> ## Documentation Index
> Fetch the complete documentation index at: https://docs.denar.markets/llms.txt
> Use this file to discover all available pages before exploring further.

# Corporate actions

> How splits and dividends flow through tokenized stocks, why the market pauses during processing, and the live dividend Denar has already handled.

Stocks do things crypto assets don't: they split, they pay dividends, they get delisted. Denar is built so these events are non-events for the protocol's accounting.

## How corporate actions reach the token

Robinhood Chain stock tokens implement a **scaled-amount standard**: raw token balances never change. Instead, each token carries a *multiplier* — the shares-per-token ratio — and corporate actions move that multiplier:

* **A reinvested dividend** nudges the multiplier up: one token now represents slightly more than one share, so its price drifts above the headline share price. The token tracks *total return*, not just price.
* **A split** moves the multiplier so each token keeps representing the same economic value.

Chainlink feeds quote the **full, multiplier-adjusted price** of one token. That means Denar's contracts need no multiplier logic anywhere: balances don't rebase, and the feed already prices what a token is really worth.

## What happens during processing

While an action is being applied, the token issuer **pauses the token's oracle**. Denar honors the flag: the affected market pauses borrowing, collateral withdrawal, and liquidations until processing completes. This prevents the worst possible outcome — liquidating someone at a half-updated split price.

What never pauses: repaying debt, adding collateral, and lender deposits/withdrawals.

The protocol's monitoring also watches for **scheduled** multiplier changes ahead of their effective time, so upcoming events are known before they land.

## Proven in production

<Check>
  **August 2026 — AAPL quarterly dividend.** A few days after launch, Apple's dividend was reinvested into the AAPL token: its multiplier moved from 1.0 to \~1.00057 (+0.057%, matching the dividend). The feed price absorbed it, the oracle stayed healthy, no position was mispriced, and no intervention of any kind was needed. The event was discovered after the fact — which is exactly the point.
</Check>

The dividend path is validated live. A stock split — rarer and more violent, but mechanically identical (pause → multiplier update → resume) — has not yet occurred on a listed asset; the same machinery covers it.

## What this means for you

| You are…     | During a corporate action                                                                                                                                                    |
| ------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| A borrower   | Your position's economics don't change — the token's value carries through the multiplier. You can't borrow or withdraw collateral mid-processing, but you can always repay. |
| A lender     | Nothing changes for your deposit. Liquidations in that market wait until the price returns, which is why exposure there is capped.                                           |
| A liquidator | The market is closed to you until the pause lifts; act on the fresh price after.                                                                                             |