[424B2] Inverse VIX Short-Term Futures ETNs due March 22, 2045 Prospectus Supplement
JPMorgan Chase Financial Company LLC is offering Uncapped Accelerated Barrier Notes (the “notes”) linked individually to the Dow Jones Industrial Average®, Nasdaq-100 Index® and Russell 2000® Index. The securities are senior unsecured obligations of JPMorgan Chase Financial and are fully and unconditionally guaranteed by JPMorgan Chase & Co. Key commercial terms are still preliminary but are expected to be finalized on or about 18 July 2025 (pricing date) with settlement on 23 July 2025 and maturity on 21 July 2028.
Return profile: At maturity investors receive (i) principal plus at least 2.0× any positive percentage performance of the least-performing index (“Upside Leverage Factor”, minimum 2.00), (ii) full principal repayment if every index closes ≥70 % of its initial level (“Barrier Amount”) even when one or more indices are flat or negative, or (iii) a dollar-for-dollar loss on the downside if any index finishes <70 % of its initial level. The structure therefore provides an uncapped leveraged upside but only a 30 % conditional buffer on the downside.
Illustrative economics (using hypothetical 2.00 leverage): a 10 % rise in the worst index delivers a 20 % note gain (to $1,200); a 31 % decline breaches the barrier and produces a 31 % loss; a 60 % decline returns $400. The preliminary estimated value is $974.90 per $1,000 (97.49 % of par) and will not be less than $900 when terms are set, highlighting the embedded distribution and hedging costs.
Risk considerations (summarized from PS-3/4): (1) Principal at risk below the barrier may lead to 100 % loss; (2) credit exposure to both the issuer and guarantor; (3) no periodic interest or dividends; (4) no exchange listing, so liquidity depends solely on J.P. Morgan Securities’ (JPMS) willingness to buy; (5) secondary prices likely below issue price because of embedded fees and dealer funding spreads; (6) tax treatment uncertain—currently expected to be “open transaction,” but future IRS guidance could be adverse; (7) potential conflicts of interest since JPMorgan and affiliates set index levels for hedging and make secondary markets.
Key terms snapshot
- Underlying indices: INDU, NDX, RTY
- Upside Leverage Factor: ≥2.00 (final figure in pricing supplement)
- Barrier: 70 % of each initial index level (30 % downside cushion)
- Principal amount: $1,000 minimum denomination
- CUSIP: 48136FUQ3
- Selling commissions: ≤$9.50 per $1,000
The notes cater to investors with a moderately bullish three-year outlook on U.S. large-, mega- and small-cap equities who can tolerate substantial downside risk, illiquidity and tax uncertainty in exchange for leveraged, uncapped participation on the upside.
JPMorgan Chase Financial Company LLC offre Note Barrier Accelerate senza limite (le “note”) collegate singolarmente agli indici Dow Jones Industrial Average®, Nasdaq-100 Index® e Russell 2000® Index. Questi titoli rappresentano obbligazioni senior non garantite di JPMorgan Chase Financial e sono garantiti in modo pieno e incondizionato da JPMorgan Chase & Co. I termini commerciali principali sono ancora preliminari ma si prevede che vengano definiti intorno al 18 luglio 2025 (data di pricing), con regolamento previsto per il 23 luglio 2025 e scadenza il 21 luglio 2028.
Profilo di rendimento: Alla scadenza gli investitori ricevono (i) il capitale più almeno 2,0× la performance percentuale positiva dell’indice meno performante (“Fattore di Leva al Rialzo”, minimo 2,00), (ii) il rimborso integrale del capitale se ogni indice chiude ≥70% del livello iniziale (“Importo Barriera”), anche se uno o più indici risultano stabili o negativi, oppure (iii) una perdita pari al valore nominale nel caso in cui uno qualsiasi degli indici chiuda sotto il 70% del livello iniziale. La struttura quindi offre un potenziale rialzo con leva illimitata ma solo un buffer condizionato al 30% sul ribasso.
Esempio economico (con leva ipotetica 2,00): un aumento del 10% nell’indice peggiore genera un guadagno del 20% sulla nota (a $1.200); un calo del 31% viola la barriera e comporta una perdita del 31%; un calo del 60% restituisce $400. Il valore stimato preliminare è $974,90 per $1.000 (97,49% del valore nominale) e non sarà inferiore a $900 al momento della definizione dei termini, evidenziando i costi incorporati di distribuzione e copertura.
