[424B2] Inverse VIX Short-Term Futures ETNs due March 22, 2045 Prospectus Supplement
Offering: Toronto-Dominion Bank (TD) is marketing senior unsecured Capped Notes with Absolute Return Buffer Linked to the S&P 500 Index under Form 424B2.
Key economics: Each $10 note matures in roughly 14 months (Sept 2026). Investors receive: (1) 1-to-1 upside participation if the Index rises, capped at a 10% maximum return ($11 redemption per unit); (2) a positive "absolute" payoff when the Index declines but remains at or above the Threshold Value set between 90-95% of the Starting Value (exact level fixed on pricing date). Example – a 5% Index decline pays a 5% gain. (3) If the Index finishes below the Threshold, principal is lost point-for-point beyond that level, exposing up to 90-95% of principal.
Structural features: No periodic coupons; all cash flows occur at maturity. Notes are unsecured, not FDIC/CDIC insured, and payments depend on TD’s credit. Public offering price is $10 with a $0.175 underwriting discount (reduced to $0.125 for ≥300,000 units) plus a $0.05 hedging-related charge. TD’s initial estimated value will be below the offering price because it uses an internal funding rate and includes selling & hedging costs.
Liquidity & market considerations: No exchange listing; secondary trading, if any, will be limited and may occur at prices well below par and the initial estimated value. TD and BofA Securities act as joint calculation agents and counterparties in hedging, creating potential conflicts of interest.
Risk highlights: Possible substantial principal loss, 10% upside cap, no dividends or interest, valuation dependent on TD models, tax treatment uncertain, and full exposure to TD credit risk.
Investor profile: Suitable for investors who expect the S&P 500 to stay within ±10% over 14 months, can tolerate illiquidity and credit risk, and are comfortable exchanging uncapped equity returns for a defined buffer and capped upside.
Offerta: Toronto-Dominion Bank (TD) propone note senior non garantite Capped Notes con Absolute Return Buffer legate all'indice S&P 500 ai sensi del modulo 424B2.
Caratteristiche economiche principali: Ogni nota da $10 scade in circa 14 mesi (settembre 2026). Gli investitori ricevono: (1) partecipazione al rialzo 1 a 1 se l'indice sale, con un rendimento massimo del 10% ($11 di rimborso per unità); (2) un rendimento positivo "assoluto" se l'indice scende ma rimane al di sopra del Valore Soglia, fissato tra il 90% e il 95% del Valore Iniziale (livello esatto definito al momento della quotazione). Esempio – un calo del 5% dell'indice genera un guadagno del 5%. (3) Se l'indice chiude sotto la soglia, il capitale viene perso punto per punto oltre quel livello, esponendo fino al 90-95% del capitale.
Caratteristiche strutturali: Nessuna cedola periodica; tutti i flussi di cassa avvengono a scadenza. Le note non sono garantite, non assicurate da FDIC/CDIC e i pagamenti dipendono dal merito creditizio di TD. Il prezzo di offerta pubblica è $10 con uno sconto di sottoscrizione di $0,175 (ridotto a $0,125 per ≥300.000 unità) più un costo di copertura di $0,05. Il valore stimato iniziale di TD sarà inferiore al prezzo di offerta perché utilizza un tasso di finanziamento interno e include costi di vendita e copertura.
Liquidità e considerazioni di mercato: Nessuna quotazione in borsa; il trading secondario, se presente, sarà limitato e potrebbe avvenire a prezzi molto inferiori al valore nominale e al valore stimato iniziale. TD e BofA Securities agiscono come agenti di calcolo congiunti e controparti nella copertura, creando potenziali conflitti di interesse.
Rischi principali: Possibile perdita sostanziale del capitale, limite massimo di rendimento del 10%, assenza di dividendi o interessi, valutazione dipendente dai modelli di TD, trattamento fiscale incerto e piena esposizione al rischio di credito di TD.
Profilo dell'investitore: Adatto a investitori che prevedono che l'S&P 500 rimanga entro ±10% in 14 mesi, tollerano illiquidità e rischio di credito e sono disposti a scambiare rendimenti azionari illimitati con un buffer definito e un rendimento massimo limitato.
Oferta: Toronto-Dominion Bank (TD) está comercializando notas senior no garantizadas Notas Limitadas con Buffer de Retorno Absoluto vinculadas al índice S&P 500 bajo el Formulario 424B2.
Aspectos económicos clave: Cada nota de $10 vence en aproximadamente 14 meses (septiembre 2026). Los inversores reciben: (1) participación al alza 1 a 1 si el índice sube, con un retorno máximo del 10% ($11 de reembolso por unidad); (2) un pago "absoluto" positivo cuando el índice baja pero se mantiene en o por encima del Valor Umbral fijado entre el 90% y 95% del Valor Inicial (nivel exacto determinado en la fecha de fijación de precio). Ejemplo – una caída del 5% del índice paga una ganancia del 5%. (3) Si el índice termina por debajo del Umbral, se pierde el principal punto por punto más allá de ese nivel, exponiendo hasta el 90-95% del principal.
Características estructurales: Sin cupones periódicos; todos los flujos de efectivo ocurren al vencimiento. Las notas no están garantizadas, no están aseguradas por FDIC/CDIC y los pagos dependen del crédito de TD. El precio público de oferta es $10 con un descuento de suscripción de $0.175 (reducido a $0.125 para ≥300,000 unidades) más un cargo relacionado con cobertura de $0.05. El valor estimado inicial de TD estará por debajo del precio de oferta porque utiliza una tasa interna de financiamiento e incluye costos de venta y cobertura.
