[424B2] Inverse VIX Short-Term Futures ETNs due March 22, 2045 Prospectus Supplement
JPMorgan Chase Financial Company LLC is offering Auto-Callable Contingent Interest Notes (CUSIP 48136FJX1) linked separately to the Class A shares of Palantir Technologies (PLTR) and Coinbase Global (COIN). The unsecured notes, fully and unconditionally guaranteed by JPMorgan Chase & Co., are expected to price on or about 11 July 2025, settle on 16 July 2025 and mature on 15 July 2027 unless automatically called earlier.
Economic terms
- Contingent Interest Rate: at least 26.50% p.a. (≈2.20833% per month). A payment is made only if, on the relevant monthly Review Date, the closing price of each reference stock is ≥ 50% of its Initial Value (the Interest Barrier).
- Automatic Call: beginning 12 January 2026 (the 6th Review Date) the notes are called if, on any Review Date other than the first five or the final one, the price of each stock is ≥ its Initial Value. Investors then receive $1,000 principal plus the applicable interest and no further coupons.
- Principal Protection: none. If the notes are not called and the Final Value of either stock is < 50% of its Initial Value (the Trigger Value), repayment of principal is reduced 1-for-1 with the worst-performing stock. A decline of 60% in the lesser performer, for example, results in a $400 payoff per $1,000 note.
- Estimated value at pricing: approximately $952.60 (not less than $920) per $1,000 note, reflecting selling commissions (≤ $30) and hedging costs embedded in the $1,000 public offering price.
- Denomination: $1,000 and integral multiples.
Key risks highlighted by the issuer
- Investors may suffer a total loss of principal if either stock falls >50% and is not subsequently recovered at maturity.
- No fixed coupons; interest depends on both stocks staying above the 50% barrier on each monthly date.
- Early call risk; the high coupon may cease after as little as six months, forcing reinvestment at uncertain rates.
- Credit risk of JPMorgan Financial and JPMorgan Chase & Co.; the notes are senior unsecured obligations.
- Liquidity risk; the notes will not be listed and any secondary trading will be on a dealer basis, typically below par.
- Estimated value below issue price and subject to an internal funding rate that differs from market rates.
Illustrative performance shows: (1) automatic call after 6 months yields a 13.25% total return; (2) hold to maturity with both stocks ≥50% returns 6.625%; (3) a 60% drop in the lesser performer results in a –60% total return.
Although Coinbase’s business model is crypto-oriented, the notes provide no direct exposure to cryptocurrency prices. Dividends on the reference stocks are not passed through to investors. U.S. tax treatment is expected to follow prepaid forward contract rules with contingent coupons taxed as ordinary income; withholding may apply to non-U.S. holders.
Overall, the product targets investors seeking high conditional income and willing to accept equity downside risk, early redemption and limited upside.
JPMorgan Chase Financial Company LLC propone Note con Interesse Contingente Auto-Richiamabili (CUSIP 48136FJX1), collegate separatamente alle azioni di Classe A di Palantir Technologies (PLTR) e Coinbase Global (COIN). Le note non garantite, completamente e incondizionatamente garantite da JPMorgan Chase & Co., sono previste in emissione intorno all’11 luglio 2025, con regolamento il 16 luglio 2025 e scadenza il 15 luglio 2027, salvo richiamo automatico anticipato.
Condizioni economiche
- Tasso di interesse contingente: almeno 26,50% annuo (circa 2,20833% mensile). Il pagamento avviene solo se, nella relativa Data di Revisione mensile, il prezzo di chiusura di ogni azione di riferimento è ≥ 50% del suo Valore Iniziale (la Barriera di Interesse).
- Richiamo automatico: a partire dal 12 gennaio 2026 (6ª Data di Revisione), le note saranno richiamate se, in una qualsiasi Data di Revisione diversa dalle prime cinque o dall’ultima, il prezzo di ogni azione è ≥ al Valore Iniziale. Gli investitori riceveranno allora $1.000 di capitale più l’interesse dovuto, senza ulteriori cedole.
- Protezione del capitale: assente. Se le note non sono richiamate e il Valore Finale di una qualsiasi azione è < 50% del Valore Iniziale (il Valore di Attivazione), il rimborso del capitale si riduce in misura pari alla performance negativa dell’azione peggiore. Ad esempio, un calo del 60% della peggiore azione comporta un rimborso di $400 per ogni nota da $1.000.
- Valore stimato al prezzo di emissione: circa $952,60 (non inferiore a $920) per ogni nota da $1.000, includendo commissioni di vendita (≤ $30) e costi di copertura incorporati nel prezzo di offerta pubblica di $1.000.
- Taglio: $1.000 e multipli interi.
Principali rischi evidenziati dall’emittente
- Gli investitori possono subire una perdita totale del capitale se una delle azioni scende oltre il 50% e non si recupera entro la scadenza.
- Nessuna cedola fissa; l’interesse dipende dal mantenimento di entrambe le azioni sopra la barriera del 50% in ogni data mensile.
- Rischio di richiamo anticipato; il rendimento elevato potrebbe interrompersi dopo soli sei mesi, costringendo a reinvestire a tassi incerti.
- Rischio di credito di JPMorgan Financial e JPMorgan Chase & Co.; le note sono obbligazioni senior non garantite.
- Rischio di liquidità; le note non saranno quotate e il trading secondario avverrà su base dealer, generalmente sotto la pari.
- Valore stimato inferiore al prezzo di emissione e soggetto a un tasso di finanziamento interno differente dai tassi di mercato.
Performance illustrativa mostra: (1) richiamo automatico dopo 6 mesi con un rendimento totale del 13,25%; (2) mantenimento fino a scadenza con entrambe le azioni ≥ 50% con un rendimento del 6,625%; (3) un calo del 60% della peggiore azione comporta un rendimento totale del –60%.
Nonostante il modello di business di Coinbase sia orientato alle criptovalute, le note non offrono esposizione diretta ai prezzi delle criptovalute. I dividendi sulle azioni di riferimento non sono distribuiti agli investitori. Il trattamento fiscale USA dovrebbe seguire le regole dei contratti forward prepagati con le cedole contingenti tassate come reddito ordinario; potrebbe applicarsi una ritenuta per i detentori non USA.
In sintesi, il prodotto si rivolge a investitori che cercano un reddito condizionato elevato e sono disposti ad accettare rischio di ribasso azionario, richiamo anticipato e limitato potenziale di guadagno.
JPMorgan Chase Financial Company LLC ofrece Notas de Interés Contingente Auto-llamables (CUSIP 48136FJX1) vinculadas por separado a las acciones Clase A de Palantir Technologies (PLTR) y Coinbase Global (COIN). Las notas no garantizadas, totalmente y de forma incondicional garantizadas por JPMorgan Chase & Co., se espera que se valoren alrededor del 11 de julio de 2025, con liquidación el 16 de julio de 2025 y vencimiento el 15 de julio de 2027, salvo que sean llamadas automáticamente antes.
Términos económicos
- Tasa de interés contingente: al menos 26.50% anual (aprox. 2.20833% mensual). El pago se realiza solo si, en la Fecha de Revisión mensual correspondiente, el precio de cierre de cada acción de referencia es ≥ 50% de su Valor Inicial (la Barrera de Interés).
- Llamada automática: a partir del 12 de enero de 2026 (la 6ª Fecha de Revisión), las notas serán llamadas si, en cualquier Fecha de Revisión que no sea las primeras cinco ni la última, el precio de cada acción es ≥ su Valor Inicial. Los inversionistas recibirán entonces $1,000 de principal más el interés correspondiente, sin más cupones.
- Protección del principal: ninguna. Si las notas no son llamadas y el Valor Final de cualquiera de las acciones es < 50% de su Valor Inicial (el Valor Disparador), el reembolso del principal se reduce 1 a 1 con la acción de peor desempeño. Por ejemplo, una caída del 60% en la acción de peor rendimiento resulta en un pago de $400 por cada nota de $1,000.
- Valor estimado al precio de emisión: aproximadamente $952.60 (no menos de $920) por cada nota de $1,000, reflejando comisiones de venta (≤ $30) y costos de cobertura incluidos en el precio público de oferta de $1,000.
- Denominación: $1,000 y múltiplos enteros.
Riesgos clave destacados por el emisor
- Los inversionistas pueden sufrir una pérdida total del principal si cualquiera de las acciones cae más del 50% y no se recupera al vencimiento.
- No hay cupones fijos; el interés depende de que ambas acciones se mantengan por encima de la barrera del 50% en cada fecha mensual.
- Riesgo de llamada anticipada; el alto cupón puede cesar después de solo seis meses, obligando a reinvertir a tasas inciertas.
- Riesgo crediticio de JPMorgan Financial y JPMorgan Chase & Co.; las notas son obligaciones senior no garantizadas.
