[424B2] Inverse VIX Short-Term Futures ETNs due March 22, 2045 Prospectus Supplement
JPMorgan Chase Financial Company LLC is offering unlisted, unsecured and unsubordinated Digital Buffered Notes linked to the S&P 500® Index maturing on 14 January 2027. The notes target investors seeking a fixed, equity-linked payoff rather than periodic coupons.
Payoff profile: If on the valuation date the S&P 500 closing level is (a) at or above the strike or (b) below the strike by up to the 10 % buffer, holders receive a Contingent Digital Return of at least 11.88 %, equal to a maximum redemption of $1,118.80 per $1,000 note. If the index falls more than 10 % from the strike, principal loss is leveraged at 1.11111 % for every 1 % of additional decline, exposing investors to a potential total loss of capital.
Key dates & terms: Strike Date 11 Jul 2025; Pricing Date on or about 15 Jul 2025; Settlement 18 Jul 2025; Valuation Date 11 Jan 2027. Denominations start at $10,000. CUSIP 48136FTU6. The product is issued by JPMorgan Chase Financial Company LLC and fully and unconditionally guaranteed by JPMorgan Chase & Co., subject to their credit risk.
Estimated value & fees: If priced today, the estimated fair value would be $983.70 per $1,000 note, at least $970 at pricing, implying an issue-premium that embeds selling commissions (≤ $12.50 per $1,000) and hedging/structuring costs. The estimated value is based on internal models using a non-public funding rate and may differ from third-party valuations. Secondary market bids, if any, are expected to be below issue price.
Risk highlights: (1) Capital is at risk beyond the 10 % buffer; (2) upside is capped at the fixed digital return even if the index rallies sharply; (3) no coupons, dividends or voting rights; (4) issuer/guarantor credit deterioration would hurt note value; (5) the notes are not exchange-listed and liquidity depends solely on JPMS’s willingness to repurchase.
Tax & regulatory: Counsel expects the notes to be treated as open transactions (not debt) for U.S. tax purposes, but the IRS could challenge this view. JPM expects the product to be exempt from Section 871(m) withholding for non-U.S. holders, although this determination is not binding on the IRS.
Overall, the notes provide a defined return with limited downside protection for investors comfortable with JPMorgan credit exposure and the possibility of principal loss if the S&P 500 falls more than 10 % over 18 months.
JPMorgan Chase Financial Company LLC offre note digitali non quotate, non garantite e non subordinate, Digital Buffered Notes legate all'indice S&P 500® con scadenza il 14 gennaio 2027. Questi strumenti sono rivolti a investitori che cercano un rendimento fisso collegato all’andamento azionario, anziché cedole periodiche.
Profilo di rendimento: Se alla data di valutazione il livello di chiusura dell’S&P 500 è (a) pari o superiore allo strike o (b) inferiore allo strike fino al 10% di buffer, i detentori ricevono un rendimento digitale condizionato di almeno l’11,88%, corrispondente a un rimborso massimo di $1.118,80 per ogni nota da $1.000. Se l’indice scende oltre il 10% rispetto allo strike, la perdita sul capitale è amplificata dell’1,11111% per ogni ulteriore 1% di ribasso, esponendo gli investitori a una possibile perdita totale del capitale.
Date e termini chiave: Data strike 11 luglio 2025; Data di pricing intorno al 15 luglio 2025; Regolamento 18 luglio 2025; Data di valutazione 11 gennaio 2027. Tagli minimi a partire da $10.000. CUSIP 48136FTU6. Il prodotto è emesso da JPMorgan Chase Financial Company LLC e garantito in modo pieno e incondizionato da JPMorgan Chase & Co., soggetto al rischio di credito di questi ultimi.
Valore stimato e commissioni: Se valutato oggi, il valore equo stimato sarebbe di $983,70 per ogni nota da $1.000, almeno $970 al pricing, includendo un premio d’emissione che copre commissioni di vendita (≤ $12,50 per $1.000) e costi di copertura/strutturazione. Il valore stimato si basa su modelli interni con tassi di finanziamento non pubblici e può differire da valutazioni di terzi. Le offerte sul mercato secondario, se presenti, sono previste inferiori al prezzo d’emissione.
Rischi principali: (1) Il capitale è a rischio oltre il buffer del 10%; (2) il rendimento massimo è limitato al rendimento digitale fisso anche in caso di forte rialzo dell’indice; (3) nessuna cedola, dividendi o diritti di voto; (4) un peggioramento del merito creditizio dell’emittente/garante ridurrebbe il valore delle note; (5) le note non sono quotate in borsa e la liquidità dipende esclusivamente dalla volontà di JPMS di riacquistarle.
Aspetti fiscali e regolamentari: I consulenti ritengono che le note saranno trattate come transazioni aperte (non debito) ai fini fiscali statunitensi, anche se l’IRS potrebbe contestare questa interpretazione. JPM prevede che il prodotto sia esente dalla ritenuta alla fonte della Sezione 871(m) per i detentori non statunitensi, ma tale valutazione non è vincolante per l’IRS.
In sintesi, le note offrono un rendimento definito con protezione limitata al ribasso per investitori che accettano l’esposizione creditizia di JPMorgan e la possibilità di perdita del capitale se l’S&P 500 scende oltre il 10% in 18 mesi.
JPMorgan Chase Financial Company LLC ofrece notas digitales no listadas, no garantizadas y no subordinadas, Digital Buffered Notes vinculadas al índice S&P 500® con vencimiento el 14 de enero de 2027. Estas notas están dirigidas a inversores que buscan un rendimiento fijo vinculado a acciones en lugar de cupones periódicos.
Perfil de rendimiento: Si en la fecha de valoración el nivel de cierre del S&P 500 está (a) en o por encima del strike o (b) por debajo del strike hasta un 10% de buffer, los tenedores recibirán un retorno digital contingente de al menos el 11,88%, equivalente a un reembolso máximo de $1,118.80 por cada nota de $1,000. Si el índice cae más del 10% desde el strike, la pérdida de principal se amplifica en 1.11111% por cada 1% de descenso adicional, exponiendo a los inversores a una posible pérdida total del capital.
Fechas y términos clave: Fecha strike 11 de julio de 2025; Fecha de fijación de precio alrededor del 15 de julio de 2025; Liquidación 18 de julio de 2025; Fecha de valoración 11 de enero de 2027. Denominaciones desde $10,000. CUSIP 48136FTU6. El producto es emitido por JPMorgan Chase Financial Company LLC y garantizado total e incondicionalmente por JPMorgan Chase & Co., sujeto a su riesgo crediticio.