Consideraciones de liquidez y mercado: Sin cotización en bolsa; el comercio secundario, si existe, será limitado y puede ocurrir a precios muy por debajo del valor nominal y del valor estimado inicial. TD y BofA Securities actúan como agentes de cálculo conjuntos y contrapartes en la cobertura, generando posibles conflictos de interés.
Aspectos de riesgo: Posible pérdida sustancial del principal, límite máximo de retorno del 10%, sin dividendos ni intereses, valoración dependiente de modelos de TD, tratamiento fiscal incierto y exposición total al riesgo crediticio de TD.
Perfil del inversor: Adecuado para inversores que esperan que el S&P 500 se mantenga dentro de ±10% durante 14 meses, pueden tolerar iliquidez y riesgo crediticio, y están dispuestos a intercambiar rendimientos bursátiles ilimitados por un buffer definido y un rendimiento máximo limitado.
제공 내용: Toronto-Dominion Bank(TD)는 Form 424B2에 따라 S&P 500 지수 연동 절대수익 버퍼가 적용된 캡드 노트를 선순위 무담보로 마케팅하고 있습니다.
주요 경제 조건: 각 $10 노트는 약 14개월 후(2026년 9월) 만기됩니다. 투자자는 다음을 받습니다: (1) 지수가 상승할 경우 1대1 상승 참여, 최대 10% 수익 제한 ($11 상환 단위당); (2) 지수가 하락하더라도 시작 값의 90-95% 사이에 설정된 임계값 이상일 경우 긍정적인 '절대' 수익 지급 (정확한 수준은 가격 책정일에 확정). 예시 – 지수가 5% 하락하면 5% 이익 지급. (3) 지수가 임계값 아래로 마감하면 그 수준을 초과하는 부분에 대해 원금이 1대1로 손실되어 최대 90-95% 원금 손실 위험이 있습니다.
구조적 특징: 정기 쿠폰 없음; 모든 현금 흐름은 만기 시 발생. 노트는 무담보이며 FDIC/CDIC 보험이 없고, 지급은 TD의 신용도에 따라 달라집니다. 공개 발행 가격은 $10이며, 인수 수수료는 $0.175(30만 단위 이상 시 $0.125로 감소)와 헤지 관련 비용 $0.05가 포함됩니다. TD의 초기 추정 가치는 내부 자금 조달 금리를 사용하고 판매 및 헤지 비용을 포함하기 때문에 발행 가격보다 낮습니다.
유동성 및 시장 고려사항: 거래소 상장 없음; 2차 거래가 있을 경우 제한적이며 액면가 및 초기 추정 가치보다 훨씬 낮은 가격에서 거래될 수 있습니다. TD와 BofA Securities는 공동 계산 대리인 및 헤지 상대방으로서 이해 상충 가능성이 있습니다.
위험 요약: 상당한 원금 손실 가능성, 10% 수익 상한, 배당금 또는 이자 없음, TD 모델에 따른 가치 평가, 세금 처리 불확실, TD 신용 위험에 완전 노출.
투자자 프로필: 14개월 동안 S&P 500이 ±10% 범위 내에 머물 것으로 예상하며, 유동성 부족과 신용 위험을 감수할 수 있고, 무제한 주식 수익 대신 정의된 버퍼와 수익 상한을 선호하는 투자자에게 적합합니다.
Offre : Toronto-Dominion Bank (TD) commercialise des Notes Senior Non Garantie Capped avec Absolute Return Buffer liées à l'indice S&P 500 sous le formulaire 424B2.
Principaux aspects économiques : Chaque note de 10 $ arrive à échéance dans environ 14 mois (septembre 2026). Les investisseurs reçoivent : (1) une participation à la hausse 1 pour 1 si l'indice augmente, plafonnée à un rendement maximum de 10% (remboursement de 11 $ par unité) ; (2) un gain "absolu" positif lorsque l'indice baisse mais reste au-dessus de la valeur seuil fixée entre 90 et 95 % de la valeur de départ (niveau exact déterminé à la date de tarification). Exemple – une baisse de l'indice de 5 % génère un gain de 5 %. (3) Si l'indice termine en dessous du seuil, le capital est perdu point par point au-delà de ce niveau, exposant jusqu'à 90-95 % du capital.
Caractéristiques structurelles : Pas de coupons périodiques ; tous les flux de trésorerie interviennent à l'échéance. Les notes ne sont pas garanties, non assurées par FDIC/CDIC, et les paiements dépendent du crédit de TD. Le prix public d'offre est de 10 $ avec une décote de souscription de 0,175 $ (réduite à 0,125 $ pour ≥300 000 unités) plus une charge liée à la couverture de 0,05 $. La valeur estimée initiale de TD sera inférieure au prix d'offre car elle utilise un taux de financement interne et inclut les coûts de vente et de couverture.
Considérations de liquidité et de marché : Pas de cotation en bourse ; les échanges secondaires, s'ils existent, seront limités et pourraient se faire à des prix bien inférieurs à la valeur nominale et à la valeur estimée initiale. TD et BofA Securities agissent en tant qu'agents de calcul conjoints et contreparties dans la couverture, créant des conflits d'intérêts potentiels.
Points clés de risque : Perte substantielle possible du capital, plafond de rendement à 10 %, pas de dividendes ni d'intérêts, valorisation dépendante des modèles TD, traitement fiscal incertain et exposition totale au risque de crédit de TD.
Profil de l'investisseur : Convient aux investisseurs qui s'attendent à ce que le S&P 500 reste dans une fourchette de ±10 % sur 14 mois, peuvent tolérer l'illiquidité et le risque de crédit, et acceptent d'échanger des rendements actions illimités contre un buffer défini et un rendement plafonné.