- Riesgo de liquidez; las notas no estarán listadas y cualquier negociación secundaria será a través de dealers, generalmente por debajo del valor nominal.
- Valor estimado inferior al precio de emisión y sujeto a una tasa interna de financiamiento diferente a las tasas de mercado.
Rendimiento ilustrativo muestra: (1) llamada automática después de 6 meses con un rendimiento total del 13.25%; (2) mantener hasta el vencimiento con ambas acciones ≥ 50% devuelve 6.625%; (3) una caída del 60% en la acción de peor desempeño resulta en un rendimiento total del –60%.
Aunque el modelo de negocio de Coinbase está orientado a criptomonedas, las notas no proporcionan exposición directa a los precios de criptomonedas. Los dividendos de las acciones de referencia no se transfieren a los inversionistas. El tratamiento fiscal en EE.UU. se espera que siga las reglas de contratos a plazo prepago, con cupones contingentes gravados como ingreso ordinario; puede aplicarse retención para titulares no estadounidenses.
En resumen, el producto está dirigido a inversionistas que buscan altos ingresos condicionales y están dispuestos a aceptar riesgo a la baja en acciones, rescate anticipado y potencial limitado de ganancia.
JPMorgan Chase Financial Company LLC는 자동 콜 가능 조건부 이자 노트 (CUSIP 48136FJX1)를 각각 Palantir Technologies (PLTR)와 Coinbase Global (COIN)의 클래스 A 주식에 연계하여 제공합니다. 이 무담보 노트는 JPMorgan Chase & Co.가 전액 및 무조건적으로 보증하며, 2025년 7월 11일경에 가격이 책정되고, 7월 16일에 결제되며, 자동 콜되지 않는 한 2027년 7월 15일에 만기됩니다.
경제 조건
- 조건부 이자율: 연 최소 26.50% (월 약 2.20833%). 해당 월의 검토일에 각 기준 주식의 종가가 최초 가치의 50% 이상(이자 장벽)일 때만 지급됩니다.
- 자동 콜: 2026년 1월 12일(6번째 검토일)부터 최초 5회 및 마지막 검토일을 제외한 검토일에 각 주식 가격이 최초 가치 이상일 경우 노트가 콜됩니다. 투자자는 원금 $1,000과 해당 이자를 받고 추가 쿠폰은 없습니다.
- 원금 보호: 없음. 노트가 콜되지 않고 어느 한 주식의 최종 가치가 최초 가치의 50% 미만(트리거 가치)이면, 원금 상환은 성과가 가장 저조한 주식에 따라 1대1로 감소합니다. 예를 들어, 최저 성과 주식이 60% 하락하면 $1,000 노트당 $400를 지급합니다.
- 가격 책정 시 예상 가치: 판매 수수료(최대 $30)와 헤지 비용이 포함된 $1,000 공모가 기준 약 $952.60(최소 $920)입니다.
- 액면가: $1,000 및 정수 배수.
발행자가 강조하는 주요 위험
- 어느 한 주식이 50% 이상 하락하고 만기 시 회복되지 않으면 투자자는 원금 전액 손실을 입을 수 있습니다.
- 고정 쿠폰 없음; 이자는 두 주식 모두가 매월 장벽 50% 이상을 유지해야 지급됩니다.
- 조기 콜 위험; 높은 쿠폰이 6개월 만에 중단될 수 있어 불확실한 금리로 재투자해야 할 수 있습니다.
- JPMorgan Financial 및 JPMorgan Chase & Co.의 신용 위험; 노트는 선순위 무담보 채무입니다.
- 유동성 위험; 노트는 상장되지 않으며, 이차 거래는 딜러 기반으로 일반적으로 액면가 이하에서 이루어집니다.
- 예상 가치가 발행 가격보다 낮으며 내부 자금 조달 금리가 시장 금리와 다릅니다.
예시 성과는 다음과 같습니다: (1) 6개월 후 자동 콜 시 총 수익률 13.25%; (2) 만기까지 보유하며 두 주식 모두 50% 이상일 경우 수익률 6.625%; (3) 최저 성과 주식이 60% 하락 시 총 수익률 –60%.
Coinbase의 비즈니스 모델은 암호화폐 중심이지만, 노트는 암호화폐 가격에 대한 직접 노출을 제공하지 않습니다. 기준 주식의 배당금은 투자자에게 전달되지 않습니다. 미국 세금 처리는 선불 선도 계약 규칙을 따를 것으로 예상되며, 조건부 쿠폰은 일반 소득으로 과세되며 비미국 보유자에게는 원천징수가 적용될 수 있습니다.
전반적으로 이 상품은 높은 조건부 수익을 추구하며 주식 하락 위험, 조기 상환 및 제한된 상승 잠재력을 감수할 투자자를 대상으로 합니다.
JPMorgan Chase Financial Company LLC propose des Notes à Intérêt Conditionnel Auto-Rappelables (CUSIP 48136FJX1) liées séparément aux actions de Classe A de Palantir Technologies (PLTR) et Coinbase Global (COIN). Ces notes non garanties, garanties de manière complète et inconditionnelle par JPMorgan Chase & Co., devraient être émises autour du 11 juillet 2025, réglées le 16 juillet 2025 et arriver à échéance le 15 juillet 2027, sauf rappel automatique anticipé.
Conditions économiques
- Taux d’intérêt conditionnel : au moins 26,50 % par an (environ 2,20833 % par mois). Un paiement est effectué uniquement si, à la Date de Révision mensuelle concernée, le cours de clôture de chaque action de référence est ≥ 50 % de sa Valeur Initiale (la Barrière d’Intérêt).
- Rappel automatique : à partir du 12 janvier 2026 (6e Date de Révision), les notes sont rappelées si, à toute Date de Révision autre que les cinq premières ou la dernière, le cours de chaque action est ≥ à sa Valeur Initiale. Les investisseurs reçoivent alors 1 000 $ de principal plus les intérêts applicables, sans autres coupons.
- Protection du capital : aucune. Si les notes ne sont pas rappelées et que la Valeur Finale de l’une des actions est < 50 % de sa Valeur Initiale (la Valeur Déclencheur), le remboursement du principal est réduit à hauteur de la moins bonne performance. Par exemple, une baisse de 60 % de la moins performante entraîne un remboursement de 400 $ par note de 1 000 $.
- Valeur estimée à la tarification : environ 952,60 $ (pas moins de 920 $) par note de 1 000 $, incluant les commissions de vente (≤ 30 $) et les coûts de couverture intégrés dans le prix public d’offre de 1 000 $.
- Nominal : 1 000 $ et multiples entiers.
Principaux risques soulignés par l’émetteur
- Les investisseurs peuvent subir une perte totale du capital si l’une des actions chute de plus de 50 % et ne se redresse pas à l’échéance.
- Pas de coupons fixes ; les intérêts dépendent du maintien des deux actions au-dessus de la barrière de 50 % à chaque date mensuelle.
- Risque de rappel anticipé ; le coupon élevé peut cesser après seulement six mois, obligeant à un réinvestissement à des taux incertains.
- Risque de crédit de JPMorgan Financial et JPMorgan Chase & Co. ; les notes sont des obligations senior non garanties.
- Risque de liquidité ; les notes ne seront pas cotées et toute négociation secondaire se fera sur une base de courtier, généralement en dessous de la valeur nominale.
- Valeur estimée inférieure au prix d’émission et soumise à un taux de financement interne différent des taux du marché.
Performance illustrative montre : (1) rappel automatique après 6 mois avec un rendement total de 13,25 % ; (2) maintien jusqu’à l’échéance avec les deux actions ≥ 50 % rapporte 6,625 % ; (3) une baisse de 60 % de la moins performante entraîne un rendement total de –60 %.
Bien que le modèle commercial de Coinbase soit axé sur les cryptomonnaies, les notes ne fournissent aucune exposition directe aux prix des cryptomonnaies. Les dividendes des actions de référence ne sont pas transmis aux investisseurs. Le traitement fiscal américain devrait suivre les règles des contrats à terme prépayés, les coupons conditionnels étant imposés comme un revenu ordinaire ; une retenue à la source peut s’appliquer aux détenteurs non américains.
Globalement, ce produit s’adresse aux investisseurs recherchant un revenu conditionnel élevé et prêts à accepter un risque de baisse des actions, un remboursement anticipé et un potentiel limité de gain.
JPMorgan Chase Financial Company LLC bietet auto-kündbare bedingte Zinsnoten (CUSIP 48136FJX1) an, die jeweils an die Klasse-A-Aktien von Palantir Technologies (PLTR) und Coinbase Global (COIN) gekoppelt sind. Die unbesicherten Schuldverschreibungen, die von JPMorgan Chase & Co. vollständig und bedingungslos garantiert werden, sollen voraussichtlich am oder um den 11. Juli 2025 bepreist, am 16. Juli 2025 abgerechnet und am 15. Juli 2027 fällig werden, sofern sie nicht vorher automatisch gekündigt werden.
