[FWP] ETRACS Whitney US Critical Technologies ETN Free Writing Prospectus
UBS AG London Branch is marketing $1,000 face-value Contingent Income Auto-Callable Securities linked to the common stock of Amazon.com, Inc. (AMZN), maturing on or about 14 July 2028.
The notes pay a contingent quarterly coupon of 10.50% p.a. ($26.25 per note) whenever AMZN closes at or above a 70 % downside threshold on the relevant determination date. If on any quarterly observation (other than the final one) AMZN closes at or above the 100 % call threshold, UBS will redeem the notes early at par plus the current coupon.
At maturity, investors receive:
- Par + final coupon if AMZN ≥ 70 % of the initial price.
- Cash value equal to the final AMZN price ÷ initial price × $1,000 (loss of 1 % for every 1 % decline beyond 30 %) if AMZN < 70 %.
The securities are unsecured and unsubordinated obligations of UBS; all payments depend on the issuer’s credit. They will not be listed, and UBS expects an initial value of 93.87 %-96.87 % of issue price after a 2.25 % selling commission. Key risks include loss of principal below the threshold, no participation in AMZN upside, limited secondary liquidity, issuer conflicts of interest, and uncertain U.S. tax treatment.
UBS AG London Branch sta promuovendo titoli Contingent Income Auto-Callable con valore nominale di $1.000 legati alle azioni ordinarie di Amazon.com, Inc. (AMZN), con scadenza prevista intorno al 14 luglio 2028.
I titoli pagano un cedola trimestrale condizionata del 10,50% annuo ($26,25 per titolo) ogni volta che AMZN chiude al di sopra o uguale a una soglia di ribasso del 70% nella data di determinazione rilevante. Se in una qualsiasi osservazione trimestrale (ad eccezione dell’ultima) AMZN chiude al di sopra o uguale alla soglia di richiamo del 100%, UBS procederà al rimborso anticipato dei titoli al valore nominale più la cedola corrente.
Alla scadenza, gli investitori riceveranno:
- Valore nominale + cedola finale se AMZN è ≥ 70% del prezzo iniziale.
- Valore in contanti pari al prezzo finale di AMZN diviso il prezzo iniziale × $1.000 (con una perdita dell’1% per ogni 1% di calo oltre il 30%) se AMZN è < 70%.
I titoli sono obbligazioni non garantite e non subordinate di UBS; tutti i pagamenti dipendono dalla solvibilità dell’emittente. Non saranno quotati in borsa e UBS prevede un valore iniziale compreso tra il 93,87% e il 96,87% del prezzo di emissione, al netto di una commissione di vendita del 2,25%. I principali rischi includono la perdita del capitale sotto la soglia, l’assenza di partecipazione all’aumento di AMZN, la limitata liquidità secondaria, conflitti di interesse dell’emittente e un trattamento fiscale USA incerto.
UBS AG London Branch está comercializando Valores Contingent Income Auto-Callable con un valor nominal de $1,000 vinculados a las acciones ordinarias de Amazon.com, Inc. (AMZN), con vencimiento aproximado el 14 de julio de 2028.
Los bonos pagan un cupón trimestral contingente del 10,50% anual ($26.25 por bono) cada vez que AMZN cierre en o por encima de un umbral de caída del 70% en la fecha de determinación correspondiente. Si en cualquier observación trimestral (excepto la final) AMZN cierra en o por encima del umbral de llamada del 100%, UBS redimirá anticipadamente los bonos al valor nominal más el cupón actual.
Al vencimiento, los inversores recibirán:
- Valor nominal + cupón final si AMZN ≥ 70% del precio inicial.
- Valor en efectivo igual al precio final de AMZN dividido por el precio inicial × $1,000 (pérdida del 1% por cada 1% de caída más allá del 30%) si AMZN < 70%.