Angebot: Die Toronto-Dominion Bank (TD) bietet Senior Unsecured Capped Notes mit Absolute Return Buffer, die an den S&P 500 Index gekoppelt sind, gemäß Formular 424B2 an.
Wesentliche wirtschaftliche Merkmale: Jede $10-Note läuft etwa 14 Monate (September 2026). Anleger erhalten: (1) eine 1:1 Partizipation am Anstieg des Index, begrenzt auf eine maximale Rendite von 10% ($11 Rückzahlung pro Einheit); (2) eine positive „absolute“ Auszahlung, wenn der Index fällt, aber über dem Schwellenwert bleibt, der zwischen 90-95% des Startwerts festgelegt wird (genauer Wert am Preisfeststellungstag bestimmt). Beispiel – ein 5%iger Rückgang des Index zahlt 5% Gewinn. (3) Liegt der Index unter dem Schwellenwert, geht das Kapital Punkt für Punkt verloren, was ein Risiko von bis zu 90-95% des Kapitals bedeutet.
Strukturelle Merkmale: Keine periodischen Kupons; alle Zahlungsflüsse erfolgen bei Fälligkeit. Die Notes sind ungesichert, nicht durch FDIC/CDIC versichert, und Zahlungen hängen von der Bonität von TD ab. Der öffentliche Ausgabepreis beträgt $10 mit einem Underwriting-Abschlag von $0,175 (reduziert auf $0,125 ab 300.000 Einheiten) plus einer Absicherungsgebühr von $0,05. Der anfängliche geschätzte Wert von TD liegt unter dem Ausgabepreis, da ein interner Finanzierungssatz verwendet wird und Verkaufs- sowie Absicherungskosten enthalten sind.
Liquiditäts- und Markterwägungen: Keine Börsennotierung; der Sekundärhandel, falls vorhanden, ist begrenzt und kann zu Preisen deutlich unter Nennwert und dem anfänglichen geschätzten Wert stattfinden. TD und BofA Securities fungieren als gemeinsame Berechnungsagenten und Gegenparteien bei der Absicherung, was potenzielle Interessenkonflikte schafft.
Risiko-Highlights: Möglicher erheblicher Kapitalverlust, 10% Renditeobergrenze, keine Dividenden oder Zinsen, Bewertung abhängig von TD-Modellen, unsichere steuerliche Behandlung und volle Exponierung gegenüber dem Kreditrisiko von TD.
Investorprofil: Geeignet für Anleger, die erwarten, dass der S&P 500 innerhalb von ±10% über 14 Monate bleibt, Illiquidität und Kreditrisiko tolerieren und bereit sind, unbegrenzte Aktienrenditen gegen einen definierten Puffer und eine begrenzte Rendite einzutauschen.
- 1-to-1 participation on S&P 500 gains up to a 10% cap provides equity upside in a short-dated note.
- Absolute return buffer converts a moderate Index decline (≤5-10%) into a positive payoff, offering partial protection.
- 14-month tenor limits long-term market and credit exposure compared with multi-year structured products.
- Upside capped at 10%, materially below historical S&P 500 returns.
- Principal at risk on a 1-for-1 basis once the Index falls beyond the 5-10% buffer, with up to 90-95% loss possible.
- Notes offer no periodic interest or dividends, reducing income potential.
- Initial estimated value is below the public offering price due to internal funding spreads and fees.
- Limited or no secondary market; investors may be forced to hold to maturity and accept price concessions if they sell.
- All payments are subject to the credit risk of TD; the notes are unsecured and not insured.
Insights
TL;DR Short-dated buffered structure offers limited upside (10%) and moderate protection; value eroded by fees and credit risk.
The note gives textbook exposure to a "buffered absolute return" design. Investors gain 1:1 on S&P 500 appreciation up to 10%, but switch to loss mode once the Index falls more than 5-10% (final level set on pricing date). Compared with a simple call spread, the structure embeds both a sold call (capping gains) and a sold put below the Threshold; proceeds finance the absolute return feature. The inclusion of a hedging charge and an internal funding spread means the initial fair value should be several cents below par, so investors pay a premium relative to theoretical value. From a credit perspective the note ranks pari-passu with TD’s other senior debt. Given the short 14-month tenor and moderate buffer, I view the risk/return as neutral; performance will largely mirror low-volatility expectations for the S&P 500.
TL;DR Product suits range-bound equity views; downside beyond 5-10% wipes buffer, upside capped, liquidity minimal.
In allocation terms, the note can replace a portion of U.S. large-cap exposure where the investor wants modest upside but is willing to surrender dividends and excess upside. The 10% cap translates to roughly a 7% annualised maximum, below long-term S&P 500 returns, while the buffer only covers the first 5-10% drawdown. Therefore, risk-adjusted return depends on realised volatility staying low. Because the structure is not principal-protected and resale markets are thin, I would size positions conservatively and plan to hold to maturity. For most balanced portfolios, I consider the impact neutral unless the investor has a specific tactical view that the Index will finish in the narrow protected zone.
Offerta: Toronto-Dominion Bank (TD) propone note senior non garantite Capped Notes con Absolute Return Buffer legate all'indice S&P 500 ai sensi del modulo 424B2.
