> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ondoperps.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Corporate actions

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.

## 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.

| Item                                                      | Effect of a dividend or split adjustment                      |
| :-------------------------------------------------------- | :------------------------------------------------------------ |
| Underlying GM token, for example SPYon                    | Remains the asset held by the user                            |
| Number of GM tokens                                       | Unchanged by the adjustment alone                             |
| S value                                                   | Changes                                                       |
| Displayed equivalent quantity, for example SPY equivalent | Changes with the applied S value                              |
| Collateral value and contribution to margin               | Depend on the applicable reference price and collateral rules |

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.

## 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.

## 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.

## 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.