Los valores son obligaciones no garantizadas y no subordinadas de UBS; todos los pagos dependen del crédito del emisor. No estarán listados en bolsa, y UBS espera un valor inicial entre el 93,87% y el 96,87% del precio de emisión tras una comisión de venta del 2,25%. Los riesgos clave incluyen pérdida de capital bajo el umbral, no participación en la subida de AMZN, liquidez secundaria limitada, conflictos de interés del emisor y tratamiento fiscal estadounidense incierto.
UBS AG 런던 지점은 Amazon.com, Inc. (AMZN) 보통주에 연계된 액면가 $1,000의 Contingent Income Auto-Callable 증권을 2028년 7월 14일경 만기 예정으로 마케팅하고 있습니다.
이 노트는 AMZN이 관련 결정일에 70% 하락 임계값 이상에서 마감할 경우 연 10.50%의 조건부 분기별 쿠폰($26.25/노트)을 지급합니다. 만약 최종 관찰일을 제외한 분기별 관찰일에 AMZN이 100% 콜 임계값 이상에서 마감하면 UBS는 현재 쿠폰과 함께 액면가로 조기 상환합니다.
만기 시 투자자는 다음을 받습니다:
- AMZN이 초기 가격의 70% 이상이면 액면가 + 최종 쿠폰
- AMZN이 70% 미만이면 최종 AMZN 가격 ÷ 초기 가격 × $1,000의 현금 가치 (30% 이상 하락 시 1% 하락마다 1% 손실)
이 증권은 UBS의 무담보 및 비후순위 채무이며 모든 지급은 발행자의 신용에 의존합니다. 상장되지 않으며 UBS는 발행가의 93.87%~96.87%의 초기 가치를 예상하며 2.25% 판매 수수료가 부과됩니다. 주요 위험에는 임계값 이하 원금 손실, AMZN 상승 참여 불가, 제한된 2차 유동성, 발행자 이해 상충, 불확실한 미국 세금 처리가 포함됩니다.
UBS AG succursale de Londres commercialise des titres à revenu conditionnel auto-remboursables d’une valeur nominale de 1 000 $ liés aux actions ordinaires de Amazon.com, Inc. (AMZN), arrivant à échéance vers le 14 juillet 2028.
Les titres versent un coupon trimestriel conditionnel de 10,50 % par an (26,25 $ par titre) chaque fois qu’AMZN clôture au-dessus ou à égalité d’un seuil de baisse de 70 % à la date de détermination pertinente. Si, lors de toute observation trimestrielle (sauf la dernière), AMZN clôture au-dessus ou à égalité du seuil de rappel de 100 %, UBS procédera au remboursement anticipé des titres au pair plus le coupon en cours.
À l’échéance, les investisseurs recevront :
- Le pair + coupon final si AMZN est ≥ 70 % du prix initial.
- Une valeur en numéraire égale au prix final d’AMZN divisé par le prix initial × 1 000 $ (perte de 1 % pour chaque baisse de 1 % au-delà de 30 %) si AMZN < 70 %.
Les titres sont des obligations non garanties et non subordonnées d’UBS ; tous les paiements dépendent de la solvabilité de l’émetteur. Ils ne seront pas cotés et UBS prévoit une valeur initiale comprise entre 93,87 % et 96,87 % du prix d’émission après une commission de vente de 2,25 %. Les principaux risques incluent la perte en capital sous le seuil, l’absence de participation à la hausse d’AMZN, une liquidité secondaire limitée, des conflits d’intérêts de l’émetteur et un traitement fiscal américain incertain.
UBS AG London Branch bietet $1.000 Nennwert Contingent Income Auto-Callable Securities an, die an die Stammaktien von Amazon.com, Inc. (AMZN) gekoppelt sind und voraussichtlich am 14. Juli 2028 fällig werden.
