[424B2] – JPMORGAN CHASE & CO (JPM, AMJB, VYLD, JPM-PC, JPM-PD, JPM-PJ, JPM-PK, JPM-PL, JPM-PM) (CIK 0000019617)
JPMorgan Chase & Co. outlined preliminary terms for Callable Fixed Rate Notes due October 29, 2032. The notes pay a fixed 4.35% annual interest rate, with interest paid in arrears each October 31 from 2026 through 2031 and on maturity. The issuer may redeem the notes at par plus accrued interest on the last calendar day of April and October, beginning on October 31, 2027 and ending on April 30, 2032.
Each note has a price to the public of $1,000 per $1,000 principal amount, with eligible institutional or fee-based accounts offered between $985.10 and $1,000. Selling commissions would be approximately $10.00 per $1,000 principal amount note and will not exceed $25.00 per $1,000. Key conventions include Following Business Day, Unadjusted interest accrual, and 30/360 day count. The notes are unsecured obligations of JPMorgan Chase & Co. and are subject to selected risks, including resolution strategy considerations under the Dodd-Frank Act.
JPMorgan Chase & Co. ha delineato termini preliminari per Note a tasso fisso richiamabili a scadenza 29 ottobre 2032. Le obbligazioni pagano un tasso di interesse annuo fisso del 4,35%, con gli interessi pagati in arretrato ogni 31 ottobre dal 2026 al 2031 e alla scadenza. L'emittente può rimborsare le note al parità di valore più gli interessi maturati sull'ultimo giorno di calendario di aprile e ottobre, a partire dal 31 ottobre 2027 e fino al 30 aprile 2032.
Ogni nota ha un prezzo al pubblico di 1.000 dollari per l'importo nominale di 1.000 dollari, con conti istituzionali idonei o basati su commissioni offerti tra 985,10$ e 1.000$. Le commissioni di vendita sarebbero di circa 10,00$ per nota di 1.000$ di valore nominale e non supererebbero 25,00$ per 1.000$. Le convenzioni chiave includono Following Business Day (giorno lavorativo successivo), interesse non adeguato e conteggio giorni 30/360. Le note sono obbligazioni non garantite di JPMorgan Chase & Co. e sono soggette a rischi selezionati, incluse considerazioni sulla strategia di risoluzione ai sensi del Dodd-Frank Act.
JPMorgan Chase & Co. delineó términos preliminares para Notas a tasa fija canjeables con vencimiento el 29 de octubre de 2032. Las notas pagan una tasa de interés anual fija del 4,35%, con intereses pagados en atrasos cada 31 de octubre desde 2026 hasta 2031 y al vencimiento. El emisor puede redimir las notas al par más intereses devengados en el último día calendario de abril y octubre, comenzando el 31 de octubre de 2027 y terminando el 30 de abril de 2032.
Cada nota tiene un precio público de $1,000 por un monto principal de $1,000, con cuentas institucionales elegibles o basadas en comisiones ofrecidas entre $985,10 y $1,000. Las comisiones de venta serían aproximadamente $10.00 por nota de $1,000 de principal y no excederán $25.00 por $1,000. Las convenciones clave incluyen Following Business Day, interés no ajustado y conteo de días 30/360. Las notas son obligaciones no aseguradas de JPMorgan Chase & Co. y están sujetas a riesgos seleccionados, incluidas consideraciones de estrategia de resolución bajo la Dodd-Frank Act.
JPMorgan Chase & Co.는 2032년 10월 29일 만기의 Callable 고정 이자 채권에 대한 예비 조건을 밝혔다. 이 채권은 연간 고정 이율 4.35%를 지급하며 이자는 매년 2026년 10월 31일부터 2031년까지 및 만기일에 지급된다. 발행자는 2027년 10월 31일부터 2032년 4월 30일까지 매년 4월 말과 10월 말의 마지막 달력일에 원금에 대한 누적 이자를 더하여 상환할 수 있다.
각 채권의 공개가격은 $1,000당 $1,000의 원금액으로, 적격 기관 계정 또는 수수료 기반 계정에는 $985.10에서 $1,000 사이로 제공된다. 판매 수수료는 대략 $10.00당 $1,000의 원금 채권 당으로 예상되며 $25.00를 초과하지 않는다. 주요 관례는 Following Business Day(다음 영업일), 조정되지 않은 이자 누적, 그리고 30/360 일 수 계산을 포함한다. 이 채권은 JPMorgan Chase & Co.의 무담보 채권이며 Dodd-Frank Act에 따른 해결 전략 고려사항 등 특정 위험에 노출된다.
