes. It shows the difference in equity ownership between two distinct scenarios.

### get_conversion_summary
This tool provides the primary conversion metrics for a single note. It outputs shares and price data for one specific instrument.

## Prompt Examples

**Prompt:** 
```
Calculate the conversion for a $100,000 note with 5% interest, a $5,000,000 valuation cap, a 20% discount, and a next round price of $1.00 with 10,000,000 pre-money shares.
```

**Response:** 
```
The total conversion amount is $105,000. With a cap price of $0.50 and a discount price of $0.80, the conversion price is $0.50. This results in 210,000 conversion shares and an equity percentage of 2.05%.
```

**Prompt:** 
```
Compare two scenarios: Scenario A has a $4M cap and Scenario B has a $6M cap, both with a 20% discount and $1.00 next round price, given 10,000,000 pre-money shares.
```

**Response:** 
```
Scenario A results in a higher equity stake due to the lower valuation cap. The equity delta between the two scenarios is 0.55%.
```

**Prompt:** 
```
I have a note with a $5M cap and 10% discount. A new note is issued with a $4M cap and 15% discount. Should I switch terms?
```

**Response:** 
```
Yes, switching to the new terms is more favorable as both the valuation cap is lower and the discount rate is higher.
```

## Capabilities

### Single Note Math
Your agent calculates shares and prices for an individual note.

### Multi-Note Aggregation
Your agent sums the total impact of multiple notes converting simultaneously.

### MFN Clause Evaluation
Your agent checks if note holders qualify for better terms under MFN provisions.

### Scenario Modeling
Your agent compares how different caps or discounts change equity ownership.

## Use Cases

### Dilution Modeling
Calculate how much equity is lost when multiple convertible notes convert during a priced round.

### Term Comparison
Compare a $4M cap against a $6M cap to see the exact difference in ownership percentage.

### MFN Verification
Determine if a new note with better terms triggers a Most Favored Nation adjustment for existing holders.

### Cap Table Prep
Generate a summary of conversion shares and effective prices for a financing update.

## Benefits

- Eliminates manual calculation errors in equity modeling.
- Provides instant comparisons between different valuation caps.
- Automates the checking of MFN clause eligibility.
- Aggregates multiple notes to show total dilution impact.

## How It Works

Connect your AI client to Vinkius to start running financial models immediately.

1. Connect your AI client to the Vinkius platform.
2. Provide the note details like principal, interest, and cap to your agent.
3. The agent calls the specific conversion tool needed.
4. Receive precise share counts and equity percentages in your chat interface.

## Frequently Asked Questions

**What can this MCP calculate?**
It calculates conversion shares, effective price per share, and investor equity percentages based on note terms.

**Can I model multiple notes at once?**
Yes, the aggregate_multiple_notes tool calculates the combined impact of several notes converting at the same time.

**How does it handle MFN clauses?**
The calculate_mfn_adjustment tool determines if a note holder should switch to more favorable terms based on an MFN clause.

**Which AI clients can use this?**
You can use this with any MCP-compatible client, including Claude, Cursor, Windsurf, and VS Code.

**Do I need to host this myself?**
No, Vinkius hosts and manages the MCP for you. You just connect your client and start using the tools.