[424B2] Inverse VIX Short-Term Futures ETNs due March 22, 2045 Prospectus Supplement
UBS AG is marketing a new five-year, unsecured structured offering titled “Trigger Callable Contingent Yield Notes” that will settle on or about 21 July 2025 (trade date 16 July 2025) and mature on or about 19 July 2030 unless called earlier. The $1,000-denominated notes pay a contingent coupon of 12.00% p.a. (≈1.00% monthly) only when, on a monthly observation date, all three reference indices—the Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index and Russell 2000—close at or above 75 % of their respective initial levels (the “coupon barrier”). If any index is below its barrier, no coupon is paid for that period.
Issuer call feature: Beginning after eight months, UBS may redeem the notes in whole on any observation date, paying par plus the applicable coupon. Investors therefore face reinvestment risk if coupons remain attractive relative to prevailing rates.
Principal repayment at maturity: If the notes are not called and every index finishes at or above its 75 % downside threshold, investors receive the full $1,000 principal. If even one index finishes below its threshold, repayment is reduced dollar-for-dollar with the worst-performing index, exposing investors to up to a 100 % loss of principal.
Pricing details: • Issue price: $1,000 • Underwriting discount: $4 (0.40 %) • Estimated initial value: $940.10–$970.10 (94.0–97.0 % of par) determined using UBS internal models. The notes will not be listed on any exchange, and secondary liquidity is expected to be limited.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Key risks highlighted by UBS include market declines in any index, missed coupons, early call at the issuer’s discretion, credit risk of UBS, limited secondary market, potential mis-pricing versus model value, and complex tax treatment. Sector-specific risks apply to technology (NDXT) and small-cap (RTY) exposures.
UBS AG offre una nuova emissione strutturata quinquennale non garantita denominata “Trigger Callable Contingent Yield Notes”, con regolamento previsto intorno al 21 luglio 2025 (data di negoziazione 16 luglio 2025) e scadenza intorno al 19 luglio 2030, salvo richiamo anticipato. I titoli, con valore nominale di $1.000, pagano un cedola condizionata del 12,00% annuo (circa 1,00% mensile) solo se, alla data di osservazione mensile, tutti e tre gli indici di riferimento — Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index e Russell 2000 — chiudono al 75% o oltre rispetto ai loro livelli iniziali (la “barriera cedolare”). Se anche solo un indice è sotto la barriera, per quel periodo non viene corrisposta alcuna cedola.
Opzione di richiamo da parte dell'emittente: A partire da otto mesi dopo l’emissione, UBS può rimborsare integralmente i titoli in qualsiasi data di osservazione, pagando il valore nominale più la cedola applicabile. Gli investitori quindi si espongono al rischio di reinvestimento se le cedole restano interessanti rispetto ai tassi correnti.
Rimborso del capitale a scadenza: Se i titoli non vengono richiamati e ogni indice si trova al 75% o oltre della soglia di ribasso, gli investitori ricevono il capitale pieno di $1.000. Se anche un solo indice chiude sotto la soglia, il rimborso viene ridotto in modo proporzionale alla performance peggiore, esponendo gli investitori a una perdita fino al 100% del capitale.
Dettagli di prezzo: • Prezzo di emissione: $1.000 • Sconto di sottoscrizione: $4 (0,40%) • Valore iniziale stimato: $940,10–$970,10 (94,0–97,0% del valore nominale) calcolato con modelli interni UBS. I titoli non saranno quotati in alcun mercato regolamentato e la liquidità secondaria sarà limitata.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Principali rischi evidenziati da UBS comprendono cali di mercato di uno qualsiasi degli indici, mancato pagamento delle cedole, richiamo anticipato a discrezione dell’emittente, rischio di credito di UBS, mercato secondario limitato, possibile errata valutazione rispetto al modello e trattamento fiscale complesso. Rischi specifici di settore riguardano l’esposizione alla tecnologia (NDXT) e alle small cap (RTY).
UBS AG está comercializando una nueva emisión estructurada a cinco años, sin garantía, titulada “Trigger Callable Contingent Yield Notes”, con liquidación prevista alrededor del 21 de julio de 2025 (fecha de operación 16 de julio de 2025) y vencimiento aproximadamente el 19 de julio de 2030, salvo que se ejerza un llamado anticipado. Los bonos, denominados en $1,000, pagan un cupón contingente del 12.00% anual (≈1.00% mensual) solo cuando, en la fecha de observación mensual, los tres índices de referencia — Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index y Russell 2000 — cierran en o por encima del 75% de sus niveles iniciales (la “barrera del cupón”). Si algún índice está por debajo de su barrera, no se paga cupón ese periodo.
Opción de rescate del emisor: A partir de los ocho meses, UBS puede redimir los bonos en su totalidad en cualquier fecha de observación, pagando el valor nominal más el cupón aplicable. Por ello, los inversores enfrentan riesgo de reinversión si los cupones siguen siendo atractivos en comparación con las tasas vigentes.
Reembolso del principal al vencimiento: Si los bonos no son llamados y cada índice termina en o por encima del umbral del 75%, los inversores reciben el principal completo de $1,000. Si incluso un índice termina por debajo de su umbral, el reembolso se reduce dólar por dólar según el índice con peor desempeño, exponiendo a los inversores a una pérdida de hasta el 100% del principal.
Detalles de precios: • Precio de emisión: $1,000 • Descuento de suscripción: $4 (0.40%) • Valor inicial estimado: $940.10–$970.10 (94.0–97.0% del valor nominal) determinado con modelos internos de UBS. Los bonos no estarán listados en ninguna bolsa y se espera una liquidez secundaria limitada.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Principales riesgos destacados por UBS incluyen caídas en cualquiera de los índices, cupones no pagados, llamado anticipado a discreción del emisor, riesgo crediticio de UBS, mercado secundario limitado, posible valoración incorrecta respecto al modelo y tratamiento fiscal complejo. Riesgos sectoriales específicos aplican a las exposiciones en tecnología (NDXT) y small caps (RTY).
UBS AG는 “Trigger Callable Contingent Yield Notes”라는 이름의 새로운 5년 만기 무담보 구조화 상품을 출시하며, 2025년 7월 21일경 결제(거래일 2025년 7월 16일)되고 2030년 7월 19일경 만기되며 조기 상환 가능성이 있습니다. 액면가 $1,000의 이 노트는 월별 관찰일에 세 가지 기준 지수—Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index, Russell 2000—가 모두 초기 수준의 75% 이상으로 마감할 때에만 연 12.00% (월 약 1.00%)의 조건부 쿠폰을 지급합니다(“쿠폰 장벽”). 한 지수라도 장벽 이하일 경우 해당 기간에 쿠폰이 지급되지 않습니다.
발행자 콜 옵션: 8개월 경과 후부터 UBS는 관찰일에 노트를 전액 상환할 수 있으며, 액면가와 해당 쿠폰을 지급합니다. 따라서 투자자는 쿠폰이 현재 금리에 비해 매력적인 경우 재투자 위험에 노출됩니다.
만기 시 원금 상환: 노트가 조기 상환되지 않고 모든 지수가 75% 하락 한도 이상으로 마감하면 투자자는 전액 $1,000를 받습니다. 한 지수라도 한도 이하로 마감하면, 최악의 지수 성과에 따라 원금이 달러 단위로 차감되어 최대 100% 원금 손실 위험이 있습니다.