Caratteristiche economiche principali: Ogni nota da $10 scade in circa 14 mesi (settembre 2026). Gli investitori ricevono: (1) partecipazione al rialzo 1 a 1 se l'indice sale, con un rendimento massimo del 10% ($11 di rimborso per unità); (2) un rendimento positivo "assoluto" se l'indice scende ma rimane al di sopra del Valore Soglia, fissato tra il 90% e il 95% del Valore Iniziale (livello esatto definito al momento della quotazione). Esempio – un calo del 5% dell'indice genera un guadagno del 5%. (3) Se l'indice chiude sotto la soglia, il capitale viene perso punto per punto oltre quel livello, esponendo fino al 90-95% del capitale.
Caratteristiche strutturali: Nessuna cedola periodica; tutti i flussi di cassa avvengono a scadenza. Le note non sono garantite, non assicurate da FDIC/CDIC e i pagamenti dipendono dal merito creditizio di TD. Il prezzo di offerta pubblica è $10 con uno sconto di sottoscrizione di $0,175 (ridotto a $0,125 per ≥300.000 unità) più un costo di copertura di $0,05. Il valore stimato iniziale di TD sarà inferiore al prezzo di offerta perché utilizza un tasso di finanziamento interno e include costi di vendita e copertura.
Liquidità e considerazioni di mercato: Nessuna quotazione in borsa; il trading secondario, se presente, sarà limitato e potrebbe avvenire a prezzi molto inferiori al valore nominale e al valore stimato iniziale. TD e BofA Securities agiscono come agenti di calcolo congiunti e controparti nella copertura, creando potenziali conflitti di interesse.
Rischi principali: Possibile perdita sostanziale del capitale, limite massimo di rendimento del 10%, assenza di dividendi o interessi, valutazione dipendente dai modelli di TD, trattamento fiscale incerto e piena esposizione al rischio di credito di TD.
Profilo dell'investitore: Adatto a investitori che prevedono che l'S&P 500 rimanga entro ±10% in 14 mesi, tollerano illiquidità e rischio di credito e sono disposti a scambiare rendimenti azionari illimitati con un buffer definito e un rendimento massimo limitato.
Oferta: Toronto-Dominion Bank (TD) está comercializando notas senior no garantizadas Notas Limitadas con Buffer de Retorno Absoluto vinculadas al índice S&P 500 bajo el Formulario 424B2.
Aspectos económicos clave: Cada nota de $10 vence en aproximadamente 14 meses (septiembre 2026). Los inversores reciben: (1) participación al alza 1 a 1 si el índice sube, con un retorno máximo del 10% ($11 de reembolso por unidad); (2) un pago "absoluto" positivo cuando el índice baja pero se mantiene en o por encima del Valor Umbral fijado entre el 90% y 95% del Valor Inicial (nivel exacto determinado en la fecha de fijación de precio). Ejemplo – una caída del 5% del índice paga una ganancia del 5%. (3) Si el índice termina por debajo del Umbral, se pierde el principal punto por punto más allá de ese nivel, exponiendo hasta el 90-95% del principal.
Características estructurales: Sin cupones periódicos; todos los flujos de efectivo ocurren al vencimiento. Las notas no están garantizadas, no están aseguradas por FDIC/CDIC y los pagos dependen del crédito de TD. El precio público de oferta es $10 con un descuento de suscripción de $0.175 (reducido a $0.125 para ≥300,000 unidades) más un cargo relacionado con cobertura de $0.05. El valor estimado inicial de TD estará por debajo del precio de oferta porque utiliza una tasa interna de financiamiento e incluye costos de venta y cobertura.
Consideraciones de liquidez y mercado: Sin cotización en bolsa; el comercio secundario, si existe, será limitado y puede ocurrir a precios muy por debajo del valor nominal y del valor estimado inicial. TD y BofA Securities actúan como agentes de cálculo conjuntos y contrapartes en la cobertura, generando posibles conflictos de interés.
Aspectos de riesgo: Posible pérdida sustancial del principal, límite máximo de retorno del 10%, sin dividendos ni intereses, valoración dependiente de modelos de TD, tratamiento fiscal incierto y exposición total al riesgo crediticio de TD.
Perfil del inversor: Adecuado para inversores que esperan que el S&P 500 se mantenga dentro de ±10% durante 14 meses, pueden tolerar iliquidez y riesgo crediticio, y están dispuestos a intercambiar rendimientos bursátiles ilimitados por un buffer definido y un rendimiento máximo limitado.
제공 내용: Toronto-Dominion Bank(TD)는 Form 424B2에 따라 S&P 500 지수 연동 절대수익 버퍼가 적용된 캡드 노트를 선순위 무담보로 마케팅하고 있습니다.
주요 경제 조건: 각 $10 노트는 약 14개월 후(2026년 9월) 만기됩니다. 투자자는 다음을 받습니다: (1) 지수가 상승할 경우 1대1 상승 참여, 최대 10% 수익 제한 ($11 상환 단위당); (2) 지수가 하락하더라도 시작 값의 90-95% 사이에 설정된 임계값 이상일 경우 긍정적인 '절대' 수익 지급 (정확한 수준은 가격 책정일에 확정). 예시 – 지수가 5% 하락하면 5% 이익 지급. (3) 지수가 임계값 아래로 마감하면 그 수준을 초과하는 부분에 대해 원금이 1대1로 손실되어 최대 90-95% 원금 손실 위험이 있습니다.
구조적 특징: 정기 쿠폰 없음; 모든 현금 흐름은 만기 시 발생. 노트는 무담보이며 FDIC/CDIC 보험이 없고, 지급은 TD의 신용도에 따라 달라집니다. 공개 발행 가격은 $10이며, 인수 수수료는 $0.175(30만 단위 이상 시 $0.125로 감소)와 헤지 관련 비용 $0.05가 포함됩니다. TD의 초기 추정 가치는 내부 자금 조달 금리를 사용하고 판매 및 헤지 비용을 포함하기 때문에 발행 가격보다 낮습니다.
