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Capital protection with barrier

Thursday, 31 August 2023 Reading time : 2 minutes

Capital protection
Shark notes are part of the group of capital protection products and offer investors a participation in the positive performance of an underlying asset while protecting the capital invested against loss. They owe their name to their payoff profile, which resembles the dorsal fin of a shark -  the risk of loss is eliminated while at the same time participation in the upward movement is made possible. 

Knock-out barrier
Shark notes have an upper barrier, a so-called knock-out barrier. If the price of the underlying exceeds this barrier, investors receive at least the full amount of their invested capital back. Accordingly, these products are suitable if investors expect rising prices yet still prefer capital protection, but not if strongly bullish markets are expected.

Attractive additional feature: Rebate
The rebate comes into play if the price of the underlying instrument exceeds the predefined knock-out barrier during the term of the product and corresponds to a guaranteed coupon payment. It allows the generation of a return even if a knock-out has occurred.

The following products all offer 100% capital protection and 100% participation in the positive performance of the underlying up to the barrier.

SMI®

  • 120% Knock-Out Barrier
  • 6% rebate
  • 3 years maturity
  • Termsheet


NASDAQ® (USD)

  • 120% knock-out barrier
  • 12% rebate
  • 2 years maturity
  • Termsheet


NVIDIA (USD)*

  • 150% knock-out barrier
  • 1 year maturity
  • Termsheet


*no rebate
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