Irregular conversion refers to the conversion of graded fund shares in order to prevent the leverage of Class B shares from being too high or too low.

Irregular conversion includes up-conversion and down-conversion.

Fold-up refers to the conversion of parent fund, graded A share and graded B share when the net value of parent fund reaches 2.00 yuan. After the conversion, the unit net value of the three types of shares is 1.00 yuan, which returns to the initial state, and the graded A shares realize interest payment in advance.

Discount refers to the conversion of parent fund, graded A share and graded B share when the unit net value of graded B share reaches 0.25 yuan (in most cases, some funds are slightly different). After conversion, the unit net value of the three types of shares is 1.00 yuan, returning to the initial state.

For the graded A share, most of the discounted assets can be redeemed according to the net value, and the additional income of discount convergence can be obtained. For graded funds with discount terms, the graded A share of discount trading is equivalent to having a short option, which may be cashed in extreme market environment.