Wirtschaftliche Bedingungen
- Bedingter Zinssatz: mindestens 26,50% p.a. (ca. 2,20833% pro Monat). Eine Zahlung erfolgt nur, wenn am jeweiligen monatlichen Prüfdatum der Schlusskurs jeder Referenzaktie ≥ 50% ihres Anfangswerts (die Zinsbarriere) beträgt.
- Automatische Kündigung: Ab dem 12. Januar 2026 (dem 6. Prüfdatum) werden die Notes gekündigt, wenn an einem Prüfdatum außer den ersten fünf oder dem letzten der Kurs jeder Aktie ≥ ihrem Anfangswert ist. Anleger erhalten dann 1.000 USD Kapital plus die anfallenden Zinsen und keine weiteren Kupons.
- Kapitalschutz: keiner. Wenn die Notes nicht gekündigt werden und der Endwert einer Aktie < 50% ihres Anfangswerts (der Auslösewert) ist, wird die Rückzahlung des Kapitals 1:1 mit der schlechtesten Aktie reduziert. Ein Rückgang von 60% beim schlechteren Wert führt beispielsweise zu einer Auszahlung von 400 USD pro 1.000 USD Note.
- Geschätzter Wert bei Preisfestsetzung: ca. 952,60 USD (nicht unter 920 USD) pro 1.000 USD Note, unter Berücksichtigung von Verkaufsprovisionen (≤ 30 USD) und in den 1.000 USD öffentlichen Ausgabepreis eingebetteten Absicherungskosten.
- Nennwert: 1.000 USD und Vielfache davon.
Wesentliche vom Emittenten hervorgehobene Risiken
- Anleger können einen totalen Kapitalverlust erleiden, wenn eine der Aktien um mehr als 50% fällt und bis zur Fälligkeit nicht wieder steigt.
- Keine festen Kupons; die Zinsen hängen davon ab, dass beide Aktien an jedem monatlichen Datum über der 50%-Barriere bleiben.
- Risiko eines vorzeitigen Calls; der hohe Kupon kann bereits nach sechs Monaten enden, was eine Reinvestition zu unsicheren Konditionen erfordert.
- Kreditrisiko von JPMorgan Financial und JPMorgan Chase & Co.; die Notes sind unbesicherte Seniorverbindlichkeiten.
- Liquiditätsrisiko; die Notes werden nicht börslich gehandelt, und ein Sekundärhandel erfolgt auf Dealerbasis meist unter Pari.
- Geschätzter Wert unter dem Ausgabepreis und abhängig von einer internen Finanzierung, die sich von Marktzinssätzen unterscheidet.
Illustrative Performance zeigt: (1) automatischer Call nach 6 Monaten mit einer Gesamtrendite von 13,25%; (2) Halten bis zur Fälligkeit bei beiden Aktien ≥ 50% mit einer Rendite von 6,625%; (3) ein 60%iger Rückgang der schlechteren Aktie führt zu einer Gesamtrendite von –60%.
Obwohl das Geschäftsmodell von Coinbase kryptoorientiert ist, bieten die Notes keine direkte Exponierung gegenüber Kryptowährungspreisen. Dividenden der Referenzaktien werden nicht an die Anleger weitergegeben. Die US-Steuerbehandlung wird voraussichtlich den Regeln für vorausbezahlte Termingeschäfte folgen, wobei bedingte Kupons als ordentliche Einkünfte besteuert werden; für Nicht-US-Anleger kann eine Quellensteuer anfallen.
Insgesamt richtet sich das Produkt an Anleger, die hohe bedingte Erträge suchen und bereit sind, Aktienabwärtsrisiken, vorzeitige Rückzahlung und begrenztes Aufwärtspotenzial zu akzeptieren.
- High contingent coupon of at least 26.5% per annum provides meaningful income potential versus conventional bonds.
- Automatic call feature may return capital plus coupon in as little as six months, enhancing annualized yield if triggered.
- 50% trigger level offers partial downside buffer compared with direct equity ownership.
- Full guarantee by JPMorgan Chase & Co. places the notes pari passu with other senior unsecured JPM obligations.
- No principal protection: a ≥50% drop in either stock leads to proportional loss up to 100% of capital.
- Coupon dependency on both stocks; missing one barrier halts interest for that period, reducing expected yield.
- Limited upside participation; investors forego any equity appreciation beyond coupons received.
- Liquidity risk: unlisted notes may trade well below par and estimated value embeds ~4.7% issuance costs.
- Credit exposure to JPMorgan entities adds issuer-specific risk beyond underlying equities.
Insights
TL;DR High 26.5% conditional coupon but principal is exposed to >50% drawdown in either PLTR or COIN; overall risk-adjusted return is balanced.
Analysis: These 24-month notes offer an attractive headline coupon relative to current money-market yields, yet payments depend on both volatile growth equities staying above 50% of their July 2025 levels. Historical 2-year price ranges for PLTR and COIN easily exceed ±50%, implying a meaningful probability of missed coupons and capital loss. Automatic call mitigates duration risk but caps income; the first call date at month 6 is purposely delayed to ensure some coupon accrual before redemption. The embedded derivative value ($952.60 per $1,000) suggests ~4.7 points upfront costs. Liquidity will be dealer-driven and likely at a meaningful discount, making buy-and-hold essential. For portfolios seeking diversified income, the structure may complement traditional fixed income, but concentration in two high-beta tech names raises sector and single-stock risk.
TL;DR Notes shift equity tail risk to investors; 50% trigger offers limited protection and no participation in upside.
The design favors the issuer: upside for investors is limited to 26.5% p.a. coupon, while downside matches equity exposure beyond –50%. Because PLTR and COIN have exhibited annualized volatilities of 55-80%, joint barrier breaches are plausible. Credit risk of JPM and lack of exchange listing further erode risk-adjusted value. Investors attracted by the coupon must stress-test scenarios where one stock collapses—crypto-linked COIN in particular—and coupons cease, followed by a steep capital hit at maturity. I assign a negative impact rating given the asymmetry of risks.
JPMorgan Chase Financial Company LLC propone Note con Interesse Contingente Auto-Richiamabili (CUSIP 48136FJX1), collegate separatamente alle azioni di Classe A di Palantir Technologies (PLTR) e Coinbase Global (COIN). Le note non garantite, completamente e incondizionatamente garantite da JPMorgan Chase & Co., sono previste in emissione intorno all’11 luglio 2025, con regolamento il 16 luglio 2025 e scadenza il 15 luglio 2027, salvo richiamo automatico anticipato.
Condizioni economiche
- Tasso di interesse contingente: almeno 26,50% annuo (circa 2,20833% mensile). Il pagamento avviene solo se, nella relativa Data di Revisione mensile, il prezzo di chiusura di ogni azione di riferimento è ≥ 50% del suo Valore Iniziale (la Barriera di Interesse).
- Richiamo automatico: a partire dal 12 gennaio 2026 (6ª Data di Revisione), le note saranno richiamate se, in una qualsiasi Data di Revisione diversa dalle prime cinque o dall’ultima, il prezzo di ogni azione è ≥ al Valore Iniziale. Gli investitori riceveranno allora $1.000 di capitale più l’interesse dovuto, senza ulteriori cedole.
- Protezione del capitale: assente. Se le note non sono richiamate e il Valore Finale di una qualsiasi azione è < 50% del Valore Iniziale (il Valore di Attivazione), il rimborso del capitale si riduce in misura pari alla performance negativa dell’azione peggiore. Ad esempio, un calo del 60% della peggiore azione comporta un rimborso di $400 per ogni nota da $1.000.
- Valore stimato al prezzo di emissione: circa $952,60 (non inferiore a $920) per ogni nota da $1.000, includendo commissioni di vendita (≤ $30) e costi di copertura incorporati nel prezzo di offerta pubblica di $1.000.
- Taglio: $1.000 e multipli interi.
Principali rischi evidenziati dall’emittente
- Gli investitori possono subire una perdita totale del capitale se una delle azioni scende oltre il 50% e non si recupera entro la scadenza.
- Nessuna cedola fissa; l’interesse dipende dal mantenimento di entrambe le azioni sopra la barriera del 50% in ogni data mensile.
- Rischio di richiamo anticipato; il rendimento elevato potrebbe interrompersi dopo soli sei mesi, costringendo a reinvestire a tassi incerti.
- Rischio di credito di JPMorgan Financial e JPMorgan Chase & Co.; le note sono obbligazioni senior non garantite.
- Rischio di liquidità; le note non saranno quotate e il trading secondario avverrà su base dealer, generalmente sotto la pari.