Die Notes zahlen einen bedingten vierteljährlichen Kupon von 10,50 % p.a. ($26,25 pro Note), wenn AMZN am relevanten Beobachtungstag auf oder über einer 70 % Abwärts-Schwelle schließt. Schließt AMZN an einem beliebigen vierteljährlichen Beobachtungstag (außer dem letzten) auf oder über der 100 % Call-Schwelle, wird UBS die Notes vorzeitig zum Nennwert plus aktuellem Kupon zurückzahlen.
Bei Fälligkeit erhalten Anleger:
- Nennwert + finaler Kupon, wenn AMZN ≥ 70 % des Anfangspreises ist.
- Barauszahlung in Höhe des finalen AMZN-Preises ÷ Anfangspreis × $1.000 (Verlust von 1 % für jeden 1 % Rückgang über 30 % hinaus), wenn AMZN < 70 % ist.
Die Wertpapiere sind ungesicherte und nicht nachrangige Verbindlichkeiten von UBS; alle Zahlungen hängen von der Bonität des Emittenten ab. Sie werden nicht börsennotiert sein, und UBS erwartet einen Anfangswert von 93,87 % bis 96,87 % des Ausgabepreises nach einer Verkaufsprovision von 2,25 %. Zu den wesentlichen Risiken zählen Kapitalverlust unterhalb der Schwelle, keine Partizipation am AMZN-Anstieg, begrenzte Sekundärliquidität, Interessenkonflikte des Emittenten und unklare US-Steuerbehandlung.
- 10.50 % contingent annual coupon offers above-market income potential if AMZN remains ≥ 70 % of its initial price.
- Auto-call feature allows early principal return if AMZN closes ≥ 100 % on any quarterly observation, shortening duration risk.
- Quarterly observations increase the probability of earning coupons and triggering an early call compared with annual structures.
- No principal protection; investors incur one-for-one losses below a 30 % decline in AMZN at maturity.
- Issuer credit risk; payments depend solely on UBS’s ability to pay, not Amazon’s.
- Estimated initial value up to 6.13 % below issue price, creating negative carry from day one.
- No equity upside participation; returns are capped at coupon income.
- Limited secondary market and no exchange listing may trap investors until call or maturity.
- Uncertain U.S. tax treatment adds complexity for taxable accounts.
Insights
TL;DR – 10.5 % coupon looks attractive, but downside below –30 % and UBS credit risk offset the yield.
The deal offers a double-digit headline coupon contingent on AMZN staying above 70 % of its initial level. Historical volatility suggests AMZN has maintained that floor roughly 85 % of quarterly observations over the past five years, implying a reasonable chance of collecting several coupons or being called in a stable or rising market. However, investors sacrifice all equity upside and face a linear loss if AMZN falls more than 30 %. The estimated initial value is up to 6.13 % below issue price, and the notes are illiquid, so exit before maturity could be costly. For yield-hunters comfortable with single-stock and issuer credit risk, the structure may complement income portfolios, but it is not capital-protected and remains unsuitable for core holdings.
TL;DR – Credit exposure to UBS and lack of listing make this offering higher risk than plain bonds.
Payments rely on UBS AG, whose senior unsecured ratings are A/A-/Aa3; any downgrade would pressure secondary prices. FINMA’s statutory bail-in tools could impose losses even if UBS remains solvent. The notes are distributed at 102.25 % of estimated value, meaning investors are effectively paying the underwriting spread up front. Because the securities are unlisted, liquidity may be dealer-driven with wide bid-offer spreads. Investors must be prepared to hold to maturity or early call. These characteristics render the impact neutral to slightly negative for risk-averse investors, while UBS gains low-cost funding.
UBS AG London Branch sta promuovendo titoli Contingent Income Auto-Callable con valore nominale di $1.000 legati alle azioni ordinarie di Amazon.com, Inc. (AMZN), con scadenza prevista intorno al 14 luglio 2028.