JPMorgan Chase & Co. a esquissé des termes préliminaires pour des notes à taux fixe appelables arrivant à échéance le 29 octobre 2032. Les notes versent un taux d'intérêt annuel fixe de 4,35%, les intérêts étant payés au 31 octobre de 2026 à 2031 et à l'échéance. L'émetteur peut racheter les notes au pair plus les intérêts courus le dernier jour calendaire d'avril et d'octobre, à partir du 31 octobre 2027 et jusqu'au 30 avril 2032.
Chaque note est émise au prix public de 1 000 dollars pour un montant nominal de 1 000 dollars, avec des comptes institutionnels éligibles ou basés sur des frais offerts entre 985,10 $ et 1 000 $. Les commissions de vente seraient d'environ 10,00 $ par note de 1 000 $ et ne dépasseraient pas 25,00 $ par 1 000 $. Les conventions clés incluent Following Business Day, intérêt non ajusté et calcul des jours 30/360. Les notes sont des obligations non garanties de JPMorgan Chase & Co. et comportent certains risques sélectionnés, notamment des considérations de stratégie de résolution au titre du Dodd-Frank Act.
JPMorgan Chase & Co. hat vorläufige Bedingungen für kündbare Festverzinsliche Anleihen mit Fälligkeit am 29. Oktober 2032 skizziert. Die Noten zahlen einen festen jährlichen Zinssatz von 4,35%, wobei die Zinsen rückwirkend jeweils am 31. Oktober von 2026 bis 2031 und bei Fälligkeit gezahlt werden. Der Emittent kann die Noten zum Nennwert zuzüglich aufgelaufener Zinsen am letzten Kalendertag von April und Oktober zurückkaufen, beginnend am 31. Oktober 2027 und endend am 30. April 2032.
Jede Note hat einen öffentlichen Preis von 1.000 $ pro 1.000 $ Nennbetrag, mit berechtigten institutionellen oder gebührenbasierten Konten, angeboten zwischen 985,10 $ und 1.000 $. Verkaufsprovisionen würden ungefähr 10,00 $ pro Noten-Nennbetrag von 1.000 $ betragen und 25,00 $ pro 1.000 $ nicht überschreiten. Wichtige Konventionen umfassen Following Business Day, unadjusted Zinsberechnung und 30/360-Tageszählung. Die Notes sind ungesicherte Verbindlichkeiten von JPMorgan Chase & Co. und unterliegen bestimmten Risiken, einschließlich Überlegungen zur Abwicklungsstrategie gemäß dem Dodd-Frank Act.
JPMorgan Chase & Co. حدّدت شروطاً مبدئية لسندات ثابتة قابلة للاستدعاء مستحقة في 29 أكتوبر 2032. تدفع السندات فائدة سنوية ثابتة نسبتها 4.35%، وتُدفع الفوائد المتأخرة في نهاية كل أكتوبر من 2026 حتى 2031 وعند الاستحقاق. يجوز للمصدر استرداد السندات عند القيمة الاسمية بالإضافة إلى الفوائد المتراكمة في آخر يوم تقويمي من أبريل وأكتوبر، ابتداءً من 31 أكتوبر 2027 وانتهاءً في 30 أبريل 2032.
كل سند له سعر للجمهور قدره $1,000 من قيمة أصلية قدرها $1,000، مع حسابات مؤسسية مؤهلة أو قائمة على الرسوم تُعرض بين $985.10 و $1,000. ستكون عمولات البيع حوالي $10.00 لكل سند رئيسي قدره $1,000 ولن تتجاوز $25.00 لكل $1,000. تشمل الاتفاقيات الأساسية Following Business Day، فائدة غير مُعدَّلة، واحتساب الأيام 30/360. تعتبر السندات ديناً غير مضمون لـ JPMorgan Chase & Co. وتخضع لبعض المخاطر المحددة، بما في ذلك اعتبارات استراتيجية الحل وفقاً لـ Dodd-Frank Act.