Valor estimado y comisiones: Si se valorara hoy, el valor justo estimado sería de $983.70 por cada nota de $1,000, al menos $970 en la fijación de precio, incluyendo una prima de emisión que cubre comisiones de venta (≤ $12.50 por $1,000) y costos de cobertura/estructuración. El valor estimado se basa en modelos internos con tasas de financiación no públicas y puede diferir de valoraciones de terceros. Las ofertas en el mercado secundario, si las hay, se esperan por debajo del precio de emisión.
Aspectos de riesgo: (1) El capital está en riesgo más allá del buffer del 10%; (2) el rendimiento máximo está limitado al retorno digital fijo incluso si el índice sube fuertemente; (3) no hay cupones, dividendos ni derechos de voto; (4) un deterioro crediticio del emisor/garante afectaría el valor de las notas; (5) las notas no están listadas en bolsa y la liquidez depende únicamente de la voluntad de JPMS de recomprarlas.
Impuestos y regulación: Los asesores esperan que las notas se traten como transacciones abiertas (no deuda) para fines fiscales en EE.UU., aunque el IRS podría cuestionar esta interpretación. JPM espera que el producto esté exento de la retención de la Sección 871(m) para tenedores no estadounidenses, aunque esta determinación no es vinculante para el IRS.
En resumen, las notas ofrecen un rendimiento definido con protección limitada a la baja para inversores que aceptan la exposición crediticia de JPMorgan y la posibilidad de pérdida de capital si el S&P 500 cae más del 10% en 18 meses.
JPMorgan Chase Financial Company LLC는 상장되지 않고 무담보 및 비후순위인 S&P 500® 지수 연계 디지털 버퍼드 노트를 2027년 1월 14일 만기일로 제공하고 있습니다. 이 노트는 정기 쿠폰 대신 고정형 주식 연계 수익을 원하는 투자자를 대상으로 합니다.
수익 구조: 평가일에 S&P 500 종가가 (a) 행사가격 이상이거나 (b) 행사가격 대비 최대 10% 버퍼 내 하락 시, 투자자는 최소 11.88%의 조건부 디지털 수익을 받으며, 이는 $1,000 노트당 최대 $1,118.80 상환에 해당합니다. 지수가 행사가격 대비 10% 이상 하락하면 원금 손실이 추가 하락 1%당 1.11111% 비율로 확대되어 투자자는 원금 전액 손실 가능성에 노출됩니다.
주요 일정 및 조건: 행사가격 결정일 2025년 7월 11일; 가격 결정일 약 2025년 7월 15일; 결제일 2025년 7월 18일; 평가일 2027년 1월 11일. 최소 투자 단위는 $10,000부터 시작합니다. CUSIP 48136FTU6. 본 상품은 JPMorgan Chase Financial Company LLC가 발행하며, JPMorgan Chase & Co.가 전액 및 무조건적으로 보증하나, 신용 위험이 존재합니다.
예상 가치 및 수수료: 오늘 가격을 산출하면 $1,000 노트당 예상 공정 가치는 $983.70이며, 가격 결정 시 최소 $970으로, 판매 수수료(≤ $12.50 per $1,000) 및 헤지/구조화 비용이 포함된 발행 프리미엄을 반영합니다. 예상 가치는 비공개 자금 조달 금리를 사용하는 내부 모델에 기반하며, 제3자 평가와 차이가 있을 수 있습니다. 2차 시장 호가는 발행가 이하일 것으로 예상됩니다.
주요 위험 사항: (1) 10% 버퍼를 초과하는 부분의 원금 손실 위험; (2) 지수가 급등해도 수익은 고정 디지털 수익으로 상한이 있음; (3) 쿠폰, 배당금, 의결권 없음; (4) 발행자/보증인의 신용 악화 시 노트 가치 하락; (5) 노트는 거래소 상장되지 않으며, 유동성은 JPMS의 재매입 의지에 전적으로 의존.
세금 및 규제: 법률 자문에 따르면 미국 세법상 노트는 부채가 아닌 개방 거래로 취급될 것으로 예상되나, IRS가 이 견해에 이의를 제기할 수 있습니다. JPM은 비미국인 보유자에 대해 871(m) 조항 원천징수 면제 대상이 될 것으로 예상하나, 이는 IRS에 구속력을 갖지 않습니다.
종합적으로, 이 노트는 JPMorgan 신용 노출과 18개월 동안 S&P 500이 10% 이상 하락할 경우 원금 손실 가능성을 감수할 수 있는 투자자에게 한정된 하방 보호와 정의된 수익을 제공합니다.
JPMorgan Chase Financial Company LLC propose des notes digitales non cotées, non sécurisées et non subordonnées, Digital Buffered Notes liées à l’indice S&P 500® arrivant à échéance le 14 janvier 2027. Ces notes s’adressent aux investisseurs recherchant un rendement fixe lié à l’équité plutôt que des coupons périodiques.
Profil de rendement : Si à la date d’évaluation le niveau de clôture du S&P 500 est (a) égal ou supérieur au strike ou (b) inférieur au strike jusqu’à une marge de 10 %, les détenteurs reçoivent un rendement digital conditionnel d’au moins 11,88 %, équivalent à un remboursement maximal de 1 118,80 $ par note de 1 000 $. Si l’indice chute de plus de 10 % par rapport au strike, la perte en capital est amplifiée de 1,11111 % pour chaque 1 % de baisse supplémentaire, exposant les investisseurs à une perte totale possible du capital.
Dates et conditions clés : Date de strike 11 juillet 2025 ; Date de tarification vers le 15 juillet 2025 ; Règlement le 18 juillet 2025 ; Date d’évaluation 11 janvier 2027. Coupures à partir de 10 000 $. CUSIP 48136FTU6. Le produit est émis par JPMorgan Chase Financial Company LLC et entièrement garanti de manière inconditionnelle par JPMorgan Chase & Co., sous réserve de leur risque de crédit.
Valeur estimée et frais : Si valorisé aujourd’hui, la juste valeur estimée serait de 983,70 $ par note de 1 000 $, au moins 970 $ lors de la tarification, incluant une prime d’émission couvrant les commissions de vente (≤ 12,50 $ par 1 000 $) et les coûts de couverture/structuration. La valeur estimée est basée sur des modèles internes utilisant un taux de financement non public et peut différer des évaluations tierces. Les offres sur le marché secondaire, si elles existent, devraient être inférieures au prix d’émission.
