[jasonkwon]

I think Daniel was working off of a different understanding of 'discount.' I think he meant a discount off of the price of the next round (Series A). If the Series A is $30M pre but you set a valuation cap on the safe of $20M post, you are getting a 'discount' on the conversion of the safe in the Series A (because it is lower than $30M pre).

You're right though that there's a flavor of safes that contain both a discount and a valuation cap, and the investor gets the benefit of whichever approach results in more shares, and your explanation is good.