JPMorgan Chase & Co. 概述了可召回的固定利率票据的初步条款，到期日为 2032 年 10 月 29 日。票据按年固定利率 4.35% 支付利息，利息在 2026 年至 2031 年的每个 10 月 31 日以及到期时支付。发行人可在每年的 4 月末和 10 月末的最后一个日历日按票面价值加计应计利息进行赎回，首个赎回日为 2027 年 10 月 31 日，最后一个赎回日为 2032 年 4 月 30 日。
每张票据的公众价格为 $1,000，每 $1,000 的本金，合格机构或基于费率的账户提供的价格在 $985.10 至 $1,000 之间。销售佣金大约为每张 $10.00，按 $1,000 的本金计；且不超过每张 $25.00。主要约定包括 Following Business Day（下一个工作日）、未调整的利息累计，以及 30/360 日计数。票据为 JPMorgan Chase & Co. 的无担保义务，并受若干特定风险影响，包括依据《多德-弗兰克法案》（Dodd-Frank Act）之处置策略考虑。
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Insights
Callable 4.35% JPMorgan notes; semiannual call, annual pay.
The notes offer a fixed
Pricing indicates a public offering at
Risk language highlights potential outcomes under U.S. resolution regimes where recoveries for senior unsecured debt depend on residual value after priority claims. Actual investor outcomes hinge on issuer call decisions and future rate levels; timing beyond the disclosed call schedule is not provided.
JPMorgan Chase & Co. ha delineato termini preliminari per Note a tasso fisso richiamabili a scadenza 29 ottobre 2032. Le obbligazioni pagano un tasso di interesse annuo fisso del 4,35%, con gli interessi pagati in arretrato ogni 31 ottobre dal 2026 al 2031 e alla scadenza. L'emittente può rimborsare le note al parità di valore più gli interessi maturati sull'ultimo giorno di calendario di aprile e ottobre, a partire dal 31 ottobre 2027 e fino al 30 aprile 2032.
Ogni nota ha un prezzo al pubblico di 1.000 dollari per l'importo nominale di 1.000 dollari, con conti istituzionali idonei o basati su commissioni offerti tra 985,10$ e 1.000$. Le commissioni di vendita sarebbero di circa 10,00$ per nota di 1.000$ di valore nominale e non supererebbero 25,00$ per 1.000$. Le convenzioni chiave includono Following Business Day (giorno lavorativo successivo), interesse non adeguato e conteggio giorni 30/360. Le note sono obbligazioni non garantite di JPMorgan Chase & Co. e sono soggette a rischi selezionati, incluse considerazioni sulla strategia di risoluzione ai sensi del Dodd-Frank Act.
JPMorgan Chase & Co. delineó términos preliminares para Notas a tasa fija canjeables con vencimiento el 29 de octubre de 2032. Las notas pagan una tasa de interés anual fija del 4,35%, con intereses pagados en atrasos cada 31 de octubre desde 2026 hasta 2031 y al vencimiento. El emisor puede redimir las notas al par más intereses devengados en el último día calendario de abril y octubre, comenzando el 31 de octubre de 2027 y terminando el 30 de abril de 2032.
Cada nota tiene un precio público de $1,000 por un monto principal de $1,000, con cuentas institucionales elegibles o basadas en comisiones ofrecidas entre $985,10 y $1,000. Las comisiones de venta serían aproximadamente $10.00 por nota de $1,000 de principal y no excederán $25.00 por $1,000. Las convenciones clave incluyen Following Business Day, interés no ajustado y conteo de días 30/360. Las notas son obligaciones no aseguradas de JPMorgan Chase & Co. y están sujetas a riesgos seleccionados, incluidas consideraciones de estrategia de resolución bajo la Dodd-Frank Act.
JPMorgan Chase & Co.는 2032년 10월 29일 만기의 Callable 고정 이자 채권에 대한 예비 조건을 밝혔다. 이 채권은 연간 고정 이율 4.35%를 지급하며 이자는 매년 2026년 10월 31일부터 2031년까지 및 만기일에 지급된다. 발행자는 2027년 10월 31일부터 2032년 4월 30일까지 매년 4월 말과 10월 말의 마지막 달력일에 원금에 대한 누적 이자를 더하여 상환할 수 있다.
