The SBD print rate is currently below 100%.
This means you will now be partially paid out in Steem in addition to Steem Power & SBD. This happens when our debt ratio exceeds 9%.
When the blockchain notices there is too much SBD printed it will start printing Steem for a portion of the liquid author rewards. It will do this until the debt ratio drops below 9% again. During this time you will receive less than $1 worth of Steem per SBD converted through the conversion function (haircut rule).
The conversation function is sometimes still profitable in these conditions but you should exercise caution converting when the print rate is not 100%. You can check the current SBD print rate by going to https://steemd.com and look on the right side.
Ideally, you want to use the SBD conversion function when the print rate is over 100% but it is still possible to make a positive ROI when SBD prices are below $1.00.
When using the conversion function, your SBD is unavailable for 3.5 days and is then burned, you are given $1 worth of Steem for each SBD. When the debt ratio is above 10% you will receive less than $1 worth of Steem due to the haircut rule that is used to prevent our debt ratio from climbing out of control.