가격 세부사항: • 발행가: $1,000 • 인수 할인: $4 (0.40%) • 추정 초기 가치: $940.10–$970.10 (액면가의 94.0–97.0%) UBS 내부 모델을 사용하여 산출. 이 노트는 거래소에 상장되지 않으며, 2차 유동성은 제한적일 것으로 예상됩니다.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
UBS가 강조하는 주요 위험은 지수 하락, 쿠폰 미지급, 발행자 임의 조기 상환, UBS 신용 위험, 제한된 2차 시장, 모델 가치 대비 가격 오류 가능성, 복잡한 세금 처리 등이 포함됩니다. 기술(NDXT) 및 소형주(RTY) 노출에 대한 섹터별 위험도 적용됩니다.
UBS AG commercialise une nouvelle émission structurée non garantie sur cinq ans intitulée « Trigger Callable Contingent Yield Notes », avec règlement prévu vers le 21 juillet 2025 (date de transaction 16 juillet 2025) et échéance vers le 19 juillet 2030, sauf rappel anticipé. Les notes, d’une valeur nominale de 1 000 $, versent un coupon conditionnel de 12,00 % par an (environ 1,00 % mensuel) uniquement si, à la date d’observation mensuelle, les trois indices de référence — Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index et Russell 2000 — clôturent à au moins 75 % de leurs niveaux initiaux (la « barrière du coupon »). Si un indice est en dessous de cette barrière, aucun coupon n’est versé pour cette période.
Option de remboursement anticipé par l’émetteur : À partir de huit mois, UBS peut racheter les notes en totalité à toute date d’observation, en payant la valeur nominale plus le coupon applicable. Les investisseurs sont donc exposés au risque de réinvestissement si les coupons restent attractifs par rapport aux taux en vigueur.
Remboursement du principal à l’échéance : Si les notes ne sont pas rappelées et que chaque indice termine à ou au-dessus du seuil de 75 %, les investisseurs reçoivent le principal complet de 1 000 $. Si un seul indice termine en dessous de ce seuil, le remboursement est réduit dollar pour dollar selon la performance la plus faible, exposant les investisseurs à une perte pouvant aller jusqu’à 100 % du principal.
Détails de prix : • Prix d’émission : 1 000 $ • Escompte de souscription : 4 $ (0,40 %) • Valeur initiale estimée : 940,10 $–970,10 $ (94,0–97,0 % du pair) déterminée à l’aide des modèles internes UBS. Les notes ne seront pas cotées en bourse et la liquidité secondaire devrait être limitée.
• CUSIP : 90309KCP7 ; ISIN : US90309KCP75.
Principaux risques soulignés par UBS incluent les baisses de marché sur un ou plusieurs indices, le non-paiement des coupons, le rappel anticipé à la discrétion de l’émetteur, le risque de crédit UBS, un marché secondaire limité, un éventuel mauvais prix par rapport à la valeur modèle, et une fiscalité complexe. Des risques sectoriels spécifiques s’appliquent aux expositions technologiques (NDXT) et aux petites capitalisations (RTY).
UBS AG bringt ein neues fünfjähriges, unbesichertes strukturiertes Produkt mit dem Titel „Trigger Callable Contingent Yield Notes“ auf den Markt, das voraussichtlich am oder um den 21. Juli 2025 (Handelsdatum 16. Juli 2025) abgerechnet wird und am oder um den 19. Juli 2030 fällig wird, sofern es nicht früher zurückgerufen wird. Die auf $1.000 lautenden Notes zahlen nur dann einen bedingten Kupon von 12,00 % p.a. (ca. 1,00 % monatlich), wenn an einem monatlichen Beobachtungstag alle drei Referenzindizes – Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index und Russell 2000 – auf oder über 75 % ihres jeweiligen Anfangsniveaus schließen (die „Kupon-Schwelle“). Liegt ein Index darunter, wird für diesen Zeitraum kein Kupon gezahlt.
Emittenten-Kündigungsrecht: Ab acht Monaten kann UBS die Notes an jedem Beobachtungstag ganz zurückzahlen und dabei den Nennwert plus den anfallenden Kupon zahlen. Anleger tragen daher ein Wiederanlagerisiko, falls die Kupons im Vergleich zu den aktuellen Zinssätzen attraktiv bleiben.
Kapitalrückzahlung bei Fälligkeit: Werden die Notes nicht zurückgerufen und schließen alle Indizes auf oder über der 75 %-Abschwächungsschwelle, erhalten Anleger den vollen Nennwert von $1.000. Schließt auch nur ein Index unter seiner Schwelle, wird die Rückzahlung um den Dollarbetrag des schlechtesten Index reduziert, was Anleger einem Verlust von bis zu 100 % des Kapitals aussetzt.
Preisdetails: • Ausgabepreis: $1.000 • Zeichnungsabschlag: $4 (0,40 %) • Geschätzter Anfangswert: $940,10–$970,10 (94,0–97,0 % des Nennwerts), ermittelt mit internen UBS-Modellen. Die Notes werden an keiner Börse notiert sein, und die Sekundärliquidität wird voraussichtlich begrenzt sein.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Wesentliche von UBS hervorgehobene Risiken umfassen Marktrückgänge bei einem der Indizes, ausbleibende Kuponzahlungen, vorzeitigen Rückruf nach Ermessen des Emittenten, UBS-Kreditrisiko, begrenzten Sekundärmarkt, mögliche Fehlbewertung gegenüber dem Modellwert und komplexe steuerliche Behandlung. Branchenspezifische Risiken gelten für Technologie (NDXT) und Small-Cap (RTY)-Exponierungen.
- Attractive 12.00% annual contingent coupon if barriers are met, substantially above current investment-grade yields.
- 75% downside and coupon barriers provide conditional protection versus full market exposure until breached.
- Issuer call can return principal early at par plus coupon, shortening duration in favourable markets.
- Underwriting discount only 0.40%, lower than many structured notes, modestly reducing cost drag.
- Principal is at risk; any index below 75% at maturity triggers loss equal to worst-performing index, up to 100%.
- Coupons are not guaranteed; a single barrier breach suspends payment for the period—investors may receive few or none.
- Issuer call skews upside; UBS is most likely to redeem when coupons favour investors, limiting total return.
- Estimated initial value 3–6% below issue price, meaning investors pay above model value at inception.
- No exchange listing and limited secondary liquidity may force holders to accept discounts if they need to exit early.
- Credit exposure to UBS AG; payment depends on issuer solvency and Swiss resolution regime.
- Complex tax treatment; coupons taxed as ordinary income and overall characterization uncertain.
Insights
TL;DR: High 12% headline coupon but real risk of principal loss; callability skews return profile in UBS’s favour.
From a payoff perspective, these notes combine three risk drivers: (1) monthly binary coupon, (2) issuer call after month 8, and (3) 75 % soft protection level. Correlation matters: with three distinct indices, the probability that at least one breaches the barrier over 60 observation dates is non-trivial. The relatively generous 12% rate largely compensates for that risk and the 0.40% underwriting fee. UBS’s estimated initial value (94–97 % of par) implies an upfront cost to investors of roughly 3–6 % versus model value. Early redemption is likely if coupons remain “in-the-money,” capping investors’ upside and leaving them to reinvest in a lower-rate environment. Credit exposure to UBS (A/A- ratings) remains, and the Swiss resolution regime could impose haircuts in stress scenarios. Overall, risk-adjusted value appears fair but not compelling.
TL;DR: Product adds yield but heightens tail risk; suitability limited to yield-seeking investors who can absorb loss.