각 채권의 공개가격은 $1,000당 $1,000의 원금액으로, 적격 기관 계정 또는 수수료 기반 계정에는 $985.10에서 $1,000 사이로 제공된다. 판매 수수료는 대략 $10.00당 $1,000의 원금 채권 당으로 예상되며 $25.00를 초과하지 않는다. 주요 관례는 Following Business Day(다음 영업일), 조정되지 않은 이자 누적, 그리고 30/360 일 수 계산을 포함한다. 이 채권은 JPMorgan Chase & Co.의 무담보 채권이며 Dodd-Frank Act에 따른 해결 전략 고려사항 등 특정 위험에 노출된다.
JPMorgan Chase & Co. a esquissé des termes préliminaires pour des notes à taux fixe appelables arrivant à échéance le 29 octobre 2032. Les notes versent un taux d'intérêt annuel fixe de 4,35%, les intérêts étant payés au 31 octobre de 2026 à 2031 et à l'échéance. L'émetteur peut racheter les notes au pair plus les intérêts courus le dernier jour calendaire d'avril et d'octobre, à partir du 31 octobre 2027 et jusqu'au 30 avril 2032.
Chaque note est émise au prix public de 1 000 dollars pour un montant nominal de 1 000 dollars, avec des comptes institutionnels éligibles ou basés sur des frais offerts entre 985,10 $ et 1 000 $. Les commissions de vente seraient d'environ 10,00 $ par note de 1 000 $ et ne dépasseraient pas 25,00 $ par 1 000 $. Les conventions clés incluent Following Business Day, intérêt non ajusté et calcul des jours 30/360. Les notes sont des obligations non garanties de JPMorgan Chase & Co. et comportent certains risques sélectionnés, notamment des considérations de stratégie de résolution au titre du Dodd-Frank Act.
JPMorgan Chase & Co. hat vorläufige Bedingungen für kündbare Festverzinsliche Anleihen mit Fälligkeit am 29. Oktober 2032 skizziert. Die Noten zahlen einen festen jährlichen Zinssatz von 4,35%, wobei die Zinsen rückwirkend jeweils am 31. Oktober von 2026 bis 2031 und bei Fälligkeit gezahlt werden. Der Emittent kann die Noten zum Nennwert zuzüglich aufgelaufener Zinsen am letzten Kalendertag von April und Oktober zurückkaufen, beginnend am 31. Oktober 2027 und endend am 30. April 2032.
Jede Note hat einen öffentlichen Preis von 1.000 $ pro 1.000 $ Nennbetrag, mit berechtigten institutionellen oder gebührenbasierten Konten, angeboten zwischen 985,10 $ und 1.000 $. Verkaufsprovisionen würden ungefähr 10,00 $ pro Noten-Nennbetrag von 1.000 $ betragen und 25,00 $ pro 1.000 $ nicht überschreiten. Wichtige Konventionen umfassen Following Business Day, unadjusted Zinsberechnung und 30/360-Tageszählung. Die Notes sind ungesicherte Verbindlichkeiten von JPMorgan Chase & Co. und unterliegen bestimmten Risiken, einschließlich Überlegungen zur Abwicklungsstrategie gemäß dem Dodd-Frank Act.
