Upward folding, that is, upward conversion, is a form of irregular conversion. According to the issuance documents of graded funds, when the net value of the parent fund of graded funds rises to a certain price (for example, 1.5 yuan), the graded funds will be discounted, which is caused by the sharp rise of the index corresponding to the parent fund. At this point, after the B share rose sharply, the leverage decreased, and the net values of A share and B share returned to the initial net value 1. The portion exceeding 1 will be distributed to the holders of share A and share B in the form of parent company. Therefore, when a discount occurs, the holders of share B and share A will get the mother share. There are many cases of bull market rising.

Discounting is also an irregular discount. Contrary to the discount, the discount means that when the net value of share B falls to a certain price (such as 0.25 yuan), in order to protect the interests of the holders of share A, the fund company will make a downward discount to the graded fund according to the contract. After the conversion is completed, the net value of share A and share B will be restored to the initial net value 1, and the holder of share A will get the parent share, and the holder of share B will reduce their holdings according to a certain proportion.