유동성 및 시장 고려사항: 거래소 상장 없음; 2차 거래가 있을 경우 제한적이며 액면가 및 초기 추정 가치보다 훨씬 낮은 가격에서 거래될 수 있습니다. TD와 BofA Securities는 공동 계산 대리인 및 헤지 상대방으로서 이해 상충 가능성이 있습니다.
위험 요약: 상당한 원금 손실 가능성, 10% 수익 상한, 배당금 또는 이자 없음, TD 모델에 따른 가치 평가, 세금 처리 불확실, TD 신용 위험에 완전 노출.
투자자 프로필: 14개월 동안 S&P 500이 ±10% 범위 내에 머물 것으로 예상하며, 유동성 부족과 신용 위험을 감수할 수 있고, 무제한 주식 수익 대신 정의된 버퍼와 수익 상한을 선호하는 투자자에게 적합합니다.
Offre : Toronto-Dominion Bank (TD) commercialise des Notes Senior Non Garantie Capped avec Absolute Return Buffer liées à l'indice S&P 500 sous le formulaire 424B2.
Principaux aspects économiques : Chaque note de 10 $ arrive à échéance dans environ 14 mois (septembre 2026). Les investisseurs reçoivent : (1) une participation à la hausse 1 pour 1 si l'indice augmente, plafonnée à un rendement maximum de 10% (remboursement de 11 $ par unité) ; (2) un gain "absolu" positif lorsque l'indice baisse mais reste au-dessus de la valeur seuil fixée entre 90 et 95 % de la valeur de départ (niveau exact déterminé à la date de tarification). Exemple – une baisse de l'indice de 5 % génère un gain de 5 %. (3) Si l'indice termine en dessous du seuil, le capital est perdu point par point au-delà de ce niveau, exposant jusqu'à 90-95 % du capital.
Caractéristiques structurelles : Pas de coupons périodiques ; tous les flux de trésorerie interviennent à l'échéance. Les notes ne sont pas garanties, non assurées par FDIC/CDIC, et les paiements dépendent du crédit de TD. Le prix public d'offre est de 10 $ avec une décote de souscription de 0,175 $ (réduite à 0,125 $ pour ≥300 000 unités) plus une charge liée à la couverture de 0,05 $. La valeur estimée initiale de TD sera inférieure au prix d'offre car elle utilise un taux de financement interne et inclut les coûts de vente et de couverture.
Considérations de liquidité et de marché : Pas de cotation en bourse ; les échanges secondaires, s'ils existent, seront limités et pourraient se faire à des prix bien inférieurs à la valeur nominale et à la valeur estimée initiale. TD et BofA Securities agissent en tant qu'agents de calcul conjoints et contreparties dans la couverture, créant des conflits d'intérêts potentiels.
Points clés de risque : Perte substantielle possible du capital, plafond de rendement à 10 %, pas de dividendes ni d'intérêts, valorisation dépendante des modèles TD, traitement fiscal incertain et exposition totale au risque de crédit de TD.
Profil de l'investisseur : Convient aux investisseurs qui s'attendent à ce que le S&P 500 reste dans une fourchette de ±10 % sur 14 mois, peuvent tolérer l'illiquidité et le risque de crédit, et acceptent d'échanger des rendements actions illimités contre un buffer défini et un rendement plafonné.
Angebot: Die Toronto-Dominion Bank (TD) bietet Senior Unsecured Capped Notes mit Absolute Return Buffer, die an den S&P 500 Index gekoppelt sind, gemäß Formular 424B2 an.
Wesentliche wirtschaftliche Merkmale: Jede $10-Note läuft etwa 14 Monate (September 2026). Anleger erhalten: (1) eine 1:1 Partizipation am Anstieg des Index, begrenzt auf eine maximale Rendite von 10% ($11 Rückzahlung pro Einheit); (2) eine positive „absolute“ Auszahlung, wenn der Index fällt, aber über dem Schwellenwert bleibt, der zwischen 90-95% des Startwerts festgelegt wird (genauer Wert am Preisfeststellungstag bestimmt). Beispiel – ein 5%iger Rückgang des Index zahlt 5% Gewinn. (3) Liegt der Index unter dem Schwellenwert, geht das Kapital Punkt für Punkt verloren, was ein Risiko von bis zu 90-95% des Kapitals bedeutet.
Strukturelle Merkmale: Keine periodischen Kupons; alle Zahlungsflüsse erfolgen bei Fälligkeit. Die Notes sind ungesichert, nicht durch FDIC/CDIC versichert, und Zahlungen hängen von der Bonität von TD ab. Der öffentliche Ausgabepreis beträgt $10 mit einem Underwriting-Abschlag von $0,175 (reduziert auf $0,125 ab 300.000 Einheiten) plus einer Absicherungsgebühr von $0,05. Der anfängliche geschätzte Wert von TD liegt unter dem Ausgabepreis, da ein interner Finanzierungssatz verwendet wird und Verkaufs- sowie Absicherungskosten enthalten sind.
Liquiditäts- und Markterwägungen: Keine Börsennotierung; der Sekundärhandel, falls vorhanden, ist begrenzt und kann zu Preisen deutlich unter Nennwert und dem anfänglichen geschätzten Wert stattfinden. TD und BofA Securities fungieren als gemeinsame Berechnungsagenten und Gegenparteien bei der Absicherung, was potenzielle Interessenkonflikte schafft.
Risiko-Highlights: Möglicher erheblicher Kapitalverlust, 10% Renditeobergrenze, keine Dividenden oder Zinsen, Bewertung abhängig von TD-Modellen, unsichere steuerliche Behandlung und volle Exponierung gegenüber dem Kreditrisiko von TD.