The information in this preliminary pricing supplement is not complete and may be changed. This preliminary pricing supplement is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject to completion dated October 14, 2025
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Pricing supplement To prospectus dated April 13, 2023, prospectus supplement dated April 13, 2023 and product supplement no. 1-I dated April 13, 2023
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Registration Statement No. 333-270004 Dated October , 2025 Rule 424(b)(2)
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Callable Fixed Rate Notes due October 29, 2032
General
| · | The notes are unsecured and unsubordinated obligations of JPMorgan Chase & Co. Any payment on the notes is subject to the credit risk of JPMorgan Chase & Co. |
| · | These notes are designed for an investor who seeks a fixed income investment at an interest rate of 4.35% per annum but who is also willing to accept the risk that the notes will be called prior to the Maturity Date. |
| · | At our option, we may redeem the notes, in whole but not in part, on any of the Redemption Dates specified below. |
| · | The notes may be purchased in minimum denominations of $1,000 and in integral multiples of $1,000 thereafter. |
Key Terms
| Issuer: | JPMorgan Chase & Co. |
| Payment at Maturity: | On the Maturity Date, we will pay you the principal amount of your notes plus any accrued and unpaid interest, provided that your notes are outstanding and have not previously been called on any Redemption Date. |
| Call Feature: | On the last calendar day of April and October of each year, beginning on October 31, 2027 and ending on April 30, 2032 (each, a “Redemption Date”), we may redeem your notes, in whole but not in part, at a price equal to the principal amount being redeemed plus any accrued and unpaid interest, subject to the Business Day Convention and the Interest Accrual Convention described below and in the accompanying product supplement. If we intend to redeem your notes, we will deliver notice to The Depository Trust Company on any business day after the Original Issue Date that is at least 5 business days before the applicable Redemption Date. |
| Interest: |
Subject to the Interest Accrual Convention, with respect to each Interest Period, for each $1,000 principal amount note, we will pay you interest in arrears on each Interest Payment Date in accordance with the following formula: $1,000 × Interest Rate × Day Count Fraction. |
| Interest Periods: | The period beginning on and including the Original Issue Date and ending on but excluding the first Interest Payment Date, and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next succeeding Interest Payment Date or, if the notes are redeemed prior to that succeeding Interest Payment Date, ending on but excluding the applicable Redemption Date, subject to the Interest Accrual Convention described below and in the accompanying product supplement |
| Interest Payment Dates: | Interest on the notes will be payable in arrears on October 31 of each year, beginning on October 31, 2026 to and including October 31, 2031, and on the Maturity Date (each, an “Interest Payment Date”), subject to any earlier redemption and the Business Day Convention and Interest Accrual Convention described below and in the accompanying product supplement. |
| Interest Rate: | 4.35% per annum |
| Pricing Date: | October 29, 2025, subject to the Business Day Convention |
| Original Issue Date: | October 31, 2025, subject to the Business Day Convention (Settlement Date) |
| Maturity Date: | October 29, 2032, subject to the Business Day Convention |
| Business Day Convention: | Following |
| Interest Accrual Convention: | Unadjusted |
| Day Count Convention: | 30/360 |
| CUSIP: | 48130C6A8 |
Investing in the notes involves a number of risks. See “Risk Factors” beginning on page S-2 of the accompanying prospectus supplement, “Risk Factors” beginning on page PS-11 of the accompanying product supplement and “Selected Risk Considerations” beginning on page PS-4 of this pricing supplement.
Neither the Securities and Exchange Commission (the “SEC”) nor any state securities commission has approved or disapproved of the notes or passed upon the accuracy or the adequacy of this pricing supplement or the accompanying product supplement, prospectus supplement and prospectus. Any representation to the contrary is a criminal offense.
| Price to Public(1)(2) | Fees and Commissions(2)(3) | Proceeds to Issuer | |
| Per note | $1,000 | $ | $ |
| Total | $ | $ | $ |
(1) The price to the public includes the estimated cost of hedging our obligations under the notes through one or more of our affiliates.
(2) With respect to notes sold to eligible institutional investors or fee-based advisory accounts for which an affiliated or unaffiliated broker-dealer is an investment adviser, the price to the public will not be lower than $985.10 or greater than $1,000 per $1,000 principal amount note. Broker-dealers who purchase the notes for these accounts may forgo some or all selling commissions related to these sales described in footnote (3) below. The per note price to the public in the table above assumes a price to the public of $1,000 per $1,000 principal amount note. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement.
(3) J.P. Morgan Securities LLC, which we refer to as JPMS, acting as agent for JPMorgan Chase & Co., will pay all of the selling commissions it receives from us to other affiliated or unaffiliated dealers. If the notes priced today, the selling commissions would be approximately $10.00 per $1,000 principal amount note and in no event will these selling commissions exceed $25.00 per $1,000 principal amount note. Broker-dealers who purchase the notes for sales to eligible institutional investors or fee-based advisory accounts may forgo some or all of these selling commissions. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement.
The notes are not bank deposits, are not insured by the Federal Deposit Insurance Corporation or any other governmental agency and are not obligations of, or guaranteed by, a bank.
Additional Terms Specific to the Notes
You may revoke your offer to purchase the notes at any time prior to the time at which we accept such offer by notifying the applicable agent. We reserve the right to change the terms of, or reject any offer to purchase, the notes prior to their issuance. In the event of any changes to the terms of the notes, we will notify you and you will be asked to accept such changes in connection with your purchase. You may also choose to reject such changes in which case we may reject your offer to purchase.
