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Dividends and stock splits can change the S value of an Ondo tokenized stock and the equivalent balance displayed on Ondo Perps. The underlying GM token remains the asset held by the user.

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The S value

The S value measures the underlying share exposure represented by each GM token. Ondo Perps uses the applied S value to calculate the displayed equivalent quantity: token quantity multiplied by S. For example, 10 SPYon with an applied S value of 1.02 is displayed as 10.20 SPY equivalent. The user holds SPYon. The SPY equivalent balance is a display representation, not a separate holding of shares. When a dividend or split changes S, the displayed equivalent quantity changes. That adjustment alone does not change the number of GM tokens held. The adjustment is reflected in the affected tokenized stock’s displayed balances, including the user’s Spot and Perps balances. No user action is required for the display adjustment.

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Dividends

Cash dividends are reinvested within the underlying tokenized stock and reflected in its S value. When the updated S value is applied on Ondo Perps, the displayed equivalent balance increases. The adjustment does not increase the number of GM tokens held or credit a separate cash or USDC payment to the user’s wallet. A dividend adjustment does not cancel resting orders. Open orders keep their original size; the increase in displayed equivalent quantity is reflected in the available balance. Example: 100 SPYon at S = 1.000 is displayed as 100 SPY equivalent. If the applied S value increases to 1.004 following a dividend, the display becomes 100.4 SPY equivalent. The underlying holding remains 100 SPYon, assuming no other activity. A change in the displayed equivalent balance does not by itself establish a change in collateral value. The amount that contributes to margin depends on the applicable reference price and collateral rules.

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Stock splits

A forward split increases S by the split ratio; a reverse split reduces it. The displayed equivalent quantity changes with S. The corresponding price per equivalent unit reflects the split. Example: 10 NVDAon at S = 1.000 is displayed as 10 NVDA equivalent. At a reference price of USD 1,200 per equivalent unit, the displayed value is USD 12,000. A 10-for-1 split changes S to 10.000 and the display to 100 NVDA equivalent. At the corresponding split-adjusted reference price of USD 120, the displayed value remains USD 12,000. The user still holds 10 NVDAon. This example assumes no other activity or market-price change. During a split adjustment:
  • Ondo Stocks can pause token transfers while the split is processed.
  • Ondo Perps holds the affected collateral reference price fixed during its adjustment window. Liquidation continues to run against the held price.
  • Funding and withdrawals on Ondo Perps remain subject to their usual checks and applicable transfer availability.
  • Resting orders in the affected spot market are cancelled before the adjustment. Replacement orders can be placed after the market reopens.

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Reverse splits

A reverse split reduces the displayed equivalent quantity without reducing the number of underlying GM tokens held through the adjustment alone. Resting orders must be cancelled and in-flight withdrawals must settle before the adjustment can proceed for the affected asset. Amounts reserved for those actions must first be released.