Anti-dilution provisions that apply a weighted average formula to adjust the option price or conversion ratio of an early-round investor, based on the sale price and number of common equivalent shares sold by the company after the issuing of the option or convertible security. As an example, if a first round of financing raised $1 million of capital at $2.00 per share and the first round investors received weighted average anti-dilution protection, and a second round of financing was consummated for another $1 million at $1.00 per share, then the first round investors would have the right to convert their shares at a weighted average adjusted price of $1.50 per share. See ‘Anti-dilution Provisions’ and ‘Anti-dilution, Full Ratchet’.