You should read this pricing supplement together with the accompanying prospectus, as supplemented by the accompanying prospectus supplement relating to our Series E medium-term notes of which these notes are a part, and the more detailed information contained in the accompanying product supplement. This pricing supplement, together with the documents listed below, contains the terms of the notes and supersedes all other prior or contemporaneous oral statements as well as any other written materials including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact sheets, brochures or other educational materials of ours. You should carefully consider, among other things, the matters set forth in the “Risk Factors” sections of the accompanying prospectus supplement and the accompanying product supplement, as the notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the notes.
You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):
| · | Product supplement no. 1-I dated April 13, 2023: |
http://www.sec.gov/Archives/edgar/data/1665650/000121390023029554/ea152829_424b2.pdf
| · | Prospectus supplement and prospectus, each dated April 13, 2023: |
http://www.sec.gov/Archives/edgar/data/19617/000095010323005751/crt_dp192097-424b2.pdf
Our Central Index Key, or CIK, on the SEC website is 19617. As used in this pricing supplement, “we,” “us” and “our” refer to JPMorgan Chase & Co.
Selected Purchase Considerations
| · | PRESERVATION OF CAPITAL AT MATURITY OR UPON REDEMPTION — We will pay you at least the principal amount of your notes if you hold the notes to maturity or to the Redemption Date, if any, on which we elect to call the notes. Because the notes are our unsecured and unsubordinated obligations, payment of any amount on the notes is subject to our ability to pay our obligations as they become due. |
| · | PERIODIC INTEREST PAYMENTS — The notes offer periodic interest payments on each Interest Payment Date at the Interest Rate, subject to any earlier redemption, and, if the notes are redeemed on a Redemption Date that is not an Interest Payment Date, on the applicable Redemption Date at the applicable Interest Rate. Interest, if any, will be paid in arrears on each Interest Payment Date occurring before any Redemption Date on which the notes are redeemed and, if so redeemed, on that Redemption Date to the holders of record at the close of business on the business day immediately preceding the applicable Interest Payment Date. The interest payments will be based on the Interest Rate listed on the cover of this pricing supplement. The yield on the notes may be less than the overall return you would receive from a conventional debt security that you could purchase today with the same maturity as the notes. |
| · | POTENTIAL PERIODIC REDEMPTION BY US AT OUR OPTION — At our option, we may redeem the notes, in whole but not in part, on any of the Redemption Dates set forth on the cover of this pricing supplement, at a price equal to the principal amount being redeemed plus any accrued and unpaid interest, subject to the Business Day Convention and the Interest Accrual Convention described on the cover of this pricing supplement and in the accompanying product supplement. Any accrued and unpaid interest on the notes redeemed will be paid to the person who is the holder of record of these notes at the close of business on the business day immediately preceding the applicable Redemption Date. Even in cases where the notes are called before maturity, noteholders are not entitled to any fees or commissions described on the front cover of this pricing supplement. |
| · | INSOLVENCY AND RESOLUTION CONSIDERATIONS — The notes constitute “loss-absorbing capacity” within the meaning of the final rules (the “TLAC rules”) issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) on December 15, 2016 regarding, among other things, the minimum levels of unsecured external long-term debt and other loss-absorbing capacity that certain U.S. bank holding companies, including JPMorgan Chase & Co., are required to maintain. Such debt must satisfy certain eligibility criteria under the TLAC rules. If JPMorgan Chase & Co. were to enter into resolution, either in a proceeding under Chapter 11 of the U.S. Bankruptcy Code or in a receivership administered by the Federal Deposit Insurance Corporation (the “FDIC”) under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), holders of the notes and other debt and equity securities of JPMorgan Chase & Co. will absorb the losses of JPMorgan Chase & Co. and its affiliates. |
Under Title I of the Dodd-Frank Act and applicable rules of the Federal Reserve and the FDIC, JPMorgan Chase & Co. is required to submit periodically to the Federal Reserve and the FDIC a detailed plan (the “resolution plan”) for the rapid and orderly resolution of JPMorgan Chase & Co. and its material subsidiaries under the U.S. Bankruptcy Code and other applicable insolvency laws in the event of material financial distress or failure. JPMorgan Chase & Co.’s preferred resolution strategy under its resolution plan contemplates that only JPMorgan Chase & Co. would enter bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code pursuant to a “single point of entry” recapitalization strategy. JPMorgan Chase & Co.’s subsidiaries would be recapitalized as needed so that they could continue normal operations or subsequently
| Callable Fixed Rate Notes | PS-2 |
be wound down in an orderly manner. As a result, JPMorgan Chase & Co.’s losses and any losses incurred by its subsidiaries would be imposed first on holders of JPMorgan Chase & Co.’s equity securities and thereafter on unsecured creditors, including holders of the notes and other securities of JPMorgan Chase & Co. Claims of holders of the notes and those other debt securities would have a junior position to the claims of creditors of JPMorgan Chase & Co.’s subsidiaries and to the claims of priority (as determined by statute) and secured creditors of JPMorgan Chase & Co. Accordingly, in a resolution of JPMorgan Chase & Co. under Chapter 11 of the U.S. Bankruptcy Code, holders of the notes and other debt securities of JPMorgan Chase & Co. would realize value only to the extent available to JPMorgan Chase & Co. as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries and only after any claims of priority and secured creditors of JPMorgan Chase & Co. have been fully repaid. If JPMorgan Chase & Co. were to enter into a resolution, none of JPMorgan Chase & Co., the Federal Reserve or the FDIC is obligated to follow JPMorgan Chase & Co.’s preferred resolution strategy under its resolution plan.
