Dividends and corporate actions
Total-return exposure is carried by the multiplier rather than additional token issuance.
The exposure multiplier
The multiplier defines how much underlying exposure one token represents. Dividends and corporate actions can change that multiplier without issuing additional tokens.
Token count and economic exposure therefore need to be tracked separately. A holder can own the same number of tokens while the exposure represented by each unit changes.
From event to exposure
An adjustment changes the economic exposure represented by each token. It does not create an automatic cash-dividend payment to the holder’s wallet.
How corporate actions are handled
Corporate actions affect economic exposure through the instrument’s multiplier and reference terms. The overview below describes the main adjustments.
| Event | Treatment |
|---|---|
| Dividends | Accrue economically through underlying exposure; the multiplier can adjust to reflect them. |
| Stock splits | No additional Edel tokens are minted. The multiplier adjusts to preserve overall economic exposure. |
| Mergers and acquisitions | Can be handled through multiplier adjustments. |
| Spin-offs | Can be handled through multiplier adjustments. |
Integrating corporate-action updates
Valuation combines the correct instrument, its effective multiplier and relevant reference data. Confirm the supported event feed, effective-time rules, withholding treatment and rounding specification with us before implementing accounting or corporate-action notifications.
Use confirmed issuer updates when applying an adjustment to a holding.