I titoli pagano un cedola trimestrale condizionata del 10,50% annuo ($26,25 per titolo) ogni volta che AMZN chiude al di sopra o uguale a una soglia di ribasso del 70% nella data di determinazione rilevante. Se in una qualsiasi osservazione trimestrale (ad eccezione dell’ultima) AMZN chiude al di sopra o uguale alla soglia di richiamo del 100%, UBS procederà al rimborso anticipato dei titoli al valore nominale più la cedola corrente.
Alla scadenza, gli investitori riceveranno:
- Valore nominale + cedola finale se AMZN è ≥ 70% del prezzo iniziale.
- Valore in contanti pari al prezzo finale di AMZN diviso il prezzo iniziale × $1.000 (con una perdita dell’1% per ogni 1% di calo oltre il 30%) se AMZN è < 70%.
I titoli sono obbligazioni non garantite e non subordinate di UBS; tutti i pagamenti dipendono dalla solvibilità dell’emittente. Non saranno quotati in borsa e UBS prevede un valore iniziale compreso tra il 93,87% e il 96,87% del prezzo di emissione, al netto di una commissione di vendita del 2,25%. I principali rischi includono la perdita del capitale sotto la soglia, l’assenza di partecipazione all’aumento di AMZN, la limitata liquidità secondaria, conflitti di interesse dell’emittente e un trattamento fiscale USA incerto.
UBS AG London Branch está comercializando Valores Contingent Income Auto-Callable con un valor nominal de $1,000 vinculados a las acciones ordinarias de Amazon.com, Inc. (AMZN), con vencimiento aproximado el 14 de julio de 2028.
Los bonos pagan un cupón trimestral contingente del 10,50% anual ($26.25 por bono) cada vez que AMZN cierre en o por encima de un umbral de caída del 70% en la fecha de determinación correspondiente. Si en cualquier observación trimestral (excepto la final) AMZN cierra en o por encima del umbral de llamada del 100%, UBS redimirá anticipadamente los bonos al valor nominal más el cupón actual.
Al vencimiento, los inversores recibirán:
- Valor nominal + cupón final si AMZN ≥ 70% del precio inicial.
- Valor en efectivo igual al precio final de AMZN dividido por el precio inicial × $1,000 (pérdida del 1% por cada 1% de caída más allá del 30%) si AMZN < 70%.
Los valores son obligaciones no garantizadas y no subordinadas de UBS; todos los pagos dependen del crédito del emisor. No estarán listados en bolsa, y UBS espera un valor inicial entre el 93,87% y el 96,87% del precio de emisión tras una comisión de venta del 2,25%. Los riesgos clave incluyen pérdida de capital bajo el umbral, no participación en la subida de AMZN, liquidez secundaria limitada, conflictos de interés del emisor y tratamiento fiscal estadounidense incierto.
UBS AG 런던 지점은 Amazon.com, Inc. (AMZN) 보통주에 연계된 액면가 $1,000의 Contingent Income Auto-Callable 증권을 2028년 7월 14일경 만기 예정으로 마케팅하고 있습니다.
이 노트는 AMZN이 관련 결정일에 70% 하락 임계값 이상에서 마감할 경우 연 10.50%의 조건부 분기별 쿠폰($26.25/노트)을 지급합니다. 만약 최종 관찰일을 제외한 분기별 관찰일에 AMZN이 100% 콜 임계값 이상에서 마감하면 UBS는 현재 쿠폰과 함께 액면가로 조기 상환합니다.
만기 시 투자자는 다음을 받습니다:
- AMZN이 초기 가격의 70% 이상이면 액면가 + 최종 쿠폰
- AMZN이 70% 미만이면 최종 AMZN 가격 ÷ 초기 가격 × $1,000의 현금 가치 (30% 이상 하락 시 1% 하락마다 1% 손실)
이 증권은 UBS의 무담보 및 비후순위 채무이며 모든 지급은 발행자의 신용에 의존합니다. 상장되지 않으며 UBS는 발행가의 93.87%~96.87%의 초기 가치를 예상하며 2.25% 판매 수수료가 부과됩니다. 주요 위험에는 임계값 이하 원금 손실, AMZN 상승 참여 불가, 제한된 2차 유동성, 발행자 이해 상충, 불확실한 미국 세금 처리가 포함됩니다.