The FDIC has similarly indicated that a single point of entry recapitalization model could be a desirable strategy to resolve a systemically important financial institution, such as JPMorgan Chase & Co., under Title II of the Dodd-Frank Act (“Title II”). Pursuant to that strategy, the FDIC would use its power to create a “bridge entity” for JPMorgan Chase & Co.; transfer the systemically important and viable parts of JPMorgan Chase & Co.’s business, principally the stock of JPMorgan Chase & Co.’s main operating subsidiaries and any intercompany claims against such subsidiaries, to the bridge entity; recapitalize those subsidiaries using assets of JPMorgan Chase & Co. that have been transferred to the bridge entity; and exchange external debt claims against JPMorgan Chase & Co. for equity in the bridge entity. Under this Title II resolution strategy, the value of the stock of the bridge entity that would be redistributed to holders of the notes and other debt securities of JPMorgan Chase & Co. may not be sufficient to repay all or part of the principal amount and interest on the notes and those other securities. To date, the FDIC has not formally adopted a single point of entry resolution strategy, and it is not obligated to follow such a strategy in a Title II resolution of JPMorgan Chase & Co.
| Callable Fixed Rate Notes | PS-3 |
Selected Risk Considerations
An investment in the notes involves significant risks. These risks are explained in more detail in the “Risk Factors” sections of the accompanying prospectus supplement and the accompanying product supplement.
Risks Relating to the Notes Generally
| · | WE MAY CALL YOUR NOTES PRIOR TO THEIR SCHEDULED MATURITY DATE — We may choose to call the notes early or choose not to call the notes early on any Redemption Date in our sole discretion. If the notes are called early, you will receive the principal amount of your notes plus any accrued and unpaid interest to, but excluding, the applicable Redemption Date. The aggregate amount that you will receive through and including the applicable Redemption Date will be less than the aggregate amount that you would have received had the notes not been called early. If we call the notes early, your overall return may be less than the yield that the notes would have earned if you held your notes to maturity and you may not be able to reinvest your funds at the same rate as the original notes. We may choose to call the notes early, for example, if U.S. interest rates decrease or do not rise significantly or if volatility of U.S. interest rates decreases significantly. |
| · | CREDIT RISK OF JPMORGAN CHASE & CO. — The notes are subject to the credit risk of JPMorgan Chase & Co., and our credit ratings and credit spreads may adversely affect the market value of the notes. Investors are dependent on JPMorgan Chase & Co.’s ability to pay all amounts due on the notes. Any actual or potential change in our creditworthiness or credit spreads, as determined by the market for taking our credit risk, is likely to adversely affect the value of the notes. If we were to default on our payment obligations, you may not receive any amounts owed to you under the notes and you could lose your entire investment. |
| · | REINVESTMENT RISK — If we redeem the notes, the term of the notes may be reduced and you will not receive interest payments after the applicable Redemption Date. There is no guarantee that you would be able to reinvest the proceeds from an investment in the notes at a comparable return and/or with a comparable interest rate for a similar level of risk in the event the notes are redeemed prior to the Maturity Date. |
| · | LACK OF LIQUIDITY — The notes will not be listed on any securities exchange. JPMS intends to offer to purchase the notes in the secondary market but is not required to do so. Even if there is a secondary market, it may not provide enough liquidity to allow you to trade or sell the notes easily. Because other dealers are not likely to make a secondary market for the notes, the price at which you may be able to trade your notes is likely to depend on the price, if any, at which JPMS is willing to buy the notes. |
Risks Relating to Conflicts of Interest