The note’s barrier set at 75 % is relatively tight for a five-year term—historically each reference index has breached such a level multiple times in similar windows. Because payoff hinges on the least-performing asset, diversification benefits are muted; instead, investors inherit compounded downside. Scenario analysis in the filing shows potential losses up to 60 % even with only one severe index drawdown. Liquidity is another concern: no listing, wide bid-ask spreads, and UBS retains the right to suspend market-making. While callable structures can be useful in range-bound markets, adding to portfolios already overweight technology or small-caps may concentrate risk. Tax treatment remains unsettled; ordinary income on coupons reduces after-tax yield. I view the net impact as neutral: attractive cash-on-cash yield offset by asymmetric risk.
UBS AG offre una nuova emissione strutturata quinquennale non garantita denominata “Trigger Callable Contingent Yield Notes”, con regolamento previsto intorno al 21 luglio 2025 (data di negoziazione 16 luglio 2025) e scadenza intorno al 19 luglio 2030, salvo richiamo anticipato. I titoli, con valore nominale di $1.000, pagano un cedola condizionata del 12,00% annuo (circa 1,00% mensile) solo se, alla data di osservazione mensile, tutti e tre gli indici di riferimento — Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index e Russell 2000 — chiudono al 75% o oltre rispetto ai loro livelli iniziali (la “barriera cedolare”). Se anche solo un indice è sotto la barriera, per quel periodo non viene corrisposta alcuna cedola.
Opzione di richiamo da parte dell'emittente: A partire da otto mesi dopo l’emissione, UBS può rimborsare integralmente i titoli in qualsiasi data di osservazione, pagando il valore nominale più la cedola applicabile. Gli investitori quindi si espongono al rischio di reinvestimento se le cedole restano interessanti rispetto ai tassi correnti.
Rimborso del capitale a scadenza: Se i titoli non vengono richiamati e ogni indice si trova al 75% o oltre della soglia di ribasso, gli investitori ricevono il capitale pieno di $1.000. Se anche un solo indice chiude sotto la soglia, il rimborso viene ridotto in modo proporzionale alla performance peggiore, esponendo gli investitori a una perdita fino al 100% del capitale.
Dettagli di prezzo: • Prezzo di emissione: $1.000 • Sconto di sottoscrizione: $4 (0,40%) • Valore iniziale stimato: $940,10–$970,10 (94,0–97,0% del valore nominale) calcolato con modelli interni UBS. I titoli non saranno quotati in alcun mercato regolamentato e la liquidità secondaria sarà limitata.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Principali rischi evidenziati da UBS comprendono cali di mercato di uno qualsiasi degli indici, mancato pagamento delle cedole, richiamo anticipato a discrezione dell’emittente, rischio di credito di UBS, mercato secondario limitato, possibile errata valutazione rispetto al modello e trattamento fiscale complesso. Rischi specifici di settore riguardano l’esposizione alla tecnologia (NDXT) e alle small cap (RTY).
UBS AG está comercializando una nueva emisión estructurada a cinco años, sin garantía, titulada “Trigger Callable Contingent Yield Notes”, con liquidación prevista alrededor del 21 de julio de 2025 (fecha de operación 16 de julio de 2025) y vencimiento aproximadamente el 19 de julio de 2030, salvo que se ejerza un llamado anticipado. Los bonos, denominados en $1,000, pagan un cupón contingente del 12.00% anual (≈1.00% mensual) solo cuando, en la fecha de observación mensual, los tres índices de referencia — Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index y Russell 2000 — cierran en o por encima del 75% de sus niveles iniciales (la “barrera del cupón”). Si algún índice está por debajo de su barrera, no se paga cupón ese periodo.
Opción de rescate del emisor: A partir de los ocho meses, UBS puede redimir los bonos en su totalidad en cualquier fecha de observación, pagando el valor nominal más el cupón aplicable. Por ello, los inversores enfrentan riesgo de reinversión si los cupones siguen siendo atractivos en comparación con las tasas vigentes.
Reembolso del principal al vencimiento: Si los bonos no son llamados y cada índice termina en o por encima del umbral del 75%, los inversores reciben el principal completo de $1,000. Si incluso un índice termina por debajo de su umbral, el reembolso se reduce dólar por dólar según el índice con peor desempeño, exponiendo a los inversores a una pérdida de hasta el 100% del principal.
Detalles de precios: • Precio de emisión: $1,000 • Descuento de suscripción: $4 (0.40%) • Valor inicial estimado: $940.10–$970.10 (94.0–97.0% del valor nominal) determinado con modelos internos de UBS. Los bonos no estarán listados en ninguna bolsa y se espera una liquidez secundaria limitada.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Principales riesgos destacados por UBS incluyen caídas en cualquiera de los índices, cupones no pagados, llamado anticipado a discreción del emisor, riesgo crediticio de UBS, mercado secundario limitado, posible valoración incorrecta respecto al modelo y tratamiento fiscal complejo. Riesgos sectoriales específicos aplican a las exposiciones en tecnología (NDXT) y small caps (RTY).
UBS AG는 “Trigger Callable Contingent Yield Notes”라는 이름의 새로운 5년 만기 무담보 구조화 상품을 출시하며, 2025년 7월 21일경 결제(거래일 2025년 7월 16일)되고 2030년 7월 19일경 만기되며 조기 상환 가능성이 있습니다. 액면가 $1,000의 이 노트는 월별 관찰일에 세 가지 기준 지수—Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index, Russell 2000—가 모두 초기 수준의 75% 이상으로 마감할 때에만 연 12.00% (월 약 1.00%)의 조건부 쿠폰을 지급합니다(“쿠폰 장벽”). 한 지수라도 장벽 이하일 경우 해당 기간에 쿠폰이 지급되지 않습니다.
발행자 콜 옵션: 8개월 경과 후부터 UBS는 관찰일에 노트를 전액 상환할 수 있으며, 액면가와 해당 쿠폰을 지급합니다. 따라서 투자자는 쿠폰이 현재 금리에 비해 매력적인 경우 재투자 위험에 노출됩니다.
만기 시 원금 상환: 노트가 조기 상환되지 않고 모든 지수가 75% 하락 한도 이상으로 마감하면 투자자는 전액 $1,000를 받습니다. 한 지수라도 한도 이하로 마감하면, 최악의 지수 성과에 따라 원금이 달러 단위로 차감되어 최대 100% 원금 손실 위험이 있습니다.
가격 세부사항: • 발행가: $1,000 • 인수 할인: $4 (0.40%) • 추정 초기 가치: $940.10–$970.10 (액면가의 94.0–97.0%) UBS 내부 모델을 사용하여 산출. 이 노트는 거래소에 상장되지 않으며, 2차 유동성은 제한적일 것으로 예상됩니다.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
UBS가 강조하는 주요 위험은 지수 하락, 쿠폰 미지급, 발행자 임의 조기 상환, UBS 신용 위험, 제한된 2차 시장, 모델 가치 대비 가격 오류 가능성, 복잡한 세금 처리 등이 포함됩니다. 기술(NDXT) 및 소형주(RTY) 노출에 대한 섹터별 위험도 적용됩니다.
UBS AG commercialise une nouvelle émission structurée non garantie sur cinq ans intitulée « Trigger Callable Contingent Yield Notes », avec règlement prévu vers le 21 juillet 2025 (date de transaction 16 juillet 2025) et échéance vers le 19 juillet 2030, sauf rappel anticipé. Les notes, d’une valeur nominale de 1 000 $, versent un coupon conditionnel de 12,00 % par an (environ 1,00 % mensuel) uniquement si, à la date d’observation mensuelle, les trois indices de référence — Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index et Russell 2000 — clôturent à au moins 75 % de leurs niveaux initiaux (la « barrière du coupon »). Si un indice est en dessous de cette barrière, aucun coupon n’est versé pour cette période.
