Offering overview. JPMorgan Chase Financial Company LLC is marketing Auto Callable Contingent Interest Notes linked to the MerQube US Tech+ Vol Advantage Index (Bloomberg: MQUSTVA), fully and unconditionally guaranteed by JPMorgan Chase & Co. The $1,000-denominated notes are scheduled to price on or about July 3 2025, settle on July 9 2025 and mature on January 7 2027, unless automatically called earlier.
Income features. Investors will receive a monthly Contingent Interest Payment of at least $10.00 (≥12.0% p.a.) for any Review Date on which the Index closes at or above 70% of its Initial Value (the Interest Barrier). If the Index closes below the barrier, no interest is paid for that period.
Automatic call mechanism. Starting with the October 3 2025 Review Date, the notes will be redeemed at par plus the relevant interest if the Index closes at or above its Initial Value on any Review Date other than the first, second or final dates, terminating further payments.
Principal repayment. At maturity, if not called and the Index is ≥70% of the Initial Value, holders receive par plus the final interest amount. If the Index is <70%, repayment equals $1,000 plus the Index Return, exposing investors to uncapped downside and potential loss of the entire principal.
Key structural drags. The Index incorporates a 6.0% per-annum daily deduction and a daily notional financing cost on the underlying QQQ Fund, which will mute upside performance and magnify losses. The notes are unsecured, carry JPMorgan credit risk and have an estimated value of approximately $943.80 per $1,000 face (not less than $910.00) as of the indicative terms.
Risk highlights. Investors forgo fixed coupons and dividends, face leverage within the Index (up to 500% exposure) and must be comfortable with possible periods of no interest and substantial principal loss.
JPMorgan Chase Financial Company has issued a free writing prospectus for Auto Callable Contingent Interest Notes linked to GE Vernova stock, due July 1, 2027. The notes offer a potential 15% annual contingent interest rate (3.75% quarterly) with key features:
- Minimum denomination of $1,000 with estimated value not less than $940.00
- Automatic call feature triggers if stock price exceeds Initial Value on quarterly Review Dates
- Interest payments contingent on stock price remaining above Interest Barrier (53.50% of Initial Value)
- At maturity, full principal returned if Final Value exceeds Trigger Value; otherwise, investors face potential losses proportional to stock decline
Key risks include potential loss of principal, credit risk of JPMorgan Chase, limited appreciation potential, and forced early exit through automatic call feature. The notes lack liquidity and dividend rights, with complex tax implications.