Investorprofil: Geeignet für Anleger, die erwarten, dass der S&P 500 innerhalb von ±10% über 14 Monate bleibt, Illiquidität und Kreditrisiko tolerieren und bereit sind, unbegrenzte Aktienrenditen gegen einen definierten Puffer und eine begrenzte Rendite einzutauschen.
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June 27, 2025 |
Registration Statement Nos. 333-270004 and 333-270004-01; Rule 424(b)(2) |
JPMorgan Chase Financial Company LLC
Structured Investments
$2,492,000
Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index due June 30, 2028
Fully and Unconditionally Guaranteed by JPMorgan Chase & Co.
●The notes are designed for investors who seek early exit prior to maturity at a premium if, on the Review Date, the closing level of each of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index, which we refer to as the Indices, is at or above its Call Value.
●The date on which an automatic call may be initiated is July 6, 2026.
●The notes are also designed for investors who seek an uncapped return of 2.00 times any appreciation of the least performing of the Indices at maturity, if the notes have not been automatically called.
●Investors should be willing to forgo interest and dividend payments and be willing to accept the risk of losing 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.
●Payments on the notes are not linked to a basket composed of the Indices. Payments on the notes are linked to the performance of each of the Indices individually, as described below.
●Minimum denominations of $1,000 and integral multiples thereof
●The notes priced on June 27, 2025 and are expected to settle on or about July 2, 2025.
●CUSIP: 48136E5T8
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 |
$9.2994 |
$990.7006 |
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|
Total |
$2,492,000 |
$23,174 |
$2,468,826 |
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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. |
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(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. These selling commissions will vary and will be up to $9.50 per $1,000 principal amount note. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement. |
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The estimated value of the notes, when the terms of the notes were set, was $980.40 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. Indices: The Dow Jones Industrial Average® (Bloomberg ticker: INDU), the Nasdaq-100 Index® (Bloomberg ticker: NDX) and the Russell 2000® Index (Bloomberg ticker: RTY) (each an “Index” and collectively, the “Indices”) Call Premium Amount: $210.00 per $1,000 principal amount note Call Value: With respect to each Index, 100.00% of its Initial Value Upside Leverage Factor: 2.00 Barrier Amount: With respect to each Index, 70.00% of its Initial Value, which is 30,673.489 for the Dow Jones Industrial Average®, 15,773.94 for the Nasdaq-100 Index® and 1,520.7682 for the Russell 2000® Index Pricing Date: June 27, 2025 Original Issue Date (Settlement Date): On or about July 2, 2025 Review Date*: July 6, 2026 Call Settlement Date*: July 9, 2026 Observation Date*: June 27, 2028 Maturity Date*: June 30, 2028 * 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 Multiple Underlyings” and “General Terms of Notes — Postponement of a Payment Date” in the accompanying product supplement |
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Automatic Call: If the closing level of each Index on the Review Date is greater than or equal to its Call Value, the notes will be automatically called for a cash payment, for each $1,000 principal amount note, equal to (a) $1,000 plus (b) the Call Premium Amount, payable on the Call Settlement Date. No further payments will be made on the notes. If the notes are automatically called, you will not benefit from the Upside Leverage Factor that applies to the payment at maturity if the Final Value of each Index is greater than its Initial Value. Because the Upside Leverage Factor does not apply to the payment upon an automatic call, the payment upon an automatic call may be significantly less than the payment at maturity for the same level of appreciation in the Least Performing Index. Payment at Maturity: If the notes have not been automatically called and the Final Value of each Index is greater than its Initial Value, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + ($1,000 × Least Performing Index Return × Upside Leverage Factor) If the notes have not been automatically called and the Final Value of any Index is equal to or less than its Initial Value but the Final Value of each Index is greater than or equal to its Barrier Amount, you will receive the principal amount of your notes at maturity. If the notes have not been automatically called and the Final Value of any Index is less than its Barrier Amount, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + ($1,000 × Least Performing Index Return) If the notes have not been automatically called and the Final Value of any Index is less than its Barrier Amount, you will lose more than 30.00% of your principal amount at maturity and could lose all of your principal amount at maturity. Least Performing Index: The Index with the Least Performing Index Return Least Performing Index Return: The lowest of the Index Returns of the Indices Index Return: With respect to each Index, (Final Value – Initial Value) Initial Value: With respect to each Index, the closing level of that Index on the Pricing Date, which was 43,819.27 for the Dow Jones Industrial Average®, 22,534.20 for the Nasdaq-100 Index® and 2,172.526 for the Russell 2000® Index Final Value: With respect to each Index, the closing level of that Index on the Observation Date |
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PS-1| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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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
Payment upon an Automatic Call
Payment at Maturity If the Notes Have Not Been Automatically Called
Call Premium Amount
The Call Premium Amount per $1,000 principal amount note if the notes are automatically called is $210.00.
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PS-2| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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Payment at Maturity If the Notes Have Not Been Automatically Called
The following table illustrates the hypothetical total return and payment at maturity on the notes linked to three hypothetical Indices if the notes have not been automatically called. 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:
●the notes have not been automatically called;
●an Initial Value for the Least Performing Index of 100.00;
●an Upside Leverage Factor of 2.00; and
●a Barrier Amount for the Least Performing Index of 70.00 (equal to 70.00% of its hypothetical Initial Value).