Option de remboursement anticipé par l’émetteur : À partir de huit mois, UBS peut racheter les notes en totalité à toute date d’observation, en payant la valeur nominale plus le coupon applicable. Les investisseurs sont donc exposés au risque de réinvestissement si les coupons restent attractifs par rapport aux taux en vigueur.
Remboursement du principal à l’échéance : Si les notes ne sont pas rappelées et que chaque indice termine à ou au-dessus du seuil de 75 %, les investisseurs reçoivent le principal complet de 1 000 $. Si un seul indice termine en dessous de ce seuil, le remboursement est réduit dollar pour dollar selon la performance la plus faible, exposant les investisseurs à une perte pouvant aller jusqu’à 100 % du principal.
Détails de prix : • Prix d’émission : 1 000 $ • Escompte de souscription : 4 $ (0,40 %) • Valeur initiale estimée : 940,10 $–970,10 $ (94,0–97,0 % du pair) déterminée à l’aide des modèles internes UBS. Les notes ne seront pas cotées en bourse et la liquidité secondaire devrait être limitée.
• CUSIP : 90309KCP7 ; ISIN : US90309KCP75.
Principaux risques soulignés par UBS incluent les baisses de marché sur un ou plusieurs indices, le non-paiement des coupons, le rappel anticipé à la discrétion de l’émetteur, le risque de crédit UBS, un marché secondaire limité, un éventuel mauvais prix par rapport à la valeur modèle, et une fiscalité complexe. Des risques sectoriels spécifiques s’appliquent aux expositions technologiques (NDXT) et aux petites capitalisations (RTY).
UBS AG bringt ein neues fünfjähriges, unbesichertes strukturiertes Produkt mit dem Titel „Trigger Callable Contingent Yield Notes“ auf den Markt, das voraussichtlich am oder um den 21. Juli 2025 (Handelsdatum 16. Juli 2025) abgerechnet wird und am oder um den 19. Juli 2030 fällig wird, sofern es nicht früher zurückgerufen wird. Die auf $1.000 lautenden Notes zahlen nur dann einen bedingten Kupon von 12,00 % p.a. (ca. 1,00 % monatlich), wenn an einem monatlichen Beobachtungstag alle drei Referenzindizes – Dow Jones Industrial Average, Nasdaq-100 Technology Sector Index und Russell 2000 – auf oder über 75 % ihres jeweiligen Anfangsniveaus schließen (die „Kupon-Schwelle“). Liegt ein Index darunter, wird für diesen Zeitraum kein Kupon gezahlt.
Emittenten-Kündigungsrecht: Ab acht Monaten kann UBS die Notes an jedem Beobachtungstag ganz zurückzahlen und dabei den Nennwert plus den anfallenden Kupon zahlen. Anleger tragen daher ein Wiederanlagerisiko, falls die Kupons im Vergleich zu den aktuellen Zinssätzen attraktiv bleiben.
Kapitalrückzahlung bei Fälligkeit: Werden die Notes nicht zurückgerufen und schließen alle Indizes auf oder über der 75 %-Abschwächungsschwelle, erhalten Anleger den vollen Nennwert von $1.000. Schließt auch nur ein Index unter seiner Schwelle, wird die Rückzahlung um den Dollarbetrag des schlechtesten Index reduziert, was Anleger einem Verlust von bis zu 100 % des Kapitals aussetzt.
Preisdetails: • Ausgabepreis: $1.000 • Zeichnungsabschlag: $4 (0,40 %) • Geschätzter Anfangswert: $940,10–$970,10 (94,0–97,0 % des Nennwerts), ermittelt mit internen UBS-Modellen. Die Notes werden an keiner Börse notiert sein, und die Sekundärliquidität wird voraussichtlich begrenzt sein.
• CUSIP: 90309KCP7; ISIN: US90309KCP75.
Wesentliche von UBS hervorgehobene Risiken umfassen Marktrückgänge bei einem der Indizes, ausbleibende Kuponzahlungen, vorzeitigen Rückruf nach Ermessen des Emittenten, UBS-Kreditrisiko, begrenzten Sekundärmarkt, mögliche Fehlbewertung gegenüber dem Modellwert und komplexe steuerliche Behandlung. Branchenspezifische Risiken gelten für Technologie (NDXT) und Small-Cap (RTY)-Exponierungen.
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 July 9, 2025
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July , 2025 |
Registration Statement Nos. 333-270004 and 333-270004-01; Rule 424(b)(2) |
JPMorgan Chase Financial Company LLC
Structured Investments
Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF due October 16, 2026
Fully and Unconditionally Guaranteed by JPMorgan Chase & Co.
●The notes are designed for investors who seek a return of 1.00 times any appreciation of the VanEck® Gold Miners ETF, up to a maximum return of at least 20.00%, at maturity.
●Investors should be willing to forgo interest and dividend payments and be willing to lose up to 75.00% of their principal amount at maturity.
●The notes are unsecured and unsubordinated obligations of JPMorgan Chase Financial Company LLC, which we refer to as JPMorgan Financial, the payment on which is fully and unconditionally guaranteed by JPMorgan Chase & Co. Any payment on the notes is subject to the credit risk of JPMorgan Financial, as issuer of the notes, and the credit risk of JPMorgan Chase & Co., as guarantor of the notes.
●Minimum denominations of $1,000 and integral multiples thereof
●The notes are expected to price on or about July 11, 2025 and are expected to settle on or about July 16, 2025.
●CUSIP: 48136FB84
Investing in the notes involves a number of risks. See “Risk Factors” beginning on page S-2 of the accompanying prospectus supplement, Annex A to the accompanying prospectus addendum, “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, underlying supplement, prospectus supplement, prospectus and prospectus addendum. Any representation to the contrary is a criminal offense.
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Price to Public (1) |
Fees and Commissions (2) |
Proceeds to Issuer |
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Per note |
$1,000 |
$ |
$ |
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Total |
$ |
$ |
$ |
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(1) See “Supplemental Use of Proceeds” in this pricing supplement for information about the components of the price to public of the notes. (2) J.P. Morgan Securities LLC, which we refer to as JPMS, acting as agent for JPMorgan Financial, will pay all of the selling commissions it receives from us to other affiliated or unaffiliated dealers. In no event will these selling commissions exceed $7.50 per $1,000 principal amount note. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement. |
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If the notes priced today, the estimated value of the notes would be approximately $982.50 per $1,000 principal amount note. The estimated value of the notes, when the terms of the notes are set, will be provided in the pricing supplement and will not be less than $950.00 per $1,000 principal amount note. See “The Estimated Value of the Notes” in this pricing supplement for additional information.
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.
