# SAFE Conversion Engine AI Agent Connect

> Calculate SAFE conversion metrics, dilution impact, and pro-rata rights.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_l2i9ases7XheMKc7YnZed4BC3w3GEsi6Unn2I0XW/ai-agent-connect
- **Tags:** safe, equity, dilution, cap-table, startup

## Description

This MCP server provides a specialized financial calculation engine for SAFE (Simple Agreement for Future Equity) instruments. It allows AI agents to determine precise equity outcomes following priced rounds. Use `calculate_basic_conversion` to find conversion prices and ownership, `simulate_dilution_impact` to model how new capital affects existing holders, and `apply_pro_rata_rights` to calculate necessary investments to maintain ownership stakes. It also supports `compare_safe_versions` to analyze different term scenarios.

## Tools

### apply_pro_rata_rights
Calculates the additional investment required for an investor to maintain their ownership percentage

### calculate_basic_conversion
Determines the core conversion metrics for a single SAFE instrument

### compare_safe_versions
Analyzes how different SAFE instrument terms affect the final outcome for the same investment

### simulate_dilution_impact
Evaluates how existing SAFE holders are diluted by new investors in a priced round

## Prompt Examples

**Prompt:** 
```
Calculate the conversion for a $500,000 SAFE with a $5,000,000 valuation cap and a 20% discount for a $10,000,000 next round.
```

**Response:** 
```
The conversion price is $0.50 per share, resulting in 1,000,000 shares issued and an ownership stake of 5.0%.
```

**Prompt:** 
```
How much should I invest to maintain 10% ownership if the current valuation is $2,000,000 and $500,000 is being raised?
```

**Response:** 
```
To maintain 10% ownership, the required investment is $55,555.56.
```

**Prompt:** 
```
Compare a $100,000 investment with a $5M cap versus a 20% discount for a $10M next round valuation.
```

**Response:** 
```
The $5M cap scenario results in a $0.50 conversion price and 200,000 shares, while the 20% discount scenario results in a $0.80 conversion price and 125,000 shares.
```

## Frequently Asked Questions

**What is a SAFE?**
A SAFE is a financial instrument used by early-stage startups to raise capital, providing a contractual right to receive equity during a future priced financing round.

**How does the tool handle different SAFE versions?**
The `calculate_basic_conversion` tool accepts a `safeType` parameter to account for different instrument versions like Standard_YC or Custom_Institutional.

**Can I simulate how a new funding round affects my ownership?**
Yes, you can use the `simulate_dilution_impact` tool to evaluate how existing SAFE holders are diluted by new investors in a priced round.