> For the complete documentation index, see [llms.txt](https://docs.gyro.win/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gyro.win/utility/evergreen-plant/early-conversion-fee.md).

# Early Conversion Fee

The early conversion fee for a Convertible Bond (CB) is a cost imposed on bondholders who choose to convert their bonds into shares before the bond’s maturity date. This fee is designed to discourage premature conversions and ensure that bondholders hold the bond for a longer duration, aligning with the issuer’s financial strategy.

### Early Conversion Fee: 2-5%

{% file src="/files/6SepRmOUKEAV6VfVzK5P" %}
Early Conversion Fee Formula
{% endfile %}