The hypothetical Initial Value of the Least Performing Index of 100.00 has been chosen for illustrative purposes only and does not represent the actual Initial Value of any Index. The actual Initial Value of each Index is the closing level of that Index on the Pricing Date and is specified under “Key Terms – Initial Value” in this pricing supplement. For historical data regarding the actual closing levels of each Index, please see the historical information set forth under “The Indices” 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 have been rounded for ease of analysis.
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Final Value of the Least Performing Index |
Least Performing Index Return |
Total Return on the Notes |
Payment at Maturity |
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165.00 |
65.00% |
130.00% |
$2,300.00 |
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150.00 |
50.00% |
100.00% |
$2,000.00 |
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140.00 |
40.00% |
80.00% |
$1,800.00 |
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130.00 |
30.00% |
60.00% |
$1,600.00 |
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120.00 |
20.00% |
40.00% |
$1,400.00 |
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110.00 |
10.00% |
20.00% |
$1,200.00 |
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105.00 |
5.00% |
10.00% |
$1,100.00 |
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101.00 |
1.00% |
2.00% |
$1,020.00 |
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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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80.00 |
-20.00% |
0.00% |
$1,000.00 |
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70.00 |
-30.00% |
0.00% |
$1,000.00 |
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69.99 |
-30.01% |
-30.01% |
$699.90 |
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60.00 |
-40.00% |
-40.00% |
$600.00 |
|||||
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50.00 |
-50.00% |
-50.00% |
$500.00 |
|||||
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40.00 |
-60.00% |
-60.00% |
$400.00 |
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30.00 |
-70.00% |
-70.00% |
$300.00 |
|||||
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20.00 |
-80.00% |
-80.00% |
$200.00 |
|||||
|
10.00 |
-90.00% |
-90.00% |
$100.00 |
|||||
|
0.00 |
-100.00% |
-100.00% |
$0.00 |
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PS-3| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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How the Notes Work
Upside Scenario If Automatic Call:
If the closing level of each Index on the Review Date is greater than or equal to its Call Value, the notes will be automatically called and investors will receive on the Call Settlement Date the $1,000 principal amount plus the Call Premium Amount of $210.00. No further payments will be made on the notes.
●If the closing level of the Least Performing Index increases 30.00% as of the Review Date, the notes will be automatically called and investors will receive a return equal to 21.00%, or $1,210.00 per $1,000 principal amount note.
Upside Scenario If No Automatic Call:
If the notes have not been automatically called and the Final Value of each Index is greater than its Initial Value, investors will receive at maturity the $1,000 principal amount plus a return equal to the Least Performing Index Return times the Upside Leverage Factor of 2.00.
●If the notes have not been automatically called and the closing level of the Least Performing Index increases 10.00%, investors will receive at maturity a return equal to 20.00%, or $1,200.00 per $1,000 principal amount note.
Par Scenario:
If the notes have not been automatically called and the Final Value of any Index is equal to or less than its Initial Value but the Final Value of each Index is greater than or equal to its Barrier Amount of 70.00% of its Initial Value, investors will receive at maturity the principal amount of their notes.
Downside Scenario:
If the notes have not been automatically called and the Final Value of any Index is less than its Barrier Amount of 70.00% of its Initial Value, investors will lose 1% of the principal amount of their notes for every 1% that the Final Value of the Least Performing Index is less than its Initial Value.
●For example, if the notes have not been automatically called and the closing level of the Least Performing Index declines 40.00%, investors will lose 40.00% of their principal amount and receive only $600.00 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 or until automatically called. 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.
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 notes have not been automatically called and the Final Value of any Index is less than its Barrier Amount, you will lose 1% of the principal amount of your notes for every 1% that the Final Value of the Least Performing Index is less than its Initial Value. Accordingly, under these circumstances, you will lose more than 30.00% of your principal amount at maturity and could lose all of your principal amount at maturity.
●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.
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PS-4| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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●IF THE NOTES ARE AUTOMATICALLY CALLED, THE APPRECIATION POTENTIAL OF THE NOTES IS LIMITED TO THE CALL PREMIUM AMOUNT PAID ON THE NOTES,
regardless of any appreciation of any Index, which may be significant. In addition, if the notes are automatically called, you will not benefit from the Upside Leverage Factor that applies to the payment at maturity if the Final Value of each Index is greater than its Initial Value. Because the Upside Leverage Factor does not apply to the payment upon an automatic call, the payment upon an automatic call may be significantly less than the payment at maturity for the same level of appreciation in the Least Performing Index.
●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.
●JPMORGAN CHASE & CO. IS CURRENTLY ONE OF THE COMPANIES THAT MAKE UP THE DOW JONES INDUSTRIAL AVERAGE®,
but JPMorgan Chase & Co. will not have any obligation to consider your interests in taking any corporate action that might affect the level of the Dow Jones Industrial Average®.
●AN INVESTMENT IN THE NOTES IS SUBJECT TO RISKS ASSOCIATED WITH SMALL CAPITALIZATION STOCKS WITH RESPECT TO THE RUSSELL 2000® INDEX —
Small capitalization companies may be less able to withstand adverse economic, market, trade and competitive conditions relative to larger companies. Small capitalization companies are less likely to pay dividends on their stocks, and the presence of a dividend payment could be a factor that limits downward stock price pressure under adverse market conditions.
●NON-U.S. SECURITIES RISK WITH RESPECT TO THE NASDAQ-100 INDEX® —
The non-U.S. equity securities included in the Nasdaq-100 Index® 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.
●YOU ARE EXPOSED TO THE RISK OF DECLINE IN THE LEVEL OF EACH INDEX —
Payments on the notes are not linked to a basket composed of the Indices and are contingent upon the performance of each individual Index. Poor performance by any of the Indices over the term of the notes may result in the notes not being automatically called on the Review Date, may negatively affect your payment at maturity and will not be offset or mitigated by positive performance by any other Index.