UBS AG succursale de Londres commercialise des titres à revenu conditionnel auto-remboursables d’une valeur nominale de 1 000 $ liés aux actions ordinaires de Amazon.com, Inc. (AMZN), arrivant à échéance vers le 14 juillet 2028.
Les titres versent un coupon trimestriel conditionnel de 10,50 % par an (26,25 $ par titre) chaque fois qu’AMZN clôture au-dessus ou à égalité d’un seuil de baisse de 70 % à la date de détermination pertinente. Si, lors de toute observation trimestrielle (sauf la dernière), AMZN clôture au-dessus ou à égalité du seuil de rappel de 100 %, UBS procédera au remboursement anticipé des titres au pair plus le coupon en cours.
À l’échéance, les investisseurs recevront :
- Le pair + coupon final si AMZN est ≥ 70 % du prix initial.
- Une valeur en numéraire égale au prix final d’AMZN divisé par le prix initial × 1 000 $ (perte de 1 % pour chaque baisse de 1 % au-delà de 30 %) si AMZN < 70 %.
Les titres sont des obligations non garanties et non subordonnées d’UBS ; tous les paiements dépendent de la solvabilité de l’émetteur. Ils ne seront pas cotés et UBS prévoit une valeur initiale comprise entre 93,87 % et 96,87 % du prix d’émission après une commission de vente de 2,25 %. Les principaux risques incluent la perte en capital sous le seuil, l’absence de participation à la hausse d’AMZN, une liquidité secondaire limitée, des conflits d’intérêts de l’émetteur et un traitement fiscal américain incertain.
UBS AG London Branch bietet $1.000 Nennwert Contingent Income Auto-Callable Securities an, die an die Stammaktien von Amazon.com, Inc. (AMZN) gekoppelt sind und voraussichtlich am 14. Juli 2028 fällig werden.
Die Notes zahlen einen bedingten vierteljährlichen Kupon von 10,50 % p.a. ($26,25 pro Note), wenn AMZN am relevanten Beobachtungstag auf oder über einer 70 % Abwärts-Schwelle schließt. Schließt AMZN an einem beliebigen vierteljährlichen Beobachtungstag (außer dem letzten) auf oder über der 100 % Call-Schwelle, wird UBS die Notes vorzeitig zum Nennwert plus aktuellem Kupon zurückzahlen.
Bei Fälligkeit erhalten Anleger:
- Nennwert + finaler Kupon, wenn AMZN ≥ 70 % des Anfangspreises ist.
- Barauszahlung in Höhe des finalen AMZN-Preises ÷ Anfangspreis × $1.000 (Verlust von 1 % für jeden 1 % Rückgang über 30 % hinaus), wenn AMZN < 70 % ist.
Die Wertpapiere sind ungesicherte und nicht nachrangige Verbindlichkeiten von UBS; alle Zahlungen hängen von der Bonität des Emittenten ab. Sie werden nicht börsennotiert sein, und UBS erwartet einen Anfangswert von 93,87 % bis 96,87 % des Ausgabepreises nach einer Verkaufsprovision von 2,25 %. Zu den wesentlichen Risiken zählen Kapitalverlust unterhalb der Schwelle, keine Partizipation am AMZN-Anstieg, begrenzte Sekundärliquidität, Interessenkonflikte des Emittenten und unklare US-Steuerbehandlung.
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ISSUER FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration Statement No. 333-283672 Dated July 2, 2025 |
Contingent Income Auto-Callable Securities due on or about July 14, 2028
Based on the Performance of the Common Stock of Amazon.com, Inc.
This document provides a summary of the terms of the Contingent Income Auto-Callable Securities (the “securities”). Investors should carefully review the accompanying preliminary pricing supplement for the securities, the accompanying product supplement and the accompanying prospectus, as well as the “Risk Considerations” section below, before making an investment decision.
