In traditional capital markets, access to pre-IPO investment opportunities is usually reserved for institutional investors or ultra-high-net-worth individuals. High subscription thresholds, complex compliance procedures, and lengthy lock-up periods make it difficult for regular investors to participate at this level.
Gate Pre-IPOs leverages the Mirror Note mechanism to map the value changes of companies before they go public into tradable digital asset certificates, opening a pathway for global users to engage in the pre-IPO market.
What Is the Core Nature of Pre-IPO Asset Certificates?
A Mirror Note is the core asset certificate product in Gate Pre-IPOs. Unlike traditional company shares, a Mirror Note is a structured financial instrument designed to track the market value changes of a target company before and after its initial public offering.
From a legal perspective, a Mirror Note is a Contingent Payout Note. Holders of Mirror Notes do not have shareholder status, voting rights, or dividend entitlements in the underlying company. Instead, they gain economic exposure linked to changes in the company’s valuation.
Gate establishes a reference system for Mirror Note value by hedging with the underlying company’s shares in the public market. This design allows the value of Mirror Notes to follow the market valuation of the target company, while avoiding the legal and compliance hurdles of directly transferring private equity.
The core functions of a Mirror Note can be summarized in three aspects: first, it digitizes and maps the value changes of companies before they go public; second, it maintains price correlation with the company’s valuation through the platform’s hedging mechanism; third, it provides users with a tradable and redeemable asset certificate.
How Does the Mirror Note Subscription and Allocation Mechanism Work?
To understand how Mirror Notes operate, start with their subscription and allocation process.
Subscription Process
To participate in Gate Pre-IPOs, users must first complete identity verification for their Gate account. The subscription portal is located in the Pre-IPOs section of the Gate platform, supporting both USDT and GUSD as subscription currencies. After selecting the target project and entering the subscription amount, the corresponding funds are locked.
Average Lock-Up Allocation Mechanism
Mirror Note allocation is not simply based on the order of subscription amounts. Gate Pre-IPOs uses the hourly average locked amount as the basis for allocation. The system continuously records each user’s locked amount throughout the subscription period and calculates the average. Final allocations are determined by the proportion of each user’s average locked amount.
The core logic here is: the earlier you participate and the longer you lock your funds, the higher your allocation weight. For example, if three users each commit 100,000 USDT: User A locks their funds from the first hour, resulting in an average of 100,000; User B joins at hour 24, averaging 50,000; User C participates in the final hour, averaging about 2,083. The final allocation is based on the average locked amount, not just the total committed.
After the subscription period, the system deducts the allocated funds and automatically returns any unused funds to the user’s spot account.
Reference Project Data
Take Gate Pre-IPOs Phase 2, the OpenAI project, as an example: Subscription began in July 2026, with a total subscription value of about $20 million and 27,700 OPENAI asset certificates issued at a subscription price of 1 OPENAI = $722. Within the first hour, total subscriptions exceeded $148 million. Both USDT and GUSD were accepted, with a minimum subscription of 100 USDT or 100 GUSD per order.
Mirror Note Unlocking and Pre-Market Trading
After subscription, Mirror Notes are not distributed to user accounts all at once. Each project has its own unlocking schedule, which is detailed in the project’s official announcement.
For example, the OPENAI asset certificate unlocks and is distributed in three phases:
- Phase 1: July 17, 2026 – 25% unlocked
- Phase 2: August 17, 2026 – 35% unlocked
- Phase 3: September 17, 2026 – 40% unlocked
The SpaceX project, on the other hand, uses a one-time 100% unlock. Users should carefully check the unlocking schedule for each project before participating.
Unlocked Mirror Notes can be freely traded 24/7 on Gate’s pre-market. The pre-market is a dedicated secondary market for trading Pre-IPO asset certificates. Trading uses temporary codes and reflects the current circulating supply, allowing users to buy and sell unlocked asset certificates in the pre-market spot market.
Pre-market prices are entirely determined by market supply and demand. Because liquidity is relatively limited before listing, price volatility can be significant, with frequent premiums or discounts to the subscription price. When selling in the pre-market, the actual transaction price depends on market depth and the negotiation between buyers and sellers.
Mirror Note Exit Path: Settlement After Listing
Beyond pre-market trading, Mirror Notes offer a second exit path—settlement after the company goes public.
Once the target company completes its IPO, Mirror Notes enter a lock-up period. The duration of this period varies by company. For example, the OpenAI project’s asset lock-up lasts six months.
After the lock-up ends, the platform provides a dedicated exit page for holders. Users can then choose between two settlement methods:
Convert to Stock Tokens: Users can convert their Mirror Notes into tokenized stocks on the platform. These tokenized stocks represent the underlying company’s shares after listing, with values tied to the actual stock.
