# Liquidity Price

> the price per share equal to the fair market value of the Common Stock at the time of the Liquidity Event, as determined by reference to the purchase

**Term:** Liquidity Price  
**Last updated:** 2026-06-12

## Definition

### Definition 1

the fair market value of the Common Stock at the time of the applicable Liquidity Event (determined by reference to the purchase price payable in connection with such Liquidity Event).

### Definition 2

the price per share equal to the Post-Money Valuation Cap divided by the Liquidity Capitalization.

## Context

### Relevant circumstances

- When SAFE or convertible-note holders convert at a discount to a liquidity event price
- If the fair-market-value of common stock is tied to the deal price
- Where valuation caps cap the conversion price separately from the discount mechanic

### Relevant sectors

- Finance
- Investment
- Legal Services

## Relevant contract types

- [Service Agreement](https://www.genieai.co/en-us/template-type/service-agreement)
- [Sale Agreement](https://www.genieai.co/en-us/template-type/sale-agreement)
- [Partnership Agreement](https://www.genieai.co/en-us/template-type/partnership-agreement)

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