- Valore stimato inferiore al prezzo di emissione e soggetto a un tasso di finanziamento interno differente dai tassi di mercato.
Performance illustrativa mostra: (1) richiamo automatico dopo 6 mesi con un rendimento totale del 13,25%; (2) mantenimento fino a scadenza con entrambe le azioni ≥ 50% con un rendimento del 6,625%; (3) un calo del 60% della peggiore azione comporta un rendimento totale del –60%.
Nonostante il modello di business di Coinbase sia orientato alle criptovalute, le note non offrono esposizione diretta ai prezzi delle criptovalute. I dividendi sulle azioni di riferimento non sono distribuiti agli investitori. Il trattamento fiscale USA dovrebbe seguire le regole dei contratti forward prepagati con le cedole contingenti tassate come reddito ordinario; potrebbe applicarsi una ritenuta per i detentori non USA.
In sintesi, il prodotto si rivolge a investitori che cercano un reddito condizionato elevato e sono disposti ad accettare rischio di ribasso azionario, richiamo anticipato e limitato potenziale di guadagno.
JPMorgan Chase Financial Company LLC ofrece Notas de Interés Contingente Auto-llamables (CUSIP 48136FJX1) vinculadas por separado a las acciones Clase A de Palantir Technologies (PLTR) y Coinbase Global (COIN). Las notas no garantizadas, totalmente y de forma incondicional garantizadas por JPMorgan Chase & Co., se espera que se valoren alrededor del 11 de julio de 2025, con liquidación el 16 de julio de 2025 y vencimiento el 15 de julio de 2027, salvo que sean llamadas automáticamente antes.
Términos económicos
- Tasa de interés contingente: al menos 26.50% anual (aprox. 2.20833% mensual). El pago se realiza solo si, en la Fecha de Revisión mensual correspondiente, el precio de cierre de cada acción de referencia es ≥ 50% de su Valor Inicial (la Barrera de Interés).
- Llamada automática: a partir del 12 de enero de 2026 (la 6ª Fecha de Revisión), las notas serán llamadas si, en cualquier Fecha de Revisión que no sea las primeras cinco ni la última, el precio de cada acción es ≥ su Valor Inicial. Los inversionistas recibirán entonces $1,000 de principal más el interés correspondiente, sin más cupones.
- Protección del principal: ninguna. Si las notas no son llamadas y el Valor Final de cualquiera de las acciones es < 50% de su Valor Inicial (el Valor Disparador), el reembolso del principal se reduce 1 a 1 con la acción de peor desempeño. Por ejemplo, una caída del 60% en la acción de peor rendimiento resulta en un pago de $400 por cada nota de $1,000.
- Valor estimado al precio de emisión: aproximadamente $952.60 (no menos de $920) por cada nota de $1,000, reflejando comisiones de venta (≤ $30) y costos de cobertura incluidos en el precio público de oferta de $1,000.
- Denominación: $1,000 y múltiplos enteros.
Riesgos clave destacados por el emisor
- Los inversionistas pueden sufrir una pérdida total del principal si cualquiera de las acciones cae más del 50% y no se recupera al vencimiento.
- No hay cupones fijos; el interés depende de que ambas acciones se mantengan por encima de la barrera del 50% en cada fecha mensual.
- Riesgo de llamada anticipada; el alto cupón puede cesar después de solo seis meses, obligando a reinvertir a tasas inciertas.
- Riesgo crediticio de JPMorgan Financial y JPMorgan Chase & Co.; las notas son obligaciones senior no garantizadas.
- Riesgo de liquidez; las notas no estarán listadas y cualquier negociación secundaria será a través de dealers, generalmente por debajo del valor nominal.
- Valor estimado inferior al precio de emisión y sujeto a una tasa interna de financiamiento diferente a las tasas de mercado.
Rendimiento ilustrativo muestra: (1) llamada automática después de 6 meses con un rendimiento total del 13.25%; (2) mantener hasta el vencimiento con ambas acciones ≥ 50% devuelve 6.625%; (3) una caída del 60% en la acción de peor desempeño resulta en un rendimiento total del –60%.
Aunque el modelo de negocio de Coinbase está orientado a criptomonedas, las notas no proporcionan exposición directa a los precios de criptomonedas. Los dividendos de las acciones de referencia no se transfieren a los inversionistas. El tratamiento fiscal en EE.UU. se espera que siga las reglas de contratos a plazo prepago, con cupones contingentes gravados como ingreso ordinario; puede aplicarse retención para titulares no estadounidenses.
En resumen, el producto está dirigido a inversionistas que buscan altos ingresos condicionales y están dispuestos a aceptar riesgo a la baja en acciones, rescate anticipado y potencial limitado de ganancia.
JPMorgan Chase Financial Company LLC는 자동 콜 가능 조건부 이자 노트 (CUSIP 48136FJX1)를 각각 Palantir Technologies (PLTR)와 Coinbase Global (COIN)의 클래스 A 주식에 연계하여 제공합니다. 이 무담보 노트는 JPMorgan Chase & Co.가 전액 및 무조건적으로 보증하며, 2025년 7월 11일경에 가격이 책정되고, 7월 16일에 결제되며, 자동 콜되지 않는 한 2027년 7월 15일에 만기됩니다.
경제 조건
- 조건부 이자율: 연 최소 26.50% (월 약 2.20833%). 해당 월의 검토일에 각 기준 주식의 종가가 최초 가치의 50% 이상(이자 장벽)일 때만 지급됩니다.
- 자동 콜: 2026년 1월 12일(6번째 검토일)부터 최초 5회 및 마지막 검토일을 제외한 검토일에 각 주식 가격이 최초 가치 이상일 경우 노트가 콜됩니다. 투자자는 원금 $1,000과 해당 이자를 받고 추가 쿠폰은 없습니다.
- 원금 보호: 없음. 노트가 콜되지 않고 어느 한 주식의 최종 가치가 최초 가치의 50% 미만(트리거 가치)이면, 원금 상환은 성과가 가장 저조한 주식에 따라 1대1로 감소합니다. 예를 들어, 최저 성과 주식이 60% 하락하면 $1,000 노트당 $400를 지급합니다.
- 가격 책정 시 예상 가치: 판매 수수료(최대 $30)와 헤지 비용이 포함된 $1,000 공모가 기준 약 $952.60(최소 $920)입니다.
- 액면가: $1,000 및 정수 배수.
발행자가 강조하는 주요 위험
- 어느 한 주식이 50% 이상 하락하고 만기 시 회복되지 않으면 투자자는 원금 전액 손실을 입을 수 있습니다.
- 고정 쿠폰 없음; 이자는 두 주식 모두가 매월 장벽 50% 이상을 유지해야 지급됩니다.
- 조기 콜 위험; 높은 쿠폰이 6개월 만에 중단될 수 있어 불확실한 금리로 재투자해야 할 수 있습니다.
- JPMorgan Financial 및 JPMorgan Chase & Co.의 신용 위험; 노트는 선순위 무담보 채무입니다.
- 유동성 위험; 노트는 상장되지 않으며, 이차 거래는 딜러 기반으로 일반적으로 액면가 이하에서 이루어집니다.
- 예상 가치가 발행 가격보다 낮으며 내부 자금 조달 금리가 시장 금리와 다릅니다.
예시 성과는 다음과 같습니다: (1) 6개월 후 자동 콜 시 총 수익률 13.25%; (2) 만기까지 보유하며 두 주식 모두 50% 이상일 경우 수익률 6.625%; (3) 최저 성과 주식이 60% 하락 시 총 수익률 –60%.
Coinbase의 비즈니스 모델은 암호화폐 중심이지만, 노트는 암호화폐 가격에 대한 직접 노출을 제공하지 않습니다. 기준 주식의 배당금은 투자자에게 전달되지 않습니다. 미국 세금 처리는 선불 선도 계약 규칙을 따를 것으로 예상되며, 조건부 쿠폰은 일반 소득으로 과세되며 비미국 보유자에게는 원천징수가 적용될 수 있습니다.
전반적으로 이 상품은 높은 조건부 수익을 추구하며 주식 하락 위험, 조기 상환 및 제한된 상승 잠재력을 감수할 투자자를 대상으로 합니다.
JPMorgan Chase Financial Company LLC propose des Notes à Intérêt Conditionnel Auto-Rappelables (CUSIP 48136FJX1) liées séparément aux actions de Classe A de Palantir Technologies (PLTR) et Coinbase Global (COIN). Ces notes non garanties, garanties de manière complète et inconditionnelle par JPMorgan Chase & Co., devraient être émises autour du 11 juillet 2025, réglées le 16 juillet 2025 et arriver à échéance le 15 juillet 2027, sauf rappel automatique anticipé.