Settle for USDT at Market Price: Users can settle their Mirror Notes for USDT based on the real-time market price of the underlying company’s stock after listing.
Impact of Corporate Capital Structure Changes on Mirror Notes
The target company may undergo capital structure changes before or after listing, such as issuing additional shares, stock splits, or reverse stock splits.
Mirror Notes, which track the value of common shares, will have their mapping parameters adjusted accordingly. For example, if the company issues more shares, the value per share may be diluted. If there is a stock split or reverse split, Gate will recalculate and adjust user holdings as appropriate, with official announcements provided.
This adjustment mechanism ensures that Mirror Notes continue to accurately reflect changes in the company’s actual capital structure.
Core Risks of the Mirror Note Mechanism
Understanding how Mirror Notes work also requires a clear view of the associated risks.
Non-Equity Risk: Mirror Notes are not company shares, and holders do not enjoy shareholder rights. Users are exposed to value mapping instruments, not direct equity.
IPO Uncertainty Risk: The target companies in Pre-IPOs have not yet gone public, and their IPO dates are uncertain. This is a key uncertainty in investment decisions.
Price Volatility Risk: Pre-market prices are set by supply and demand, with limited liquidity and potentially high volatility. Crypto projects themselves are high-risk with significant price swings.
Capital Structure Adjustment Risk: Corporate actions such as additional share issuance, stock splits, or reverse splits can affect the value mapping of Mirror Notes.
Lock-Up Liquidity Risk: During the post-IPO lock-up period, users cannot settle or exit via the platform’s dedicated page and must wait for the lock-up to end.
Before participating in Gate Pre-IPOs, users should fully understand these risks and make investment decisions according to their own risk tolerance.
Summary
Gate Pre-IPOs’ Mirror Note mechanism is, at its core, a structured financial instrument that digitizes and maps pre-IPO value changes. Its operation can be summarized in four key steps:
Subscription and Allocation—Users participate with USDT or GUSD, and the platform allocates based on the hourly average locked amount. Early participation and longer lock-up mean a higher allocation weight.
Unlocking and Pre-Market Trading—Allocated Mirror Notes are distributed in batches according to each project’s unlocking schedule. Unlocked portions can be freely traded 24/7 in the pre-market, with prices set by supply and demand.
Post-IPO Settlement—After the IPO, Mirror Notes enter a lock-up period. Once the lock-up ends, users can exit via a dedicated page by converting to stock tokens or settling for USDT at market price.
Value Adjustment—Corporate actions such as additional share issuance, stock splits, or reverse splits will trigger corresponding adjustments to Mirror Note mapping parameters.
Mirror Notes are not company shares, and holders do not enjoy shareholder rights. Pre-IPO investments carry multiple risks, including IPO uncertainty, price volatility, and liquidity constraints. Users should carefully assess their risk tolerance before participating.
Frequently Asked Questions (FAQ)
Q1: What’s the difference between Mirror Notes and directly holding company shares?
Mirror Notes are digital instruments that track the market value changes of a target company before and after it goes public. Holders do not have shareholder status, voting rights, or dividend entitlements in the underlying company. Mirror Notes are value mapping tools, not direct equity.
Q2: How does Gate Pre-IPOs calculate subscription allocations?
Gate Pre-IPOs uses the hourly average locked amount as the allocation basis. The system continuously records and averages each user’s locked funds during the subscription period. Final allocations are determined by the proportion of average locked amount—early participation and longer lock-up mean a higher allocation weight.
Q3: When can Mirror Notes be traded after subscription?
Unlocked Mirror Notes can be freely traded 24/7 in Gate’s pre-market. Unlocking schedules vary by project—for example, the OpenAI project unlocks in three phases (25%, 35%, 40%), while the SpaceX project unlocks 100% at once. Please refer to the official project announcements for details.
Q4: What are the exit options for Mirror Notes?
Gate Pre-IPOs provides two exit paths for holders. First, users can freely trade in the pre-market before the IPO and during the lock-up period. Second, after the lock-up ends, users can convert Mirror Notes to stock tokens or settle for USDT at the real-time market price via the platform’s dedicated page.
Q5: Will stock splits or additional share issuances affect the value of Mirror Notes?
Yes. Mirror Notes track the price of common shares. If the company issues more shares, this may dilute the per-share value. If there is a stock split or reverse split, Gate will recalculate and adjust user holdings accordingly.
Q6: What risks are involved in participating in Gate Pre-IPOs?
Key risks include: Mirror Notes are not equity, so holders do not have shareholder rights; the IPO date of the target company is uncertain; pre-market prices can be highly volatile; corporate capital structure changes may affect the value mapping of Mirror Notes; and during the post-IPO lock-up period, users cannot exit via the platform’s dedicated page.
