The Y Combinator SAFE: Discount, No Valuation Cap (US) governs how investor funds convert into equity by applying a set discount to the price of future preferred shares, without using a valuation cap. It ensures that the investor receives shares at a discounted price in the next equity financing, or a comparable return in the event of a liquidity or dissolution event. This SAFE is part of Y Combinator’s library of open, lawyer-vetted standard financing documents widely used in U.S. startup funding.