Anti-dilution mechanism in convertible securities that adjusts the conversion price to the lowest price at which new shares are issued, ensuring early investors are protected from dilution in subsequent financing rounds. This provision can result in a more significant impact on existing shareholders if the new issuance is at a lower valuation.

Preferred type of anti-dilution clause; it adjusts the conversion price of preferred shares in future funding rounds at a lower valuation by considering both the original and new round prices, thereby mitigating dilution.