How Prelist works

Before tokenization

Pre-listing here means before a stock token is available for settlement on Robinhood Chain. It does not mean buying into a company's IPO. The underlying company may already trade on a traditional exchange.

Each market has its own vault and receipt token. A Ferrari market, for example, issues pRACE receipts. Deposits into that market do not fund another ticker's vault.

The lifecycle

1. Fund. During Funding, a purchase transfers USDG into the selected vault and mints receipts using the accepted oracle price.
2. Hold. Your receipt balance determines your share of the eventual distribution. Receipts can be transferred while the market remains in Funding.
3. Settle. The designated operator delivers payout tokens. The contract freezes the receipt supply and payout pool, then releases the vault's USDG to the chosen recipient.
4. Claim. Each holder burns their receipts to receive a proportional share of the frozen pool. If the owner cancels instead, holders claim USDG refunds.

What a receipt represents

A receipt is a claim on a fraction of a future distribution, not legal title to the issuer's shares. It does not lock in one future stock token for each receipt. The final amount depends on the tokens actually delivered and the total receipts outstanding.

• Understand the final settlement ratio
• Read the risks and limits

Key terms