| · | POTENTIAL CONFLICTS — We and our affiliates play a variety of roles in connection with the issuance of the notes, including acting as calculation agent and as an agent of the offering of the notes and hedging our obligations under the notes. In performing these duties, our economic interests and the economic interests of the calculation agent and other affiliates of ours are potentially adverse to your interests as an investor in the notes. In addition, our business activities, including hedging and trading activities for our own accounts or on behalf of customers, could cause our economic interests to be adverse to yours and could adversely affect any payment on the notes and the value of the notes. It is possible that hedging or trading activities of ours or our affiliates in connection with the notes could result in substantial returns for us or our affiliates while the value of the notes declines. Please refer to “Risk Factors — Risks Relating to Conflicts of Interest” in the accompanying product supplement for additional information about these risks. |
Risks Relating to Secondary Market Prices of the Notes
| · | CERTAIN BUILT-IN COSTS ARE LIKELY TO AFFECT ADVERSELY THE VALUE OF THE NOTES PRIOR TO MATURITY — While the payment at maturity described in this pricing supplement is based on the full principal amount of your notes, the original issue price of the notes includes the agent’s commission, if any, and the estimated cost of hedging our obligations under the notes through one or more of our affiliates. As a result, the price, if any, at which JPMS will be willing to purchase notes from you in secondary market transactions, if at all, will likely be lower than the original issue price and any sale prior to the Maturity Date could result in a substantial loss to you. This secondary market price will also be affected by a number of factors aside from the agent’s commission, if any, and hedging costs, including those referred to under “—Many Economic and Market Factors Will Impact the Value of the Notes” below. |
The notes are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your notes to maturity.
| · | MANY ECONOMIC AND MARKET FACTORS WILL IMPACT THE VALUE OF THE NOTES — The notes will be affected by a number of economic and market factors that may either offset or magnify each other, including but not limited to: |
| · | any actual or potential change in our creditworthiness or credit spreads; |
| · | the time to maturity of the notes; |
| · | interest and yield rates in the market generally, as well as the volatility of those rates; and |
| · | the likelihood, or expectation, that the notes will be redeemed by us, based on prevailing market interest rates or otherwise. |
| Callable Fixed Rate Notes | PS-4 |
Tax Treatment
You should review carefully the section in the accompanying product supplement no. 1-I entitled “Material U.S. Federal Income Tax Consequences,” focusing particularly on the section entitled “— Tax Consequences to U.S. Holders — Notes Treated as Debt Instruments and That Have a Term of More than One Year — Notes Treated as Debt Instruments But Not Contingent Payment Debt Instruments — Notes Treated as Debt Instruments That Provide for Fixed Interest Payments at a Single Rate and That Are Not Issued at a Discount.” The following, when read in combination with those sections, constitutes the full opinion of our special tax counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income tax consequences of owning and disposing of the notes. Our special tax counsel is of the opinion that the notes will be treated as fixed-rate debt instruments as defined and described therein.
Supplemental Plan of Distribution
With respect to notes sold to eligible institutional investors or fee-based advisory accounts for which an affiliated or unaffiliated broker-dealer is an investment adviser, the price to the public will not be lower than $985.10 or greater than $1,000 per $1,000 principal amount note. Broker-dealers who purchase the notes for these accounts may forgo some or all selling commissions related to these sales described below. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement.
JPMS, acting as agent for JPMorgan Chase & Co., will pay all of the selling commissions it receives from us to other affiliated or unaffiliated dealers. If the notes priced today, the selling commissions would be approximately $10.00 per $1,000 principal amount note and in no event will these selling commissions exceed $25.00 per $1,000 principal amount note. Broker-dealers who purchase the notes for sales to eligible institutional investors or fee-based advisory accounts may forgo some or all of these selling commissions. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement.
| Callable Fixed Rate Notes | PS-5 |
