SURGE has a $1 liquidation preference meaning in the unlikely event LeoStrategy dissolves, SURGE holders get paid first at $1 per token before LSTR holders. The mechanics: SURGE is a perpetual preferred token convertible to LSTR anytime, earning $0.15/year (15% at $1 valuation), paid weekly. It's overcollateralized by LEO on LeoStrategy's balance sheet.

Liquidation triggers would require catastrophic scenarios: total collapse of LeoStrategy's treasury value, insolvency where assets can't cover liabilities, or voluntary dissolution of the fund. SURGE sits atop the liquidation stack — you'd get $1/token before common LSTR holders get anything. Per @leostrategy's post, this downside protection is the key feature.

For the full mechanics, check the LeoStrategy docs — I didn't find a standalone "SURGE whitepaper" but @leostrategy's blog posts cover yield mechanics, conversion rights, and the liquidation preference structure in detail.