Conditions économiques
- Taux d’intérêt conditionnel : au moins 26,50 % par an (environ 2,20833 % par mois). Un paiement est effectué uniquement si, à la Date de Révision mensuelle concernée, le cours de clôture de chaque action de référence est ≥ 50 % de sa Valeur Initiale (la Barrière d’Intérêt).
- Rappel automatique : à partir du 12 janvier 2026 (6e Date de Révision), les notes sont rappelées si, à toute Date de Révision autre que les cinq premières ou la dernière, le cours de chaque action est ≥ à sa Valeur Initiale. Les investisseurs reçoivent alors 1 000 $ de principal plus les intérêts applicables, sans autres coupons.
- Protection du capital : aucune. Si les notes ne sont pas rappelées et que la Valeur Finale de l’une des actions est < 50 % de sa Valeur Initiale (la Valeur Déclencheur), le remboursement du principal est réduit à hauteur de la moins bonne performance. Par exemple, une baisse de 60 % de la moins performante entraîne un remboursement de 400 $ par note de 1 000 $.
- Valeur estimée à la tarification : environ 952,60 $ (pas moins de 920 $) par note de 1 000 $, incluant les commissions de vente (≤ 30 $) et les coûts de couverture intégrés dans le prix public d’offre de 1 000 $.
- Nominal : 1 000 $ et multiples entiers.
Principaux risques soulignés par l’émetteur
- Les investisseurs peuvent subir une perte totale du capital si l’une des actions chute de plus de 50 % et ne se redresse pas à l’échéance.
- Pas de coupons fixes ; les intérêts dépendent du maintien des deux actions au-dessus de la barrière de 50 % à chaque date mensuelle.
- Risque de rappel anticipé ; le coupon élevé peut cesser après seulement six mois, obligeant à un réinvestissement à des taux incertains.
- Risque de crédit de JPMorgan Financial et JPMorgan Chase & Co. ; les notes sont des obligations senior non garanties.
- Risque de liquidité ; les notes ne seront pas cotées et toute négociation secondaire se fera sur une base de courtier, généralement en dessous de la valeur nominale.
- Valeur estimée inférieure au prix d’émission et soumise à un taux de financement interne différent des taux du marché.
Performance illustrative montre : (1) rappel automatique après 6 mois avec un rendement total de 13,25 % ; (2) maintien jusqu’à l’échéance avec les deux actions ≥ 50 % rapporte 6,625 % ; (3) une baisse de 60 % de la moins performante entraîne un rendement total de –60 %.
Bien que le modèle commercial de Coinbase soit axé sur les cryptomonnaies, les notes ne fournissent aucune exposition directe aux prix des cryptomonnaies. Les dividendes des actions de référence ne sont pas transmis aux investisseurs. Le traitement fiscal américain devrait suivre les règles des contrats à terme prépayés, les coupons conditionnels étant imposés comme un revenu ordinaire ; une retenue à la source peut s’appliquer aux détenteurs non américains.
Globalement, ce produit s’adresse aux investisseurs recherchant un revenu conditionnel élevé et prêts à accepter un risque de baisse des actions, un remboursement anticipé et un potentiel limité de gain.
JPMorgan Chase Financial Company LLC bietet auto-kündbare bedingte Zinsnoten (CUSIP 48136FJX1) an, die jeweils an die Klasse-A-Aktien von Palantir Technologies (PLTR) und Coinbase Global (COIN) gekoppelt sind. Die unbesicherten Schuldverschreibungen, die von JPMorgan Chase & Co. vollständig und bedingungslos garantiert werden, sollen voraussichtlich am oder um den 11. Juli 2025 bepreist, am 16. Juli 2025 abgerechnet und am 15. Juli 2027 fällig werden, sofern sie nicht vorher automatisch gekündigt werden.
Wirtschaftliche Bedingungen
- Bedingter Zinssatz: mindestens 26,50% p.a. (ca. 2,20833% pro Monat). Eine Zahlung erfolgt nur, wenn am jeweiligen monatlichen Prüfdatum der Schlusskurs jeder Referenzaktie ≥ 50% ihres Anfangswerts (die Zinsbarriere) beträgt.
- Automatische Kündigung: Ab dem 12. Januar 2026 (dem 6. Prüfdatum) werden die Notes gekündigt, wenn an einem Prüfdatum außer den ersten fünf oder dem letzten der Kurs jeder Aktie ≥ ihrem Anfangswert ist. Anleger erhalten dann 1.000 USD Kapital plus die anfallenden Zinsen und keine weiteren Kupons.
- Kapitalschutz: keiner. Wenn die Notes nicht gekündigt werden und der Endwert einer Aktie < 50% ihres Anfangswerts (der Auslösewert) ist, wird die Rückzahlung des Kapitals 1:1 mit der schlechtesten Aktie reduziert. Ein Rückgang von 60% beim schlechteren Wert führt beispielsweise zu einer Auszahlung von 400 USD pro 1.000 USD Note.
- Geschätzter Wert bei Preisfestsetzung: ca. 952,60 USD (nicht unter 920 USD) pro 1.000 USD Note, unter Berücksichtigung von Verkaufsprovisionen (≤ 30 USD) und in den 1.000 USD öffentlichen Ausgabepreis eingebetteten Absicherungskosten.
- Nennwert: 1.000 USD und Vielfache davon.
Wesentliche vom Emittenten hervorgehobene Risiken
- Anleger können einen totalen Kapitalverlust erleiden, wenn eine der Aktien um mehr als 50% fällt und bis zur Fälligkeit nicht wieder steigt.
- Keine festen Kupons; die Zinsen hängen davon ab, dass beide Aktien an jedem monatlichen Datum über der 50%-Barriere bleiben.
- Risiko eines vorzeitigen Calls; der hohe Kupon kann bereits nach sechs Monaten enden, was eine Reinvestition zu unsicheren Konditionen erfordert.
- Kreditrisiko von JPMorgan Financial und JPMorgan Chase & Co.; die Notes sind unbesicherte Seniorverbindlichkeiten.
- Liquiditätsrisiko; die Notes werden nicht börslich gehandelt, und ein Sekundärhandel erfolgt auf Dealerbasis meist unter Pari.
- Geschätzter Wert unter dem Ausgabepreis und abhängig von einer internen Finanzierung, die sich von Marktzinssätzen unterscheidet.
Illustrative Performance zeigt: (1) automatischer Call nach 6 Monaten mit einer Gesamtrendite von 13,25%; (2) Halten bis zur Fälligkeit bei beiden Aktien ≥ 50% mit einer Rendite von 6,625%; (3) ein 60%iger Rückgang der schlechteren Aktie führt zu einer Gesamtrendite von –60%.
Obwohl das Geschäftsmodell von Coinbase kryptoorientiert ist, bieten die Notes keine direkte Exponierung gegenüber Kryptowährungspreisen. Dividenden der Referenzaktien werden nicht an die Anleger weitergegeben. Die US-Steuerbehandlung wird voraussichtlich den Regeln für vorausbezahlte Termingeschäfte folgen, wobei bedingte Kupons als ordentliche Einkünfte besteuert werden; für Nicht-US-Anleger kann eine Quellensteuer anfallen.
Insgesamt richtet sich das Produkt an Anleger, die hohe bedingte Erträge suchen und bereit sind, Aktienabwärtsrisiken, vorzeitige Rückzahlung und begrenztes Aufwärtspotenzial zu akzeptieren.
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 3, 2025
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July , 2025 |
Registration Statement Nos. 333-270004 and 333-270004-01; Rule 424(b)(2) |
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JPMorgan Chase Financial Company LLC
Structured Investments
Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. due July 15, 2027
Fully and Unconditionally Guaranteed by JPMorgan Chase & Co.
●The notes are designed for investors who seek a Contingent Interest Payment with respect to each Review Date for which the closing price of one share of each of the Reference Stocks is greater than or equal to 50.00% of its Initial Value, which we refer to as an Interest Barrier.
●The notes will be automatically called if the closing price of one share of each Reference Stock on any Review Date (other than the first through fifth and final Review Dates) is greater than or equal to its Initial Value.
●The earliest date on which an automatic call may be initiated is January 12, 2026.
●Investors should be willing to accept the risk of losing a significant portion or all of their principal and the risk that no Contingent Interest Payment may be made with respect to some or all Review Dates.
●Investors should also be willing to forgo fixed interest and dividend payments, in exchange for the opportunity to receive Contingent Interest Payments.
●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 Reference Stocks. Payments on the notes are linked to the performance of each of the Reference Stocks individually, as described below.
●Notwithstanding the name and the business model of Coinbase Global, Inc., the notes do not provide direct exposure to cryptocurrencies and the performance of the Class A common stock of Coinbase Global, Inc. will be based on Coinbase Global, Inc.’s business model of providing a platform that serves as an on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. As such, the performance of the Class A common stock of Coinbase Global, Inc. may not be correlated with the price of any particular cryptocurrency, such as bitcoin.