Pricing supplement to product supplement no. 4-I dated April 13, 2023, underlying supplement no. 1-I dated April 13, 2023, the prospectus and prospectus supplement, each dated April 13, 2023, and the prospectus addendum dated June 3, 2024
Key Terms
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Issuer: JPMorgan Chase Financial Company LLC, a direct, wholly owned finance subsidiary of JPMorgan Chase & Co. Guarantor: JPMorgan Chase & Co. Fund: The VanEck® Gold Miners ETF (Bloomberg ticker: GDX) Maximum Return: At least 20.00% (corresponding to a maximum payment at maturity of at least $1,200.00 per $1,000 principal amount note) (to be provided in the pricing supplement) Upside Leverage Factor: 1.00 Buffer Amount: 25.00% Pricing Date: On or about July 11, 2025 Original Issue Date (Settlement Date): On or about July 16, 2025 Observation Date*: October 13, 2026 Maturity Date*: October 16, 2026 * Subject to postponement in the event of a market disruption event and as described under “General Terms of Notes — Postponement of a Determination Date — Notes Linked to a Single Underlying — Notes Linked to a Single Underlying (Other Than a Commodity Index)” and “General Terms of Notes — Postponement of a Payment Date” in the accompanying product supplement |
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Payment at Maturity: If the Final Value is greater than the Initial Value, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + ($1,000 × Fund Return × Upside Leverage Factor), If the Final Value is equal to the Initial Value or is less than the Initial Value by up to the Buffer Amount, you will receive the principal amount of your notes at maturity. If the Final Value is less than the Initial Value by more than the Buffer Amount, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + [$1,000 × (Fund Return + Buffer Amount)] If the Final Value is less than the Initial Value by more than the Buffer Amount, you will lose some or most of your principal amount at maturity. Fund Return: (Final Value – Initial Value) Initial Value: The closing price of one share of the Fund on the Pricing Date Final Value: The closing price of one share of the Fund on the Observation Date Share Adjustment Factor: The Share Adjustment Factor is referenced in determining the closing price of one share of the Fund and is set equal to 1.0 on the Pricing Date. The Share Adjustment Factor is subject to adjustment upon the occurrence of certain events affecting the Fund. See “The Underlyings – Funds – Anti-Dilution Adjustments” in the accompanying product supplement for further information. |
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PS-1 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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Supplemental Terms of the Notes
Any value of any underlier, and any values derived therefrom, included in this pricing supplement may be corrected, in the event of manifest error or inconsistency, by amendment of this pricing supplement and the corresponding terms of the notes. Notwithstanding anything to the contrary in the indenture governing the notes, that amendment will become effective without consent of the holders of the notes or any other party.
Hypothetical Payout Profile
The following table and graph illustrate the hypothetical total return and payment at maturity on the notes linked to a hypothetical Fund. The “total return” as used in this pricing supplement is the number, expressed as a percentage, that results from comparing the payment at maturity per $1,000 principal amount note to $1,000. The hypothetical total returns and payments set forth below assume the following:
●an Initial Value of $100.00;
●a Maximum Return of 20.00%;
●an Upside Leverage Factor of 1.00; and
●a Buffer Amount of 25.00%.
The hypothetical Initial Value of $100.00 has been chosen for illustrative purposes only and may not represent a likely actual Initial Value. The actual Initial Value will be the closing price of one share of the Fund on the Pricing Date and will be provided in the pricing supplement. For historical data regarding the actual closing prices of one share of the Fund, please see the historical information set forth under “The Fund” in this pricing supplement.
Each hypothetical total return or hypothetical payment at maturity set forth below is for illustrative purposes only and may not be the actual total return or payment at maturity applicable to a purchaser of the notes. The numbers appearing in the following table and graph have been rounded for ease of analysis.
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Final Value |
Fund Return |
Total Return on the Notes |
Payment at Maturity |
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$180.00 |
80.00% |
20.00% |
$1,200.00 |
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$170.00 |
70.00% |
20.00% |
$1,200.00 |
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$160.00 |
60.00% |
20.00% |
$1,200.00 |
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$150.00 |
50.00% |
20.00% |
$1,200.00 |
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$140.00 |
40.00% |
20.00% |
$1,200.00 |
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$130.00 |
30.00% |
20.00% |
$1,200.00 |
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$120.00 |
20.00% |
20.00% |
$1,200.00 |
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$110.00 |
10.00% |
10.00% |
$1,100.00 |
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$105.00 |
5.00% |
5.00% |
$1,050.00 |
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$101.00 |
1.00% |
1.00% |
$1,010.00 |
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$100.00 |
0.00% |
0.00% |
$1,000.00 |
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$95.00 |
-5.00% |
0.00% |
$1,000.00 |
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$90.00 |
-10.00% |
0.00% |
$1,000.00 |
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$85.00 |
-15.00% |
0.00% |
$1,000.00 |
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$80.00 |
-20.00% |
0.00% |
$1,000.00 |
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$75.00 |
-25.00% |
0.00% |
$1,000.00 |
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$70.00 |
-30.00% |
-5.00% |
$950.00 |
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$60.00 |
-40.00% |
-15.00% |
$850.00 |
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$50.00 |
-50.00% |
-25.00% |
$750.00 |
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$40.00 |
-60.00% |
-35.00% |
$650.00 |
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$30.00 |
-70.00% |
-45.00% |
$550.00 |
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$20.00 |
-80.00% |
-55.00% |
$450.00 |
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$10.00 |
-90.00% |
-65.00% |
$350.00 |
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$0.00 |
-100.00% |
-75.00% |
$250.00 |
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PS-2 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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The following graph demonstrates the hypothetical payments at maturity on the notes for a range of Fund Returns (-50% to 50%). There can be no assurance that the performance of the Fund will result in the return of any of your principal amount in excess of $250.00 per $1,000 principal amount note, subject to the credit risks of JPMorgan Financial and JPMorgan Chase & Co.
How the Notes Work
Upside Scenario:
If the Final Value is greater than the Initial Value, investors will receive at maturity the $1,000 principal amount plus a return equal to 1.00 times the Fund Return, subject to the Maximum Return of at least 20.00%. Assuming a hypothetical Maximum Return of 20.00%, an investor will realize the maximum payment at maturity at a Final Value at or above 120.00% of the Initial Value.
●If the closing price of one share of the Fund increases 5.00%, investors will receive at maturity a return of 5.00%, or $1,050.00 per $1,000 principal amount note.
●Assuming a hypothetical Maximum Return of 20.00%, if the closing price of one share of the Fund increases 40.00%, investors will receive at maturity a return equal to the Maximum Return of 20.00%, or $1,200.00 per $1,000 principal amount note, which is the maximum payment at maturity.
Par Scenario:
If the Final Value is equal to the Initial Value or is less than the Initial Value by up to the Buffer Amount of 25.00%, investors will receive at maturity the principal amount of their notes.
Downside Scenario:
If the Final Value is less than the Initial Value by more than the Buffer Amount of 25.00%, investors will lose 1% of the principal amount of their notes for every 1% that the Final Value is less than the Initial Value by more than the Buffer Amount.
●For example, if the closing price of one share of the Fund declines 50.00%, investors will lose 25.00% of their principal amount and receive only $750.00 per $1,000 principal amount note at maturity.
The hypothetical returns and hypothetical payments on the notes shown above apply only if you hold the notes for their entire term. These hypotheticals do not reflect the fees or expenses that would be associated with any sale in the secondary market. If these fees and expenses were included, the hypothetical returns and hypothetical payments shown above would likely be lower.
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PS-3 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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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 product supplement and in Annex A to the accompanying prospectus addendum.
●YOUR INVESTMENT IN THE NOTES MAY RESULT IN A LOSS —
The notes do not guarantee any return of principal. If the Final Value is less than the Initial Value by more than 25.00%, you will lose 1% of the principal amount of your notes for every 1% that the Final Value is less than the Initial Value by more than 25.00%. Accordingly, under these circumstances, you will lose up to 75.00% of your principal amount at maturity.