Points clés de risque : (1) Le capital est à risque au-delà de la marge de 10 % ; (2) le potentiel de gain est plafonné au rendement digital fixe même en cas de forte hausse de l’indice ; (3) pas de coupons, dividendes ni droits de vote ; (4) une dégradation de la solvabilité de l’émetteur/garant réduirait la valeur des notes ; (5) les notes ne sont pas cotées en bourse et la liquidité dépend uniquement de la volonté de JPMS de les racheter.
Fiscalité et réglementation : Les conseils estiment que les notes seront traitées comme des transactions ouvertes (et non comme une dette) aux fins fiscales américaines, bien que l’IRS puisse contester cette position. JPM s’attend à ce que le produit soit exempt de retenue à la source en vertu de la section 871(m) pour les détenteurs non américains, bien que cette détermination ne soit pas contraignante pour l’IRS.
En résumé, les notes offrent un rendement défini avec une protection limitée à la baisse pour les investisseurs à l’aise avec l’exposition au crédit de JPMorgan et la possibilité de perte en capital si le S&P 500 chute de plus de 10 % sur 18 mois.
JPMorgan Chase Financial Company LLC bietet nicht börsennotierte, unbesicherte und nicht nachrangige Digital Buffered Notes, die an den S&P 500® Index gekoppelt sind, mit Fälligkeit am 14. Januar 2027 an. Die Notes richten sich an Anleger, die eine feste, aktiengebundene Auszahlung statt periodischer Kupons suchen.
Auszahlungsprofil: Liegt der Schlusskurs des S&P 500 am Bewertungstag (a) auf oder über dem Strike oder (b) bis zu 10 % unterhalb des Strikes (Puffer), erhalten Inhaber eine bedingte digitale Rendite von mindestens 11,88 %, was einer maximalen Rückzahlung von $1.118,80 je $1.000 Note entspricht. Fällt der Index um mehr als 10 % unter den Strike, wird der Kapitalverlust mit 1,11111 % für jeden weiteren 1 % Rückgang verstärkt, wodurch Anleger einem möglichen Totalverlust ausgesetzt sind.
Wichtige Daten & Konditionen: Strike-Datum 11. Juli 2025; Preisfeststellung etwa 15. Juli 2025; Abwicklung 18. Juli 2025; Bewertungstag 11. Januar 2027. Stückelungen ab $10.000. CUSIP 48136FTU6. Das Produkt wird von JPMorgan Chase Financial Company LLC begeben und von JPMorgan Chase & Co. vollständig und unbefristet garantiert, vorbehaltlich deren Kreditrisiko.
Geschätzter Wert & Gebühren: Bei heutiger Preisfeststellung läge der geschätzte faire Wert bei $983,70 je $1.000 Note, mindestens $970 zum Pricing, was eine Emissionsprämie beinhaltet, die Verkaufsprovisionen (≤ $12,50 pro $1.000) sowie Absicherungs-/Strukturierungskosten enthält. Der geschätzte Wert basiert auf internen Modellen mit nicht öffentlichen Finanzierungssätzen und kann von Drittbewertungen abweichen. Sekundärmarktgebote werden, falls vorhanden, voraussichtlich unter dem Ausgabepreis liegen.
Risikohinweise: (1) Kapital ist über den 10 % Puffer hinaus gefährdet; (2) die Aufwärtsrendite ist begrenzt auf die feste digitale Rendite, selbst bei starkem Anstieg des Index; (3) keine Kupons, Dividenden oder Stimmrechte; (4) eine Verschlechterung der Kreditwürdigkeit des Emittenten/Garanten würde den Wert der Notes mindern; (5) die Notes sind nicht börsennotiert und die Liquidität hängt ausschließlich von der Bereitschaft von JPMS zum Rückkauf ab.
Steuerliche & regulatorische Hinweise: Rechtsberater erwarten, dass die Notes für US-Steuerzwecke als offene Transaktionen (keine Schuldverschreibungen) behandelt werden, obwohl das IRS diese Ansicht anfechten könnte. JPM erwartet, dass das Produkt für Nicht-US-Inhaber von der Quellensteuer gemäß Abschnitt 871(m) befreit ist, jedoch ist diese Einschätzung nicht bindend für das IRS.
Insgesamt bieten die Notes eine definierte Rendite mit begrenztem Abwärtsschutz für Anleger, die mit dem Kreditrisiko von JPMorgan leben können und die Möglichkeit eines Kapitalverlusts akzeptieren, falls der S&P 500 innerhalb von 18 Monaten um mehr als 10 % fällt.
- Fixed upside of at least 11.88 % if index performance is ≥ −10 %
- 10 % downside buffer offers limited protection against moderate market declines
- Full guarantee by JPMorgan Chase & Co. adds large-bank credit backing
- Principal loss beyond 10 % decline is leveraged at 1.11111×
- Maximum gain capped at 11.88 % even if the S&P 500 rises sharply
- Estimated fair value ($983.70) below $1,000 issue price, embedding fees and hedging costs
- No exchange listing and uncertain secondary liquidity
- Exposure to JPMorgan issuer and guarantor credit risk
- No dividends, interest, or voting rights during the life of the note
Insights
TL;DR Fixed 11.88 % upside, 10 % buffer, but credit and liquidity risks make the notes a neutral proposition.
The deal offers a clear risk-return trade-off: a modest, predefined gain versus leveraged downside after a 10 % cushion. Investors with a bullish-to-sideways 18-month view on the S&P 500 may find the 11.88 % digital payout attractive relative to current short-dated bond yields, yet the capped upside underperforms direct equity exposure in strong markets. The estimated value ($983.70) reveals a 1.6 % placement premium, typical for retail structured notes. Given the guarantee by JPMorgan Chase & Co. and its AA-/A1 ratings, credit risk is contained but not negligible. Lack of listing constrains exit options, so buyers should intend to hold to maturity. I classify the impact on JPMorgan securities as neutral; it is routine capital markets activity rather than a transformative event.
TL;DR Downside is leveraged, upside capped; unsuitable for investors needing principal protection.