●Minimum denominations of $1,000 and integral multiples thereof
●The notes are expected to price on or about July 11, 2025 and are expected to settle on or about July 16, 2025.
●CUSIP: 48136FJX1
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-6 of this pricing supplement.
Neither the Securities and Exchange Commission (the “SEC”) nor any state securities commission has approved or disapproved of the notes or passed upon the accuracy or the adequacy of this pricing supplement or the accompanying product supplement, prospectus supplement, prospectus and prospectus addendum. Any representation to the contrary is a criminal offense.
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Price to Public (1) |
Fees and Commissions (2) |
Proceeds to Issuer |
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Per note |
$1,000 |
$ |
$ |
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Total |
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$ |
$ |
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(1) See “Supplemental Use of Proceeds” in this pricing supplement for information about the components of the price to public of the notes. (2) J.P. Morgan Securities LLC, which we refer to as JPMS, acting as agent for JPMorgan Financial, will pay all of the selling commissions it receives from us to other affiliated or unaffiliated dealers. In no event will these selling commissions exceed $30.00 per $1,000 principal amount note. See “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement. |
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If the notes priced today, the estimated value of the notes would be approximately $952.60 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 $920.00 per $1,000 principal amount note. See “The Estimated Value of the Notes” in this pricing supplement for additional information.
The notes are not bank deposits, are not insured by the Federal Deposit Insurance Corporation or any other governmental agency and are not obligations of, or guaranteed by, a bank.
Pricing supplement to product supplement no. 4-I dated April 13, 2023, 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. Reference Stocks: As specified under “Key Terms Relating to the Reference Stocks” in this pricing supplement Contingent Interest Payments: If the notes have not been automatically called and the closing price of one share of each Reference Stock on any Review Date is greater than or equal to its Interest Barrier, you will receive on the applicable Interest Payment Date for each $1,000 principal amount note a Contingent Interest Payment equal to at least $22.0833 (equivalent to a Contingent Interest Rate of at least 26.50% per annum, payable at a rate of at least 2.20833% per month) (to be provided in the pricing supplement). If the closing price of one share of either Reference Stock on any Review Date is less than its Interest Barrier, no Contingent Interest Payment will be made with respect to that Review Date. Contingent Interest Rate: At least 26.50% per annum, payable at a rate of at least 2.20833% per month (to be provided in the pricing supplement) Interest Barrier / Trigger Value: With respect to each Reference Stock, 50.00% of its Initial Value, as specified under “Key Terms Relating to the Reference Stocks” in this pricing supplement Pricing Date: On or about July 11, 2025 Original Issue Date (Settlement Date): On or about July 16, 2025 Review Dates*: August 11, 2025, September 11, 2025, October 13, 2025, November 11, 2025, December 11, 2025, January 12, 2026, February 11, 2026, March 11, 2026, April 13, 2026, May 11, 2026, June 11, 2026, July 13, 2026, August 11, 2026, September 11, 2026, October 12, 2026, November 11, 2026, December 11, 2026, January 11, 2027, February 11, 2027, March 11, 2027, April 12, 2027, May 11, 2027, June 11, 2027 and July 12, 2027 (final Review Date) Interest Payment Dates*: August 14, 2025, September 16, 2025, October 16, 2025, November 14, 2025, December 16, 2025, January 15, 2026, February 17, 2026, March 16, 2026, April 16, 2026, May 14, 2026, June 16, 2026, July 16, 2026, August 14, 2026, September 16, 2026, October 15, 2026, November 16, 2026, December 16, 2026, January 14, 2027, February 17, 2027, March 16, 2027, April 15, 2027, May 14, 2027, June 16, 2027 and the Maturity Date Maturity Date*: July 15, 2027 Call Settlement Date*: If the notes are automatically called on any Review Date (other than the first through fifth and final Review Dates), the first Interest Payment Date immediately following that Review Date * 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 price of one share of each Reference Stock on any Review Date (other than the first through fifth and final Review Dates) is greater than or equal to its Initial 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 Contingent Interest Payment applicable to that Review Date, payable on the applicable Call Settlement Date. No further payments will be made on the notes. Payment at Maturity: If the notes have not been automatically called and the Final Value of each Reference Stock is greater than or equal to its Trigger Value, you will receive a cash payment at maturity, for each $1,000 principal amount note, equal to (a) $1,000 plus (b) the Contingent Interest Payment applicable to the final Review Date. If the notes have not been automatically called and the Final Value of either Reference Stock is less than its Trigger Value, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + ($1,000 × Lesser Performing Stock Return) If the notes have not been automatically called and the Final Value of either Reference Stock is less than its Trigger Value, you will lose more than 50.00% of your principal amount at maturity and could lose all of your principal amount at maturity. Lesser Performing Reference Stock: The Reference Stock with the Lesser Performing Stock Return Lesser Performing Stock Return: The lower of the Stock Returns of the Reference Stocks Stock Return: With respect to each Reference Stock, (Final Value – Initial Value) Initial Value: With respect to each Reference Stock, the closing price of one share of that Reference Stock on the Pricing Date, as specified under “Key Terms Relating to the Reference Stocks” in this pricing supplement Final Value: With respect to each Reference Stock, the closing price of one share of that Reference Stock on the final Review Date Stock Adjustment Factor: With respect to each Reference Stock, the Stock Adjustment Factor is referenced in determining the closing price of one share of that Reference Stock and is set equal to 1.0 on the Pricing Date. The Stock Adjustment Factor of each Reference Stock is subject to adjustment upon the occurrence of certain corporate events affecting that Reference Stock. See “The Underlyings — Reference Stocks — Anti-Dilution Adjustments” and “The Underlyings — Reference Stocks — Reorganization Events” in the accompanying product supplement for further information. |
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PS-1 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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Key Terms Relating to the Reference Stocks
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Reference Stock |
Bloomberg Ticker Symbol |
Initial Value |
Interest Barrier / Trigger Value |
|
Class A common stock of Palantir Technologies Inc., par value $0.001 per share |
PLTR |
$ |
$ |
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Class A common stock of Coinbase Global, Inc., par value $0.00001 per share |
COIN |
$ |
$ |
Supplemental Terms of the Notes
Any values of the Reference Stocks, 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.
How the Notes Work
Payments in Connection with the First through Fifth Review Dates
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PS-2 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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Payments in Connection with Review Dates (Other than the First through Fifth and Final Review Dates)
Payment at Maturity If the Notes Have Not Been Automatically Called
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PS-3 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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Total Contingent Interest Payments
The table below illustrates the hypothetical total Contingent Interest Payments per $1,000 principal amount note over the term of the notes based on a hypothetical Contingent Interest Rate of 26.50% per annum, depending on how many Contingent Interest Payments are made prior to automatic call or maturity. The actual Contingent Interest Rate will be provided in the pricing supplement and will be at least 26.50% per annum (payable at a rate of at least 2.20833% per month).
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Number of Contingent Interest Payments |
Total Contingent Interest Payments |
|
24 |
$530.0000 |
|
23 |
$507.9167 |
|
22 |
$485.8333 |
|
21 |
$463.7500 |
|
20 |
$441.6667 |
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19 |
$419.5833 |
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18 |
$397.5000 |
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17 |
$375.4167 |
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16 |
$353.3333 |
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15 |
$331.2500 |
|
14 |
$309.1667 |
|
13 |
$287.0833 |
|
12 |
$265.0000 |
|
11 |
$242.9167 |
|
10 |
$220.8333 |
|
9 |
$198.7500 |
|
8 |
$176.6667 |
|
7 |
$154.5833 |
|
6 |
$132.5000 |
|
5 |
$110.4167 |
|
4 |
$88.3333 |
|
3 |
$66.2500 |
|
2 |
$44.1667 |
|
1 |
$22.0833 |
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0 |
$0.0000 |
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PS-4 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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Hypothetical Payout Examples
The following examples illustrate payments on the notes linked to two hypothetical Reference Stocks, assuming a range of performances for the hypothetical Lesser Performing Reference Stock on the Review Dates. Solely for purposes of this section, the Lesser Performing Reference Stock with respect to each Review Date is the lesser performing of the Reference Stocks determined based on the closing price of one share of each Reference Stock on that Review Date compared with its Initial Value.
The hypothetical payments set forth below assume the following:
●an Initial Value for each Reference Stock of $100.00;
●an Interest Barrier and a Trigger Value for each Reference Stock of $50.00 (equal to 50.00% of its hypothetical Initial Value); and
●a Contingent Interest Rate of 26.50% per annum.