●YOUR MAXIMUM GAIN ON THE NOTES IS LIMITED TO THE MAXIMUM RETURN,
regardless of any appreciation of the Fund, which may be significant.
●CREDIT RISKS OF JPMORGAN FINANCIAL AND JPMORGAN CHASE & CO. —
Investors are dependent on our and JPMorgan Chase & Co.’s ability to pay all amounts due on the notes. Any actual or potential change in our or JPMorgan Chase & Co.’s creditworthiness or credit spreads, as determined by the market for taking that credit risk, is likely to adversely affect the value of the notes. If we and JPMorgan Chase & Co. 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.
●AS A FINANCE SUBSIDIARY, JPMORGAN FINANCIAL HAS NO INDEPENDENT OPERATIONS AND HAS LIMITED ASSETS —
As a finance subsidiary of JPMorgan Chase & Co., we have no independent operations beyond the issuance and administration of our securities and the collection of intercompany obligations. Aside from the initial capital contribution from JPMorgan Chase & Co., substantially all of our assets relate to obligations of JPMorgan Chase & Co. to make payments under loans made by us to JPMorgan Chase & Co. or under other intercompany agreements. As a result, we are dependent upon payments from JPMorgan Chase & Co. to meet our obligations under the notes. We are not a key operating subsidiary of JPMorgan Chase & Co. and in a bankruptcy or resolution of JPMorgan Chase & Co. we are not expected to have sufficient resources to meet our obligations in respect of the notes as they come due. If JPMorgan Chase & Co. does not make payments to us and we are unable to make payments on the notes, you may have to seek payment under the related guarantee by JPMorgan Chase & Co., and that guarantee will rank pari passu with all other unsecured and unsubordinated obligations of JPMorgan Chase & Co. For more information, see the accompanying prospectus addendum.
●POTENTIAL CONFLICTS —
We and our affiliates play a variety of roles in connection with the notes. In performing these duties, our and JPMorgan Chase & Co.’s economic interests are potentially adverse to your interests as an investor in 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.
●THE NOTES DO NOT PAY INTEREST.
●YOU WILL NOT RECEIVE DIVIDENDS ON THE FUND OR THE SECURITIES HELD BY THE FUND OR HAVE ANY RIGHTS WITH RESPECT TO THE FUND OR THOSE SECURITIES.
●THERE ARE RISKS ASSOCIATED WITH THE FUND —
The Fund is subject to management risk, which is the risk that the investment strategies of the Fund’s investment adviser, the implementation of which is subject to a number of constraints, may not produce the intended results. These constraints could adversely affect the market price of the shares of the Fund and, consequently, the value of the notes.
●THE PERFORMANCE AND MARKET VALUE OF THE FUND, PARTICULARLY DURING PERIODS OF MARKET VOLATILITY, MAY NOT CORRELATE WITH THE PERFORMANCE OF THE FUND’S UNDERLYING INDEX AS WELL AS THE NET ASSET VALUE PER SHARE —
The Fund does not fully replicate its Underlying Index (as defined under “The Fund” below) and may hold securities different from those included in its Underlying Index. In addition, the performance of the Fund will reflect additional transaction costs and fees that are not included in the calculation of its Underlying Index. All of these factors may lead to a lack of correlation between the performance of the Fund and its Underlying Index. In addition, corporate actions with respect to the equity securities underlying the Fund (such as mergers and spin-offs) may impact the variance between the performances of the Fund and its Underlying Index. Finally, because the shares of the Fund are traded on a securities exchange and are subject to market supply and investor demand, the market value of one share of the Fund may differ from the net asset value per share of the Fund.
During periods of market volatility, securities underlying the Fund may be unavailable in the secondary market, market participants may be unable to calculate accurately the net asset value per share of the Fund and the liquidity of the Fund may be adversely affected. This kind of market volatility may also disrupt the ability of market participants to create and redeem shares of the Fund. Further, market volatility may adversely affect, sometimes materially, the prices at which market participants are willing to buy and sell shares of the Fund. As a result, under these circumstances, the market value of shares of the Fund may vary substantially from the net asset value per share of the Fund. For all of the foregoing reasons, the performance of the Fund may not correlate with the performance of its Underlying Index as well as the net asset value per share of the Fund, which could materially and adversely affect the value of the notes in the secondary market and/or reduce any payment on the notes.
●NON-U.S. SECURITIES RISK —
The non-U.S. equity securities held by the Fund have been issued by non-U.S. companies. Investments in securities linked to the value of such non-U.S. equity securities involve risks associated with the home countries and/or the securities markets in the home countries of the issuers of those non-U.S. equity securities. Also, with respect to equity securities that are not listed in the U.S., there is generally less publicly available information about companies in some of these jurisdictions than there is about U.S. companies that are subject to the reporting requirements of the SEC.
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PS-4 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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●THE NOTES ARE SUBJECT TO CURRENCY EXCHANGE RISK —
Because the prices of the non-U.S. equity securities held by the Fund are converted into U.S. dollars for purposes of calculating the net asset value of the Fund, holders of the notes will be exposed to currency exchange rate risk with respect to each of the currencies in which the non-U.S. equity securities held by the Fund trade. Your net exposure will depend on the extent to which those currencies strengthen or weaken against the U.S. dollar and the relative weight of equity securities held by the Fund denominated in each of those currencies. If, taking into account the relevant weighting, the U.S. dollar strengthens against those currencies, the price of the Fund will be adversely affected and any payment on the notes may be reduced.
●RISKS ASSOCIATED WITH THE GOLD AND SILVER MINING INDUSTRIES —
All or substantially all of the equity securities held by the Fund are issued by companies whose primary line of business is directly associated with the gold and/or silver mining industries. As a result, the value of the notes may be subject to greater volatility and be more adversely affected by a single economic, political or regulatory occurrence affecting these industries than a different investment linked to securities of a more broadly diversified group of issuers. Investments related to gold and silver are considered speculative and are affected by a variety of factors. Competitive pressures may have a significant effect on the financial condition of gold and silver mining companies. Also, gold and silver mining companies are highly dependent on the price of gold and silver bullion, respectively, but may also be adversely affected by a variety of worldwide economic, financial and political factors. The price of gold and silver may fluctuate substantially over short periods of time, so the Fund's share price may be more volatile than other types of investments. Fluctuation in the prices of gold and silver may be due to a number of factors, including changes in inflation, changes in currency exchange rates and changes in industrial and commercial demand for metals (including fabricator demand). Additionally, increased environmental or labor costs may depress the value of metal investments. These factors could affect the gold and silver mining industries and could affect the value of the equity securities held by the Fund and the price of the Fund during the term of the notes, which may adversely affect the value of your notes.
●THE ANTI-DILUTION PROTECTION FOR THE FUND IS LIMITED —
The calculation agent will make adjustments to the Share Adjustment Factor for certain events affecting the shares of the Fund. However, the calculation agent will not make an adjustment in response to all events that could affect the shares of the Fund. If an event occurs that does not require the calculation agent to make an adjustment, the value of the notes may be materially and adversely affected.
●LACK OF LIQUIDITY —
The notes will not be listed on any securities exchange. Accordingly, 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. You may not be able to sell your notes. The notes are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your notes to maturity.
●THE FINAL TERMS AND VALUATION OF THE NOTES WILL BE PROVIDED IN THE PRICING SUPPLEMENT —
You should consider your potential investment in the notes based on the minimums for the estimated value of the notes and the Maximum Return.