While the 10 % buffer mitigates minor pullbacks, any deeper index decline erodes principal at 1.11111×, meaning a 30 % drop wipes out one-third of capital. The note’s risk/return is inferior to traditional buffered index ETFs, especially when factoring in illiquidity and the spread between issue price and estimated value. Credit-spread widening could pressure secondary prices even if the index is flat. From a portfolio construction standpoint, these notes add issuer and liquidity risk without diversification benefits, hence I view them as incrementally negative for conservative investors.
JPMorgan Chase Financial Company LLC offre note digitali non quotate, non garantite e non subordinate, Digital Buffered Notes legate all'indice S&P 500® con scadenza il 14 gennaio 2027. Questi strumenti sono rivolti a investitori che cercano un rendimento fisso collegato all’andamento azionario, anziché cedole periodiche.
Profilo di rendimento: Se alla data di valutazione il livello di chiusura dell’S&P 500 è (a) pari o superiore allo strike o (b) inferiore allo strike fino al 10% di buffer, i detentori ricevono un rendimento digitale condizionato di almeno l’11,88%, corrispondente a un rimborso massimo di $1.118,80 per ogni nota da $1.000. Se l’indice scende oltre il 10% rispetto allo strike, la perdita sul capitale è amplificata dell’1,11111% per ogni ulteriore 1% di ribasso, esponendo gli investitori a una possibile perdita totale del capitale.
Date e termini chiave: Data strike 11 luglio 2025; Data di pricing intorno al 15 luglio 2025; Regolamento 18 luglio 2025; Data di valutazione 11 gennaio 2027. Tagli minimi a partire da $10.000. CUSIP 48136FTU6. Il prodotto è emesso da JPMorgan Chase Financial Company LLC e garantito in modo pieno e incondizionato da JPMorgan Chase & Co., soggetto al rischio di credito di questi ultimi.
Valore stimato e commissioni: Se valutato oggi, il valore equo stimato sarebbe di $983,70 per ogni nota da $1.000, almeno $970 al pricing, includendo un premio d’emissione che copre commissioni di vendita (≤ $12,50 per $1.000) e costi di copertura/strutturazione. Il valore stimato si basa su modelli interni con tassi di finanziamento non pubblici e può differire da valutazioni di terzi. Le offerte sul mercato secondario, se presenti, sono previste inferiori al prezzo d’emissione.
Rischi principali: (1) Il capitale è a rischio oltre il buffer del 10%; (2) il rendimento massimo è limitato al rendimento digitale fisso anche in caso di forte rialzo dell’indice; (3) nessuna cedola, dividendi o diritti di voto; (4) un peggioramento del merito creditizio dell’emittente/garante ridurrebbe il valore delle note; (5) le note non sono quotate in borsa e la liquidità dipende esclusivamente dalla volontà di JPMS di riacquistarle.
Aspetti fiscali e regolamentari: I consulenti ritengono che le note saranno trattate come transazioni aperte (non debito) ai fini fiscali statunitensi, anche se l’IRS potrebbe contestare questa interpretazione. JPM prevede che il prodotto sia esente dalla ritenuta alla fonte della Sezione 871(m) per i detentori non statunitensi, ma tale valutazione non è vincolante per l’IRS.
In sintesi, le note offrono un rendimento definito con protezione limitata al ribasso per investitori che accettano l’esposizione creditizia di JPMorgan e la possibilità di perdita del capitale se l’S&P 500 scende oltre il 10% in 18 mesi.
JPMorgan Chase Financial Company LLC ofrece notas digitales no listadas, no garantizadas y no subordinadas, Digital Buffered Notes vinculadas al índice S&P 500® con vencimiento el 14 de enero de 2027. Estas notas están dirigidas a inversores que buscan un rendimiento fijo vinculado a acciones en lugar de cupones periódicos.
Perfil de rendimiento: Si en la fecha de valoración el nivel de cierre del S&P 500 está (a) en o por encima del strike o (b) por debajo del strike hasta un 10% de buffer, los tenedores recibirán un retorno digital contingente de al menos el 11,88%, equivalente a un reembolso máximo de $1,118.80 por cada nota de $1,000. Si el índice cae más del 10% desde el strike, la pérdida de principal se amplifica en 1.11111% por cada 1% de descenso adicional, exponiendo a los inversores a una posible pérdida total del capital.
Fechas y términos clave: Fecha strike 11 de julio de 2025; Fecha de fijación de precio alrededor del 15 de julio de 2025; Liquidación 18 de julio de 2025; Fecha de valoración 11 de enero de 2027. Denominaciones desde $10,000. CUSIP 48136FTU6. El producto es emitido por JPMorgan Chase Financial Company LLC y garantizado total e incondicionalmente por JPMorgan Chase & Co., sujeto a su riesgo crediticio.
Valor estimado y comisiones: Si se valorara hoy, el valor justo estimado sería de $983.70 por cada nota de $1,000, al menos $970 en la fijación de precio, incluyendo una prima de emisión que cubre comisiones de venta (≤ $12.50 por $1,000) y costos de cobertura/estructuración. El valor estimado se basa en modelos internos con tasas de financiación no públicas y puede diferir de valoraciones de terceros. Las ofertas en el mercado secundario, si las hay, se esperan por debajo del precio de emisión.
Aspectos de riesgo: (1) El capital está en riesgo más allá del buffer del 10%; (2) el rendimiento máximo está limitado al retorno digital fijo incluso si el índice sube fuertemente; (3) no hay cupones, dividendos ni derechos de voto; (4) un deterioro crediticio del emisor/garante afectaría el valor de las notas; (5) las notas no están listadas en bolsa y la liquidez depende únicamente de la voluntad de JPMS de recomprarlas.
Impuestos y regulación: Los asesores esperan que las notas se traten como transacciones abiertas (no deuda) para fines fiscales en EE.UU., aunque el IRS podría cuestionar esta interpretación. JPM espera que el producto esté exento de la retención de la Sección 871(m) para tenedores no estadounidenses, aunque esta determinación no es vinculante para el IRS.
En resumen, las notas ofrecen un rendimiento definido con protección limitada a la baja para inversores que aceptan la exposición crediticia de JPMorgan y la posibilidad de pérdida de capital si el S&P 500 cae más del 10% en 18 meses.
JPMorgan Chase Financial Company LLC는 상장되지 않고 무담보 및 비후순위인 S&P 500® 지수 연계 디지털 버퍼드 노트를 2027년 1월 14일 만기일로 제공하고 있습니다. 이 노트는 정기 쿠폰 대신 고정형 주식 연계 수익을 원하는 투자자를 대상으로 합니다.