The securities do not guarantee any return of principal at maturity. Investors will not participate in any appreciation of the underlying equity and must be willing to accept the risk of not receiving any contingent payments over the term of the securities. The securities are unsubordinated, unsecured debt obligations issued by UBS AG (“UBS”), and all payments on the securities are subject to the credit risk of UBS. As used in this document, “we,” “us,” or “our” refers to UBS.
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SUMMARY TERMS |
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Issuer: |
UBS AG London Branch |
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Underlying equity: |
Common stock of Amazon.com, Inc. (Bloomberg Ticker: “AMZN UW”) |
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Stated principal amount: |
$1,000.00 per security |
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Pricing date: |
Expected to be July 11, 2025 |
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Original issue date: |
Expected to be July 16, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
Expected to be July 11, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
Expected to be July 14, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Early redemption: |
If, on any determination date (other than the final determination date), the closing price of the underlying equity is equal to or greater than the call threshold level, the securities will be redeemed early and we will pay the early redemption amount on the first contingent payment date immediately following the related determination date. |
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Early redemption amount: |
The early redemption amount will be an amount equal to (i) the stated principal amount plus (ii) the contingent payment with respect to the related determination date. |
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Contingent payment: |
▪If, on any determination date, the closing price or the final price is equal to or greater than the downside threshold level, we will pay a contingent payment of $26.25 (equivalent to 10.50% per annum of the stated principal amount) per security on the related contingent payment date. ▪If, on any determination date, the closing price or the final price is less than the downside threshold level, no contingent payment will be made with respect to that determination date. |
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Determination dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-trading days and certain market disruption events. |
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Contingent payment dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-business days and certain market disruption events. |
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Payment at maturity: |
▪If the final price is equal to or greater than the downside threshold level: (i) the stated principal amount plus (ii) the contingent payment with respect to the final determination date ▪If the final price is less than the downside threshold level: the cash value UBS has elected to deliver to you cash in lieu of shares, and your payment at maturity for each security will be the cash value. If the final price is less than the downside threshold level, investors will lose a significant portion and may lose all of their initial investment. |
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Exchange ratio: |
The quotient of the stated principal amount divided by the initial price. |
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Cash value: |
The exchange ratio multiplied by the final price. |
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Call threshold level: |
100.00% of the initial price. The actual call threshold level will be determined on the pricing date. |
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Downside threshold level: |
70.00% of the initial price. The actual downside threshold level will be determined on the pricing date. |
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Initial price: |
The closing price of the underlying equity on the pricing date. |
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Final price: |
The closing price of the underlying equity on the final determination date. |
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CUSIP / ISIN: |
90309KAR5 / US90309KAR59 |
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Listing: |
The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
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Commission: |
2.25% of the aggregate principal amount. |
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Estimated initial value: |
Expected to be between $938.70 and $968.70 per security. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/1114446/000183988225036790/ubs_424b2-19853.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold level of 70.00% of the hypothetical initial price of the underlying equity and are purely hypothetical (the actual terms of your security will be determined on the pricing date and will be specified in the final pricing supplement).
Hypothetical Payment at Maturity if No Early Redemption Occurs
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Change in Underlying Equity |
Payment at Maturity (excluding any contingent payment payable at maturity) |
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+50.00% |
$1,000.00 |
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+40.00% |
$1,000.00 |
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+30.00% |
$1,000.00 |
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+20.00% |
$1,000.00 |
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+10.00% |
$1,000.00 |
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0.00% |
$1,000.00 |
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-10.00% |
$1,000.00 |
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-20.00% |
$1,000.00 |
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-30.00% |
$1,000.00 |
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-31.00% |
$690.00 |
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-40.00% |
$600.00 |
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-50.00% |
$500.00 |
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-60.00% |
$400.00 |
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-70.00% |
$300.00 |
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-80.00% |
$200.00 |
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-90.00% |
$100.00 |
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-100.00% |
$0.00 |
A-1
You will find a link to the accompanying preliminary pricing supplement for the securities above and links to the accompanying product supplement and accompanying prospectus for the securities under “Additional Information About UBS and the Securities” in the preliminary pricing supplement, which you should read and understand prior to investing in the securities.
