Market expectations

• Sideways moving or slightly rising underlying
• Falling volatility
• The underlying will not reach or go below a certain level (knock-in level/barrier) during the term

Advantages

• Lower risk of loss than that of a direct investment in the underlying.
• The aim is to generate an excess return in sideways markets when compared to a direct investment in the underlying.
• Due to the risk buffer, repayment of the nominal amount is also guaranteed if the performance of the underlying is slightly negative (provided the price of the underlying never touches or falls below the knock-in level).

Repayment terms

• If the price of the underlying has neither touched nor fallen below the knock-in level during the term:
  • the nominal amount is paid out in cash.
• If the price of the underlying has touched or fallen below the knock-in level during the term:
  • but is at or above the cap level on expiry, the nominal amount is paid out in cash.
  • and is lower than the cap level on expiry, the number of underlyings specified at the start is delivered for each nominal amount and/or a cash settlement is paid out
• The coupon is always paid out irrespective of the performance of the underlying.

Early redemption

On each Observation Date, the issuer has the right, but not the obligation to call the product and to redeem it on the respective Early Redemption Date. Information flow about redemption is stated in sections "Notices" and will immediately take effect on the Observation Date.

• If the issuer exercises its one-sided early redemption right, the product will be redeemed at 100% of the Denomination plus Coupon Payment for the respective period. No further payments are made.
• If the issuer does not exercise its one-sided early redemption right, the product continues to run until the next Observation Date.