수익 구조: 평가일에 S&P 500 종가가 (a) 행사가격 이상이거나 (b) 행사가격 대비 최대 10% 버퍼 내 하락 시, 투자자는 최소 11.88%의 조건부 디지털 수익을 받으며, 이는 $1,000 노트당 최대 $1,118.80 상환에 해당합니다. 지수가 행사가격 대비 10% 이상 하락하면 원금 손실이 추가 하락 1%당 1.11111% 비율로 확대되어 투자자는 원금 전액 손실 가능성에 노출됩니다.
주요 일정 및 조건: 행사가격 결정일 2025년 7월 11일; 가격 결정일 약 2025년 7월 15일; 결제일 2025년 7월 18일; 평가일 2027년 1월 11일. 최소 투자 단위는 $10,000부터 시작합니다. CUSIP 48136FTU6. 본 상품은 JPMorgan Chase Financial Company LLC가 발행하며, JPMorgan Chase & Co.가 전액 및 무조건적으로 보증하나, 신용 위험이 존재합니다.
예상 가치 및 수수료: 오늘 가격을 산출하면 $1,000 노트당 예상 공정 가치는 $983.70이며, 가격 결정 시 최소 $970으로, 판매 수수료(≤ $12.50 per $1,000) 및 헤지/구조화 비용이 포함된 발행 프리미엄을 반영합니다. 예상 가치는 비공개 자금 조달 금리를 사용하는 내부 모델에 기반하며, 제3자 평가와 차이가 있을 수 있습니다. 2차 시장 호가는 발행가 이하일 것으로 예상됩니다.
주요 위험 사항: (1) 10% 버퍼를 초과하는 부분의 원금 손실 위험; (2) 지수가 급등해도 수익은 고정 디지털 수익으로 상한이 있음; (3) 쿠폰, 배당금, 의결권 없음; (4) 발행자/보증인의 신용 악화 시 노트 가치 하락; (5) 노트는 거래소 상장되지 않으며, 유동성은 JPMS의 재매입 의지에 전적으로 의존.
세금 및 규제: 법률 자문에 따르면 미국 세법상 노트는 부채가 아닌 개방 거래로 취급될 것으로 예상되나, IRS가 이 견해에 이의를 제기할 수 있습니다. JPM은 비미국인 보유자에 대해 871(m) 조항 원천징수 면제 대상이 될 것으로 예상하나, 이는 IRS에 구속력을 갖지 않습니다.
종합적으로, 이 노트는 JPMorgan 신용 노출과 18개월 동안 S&P 500이 10% 이상 하락할 경우 원금 손실 가능성을 감수할 수 있는 투자자에게 한정된 하방 보호와 정의된 수익을 제공합니다.
JPMorgan Chase Financial Company LLC propose des notes digitales non cotées, non sécurisées et non subordonnées, Digital Buffered Notes liées à l’indice S&P 500® arrivant à échéance le 14 janvier 2027. Ces notes s’adressent aux investisseurs recherchant un rendement fixe lié à l’équité plutôt que des coupons périodiques.
Profil de rendement : Si à la date d’évaluation le niveau de clôture du S&P 500 est (a) égal ou supérieur au strike ou (b) inférieur au strike jusqu’à une marge de 10 %, les détenteurs reçoivent un rendement digital conditionnel d’au moins 11,88 %, équivalent à un remboursement maximal de 1 118,80 $ par note de 1 000 $. Si l’indice chute de plus de 10 % par rapport au strike, la perte en capital est amplifiée de 1,11111 % pour chaque 1 % de baisse supplémentaire, exposant les investisseurs à une perte totale possible du capital.
Dates et conditions clés : Date de strike 11 juillet 2025 ; Date de tarification vers le 15 juillet 2025 ; Règlement le 18 juillet 2025 ; Date d’évaluation 11 janvier 2027. Coupures à partir de 10 000 $. CUSIP 48136FTU6. Le produit est émis par JPMorgan Chase Financial Company LLC et entièrement garanti de manière inconditionnelle par JPMorgan Chase & Co., sous réserve de leur risque de crédit.
Valeur estimée et frais : Si valorisé aujourd’hui, la juste valeur estimée serait de 983,70 $ par note de 1 000 $, au moins 970 $ lors de la tarification, incluant une prime d’émission couvrant les commissions de vente (≤ 12,50 $ par 1 000 $) et les coûts de couverture/structuration. La valeur estimée est basée sur des modèles internes utilisant un taux de financement non public et peut différer des évaluations tierces. Les offres sur le marché secondaire, si elles existent, devraient être inférieures au prix d’émission.
Points clés de risque : (1) Le capital est à risque au-delà de la marge de 10 % ; (2) le potentiel de gain est plafonné au rendement digital fixe même en cas de forte hausse de l’indice ; (3) pas de coupons, dividendes ni droits de vote ; (4) une dégradation de la solvabilité de l’émetteur/garant réduirait la valeur des notes ; (5) les notes ne sont pas cotées en bourse et la liquidité dépend uniquement de la volonté de JPMS de les racheter.
Fiscalité et réglementation : Les conseils estiment que les notes seront traitées comme des transactions ouvertes (et non comme une dette) aux fins fiscales américaines, bien que l’IRS puisse contester cette position. JPM s’attend à ce que le produit soit exempt de retenue à la source en vertu de la section 871(m) pour les détenteurs non américains, bien que cette détermination ne soit pas contraignante pour l’IRS.
En résumé, les notes offrent un rendement défini avec une protection limitée à la baisse pour les investisseurs à l’aise avec l’exposition au crédit de JPMorgan et la possibilité de perte en capital si le S&P 500 chute de plus de 10 % sur 18 mois.
JPMorgan Chase Financial Company LLC bietet nicht börsennotierte, unbesicherte und nicht nachrangige Digital Buffered Notes, die an den S&P 500® Index gekoppelt sind, mit Fälligkeit am 14. Januar 2027 an. Die Notes richten sich an Anleger, die eine feste, aktiengebundene Auszahlung statt periodischer Kupons suchen.
Auszahlungsprofil: Liegt der Schlusskurs des S&P 500 am Bewertungstag (a) auf oder über dem Strike oder (b) bis zu 10 % unterhalb des Strikes (Puffer), erhalten Inhaber eine bedingte digitale Rendite von mindestens 11,88 %, was einer maximalen Rückzahlung von $1.118,80 je $1.000 Note entspricht. Fällt der Index um mehr als 10 % unter den Strike, wird der Kapitalverlust mit 1,11111 % für jeden weiteren 1 % Rückgang verstärkt, wodurch Anleger einem möglichen Totalverlust ausgesetzt sind.