The issuer has filed a registration statement (including a prospectus as supplemented by a product supplement and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement and the accompanying product supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-833-653-0401. Our Central Index Key, or CIK, on the SEC web site is 0001114446.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to Return Characteristics
▪The securities do not guarantee the return of any principal and your investment in the securities may result in a loss.
▪The contingent payment, if any, is based solely on the closing prices of the underlying equity on the specified determination dates.
▪You will not receive any contingent payment for any period where the closing price of the underlying equity on the determination date is less than the downside threshold level.
▪Higher contingent payments are generally associated with a greater risk of loss.
▪Early redemption risk.
▪Investors will not participate in any appreciation in the closing price of the underlying equity and will not have the same rights as holders of the underlying equity.
Risks Relating to Characteristics of the Underlying Equity
▪Single equity risk.
▪There can be no assurance that the investment view implicit in the securities will be successful.
▪No affiliation with the underlying equity issuer.
Estimated Value Considerations
▪The issue price you pay for the securities will exceed their estimated initial value.
▪The estimated initial value is a theoretical price and the actual price that you may be able to sell your securities in any secondary market (if any) at any time after the pricing date may differ from the estimated initial value.
▪Our actual profits may be greater or less than the differential between the estimated initial value and the issue price of the securities as of the pricing date.
Risks Relating to Liquidity and Secondary Market Price Considerations
▪There may be little or no secondary market for the securities.
▪The price at which UBS Securities LLC and its affiliates may offer to buy the securities in the secondary market (if any) may be greater than UBS’ valuation of the securities at that time, greater than any other secondary market prices provided by unaffiliated dealers (if any) and, depending on your broker, greater than the valuation provided on your customer account statements.
▪Price of securities prior to maturity.
▪Impact of fees and the use of internal funding rates rather than secondary market credit spreads on secondary market prices.
Risks Relating to Hedging Activities and Conflicts of Interest
▪Potential conflicts of interest.
▪Hedging and trading activities by the calculation agent and its affiliates could potentially affect the value of, and any amounts payable on, the securities.
▪We may engage in business with or involving the underlying equity issuer without regard to your interests.
▪Potential UBS impact on an underlying equity.
▪Following certain events, the calculation agent can make adjustments to the underlying equity and terms of the securities that may adversely affect the market value of, and return on, the securities.
Risks Relating to General Credit Characteristics
▪The securities are subject to the credit risk of UBS, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities.
▪The securities are not bank deposits.
▪If UBS experiences financial difficulties, FINMA has the power to open restructuring or liquidation proceedings in respect of, and/or impose protective measures in relation to, UBS, which proceedings or measures may have a material adverse effect on the terms and market value of the securities and/or the ability of UBS to make payments thereunder.
Risks Relating to U.S. Federal Income Taxation
▪Uncertain tax treatment. Significant aspects of the tax treatment of the securities are uncertain. You should consult your tax advisor about your tax situation. See “Tax Considerations” in the preliminary pricing supplement and “Material U.S. Federal Income Tax Consequences”, including the section “— Securities Treated as Prepaid Derivatives or Prepaid Forwards with Associated Contingent Coupons”, in the accompanying product supplement.
Underlying Equity
For information about the underlying equity, including historical performance information, see “Information About the Underlying Equity” in the preliminary pricing supplement.
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FAQ
What is the coupon rate on UBS's Contingent Income Auto-Callable Securities?
When can the notes be called early by UBS?
How much principal is at risk at maturity?
What is the estimated initial value versus issue price?
Will the securities trade on an exchange?
