Splitting a position

Splitting deposits an eligible position into the vault for a specific corporate action and issues the two resulting tokens.

Steps

1. 1.Choose the underlying you hold.
2. 2.Choose the corporate action to separate. Each has its own ex-date, payment window and declared payout.
3. 3.Enter the quantity to deposit. You receive one principal token and one distribution token per unit.
4. 4.Choose what happens next: keep both, sell the rights immediately, or compose them into a basket.

What determines the split value

The distribution token is worth the declared payout less the cost of carry to the payment date and a premium for settlement risk. The principal token is worth the balance: the spot price of the underlying less the value of the separated right.

Underlying           $253.66
Distribution right   $  0.2565   declared payout $0.26 less carry
Principal            $253.40     spot less the separated right

Unwinding

Holding both tokens lets you recombine at any time and withdraw the underlying before settlement. Holding only the principal token means waiting until the vault settles.