The hypothetical Initial Value of each Reference Stock of $100.00 has been chosen for illustrative purposes only and may not represent a likely actual Initial Value of either Reference Stock. The actual Initial Value of each Reference Stock will be the closing price of one share of that Reference Stock on the Pricing Date and will be provided in the pricing supplement. For historical data regarding the actual closing prices of one share of each Reference Stock, please see the historical information set forth under “The Reference Stocks” in this pricing supplement.
Each hypothetical payment set forth below is for illustrative purposes only and may not be the actual payment applicable to a purchaser of the notes. The numbers appearing in the following examples have been rounded for ease of analysis.
Example 1 — Notes are automatically called on the sixth Review Date.
|
Date |
Closing Price of One Share of Lesser Performing Reference Stock |
Payment (per $1,000 principal amount note) |
|
First Review Date |
$105.00 |
$22.0833 |
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Second Review Date |
$115.00 |
$22.0833 |
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Third through Fifth Review Dates |
Greater than Initial Value |
$22.0833 |
|
Sixth Review Date |
$110.00 |
$1,022.0833 |
|
|
Total Payment |
$1,132.50 (13.25% return) |
Because the closing price of one share of each Reference Stock on the sixth Review Date is greater than or equal to its Initial Value, the notes will be automatically called for a cash payment, for each $1,000 principal amount note, of $1,022.0833 (or $1,000 plus the Contingent Interest Payment applicable to the sixth Review Date), payable on the applicable Call Settlement Date. The notes are not automatically callable before the sixth Review Date, even though the closing price of one share of each Reference Stock on each of the first through fifth Review Dates is greater than its Initial Value. When added to the Contingent Interest Payments received with respect to the prior Review Dates, the total amount paid, for each $1,000 principal amount note, is $1,132.50. No further payments will be made on the notes.
Example 2 — Notes have NOT been automatically called and the Final Value of the Lesser Performing Reference Stock is greater than or equal to its Trigger Value.
|
Date |
Closing Price of One Share of Lesser Performing Reference Stock |
Payment (per $1,000 principal amount note) |
|
First Review Date |
$95.00 |
$22.0833 |
|
Second Review Date |
$85.00 |
$22.0833 |
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Third through Twenty-Third Review Dates |
Less than Interest Barrier |
$0 |
|
Final Review Date |
$90.00 |
$1,022.0833 |
|
|
Total Payment |
$1,066.25 (6.625% return) |
Because the notes have not been automatically called and the Final Value of the Lesser Performing Reference Stock is greater than or equal to its Trigger Value, the payment at maturity, for each $1,000 principal amount note, will be $1,022.0833 (or $1,000 plus the
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PS-5 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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Contingent Interest Payment applicable to the final Review Date). When added to the Contingent Interest Payments received with respect to the prior Review Dates, the total amount paid, for each $1,000 principal amount note, is $1,066.25.
Example 3 — Notes have NOT been automatically called and the Final Value of the Lesser Performing Reference Stock is less than its Trigger Value.
|
Date |
Closing Price of One Share of Lesser Performing Reference Stock |
Payment (per $1,000 principal amount note) |
|
|
First Review Date |
$40.00 |
$0 |
|
|
Second Review Date |
$45.00 |
$0 |
|
|
Third through Twenty-Third Review Dates |
Less than Interest Barrier |
$0 |
|
|
Final Review Date |
$40.00 |
$400.00 |
|
|
|
Total Payment |
$400.00 (-60.00% return) |
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Because the notes have not been automatically called, the Final Value of the Lesser Performing Reference Stock is less than its Trigger Value and the Lesser Performing Stock Return is -60.00%, the payment at maturity will be $400.00 per $1,000 principal amount note, calculated as follows:
$1,000 + [$1,000 × (-60.00%)] = $400.00
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.
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. If the notes have not been automatically called and the Final Value of either Reference Stock is less than its Trigger Value, you will lose 1% of the principal amount of your notes for every 1% that the Final Value of the Lesser Performing Reference Stock is less than its Initial Value. Accordingly, under these circumstances, you will lose more than 50.00% of your principal amount at maturity and could lose all of your principal amount at maturity.
●THE NOTES DO NOT GUARANTEE THE PAYMENT OF INTEREST AND MAY NOT PAY ANY INTEREST AT ALL —
If the notes have not been automatically called, we will make a Contingent Interest Payment with respect to a Review Date only if the closing price of one share of each Reference Stock on that Review Date is greater than or equal to its Interest Barrier. If the closing price of one share of either Reference Stock on that Review Date is less than its Interest Barrier, no Contingent Interest Payment will be made with respect to that Review Date. Accordingly, if the closing price of one share of either Reference Stock on each Review Date is less than its Interest Barrier, you will not receive any interest payments over the term of the notes.
●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
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PS-6 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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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.
●THE APPRECIATION POTENTIAL OF THE NOTES IS LIMITED TO THE SUM OF ANY CONTINGENT INTEREST PAYMENTS THAT MAY BE PAID OVER THE TERM OF THE NOTES,
regardless of any appreciation of either Reference Stock, which may be significant. You will not participate in any appreciation of either Reference Stock.
●YOU ARE EXPOSED TO THE RISK OF DECLINE IN THE PRICE OF ONE SHARE OF EACH REFERENCE STOCK —
Payments on the notes are not linked to a basket composed of the Reference Stocks and are contingent upon the performance of each individual Reference Stock. Poor performance by either of the Reference Stocks over the term of the notes may result in the notes not being automatically called on a Review Date, may negatively affect whether you will receive a Contingent Interest Payment on any Interest Payment Date and your payment at maturity and will not be offset or mitigated by positive performance by the other Reference Stock.
●YOUR PAYMENT AT MATURITY WILL BE DETERMINED BY THE LESSER PERFORMING REFERENCE STOCK.
●THE BENEFIT PROVIDED BY THE TRIGGER VALUE MAY TERMINATE ON THE FINAL REVIEW DATE —
If the Final Value of either Reference Stock is less than its Trigger Value and the notes have not been automatically called, the benefit provided by the Trigger Value will terminate and you will be fully exposed to any depreciation of the Lesser Performing Reference Stock.
●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 six months and you will not receive any Contingent Interest Payments after the applicable Call Settlement Date. There is no guarantee that you would be able to reinvest the proceeds from an investment in the notes at a comparable return and/or with a comparable interest rate for a similar level of risk. 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.
●YOU WILL NOT RECEIVE DIVIDENDS ON EITHER REFERENCE STOCK OR HAVE ANY RIGHTS WITH RESPECT TO EITHER REFERENCE STOCK.
●THE RISK OF THE CLOSING PRICE OF ONE SHARE OF A REFERENCE STOCK FALLING BELOW ITS INTEREST BARRIER OR TRIGGER VALUE IS GREATER IF THE PRICE OF ONE SHARE OF THAT REFERENCE STOCK 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 FINAL TERMS AND VALUATION OF THE NOTES WILL BE PROVIDED IN THE PRICING SUPPLEMENT —
You should consider your potential investment in the notes based on the minimums for the estimated value of the notes and the Contingent Interest Rate.
Risks Relating to Conflicts of Interest
●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.
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PS-7 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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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 —
See “The Estimated Value of the Notes” in this pricing supplement.
●THE ESTIMATED VALUE OF THE NOTES IS DERIVED BY REFERENCE TO AN INTERNAL FUNDING RATE —
The internal funding rate used in the determination of the estimated value of the notes may differ from the market-implied funding rate for vanilla fixed income instruments of a similar maturity issued by JPMorgan Chase & Co. or its affiliates. Any difference may be based on, among other things, our and our affiliates’ view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for the conventional fixed income instruments of JPMorgan Chase & Co. This internal funding rate is based on certain market inputs and assumptions, which may prove to be incorrect, and is intended to approximate the prevailing market replacement funding rate for the notes. The use of an internal funding rate and any potential changes to that rate may have an adverse effect on the terms of the notes and any secondary market prices of the notes. See “The Estimated Value of the Notes” in this pricing supplement.
●THE VALUE OF THE NOTES AS PUBLISHED BY JPMS (AND WHICH MAY BE REFLECTED ON CUSTOMER ACCOUNT STATEMENTS) MAY BE HIGHER THAN THE THEN-CURRENT ESTIMATED VALUE OF THE NOTES FOR A LIMITED TIME PERIOD —
We generally expect that some of the costs included in the original issue price of the notes will be partially paid back to you in connection with any repurchases of your notes by JPMS in an amount that will decline to zero over an initial predetermined period. See “Secondary Market Prices of the Notes” in this pricing supplement for additional information relating to this initial period. Accordingly, the estimated value of your notes during this initial period may be lower than the value of the notes as published by JPMS (and which may be shown on your customer account statements).