●THE ESTIMATED VALUE OF THE NOTES WILL BE LOWER THAN THE ORIGINAL ISSUE PRICE (PRICE TO PUBLIC) OF THE NOTES —
The estimated value of the notes is only an estimate determined by reference to several factors. The original issue price of the notes will exceed the estimated value of the notes because costs associated with selling, structuring and hedging the notes are included in the original issue price of the notes. These costs include the selling commissions, the projected profits, if any, that our affiliates expect to realize for assuming risks inherent in hedging our obligations under the notes and the estimated cost of hedging our obligations under the notes. See “The Estimated Value of the Notes” in this pricing supplement.
●THE ESTIMATED VALUE OF THE NOTES DOES NOT REPRESENT FUTURE VALUES OF THE NOTES AND MAY DIFFER FROM OTHERS’ ESTIMATES —
See “The Estimated Value of the Notes” in this pricing supplement.
●THE ESTIMATED VALUE OF THE NOTES IS DERIVED BY REFERENCE TO AN INTERNAL FUNDING RATE —
The internal funding rate used in the determination of the estimated value of the notes may differ from the market-implied funding rate for vanilla fixed income instruments of a similar maturity issued by JPMorgan Chase & Co. or its affiliates. Any difference may be based on, among other things, our and our affiliates’ view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for the conventional fixed income instruments of JPMorgan Chase & Co. This internal funding rate is based on certain market inputs and assumptions, which may prove to be incorrect, and is intended to approximate the prevailing market replacement funding rate for the notes. The use of an internal funding rate and any potential changes to that rate may have an adverse effect on the terms of the notes and any secondary market prices of the notes. See “The Estimated Value of the Notes” in this pricing supplement.
●THE VALUE OF THE NOTES AS PUBLISHED BY JPMS (AND WHICH MAY BE REFLECTED ON CUSTOMER ACCOUNT STATEMENTS) MAY BE HIGHER THAN THE THEN-CURRENT ESTIMATED VALUE OF THE NOTES FOR A LIMITED TIME PERIOD —
We generally expect that some of the costs included in the original issue price of the notes will be partially paid back to you in connection with any repurchases of your notes by JPMS in an amount that will decline to zero over an initial predetermined period. See “Secondary Market Prices of the Notes” in this pricing supplement for additional information relating to this initial period. Accordingly, the estimated value of your notes during this initial period may be lower than the value of the notes as published by JPMS (and which may be shown on your customer account statements).
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PS-5 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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●SECONDARY MARKET PRICES OF THE NOTES WILL LIKELY BE LOWER THAN THE ORIGINAL ISSUE PRICE OF THE NOTES —
Any secondary market prices of the notes will likely be lower than the original issue price of the notes because, among other things, secondary market prices take into account our internal secondary market funding rates for structured debt issuances and, also, because secondary market prices may exclude selling commissions, projected hedging profits, if any, and estimated hedging costs that are included in the original issue price of the notes. As a result, the price, if any, at which JPMS will be willing to buy the notes from you in secondary market transactions, if at all, is likely to be lower than the original issue price. Any sale by you prior to the Maturity Date could result in a substantial loss to you.
●SECONDARY MARKET PRICES OF THE NOTES WILL BE IMPACTED BY MANY ECONOMIC AND MARKET FACTORS —
The secondary market price of the notes during their term will be impacted by a number of economic and market factors, which may either offset or magnify each other, aside from the selling commissions, projected hedging profits, if any, estimated hedging costs and the price of one share of the Fund. Additionally, independent pricing vendors and/or third party broker-dealers may publish a price for the notes, which may also be reflected on customer account statements. This price may be different (higher or lower) than the price of the notes, if any, at which JPMS may be willing to purchase your notes in the secondary market. See “Risk Factors — Risks Relating to the Estimated Value and Secondary Market Prices of the Notes — Secondary market prices of the notes will be impacted by many economic and market factors” in the accompanying product supplement.
The Fund
The VanEck® Gold Miners ETF is an exchange-traded fund of the VanEck® ETF Trust, a registered investment company, that seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index, which we refer to as the Underlying Index with respect to the VanEck® Gold Miners ETF. The NYSE Arca Gold Miners Index is a modified market capitalization weighted index composed of publicly traded companies involved primarily in the mining of gold or silver. For additional information about the VanEck® Gold Miners ETF, see “Fund Descriptions — The VanEck® ETFs” in the accompanying underlying supplement.
Historical Information
The following graph sets forth the historical performance of the Fund based on the weekly historical closing prices of one share of the Fund from January 3, 2020 through July 3, 2025. The closing price of one share of the Fund on July 8, 2025 was $50.79. We obtained the closing prices above and below from the Bloomberg Professional® service (“Bloomberg”), without independent verification. The closing prices above and below may have been adjusted by Bloomberg for actions taken by the Fund, such as stock splits.
The historical closing prices of one share of the Fund should not be taken as an indication of future performance, and no assurance can be given as to the closing price of one share of the Fund on the Pricing Date or the Observation Date. There can be no assurance that the performance of the Fund will result in the return of any of your principal amount in excess of $250.00 per $1,000 principal amount note, subject to the credit risks of JPMorgan Financial and JPMorgan Chase & Co.
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Historical Performance of the VanEck® Gold Miners ETF Source: Bloomberg |
Tax Treatment
You should review carefully the section entitled “Material U.S. Federal Income Tax Consequences” in the accompanying product supplement no. 4-I. The following discussion, when read in combination with that section, 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 notes.
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PS-6 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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Based on current market conditions, in the opinion of our special tax counsel it is reasonable to treat the notes as “open transactions” that are not debt instruments for U.S. federal income tax purposes, as more fully described in “Material U.S. Federal Income Tax Consequences — Tax Consequences to U.S. Holders — Notes Treated as Open Transactions That Are Not Debt Instruments” in the accompanying product supplement. Assuming this treatment is respected, subject to the possible application of the “constructive ownership” rules, the gain or loss on your notes should be treated as long-term capital gain or loss if you hold your notes for more than a year, whether or not you are an initial purchaser of notes at the issue price. The notes could be treated as “constructive ownership transactions” within the meaning of Section 1260 of the Code, in which case any gain recognized in respect of the notes that would otherwise be long-term capital gain and that was in excess of the “net underlying long-term capital gain” (as defined in Section 1260) would be treated as ordinary income, and a notional interest charge would apply as if that income had accrued for tax purposes at a constant yield over your holding period for the notes. Our special tax counsel has not expressed an opinion with respect to whether the constructive ownership rules apply to the notes. Accordingly, U.S. Holders should consult their tax advisers regarding the potential application of the constructive ownership rules.
The IRS or a court may not respect the treatment of the notes described above, in which case the timing and character of any income or loss on your notes could be materially and adversely affected. In addition, in 2007 Treasury and the IRS released a notice requesting comments on the U.S. federal income tax treatment of “prepaid forward contracts” and similar instruments. The notice focuses in particular on whether to require investors in these instruments to accrue income over the term of their investment. It also asks for comments on a number of related topics, including the character of income or loss with respect to these instruments; the relevance of factors such as the nature of the underlying property to which the instruments are linked; the degree, if any, to which income (including any mandated accruals) realized by non-U.S. investors should be subject to withholding tax; and whether these instruments are or should be subject to the constructive ownership regime described above. While the notice requests comments on appropriate transition rules and effective dates, any Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the notes, possibly with retroactive effect. You should consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the notes, including the potential application of the constructive ownership rules, possible alternative treatments and the issues presented by this notice.
