Can anyone explain how Convertible Notes work and how to apply them to a startup?

Can anyone explain how Convertible Notes work and how to apply them to a startup? I have been explained many times, but still it seems there is no rule on the CN like in the US where it is regulated and transparent.
Can anyone explain how Convertible Notes work and how to apply them to a startup? I have been explained many times, but still it seems there is no rule on the CN like in the US where it is regulated and transparent.
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