How to create or edit convertible note blocks
A convertible note block (also called convertible terms) is a template in Carta that groups convertible notes or SAFEs that share the same terms. When you issue multiple convertibles under the same financing round or agreement, they all get attached to a single block — that block is what stores the shared settings so you don't have to enter them on each note individually.
The block holds the terms that apply across every note issued under it, including:
Interest rate and accrual settings — annual rate, accrual period, compounding method, day count basis, and payout type (cash or deferred)
Conversion terms — valuation cap (and cap type), conversion discount, and what the notes will convert into
Advanced conversion terms — liquidity priority, MFN clause, cashout multiplier, conversion trigger, and change in control percentage
Prefix — the unique identifier prefix used when numbering securities in this block (e.g., CN-1, CN-2)
Default documents — template documents (form of convertible, note purchase agreement) attached to each note at issuance
Every note issued under that block automatically inherits those terms in when in drafts; however, the terms for an individual note can be adjusted in the draft set.