Wichtige Daten & Konditionen: Strike-Datum 11. Juli 2025; Preisfeststellung etwa 15. Juli 2025; Abwicklung 18. Juli 2025; Bewertungstag 11. Januar 2027. Stückelungen ab $10.000. CUSIP 48136FTU6. Das Produkt wird von JPMorgan Chase Financial Company LLC begeben und von JPMorgan Chase & Co. vollständig und unbefristet garantiert, vorbehaltlich deren Kreditrisiko.
Geschätzter Wert & Gebühren: Bei heutiger Preisfeststellung läge der geschätzte faire Wert bei $983,70 je $1.000 Note, mindestens $970 zum Pricing, was eine Emissionsprämie beinhaltet, die Verkaufsprovisionen (≤ $12,50 pro $1.000) sowie Absicherungs-/Strukturierungskosten enthält. Der geschätzte Wert basiert auf internen Modellen mit nicht öffentlichen Finanzierungssätzen und kann von Drittbewertungen abweichen. Sekundärmarktgebote werden, falls vorhanden, voraussichtlich unter dem Ausgabepreis liegen.
Risikohinweise: (1) Kapital ist über den 10 % Puffer hinaus gefährdet; (2) die Aufwärtsrendite ist begrenzt auf die feste digitale Rendite, selbst bei starkem Anstieg des Index; (3) keine Kupons, Dividenden oder Stimmrechte; (4) eine Verschlechterung der Kreditwürdigkeit des Emittenten/Garanten würde den Wert der Notes mindern; (5) die Notes sind nicht börsennotiert und die Liquidität hängt ausschließlich von der Bereitschaft von JPMS zum Rückkauf ab.
Steuerliche & regulatorische Hinweise: Rechtsberater erwarten, dass die Notes für US-Steuerzwecke als offene Transaktionen (keine Schuldverschreibungen) behandelt werden, obwohl das IRS diese Ansicht anfechten könnte. JPM erwartet, dass das Produkt für Nicht-US-Inhaber von der Quellensteuer gemäß Abschnitt 871(m) befreit ist, jedoch ist diese Einschätzung nicht bindend für das IRS.
Insgesamt bieten die Notes eine definierte Rendite mit begrenztem Abwärtsschutz für Anleger, die mit dem Kreditrisiko von JPMorgan leben können und die Möglichkeit eines Kapitalverlusts akzeptieren, falls der S&P 500 innerhalb von 18 Monaten um mehr als 10 % fällt.
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 11, 2025.
| Pricing supplement | |
|
To prospectus dated April 13, 2023, prospectus supplement dated April 13, 2023, product supplement no. 4-I dated April 13, 2023, underlying supplement no. 1-I dated April 13, 2023 and prospectus addendum dated June 3, 2024 |
Registration Statement Nos. 333-270004 and 333-270004-01 Dated July , 2025 Rule 424(b)(2) |
JPMorgan Chase Financial Company LLC
| Structured Investments |
$ Digital Buffered Notes Linked to the S&P 500® Index due January 14, 2027 Fully and Unconditionally Guaranteed by JPMorgan Chase & Co. |
General
| ● | The notes are designed for investors who seek a fixed return of at least 11.88%* if the Ending Index Level of the S&P 500® Index is greater than or equal to the Index Strike Level or is less than the Index Strike Level by up to 10.00%. |
| ● | Investors should be willing to forgo interest and dividend payments and, if the Ending Index Level is less than the Index Strike Level by more than 10.00%, be willing to lose some or all 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 $10,000 and integral multiples of $1,000 in excess thereof |
Key Terms
| Issuer: | JPMorgan Chase Financial Company LLC, a direct, wholly owned finance subsidiary of JPMorgan Chase & Co. |
| Guarantor: | JPMorgan Chase & Co. |
| Index: | The S&P 500® Index (Bloomberg ticker: SPX) |
| Payment at Maturity: | If the Ending Index Level is greater than or equal to the Index Strike Level or is less than the Index Strike Level by up to the Buffer Amount, at maturity you will receive a cash payment that provides you with a return per $1,000 principal amount note equal to the Contingent Digital Return. Accordingly, under these circumstances, your payment at maturity per $1,000 principal amount note will be calculated as follows: |
| $1,000 + ($1,000 × Contingent Digital Return) | |
| If the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount, at maturity you will lose 1.11111% of the principal amount of your notes for every 1% that the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount. Under these circumstances, your payment at maturity per $1,000 principal amount note will be calculated as follows: | |
| $1,000 + [$1,000 × (Index Return + Buffer Amount) × Downside Leverage Factor] | |
| You will lose some or all of your principal amount at maturity if the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount of 10.00%. | |
| Contingent Digital Return: | At least 11.88%*, which reflects the maximum return on the notes. Accordingly, assuming a Contingent Digital Return of 11.88%, the maximum payment at maturity per $1,000 principal amount note is $1,118.80. *The actual Contingent Digital Return will be provided in the pricing supplement and will not be less than 11.88%. |
| Buffer Amount: | 10.00% |
| Downside Leverage Factor: | 1.11111 |
| Index Return: |
(Ending Index Level – Index Strike Level) Index Strike Level |
| Index Strike Level: | The closing level of the Index on the Strike Date. The Index Strike Level is not determined by reference to the closing level of the Index on the Pricing Date. |
| Ending Index Level: | The closing level of the Index on the Valuation Date |
| Strike Date: | July 11, 2025 |
| Pricing Date: | On or about July 15, 2025 |
| Original Issue Date (Settlement Date): | On or about July 18, 2025 |
| Valuation Date*: | January 11, 2027 |
| Maturity Date*: | January 14, 2027 |
| CUSIP: | 48136FTU6 |
| * | 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 |
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-5 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.
| Price to Public (1) | Fees and Commissions (2) | Proceeds to Issuer | |
| Per note | $1,000 | $ | $ |
| Total | $ | $ | $ |
| (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 $12.50 per $1,000 principal amount note. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement. |
If the notes priced today, the estimated value of the notes would be approximately $983.70 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 $970.00 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.
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.
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.
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.
| JPMorgan Structured Investments - | PS - 1 |
| Digital Buffered Notes Linked to the S&P 500® Index |
What Is the Total Return on the Notes at Maturity, Assuming a Range of Performances for the Index?