●YOUR PAYMENT AT MATURITY WILL BE DETERMINED BY THE LEAST PERFORMING INDEX.
●THE BENEFIT PROVIDED BY THE BARRIER AMOUNT MAY TERMINATE ON THE OBSERVATION DATE —
If the notes have not been automatically called and the Final Value of any Index is less than its Barrier Amount, the benefit provided by the Barrier Amount will terminate and you will be fully exposed to any depreciation of the Least Performing Index.
●THE AUTOMATIC CALL FEATURE MAY FORCE A POTENTIAL EARLY EXIT —
If your notes are automatically called, the term of the notes may be reduced to as short as approximately one year. There is no guarantee that you would be able to reinvest the proceeds from an investment in the notes at a comparable return for a similar level of risk. Even in cases where the notes are called before maturity, you are not entitled to any fees and commissions described on the front cover of this pricing supplement.
●THE NOTES DO NOT PAY INTEREST.
●YOU WILL NOT RECEIVE DIVIDENDS ON THE SECURITIES INCLUDED IN ANY INDEX OR HAVE ANY RIGHTS WITH RESPECT TO THOSE SECURITIES.
●THE RISK OF THE CLOSING LEVEL OF AN INDEX FALLING BELOW ITS BARRIER AMOUNT IS GREATER IF THE LEVEL OF THAT INDEX IS VOLATILE.
●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 ESTIMATED VALUE OF THE NOTES IS 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 exceeds 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.
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PS-5| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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●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).
●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 levels of the Indices. 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.
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PS-6| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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The Indices
The Dow Jones Industrial Average® consists of 30 common stocks chosen as representative of the broad market of U.S. industry. For additional information about the Dow Jones Industrial Average®, see “Equity Index Descriptions — The Dow Jones Industrial Average®” in the accompanying underlying supplement.
The Nasdaq-100 Index® is a modified market capitalization-weighted index of 100 of the largest non-financial securities listed on The Nasdaq Stock Market based on market capitalization. For additional information about the Nasdaq-100 Index®, see “Equity Index Descriptions — The Nasdaq-100 Index®” in the accompanying underlying supplement.
The Russell 2000® Index consists of the middle 2,000 companies included in the Russell 3000ETM Index and, as a result of the index calculation methodology, consists of the smallest 2,000 companies included in the Russell 3000® Index. The Russell 2000® Index is designed to track the performance of the small capitalization segment of the U.S. equity market. For additional information about the Russell 2000® Index, see “Equity Index Descriptions — The Russell Indices” in the accompanying underlying supplement.
Historical Information
The following graphs set forth the historical performance of each Index based on the weekly historical closing levels from January 3, 2020 through June 27, 2025. The closing level of the Dow Jones Industrial Average® on June 27, 2025 was 43,819.27. The closing level of the Nasdaq-100 Index® on June 27, 2025 was 22,534.20. The closing level of the Russell 2000® Index on June 27, 2025 was 2,172.526. We obtained the closing levels above and below from the Bloomberg Professional® service (“Bloomberg”), without independent verification.
The historical closing levels of each Index should not be taken as an indication of future performance, and no assurance can be given as to the closing level of any Index on the Review Date or the Observation Date. There can be no assurance that the performance of the Indices will result in the return of any of your principal amount.
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Historical Performance of the Dow Jones Industrial Average®
Source: Bloomberg |
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PS-7| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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Historical Performance of the Nasdaq-100 Index®
Source: Bloomberg |
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Historical Performance of the Russell 2000® Index
Source: Bloomberg |
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PS-8| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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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, our special tax counsel is of the opinion that Section 871(m) should 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. 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-9| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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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 is 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 Is 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 Indices” 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.
Validity of the Notes and the Guarantee
In the opinion of Davis Polk & Wardwell LLP, as special products counsel to JPMorgan Financial and JPMorgan Chase & Co., when the notes offered by this pricing supplement have been issued by JPMorgan Financial pursuant to the indenture, the trustee and/or paying agent has made, in accordance with the instructions from JPMorgan Financial, the appropriate entries or notations in its records relating to the master global note that represents such notes (the “master note”), and such notes have been delivered against payment as contemplated herein, such notes will be valid and binding obligations of JPMorgan Financial and the related guarantee will constitute a valid and binding obligation of JPMorgan Chase & Co., enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith), provided that such counsel expresses no opinion as to (i) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above or (ii) any provision of the indenture that purports to avoid the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law by limiting the amount of JPMorgan Chase & Co.’s obligation under the related guarantee. This opinion is given as of the date hereof and is limited to the laws of the State of New York, the General Corporation Law of the State of Delaware and the Delaware Limited Liability Company Act. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and its authentication of the master note and the validity, binding nature and enforceability of the indenture with respect to the trustee, all as stated in the letter of such counsel dated February 24, 2023, which was filed as an exhibit to the Registration Statement on Form S-3 by JPMorgan Financial and JPMorgan Chase & Co. on February 24, 2023.
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PS-10| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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Additional Terms Specific to the Notes
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.
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PS-11| Structured Investments Auto Callable Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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FAQ
How does TD's capped absolute return buffer note work?
What is the maximum return an investor can earn on TD's 2026 capped notes (symbol TD)?
What happens if the S&P 500 falls more than the threshold level?
Do the notes pay interest or dividends during the term?
Are TD's capped buffer notes insured or guaranteed by FDIC or CDIC?
Can I sell the notes before maturity?
Why is the initial estimated value lower than the $10 offering price?
