> For the complete documentation index, see [llms.txt](https://docs.useicaria.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.useicaria.xyz/protocol/corporate-actions.md).

# Corporate actions and dividends

How splits, dividends and similar events cross a market without damaging it.

This is the area where careless RWA venues bleed without noticing. A 10-for-1 split resets a token's price overnight, and whichever pool was never told simply pays the difference to the first arbitrageur awake to take it. Most of Icaria's answer comes free from how the asset and the oracle are built; a halt covers the remainder.

## Dividends: no work required, by construction

ERC-8056 is implemented by Robinhood Stock Tokens: `uiMultiplier()` states the underlying shares behind each token, and dividends raise that number rather than arriving as a separate payment. Chainlink's price has the multiplier in it already. Every consequence of this favours a trading venue:

* No dividend token comes into existence, so none has to be claimed, swept, or divided between LPs and traders.
* No ex-dividend cliff exists for the vault to misprice; value accretes steadily into the token and its feed.
* Vault accounting carries zero dividend logic. What the multiplier does to an LP's share value is indistinguishable from what any other price move does.

By reading `uiMultiplier()` alongside the price, the trade explorer can show holdings in shares as well as tokens.

## Splits, mergers and delistings: stop, absorb, restart

When a split, a merger, a symbol change or anything comparable comes through, the Chainlink feed raises `oraclePaused()`. On that flag the market drops to [`HALTED`](/protocol/trading-regimes.md) without intervention: quoting ends, RFQ stops settling in that market, and deposits and withdrawals proceed untouched.

Whatever the feed publishes on its return already carries the event in both price and multiplier, so the market comes back quoting from the adjusted figure. Nothing about the vault's inventory needs changing, since it held the same tokens throughout; a split moves the number the feed reports, not what sits in the contract.

| Event                       | During                                           | After                                                                                      |
| --------------------------- | ------------------------------------------------ | ------------------------------------------------------------------------------------------ |
| Dividend                    | No action; multiplier and price accrete together | No action                                                                                  |
| Split or reverse split      | `HALTED` while `oraclePaused()` stands           | Quoting resumes on the adjusted feed, inventory unchanged                                  |
| Merger, acquisition         | `HALTED`                                         | Resumption, or [retirement](#delisting-and-retirement) where the token is being wound down |
| Delisting of the underlying | `HALTED`                                         | Retirement                                                                                 |

## Delisting and retirement

Where an underlying goes or an issuer closes a token down, the timelock moves that market to `RETIRED`: quoting ends permanently and withdrawal is the only remaining action. LPs pull their proportional inventory out in kind and may then approach the issuer's own redemption process if they wish; no position in a wind-down is ever taken by the protocol. Like every parameter change, the reasoning behind the retirement goes into the governance log.

## The residual risk

What the design assumes is that the feed pauses before any stale price can be traded against. Chainlink's equity feeds do set `oraclePaused()` around corporate actions, and a feed that misbehaves instead of pausing is caught by the [staleness guard](/risk/oracles.md), since silence on its own is enough to halt the market. The gap that remains is a feed publishing confidently wrong prices through an event, which is the ordinary oracle risk attached to every fill, and the [band](/protocol/pricing-and-spreads.md) holds the damage from any individual fill to the band's own width.


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