The following table and examples illustrate the hypothetical total return and the hypothetical payment at maturity on the notes. 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. Each hypothetical total return or payment at maturity set forth below assumes an Index Strike Level of 100 and a Contingent Digital Return of 11.88% and reflects the Downside Leverage Factor of 1.11111 and the Buffer Amount of 10.00%. The actual Contingent Digital Return will be provided in the pricing supplement and will not be less than 11.88%. Each hypothetical total return or 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 in the examples below have been rounded for ease of analysis.
The hypothetical Index Strike Level of 100.00 has been chosen for illustrative purposes only and may not represent a likely actual Index Strike Level. The actual Index Strike Level will be the closing level of the Index on the Strike Date and will be provided in the pricing supplement. For historical data regarding the actual closing levels of the Index, please see the historical information set forth under “Historical Information” in this pricing supplement.
|
Ending Index Level |
Index Return |
Total Return |
| 180.00 | 80.00% | 11.8800% |
| 170.00 | 70.00% | 11.8800% |
| 160.00 | 60.00% | 11.8800% |
| 150.00 | 50.00% | 11.8800% |
| 140.00 | 40.00% | 11.8800% |
| 130.00 | 30.00% | 11.8800% |
| 120.00 | 20.00% | 11.8800% |
| 115.00 | 15.00% | 11.8800% |
| 111.88 | 11.88% | 11.8800% |
| 110.00 | 10.00% | 11.8800% |
| 105.00 | 5.00% | 11.8800% |
| 102.50 | 2.50% | 11.8800% |
| 100.00 | 0.00% | 11.8800% |
| 97.50 | -2.50% | 11.8800% |
| 95.00 | -5.00% | 11.8800% |
| 90.00 | -10.00% | 11.8800% |
| 80.00 | -20.00% | -11.1111% |
| 70.00 | -30.00% | -22.2222% |
| 60.00 | -40.00% | -33.3333% |
| 50.00 | -50.00% | -44.4444% |
| 40.00 | -60.00% | -55.5555% |
| 30.00 | -70.00% | -66.6666% |
| 20.00 | -80.00% | -77.7778% |
| 10.00 | -90.00% | -88.8888% |
| 0.00 | -100.00% | -100.0000% |
| JPMorgan Structured Investments - | PS - 2 |
| Digital Buffered Notes Linked to the S&P 500® Index |
Hypothetical Examples of Amount Payable at Maturity
The following examples illustrate how the payment at maturity in different hypothetical scenarios is calculated.
Example 1: The level of the Index increases from the Index Strike Level of 100.00 to an Ending Index Level of 105.00.
Because the Ending Index Level of 105.00 is greater than the Index Strike Level of 100.00, regardless of the Index Return, the investor receives a payment at maturity of $1,118.80 per $1,000 principal amount note, calculated as follows:
$1,000 + ($1,000 × 11.88%) = $1,118.80
Example 2: The level of the Index decreases from the Index Strike Level of 100.00 to an Ending Index Level of 90.00.
Although the Index Return is negative, because the Ending Index Level of 90.00 is less than the Index Strike Level of 100.00 by up to the Buffer Amount of 10.00%, the investor receives a payment at maturity of $1,118.80 per $1,000 principal amount note, calculated as follows:
$1,000 + ($1,000 × 11.88%) = $1,118.80
Example 3: The level of the Index increases from the Index Strike Level of 100.00 to an Ending Index Level of 140.00.
Because the Ending Index Level of 140.00 is greater than the Index Strike Level of 100.00 and although the Index Return of 40.00% exceeds the Contingent Digital Return of 11.88%, the investor is entitled to only the Contingent Digital Return and receives a payment at maturity of $1,118.80 per $1,000 principal amount note, calculated as follows:
$1,000 + ($1,000 × 11.88%) = $1,118.80
Example 4: The level of the Index decreases from the Index Strike Level of 100.00 to an Ending Index Level of 50.00.
Because the Ending Index Level of 50.00 is less than the Index Strike Level of 100.00 by more than the Buffer Amount of 10.00% and the Index Return is -50.00%, the investor receives a payment at maturity of $555.556 per $1,000 principal amount note, calculated as follows:
$1,000 + [$1,000 × (-50.00% + 10.00%) × 1.11111] = $555.556
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 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.
| JPMorgan Structured Investments - | PS - 3 |
| Digital Buffered Notes Linked to the S&P 500® Index |
Selected Purchase Considerations
| ● | FIXED APPRECIATION POTENTIAL — If the Ending Index Level is greater than or equal to the Index Strike Level or is less than the Index Strike Level by up to the Buffer Amount, you will receive a fixed return equal to the Contingent Digital Return of at least 11.88% at maturity, which also reflects the maximum return on the notes at maturity. The actual Contingent Digital Return will be provided in the pricing supplement and will not be less than 11.88%. Because the notes are our unsecured and unsubordinated obligations, the payment of which is fully and unconditionally guaranteed by JPMorgan Chase & Co., payment of any amount on the notes is subject to our ability to pay our obligations as they become due and JPMorgan Chase & Co.’s ability to pay its obligations as they become due. |
| ● | LIMITED PROTECTION AGAINST LOSS — We will pay you at least your principal back at maturity if the Ending Index Level is greater than or equal to the Index Strike Level or is less than the Index Strike Level by up to the Buffer Amount. If the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount, for every 1% that the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount, you will lose an amount equal to 1.11111% of the principal amount of your notes at maturity. Accordingly, you may lose some or all of your principal amount at maturity. |
| ● | RETURN DEPENDENT ON THE S&P 500® INDEX — The S&P 500® Index consists of stocks of 500 companies selected to provide a performance benchmark for the U.S. equity markets. For additional information about the S&P 500® Index, see “Equity Index Descriptions — The S&P U.S. Indices” in the accompanying underlying supplement. |
| ● | 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. |
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, 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. However, the IRS or a court may not respect this treatment, in which case the timing and character of any income or loss on the 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, which very generally can operate to recharacterize certain long-term capital gain as ordinary income and impose a notional interest charge. 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 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.
| JPMorgan Structured Investments - | PS - 4 |
| Digital Buffered Notes Linked to the S&P 500® Index |
Selected Risk Considerations
An investment in the notes involves significant risks. Investing in the notes is not equivalent to investing directly in the Index or any of the component securities of the Index. These risks are explained in more detail in the “Risk Factors” section of the accompanying prospectus supplement and product supplement and in Annex A to the accompanying prospectus addendum.