Section 871(m) of the Code and Treasury regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% withholding tax (unless an income tax treaty applies) on dividend equivalents paid or deemed paid to Non-U.S. Holders with respect to certain financial instruments linked to U.S. equities or indices that include U.S. equities. Section 871(m) provides certain exceptions to this withholding regime, including for instruments linked to certain broad-based indices that meet requirements set forth in the applicable Treasury regulations. Additionally, a recent IRS notice excludes from the scope of Section 871(m) instruments issued prior to January 1, 2027 that do not have a delta of one with respect to underlying securities that could pay U.S.-source dividends for U.S. federal income tax purposes (each an “Underlying Security”). Based on certain determinations made by us, we expect that Section 871(m) will not apply to the notes with regard to Non-U.S. Holders. Our determination is not binding on the IRS, and the IRS may disagree with this determination. Section 871(m) is complex and its application may depend on your particular circumstances, including whether you enter into other transactions with respect to an Underlying Security. If necessary, further information regarding the potential application of Section 871(m) will be provided in the pricing supplement for the notes. You should consult your tax adviser regarding the potential application of Section 871(m) to the notes.
The Estimated Value of the Notes
The estimated value of the notes set forth on the cover of this pricing supplement is equal to the sum of the values of the following hypothetical components: (1) a fixed-income debt component with the same maturity as the notes, valued using the internal funding rate described below, and (2) the derivative or derivatives underlying the economic terms of the notes. The estimated value of the notes does not represent a minimum price at which JPMS would be willing to buy your notes in any secondary market (if any exists) at any time. The internal funding rate used in the determination of the estimated value of the notes may differ from the market-implied funding rate for vanilla fixed income instruments of a similar maturity issued by JPMorgan Chase & Co. or its affiliates. Any difference may be based on, among other things, our and our affiliates’ view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for the conventional fixed income instruments of JPMorgan Chase & Co. This internal funding rate is based on certain market inputs and assumptions, which may prove to be incorrect, and is intended to approximate the prevailing market replacement funding rate for the notes. The use of an internal funding rate and any potential changes to that rate may have an adverse effect on the terms of the notes and any secondary market prices of the notes. For additional information, see “Selected Risk Considerations — The Estimated Value of the Notes Is Derived by Reference to an Internal Funding Rate” in this pricing supplement.
The value of the derivative or derivatives underlying the economic terms of the notes is derived from internal pricing models of our affiliates. These models are dependent on inputs such as the traded market prices of comparable derivative instruments and on various other inputs, some of which are market-observable, and which can include volatility, dividend rates, interest rates and other factors, as well as assumptions about future market events and/or environments. Accordingly, the estimated value of the notes is determined when the terms of the notes are set based on market conditions and other relevant factors and assumptions existing at that time.
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PS-7 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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The estimated value of the notes does not represent future values of the notes and may differ from others’ estimates. Different pricing models and assumptions could provide valuations for the notes that are greater than or less than the estimated value of the notes. In addition, market conditions and other relevant factors in the future may change, and any assumptions may prove to be incorrect. On future dates, the value of the notes could change significantly based on, among other things, changes in market conditions, our or JPMorgan Chase & Co.’s creditworthiness, interest rate movements and other relevant factors, which may impact the price, if any, at which JPMS would be willing to buy notes from you in secondary market transactions.
The estimated value of the notes will be lower than the original issue price of the notes because costs associated with selling, structuring and hedging the notes are included in the original issue price of the notes. These costs include the selling commissions paid to JPMS and other affiliated or unaffiliated dealers, the projected profits, if any, that our affiliates expect to realize for assuming risks inherent in hedging our obligations under the notes and the estimated cost of hedging our obligations under the notes. Because hedging our obligations entails risk and may be influenced by market forces beyond our control, this hedging may result in a profit that is more or less than expected, or it may result in a loss. A portion of the profits, if any, realized in hedging our obligations under the notes may be allowed to other affiliated or unaffiliated dealers, and we or one or more of our affiliates will retain any remaining hedging profits. See “Selected Risk Considerations — The Estimated Value of the Notes Will Be Lower Than the Original Issue Price (Price to Public) of the Notes” in this pricing supplement.
Secondary Market Prices of the Notes
For information about factors that will impact any secondary market prices of the notes, see “Risk Factors — Risks Relating to the Estimated Value and Secondary Market Prices of the Notes — Secondary market prices of the notes will be impacted by many economic and market factors” in the accompanying product supplement. In addition, we generally expect that some of the costs included in the original issue price of the notes will be partially paid back to you in connection with any repurchases of your notes by JPMS in an amount that will decline to zero over an initial predetermined period. These costs can include selling commissions, projected hedging profits, if any, and, in some circumstances, estimated hedging costs and our internal secondary market funding rates for structured debt issuances. This initial predetermined time period is intended to be the shorter of six months and one-half of the stated term of the notes. The length of any such initial period reflects the structure of the notes, whether our affiliates expect to earn a profit in connection with our hedging activities, the estimated costs of hedging the notes and when these costs are incurred, as determined by our affiliates. See “Selected Risk Considerations — The Value of the Notes as Published by JPMS (and Which May Be Reflected on Customer Account Statements) May Be Higher Than the Then-Current Estimated Value of the Notes for a Limited Time Period” in this pricing supplement.
Supplemental Use of Proceeds
The notes are offered to meet investor demand for products that reflect the risk-return profile and market exposure provided by the notes. See “Hypothetical Payout Profile” and “How the Notes Work” in this pricing supplement for an illustration of the risk-return profile of the notes and “The Fund” in this pricing supplement for a description of the market exposure provided by the notes.
The original issue price of the notes is equal to the estimated value of the notes plus the selling commissions paid to JPMS and other affiliated or unaffiliated dealers, plus (minus) the projected profits (losses) that our affiliates expect to realize for assuming risks inherent in hedging our obligations under the notes, plus the estimated cost of hedging our obligations under the notes.
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 A medium-term notes of which these notes are a part, the accompanying prospectus addendum and the more detailed information contained in the accompanying product supplement and the accompanying underlying 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 and in Annex A to the accompanying prospectus addendum, 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.
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PS-8 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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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. 4-I dated April 13, 2023:
http://www.sec.gov/Archives/edgar/data/19617/000121390023029539/ea152803_424b2.pdf
●Underlying supplement no. 1-I dated April 13, 2023:
http://www.sec.gov/Archives/edgar/data/19617/000121390023029543/ea151873_424b2.pdf
●Prospectus supplement and prospectus, each dated April 13, 2023:
http://www.sec.gov/Archives/edgar/data/19617/000095010323005751/crt_dp192097-424b2.pdf
●Prospectus addendum dated June 3, 2024:
http://www.sec.gov/Archives/edgar/data/1665650/000095010324007599/dp211753_424b3.htm
Our Central Index Key, or CIK, on the SEC website is 1665650, and JPMorgan Chase & Co.’s CIK is 19617. As used in this pricing supplement, “we,” “us” and “our” refer to JPMorgan Financial.
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PS-9 | Structured Investments Capped Buffered Equity Notes Linked to the VanEck® Gold Miners ETF |
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FAQ
What is the ticker or CUSIP for the UBS Trigger Callable Contingent Yield Notes?
How often can investors receive the 12% coupon on the WUCT-related notes?
When can UBS call the notes early?
What happens at maturity if one index is below its downside threshold?
What is the estimated initial value and why is it lower than the $1,000 issue price?
Are the notes listed or easily tradable?