●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 prices of one share of the Reference Stocks. 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-8 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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Risks Relating to the Reference Stocks
●NO AFFILIATION WITH EITHER REFERENCE STOCK ISSUER —
We have not independently verified any of the information about either Reference Stock issuer contained in this pricing supplement. You should undertake your own investigation into each Reference Stock and its issuer. We are not responsible for either Reference Stock issuer’s public disclosure of information, whether contained in SEC filings or otherwise.
●LIMITED TRADING HISTORY —
The Class A common stock of Palantir Technologies Inc. commenced trading on the New York Stock Exchange on September 30, 2020 (but currently trades on The Nasdaq Stock Market) and the Class A common stock of Coinbase Global, Inc. commenced trading on The Nasdaq Stock Market on April 14, 2021 and therefore each has limited historical performance. Accordingly, historical information for each Reference Stock is available only since the applicable date above. Past performance should not be considered indicative of future performance.
●THE ANTI-DILUTION PROTECTION FOR EACH REFERENCE STOCK IS LIMITED AND MAY BE DISCRETIONARY —
The calculation agent will not make an adjustment in response to all events that could affect a Reference Stock. The calculation agent may make adjustments in response to events that are not described in the accompanying product supplement to account for any diluting or concentrative effect, but the calculation agent is under no obligation to do so or to consider your interests as a holder of the notes in making these determinations.
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PS-9 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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The Reference Stocks
All information contained herein on the Reference Stocks and on the Reference Stock issuers is derived from publicly available sources, without independent verification. Each Reference Stock is registered under the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, and is listed on the exchange provided in the table below, which we refer to as the relevant exchange for purposes of that Reference Stock in the accompanying product supplement. Information provided to or filed with the SEC by a Reference Stock issuer pursuant to the Exchange Act can be located by reference to the SEC file number provided in the table below, and can be accessed through www.sec.gov. We do not make any representation that these publicly available documents are accurate or complete. We obtained the closing prices below from the Bloomberg Professional® service (“Bloomberg”) without independent verification.
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Reference Stock |
Bloomberg Ticker Symbol |
Relevant Exchange |
SEC File Number |
Closing Price on July 1, 2025 |
|
Class A common stock of Palantir Technologies Inc., par value $0.001 per share |
PLTR |
The Nasdaq Stock Market |
001-39540 |
$130.68 |
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Class A common stock of Coinbase Global, Inc., par value $0.00001 per share |
COIN |
The Nasdaq Stock Market |
001-40289 |
$335.33 |
According to publicly available filings of the relevant Reference Stock issuer with the SEC:
●Palantir Technologies Inc. builds and deploys software platforms.
●Coinbase Global, Inc. provides a platform that serves as an on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications.
Historical Information
The following graphs set forth the historical performance of the Class A common stock of Palantir Technologies Inc. based on the weekly historical closing prices of one share of that Reference Stock from October 2, 2020 through June 27, 2025 and the historical performance of the Class A common stock of Coinbase Global, Inc. based on the weekly historical closing prices of one share of that Reference Stock from April 16, 2021 through June 27, 2025. The Class A common stock of Palantir Technologies Inc. commenced trading on the New York Stock Exchange on September 30, 2020 (but currently trades on The Nasdaq Stock Market) and the Class A common stock of Coinbase Global, Inc. commenced trading on The Nasdaq Stock Market on April 14, 2021 and therefore each has limited historical performance. The closing prices above and below may have been adjusted by Bloomberg for corporate actions, such as stock splits, public offerings, mergers and acquisitions, spin-offs, delistings and bankruptcy.
The historical closing prices of one share of each Reference Stock should not be taken as an indication of future performance, and no assurance can be given as to the closing price of one share of either Reference Stock on the Pricing Date or any Review Date. There can be no assurance that the performance of the Reference Stocks will result in the return of any of your principal amount or the payment of any interest.
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PS-10 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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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. In determining our reporting responsibilities we intend to treat (i) the notes for U.S. federal income tax purposes as prepaid forward contracts with associated contingent coupons and (ii) any Contingent Interest Payments as ordinary income, as described in the section entitled “Material U.S. Federal Income Tax Consequences — Tax Consequences to U.S. Holders — Notes Treated as Prepaid Forward Contracts with Associated Contingent Coupons” in the accompanying product supplement. Based on the advice of Davis Polk & Wardwell LLP, our special tax counsel, we believe that this is a reasonable treatment, but that there are other reasonable treatments that the IRS or a court may adopt, in which case the timing and character of any income or loss on the notes could be materially 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 and the relevance of factors such as the nature of the underlying property to which the instruments are linked. 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 affect the tax consequences of an investment in the notes, possibly with retroactive effect. The discussions above and in the accompanying product supplement do not address the consequences to taxpayers subject to special tax accounting rules under Section 451(b) of the Code. 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 the notice described above.
Non-U.S. Holders — Tax Considerations. The U.S. federal income tax treatment of Contingent Interest Payments is uncertain, and although we believe it is reasonable to take a position that Contingent Interest Payments are not subject to U.S. withholding tax (at least if an applicable Form W-8 is provided), it is expected that withholding agents will (and we, if we are the withholding agent, intend to) withhold on any Contingent Interest Payment paid to a Non-U.S. Holder generally at a rate of 30% or at a reduced rate specified by an applicable income tax treaty under an “other income” or similar provision. We will not be required to pay any additional amounts with respect to amounts withheld. In order to claim an exemption from, or a reduction in, the 30% withholding tax, a Non-U.S. Holder of the notes must comply with certification requirements to establish that it is not a U.S. person and is eligible for such an exemption or reduction under an applicable tax treaty. If you are a Non-U.S. Holder, you should consult your tax adviser regarding the tax treatment of the notes, including the possibility of obtaining a refund of any withholding tax and the certification requirement described above.
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
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PS-11 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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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.
In the event of any withholding on the notes, we will not be required to pay any additional amounts with respect to amounts so withheld.
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.
The estimated value of the notes does not represent future values of the notes and may differ from others’ estimates. Different pricing models and assumptions could provide valuations for the notes that are greater than or less than the estimated value of the notes. In addition, market conditions and other relevant factors in the future may change, and any assumptions may prove to be incorrect. On future dates, the value of the notes could change significantly based on, among other things, changes in market conditions, our or JPMorgan Chase & Co.’s creditworthiness, interest rate movements and other relevant factors, which may impact the price, if any, at which JPMS would be willing to buy notes from you in secondary market transactions.
The estimated value of the notes will be lower than the original issue price of the notes because costs associated with selling, structuring and hedging the notes are included in the original issue price of the notes. These costs include the selling commissions paid to JPMS and other affiliated or unaffiliated dealers, the projected profits, if any, that our affiliates expect to realize for assuming risks inherent in hedging our obligations under the notes and the estimated cost of hedging our obligations under the notes. Because hedging our obligations entails risk and may be influenced by market forces beyond our control, this hedging may result in a profit that is more or less than expected, or it may result in a loss. A portion of the profits, if any, realized in hedging our obligations under the notes may be allowed to other affiliated or unaffiliated dealers, and we or one or more of our affiliates will retain any remaining hedging profits. See “Selected Risk Considerations — 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” 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
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PS-12 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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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” 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 “How the Notes Work” and “Hypothetical Payout Examples” in this pricing supplement for an illustration of the risk-return profile of the notes and “The Reference Stocks” in this pricing supplement for a description of the market exposure provided by the notes.
The original issue price of the notes is equal to the estimated value of the notes plus the selling commissions paid to JPMS and other affiliated or unaffiliated dealers, plus (minus) the projected profits (losses) that our affiliates expect to realize for assuming risks inherent in hedging our obligations under the notes, plus the estimated cost of hedging our obligations under the notes.
Additional Terms Specific to the Notes
You may revoke your offer to purchase the notes at any time prior to the time at which we accept such offer by notifying the applicable agent. We reserve the right to change the terms of, or reject any offer to purchase, the notes prior to their issuance. In the event of any changes to the terms of the notes, we will notify you and you will be asked to accept such changes in connection with your purchase. You may also choose to reject such changes, in which case we may reject your offer to purchase.
You should read this pricing supplement together with the accompanying prospectus, as supplemented by the accompanying prospectus supplement relating to our Series A medium-term notes of which these notes are a part, the accompanying prospectus addendum and the more detailed information contained in the accompanying product supplement. 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
●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-13 | Structured Investments Auto Callable Contingent Interest Notes Linked to the Lesser Performing of the Class A Common Stock of Palantir Technologies Inc. and the Class A Common Stock of Coinbase Global, Inc. |
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FAQ
What is the minimum contingent interest rate on JPMorgan's PLTR/COIN auto-callable notes?
When can the notes linked to PLTR and COIN be automatically called?
How much principal can I lose at maturity?
What is the estimated value versus the $1,000 issue price?
Are the notes exposed directly to cryptocurrency price moves?
Will the notes be listed on an exchange?