Risks Relating to the Notes Generally
| ● | YOUR INVESTMENT IN THE NOTES MAY RESULT IN A LOSS — The notes do not guarantee any return of principal. The return on the notes at maturity is dependent on the performance of the Index and will depend on whether, and the extent to which, the Ending Index Level is less than the Index Strike Level. Your investment will be exposed to a loss on a leveraged basis if the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount. In this case, for every 1% that the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount, you will lose an amount equal to 1.11111% of the principal amount of your notes. Accordingly, you may lose some or all of your principal amount at maturity. |
| ● | YOUR MAXIMUM GAIN ON THE NOTES IS LIMITED TO THE CONTINGENT DIGITAL RETURN — If the Ending Index Level is greater than or equal to the Index Strike Level or is less than the Index Strike Level by up to the Buffer Amount, for each $1,000 principal amount note, you will receive at maturity $1,000 plus an additional return equal to the Contingent Digital Return of at least 11.88%, regardless of any appreciation of the Index, which may be significant. The actual Contingent Digital Return will be provided in the pricing supplement and will not be less than 11.88%. |
| ● | YOUR ABILITY TO RECEIVE THE CONTINGENT DIGITAL RETURN MAY TERMINATE ON THE VALUATION DATE — If the Ending Index Level is less than the Index Strike Level by more than the Buffer Amount, you will not be entitled to receive the Contingent Digital Return at maturity. Under these circumstances, you will lose some or all of your principal amount at maturity. |
| ● | CREDIT RISKS OF JPMORGAN FINANCIAL AND JPMORGAN CHASE & CO. — The notes are subject to our and JPMorgan Chase & Co.’s credit risks, and our and JPMorgan Chase & Co.’s credit ratings and credit spreads may adversely affect the market value of the notes. 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. |
| ● | NO INTEREST OR DIVIDEND PAYMENTS OR VOTING RIGHTS — As a holder of the notes, you will not receive interest payments, and you will not have voting rights or rights to receive cash dividends or other distributions or other rights that holders of the securities included in the Index would have. |
| ● | 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. |
| ● | THE FINAL TERMS AND VALUATION OF THE NOTES WILL BE PROVIDED IN THE PRICING SUPPLEMENT — The final terms of the notes will be based on relevant market conditions when the terms of the notes are set and will be provided in the pricing supplement. In particular, each of the estimated value of the notes and the Contingent Digital Return will be provided in the pricing supplement and each may be as low as the applicable minimum set forth on the cover of this pricing supplement. Accordingly, you should consider your potential investment in the notes based on the minimums for the estimated value of the notes and the Contingent Digital Return. |
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, hedging our obligations under the notes and making the assumptions used to determine the pricing of the notes and the estimated value of the notes when the terms of the notes are set, which we refer to as the estimated value of the notes. In performing these duties, our and JPMorgan Chase & Co.’s 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 and JPMorgan Chase & Co.’s business activities, including hedging and trading activities, could cause our and JPMorgan Chase & Co.’s economic interests to be adverse to |
| JPMorgan Structured Investments - | PS - 5 |
| Digital Buffered Notes Linked to the S&P 500® Index |
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 the Estimated Value and Secondary Market Prices of the Notes
| ● | 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 — The estimated value of the notes is determined by reference to internal pricing models of our affiliates when the terms of the notes are set. This estimated value of the notes is based on market conditions and other relevant factors existing at that time and assumptions about market parameters, which can include volatility, dividend rates, interest rates and other factors. 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. 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. 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. 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). |
| ● | 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 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. See the immediately following risk consideration for information about additional factors that will impact any secondary market prices of the 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. See “— Lack of Liquidity” above.
| ● | 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 level of the Index. |
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.
| JPMorgan Structured Investments - | PS - 6 |
| Digital Buffered Notes Linked to the S&P 500® Index |
Risks Relating to the Index
| ● | JPMORGAN CHASE & CO. IS CURRENTLY ONE OF THE COMPANIES THAT MAKE UP THE INDEX — JPMorgan Chase & Co. is currently one of the companies that make up the Index, but JPMorgan Chase & Co. will have no obligation to consider your interests as a holder of the notes in taking any corporate action that might affect the value of the Index. |
Historical Information
The following graph sets forth the historical performance of the Index based on the weekly historical closing levels of the Index from January 3, 2020 through July 3, 2025. The closing level of the Index on July 10, 2025 was 6,280.46.
We obtained the closing levels of the Index above and below from the Bloomberg Professional® service (“Bloomberg”), without independent verification. The historical levels of the Index should not be taken as an indication of future performance, and no assurance can be given as to the closing level of the Index on the Strike Date or the Valuation Date. There can be no assurance that the performance of the Index will result in the return of any of your principal amount.
|
Historical Performance of the S&P 500® Index
Source: Bloomberg |
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 — Risks Relating to the Estimated Value and Secondary Market Prices of the Notes — 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. See “Selected Risk Considerations — Risks Relating to the Estimated Value and Secondary Market Prices of the Notes — The Estimated Value of the Notes Does Not Represent Future Values of the Notes and May Differ from Others’ Estimates” in this pricing supplement.
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. We or one or more of our affiliates will retain any profits realized in hedging our obligations under the notes. See “Selected Risk Considerations — Risks Relating to the Estimated
| JPMorgan Structured Investments - | PS - 7 |
| Digital Buffered Notes Linked to the S&P 500® Index |
Value and Secondary Market Prices of the Notes — 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 “Selected Risk Considerations — 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 this pricing 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 that 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 — Risks Relating to the Estimated Value and Secondary Market Prices of the Notes — 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.”
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 “What Is the Total Return on the Notes at Maturity, Assuming a Range of Performances for the Index?” and “Hypothetical Examples of Amount Payable at Maturity” in this pricing supplement for an illustration of the risk-return profile of the notes and “Selected Purchase Considerations — Return Dependent on the S&P 500® Index” 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.
| JPMorgan Structured Investments - | PS - 8 |
| Digital Buffered Notes Linked to the S&P 500® Index |
FAQ
What is the maximum return on the JPM Digital Buffered Notes (CUSIP 48136FTU6)?
How much downside protection do the notes provide?
What happens if the S&P 500 falls 20 % by the valuation date?
Are the notes principal-protected?
Will the notes pay dividends or interest during the term?
Can I sell the notes before maturity?