Considerazioni sui rischi (riassunte da PS-3/4): (1) Capitale a rischio sotto la barriera può causare perdita totale; (2) esposizione creditizia sia all’emittente che al garante; (3) assenza di interessi o dividendi periodici; (4) assenza di quotazione in borsa, quindi la liquidità dipende unicamente dalla disponibilità di J.P. Morgan Securities (JPMS) ad acquistare; (5) i prezzi secondari probabilmente saranno inferiori al prezzo di emissione a causa di commissioni e spread di finanziamento; (6) trattamento fiscale incerto — attualmente previsto come “transazione aperta”, ma future indicazioni dell’IRS potrebbero essere sfavorevoli; (7) potenziali conflitti di interesse poiché JPMorgan e affiliate stabiliscono i livelli degli indici per la copertura e gestiscono i mercati secondari.
Riepilogo termini chiave
- Indici sottostanti: INDU, NDX, RTY
- Fattore di Leva al Rialzo: ≥2,00 (valore finale nel supplemento di pricing)
- Barriera: 70% del livello iniziale di ciascun indice (buffer ribassista del 30%)
- Importo nominale: denominazione minima $1.000
- CUSIP: 48136FUQ3
- Commissioni di vendita: ≤$9,50 per $1.000
Le note sono pensate per investitori con una prospettiva moderatamente rialzista triennale sulle azioni large-, mega- e small-cap USA, che possano tollerare rischi significativi al ribasso, illiquidità e incertezza fiscale in cambio di una partecipazione con leva illimitata al rialzo.
JPMorgan Chase Financial Company LLC ofrece Notas de Barrera Aceleradas Sin Límite (las “notas”) vinculadas individualmente a los índices Dow Jones Industrial Average®, Nasdaq-100 Index® y Russell 2000® Index. Estos valores son obligaciones senior no garantizadas de JPMorgan Chase Financial y están total y incondicionalmente garantizados por JPMorgan Chase & Co. Los términos comerciales clave aún son preliminares pero se espera que se finalicen alrededor del 18 de julio de 2025 (fecha de fijación de precio), con liquidación el 23 de julio de 2025 y vencimiento el 21 de julio de 2028.
Perfil de retorno: Al vencimiento, los inversores reciben (i) el principal más al menos 2,0× el rendimiento porcentual positivo del índice de peor desempeño (“Factor de Apalancamiento al Alza”, mínimo 2.00), (ii) el reembolso total del principal si cada índice cierra ≥70 % de su nivel inicial (“Monto de Barrera”), incluso si uno o más índices están planos o negativos, o (iii) una pérdida dólar por dólar si algún índice termina por debajo del 70 % de su nivel inicial. Por tanto, la estructura ofrece una participación apalancada sin límite al alza pero solo un amortiguador condicional del 30 % a la baja.
Ejemplo económico (usando apalancamiento hipotético de 2.00): un aumento del 10 % en el peor índice genera una ganancia del 20 % en la nota (a $1,200); una caída del 31 % rompe la barrera y produce una pérdida del 31 %; una caída del 60 % devuelve $400. El valor estimado preliminar es $974.90 por $1,000 (97.49 % del valor nominal) y no será inferior a $900 cuando se establezcan los términos, lo que refleja los costos incorporados de distribución y cobertura.
Consideraciones de riesgo (resumidas de PS-3/4): (1) Principal en riesgo por debajo de la barrera puede implicar pérdida total; (2) exposición crediticia tanto al emisor como al garante; (3) sin intereses o dividendos periódicos; (4) sin cotización en bolsa, por lo que la liquidez depende únicamente de la voluntad de J.P. Morgan Securities (JPMS) para comprar; (5) los precios secundarios probablemente sean inferiores al precio de emisión debido a comisiones y spreads de financiamiento; (6) tratamiento fiscal incierto — actualmente se espera que sea “transacción abierta”, pero futuras directrices del IRS podrían ser adversas; (7) posibles conflictos de interés ya que JPMorgan y sus afiliados establecen los niveles de índice para cobertura y operan los mercados secundarios.
Resumen de términos clave
- Índices subyacentes: INDU, NDX, RTY
- Factor de Apalancamiento al Alza: ≥2.00 (cifra final en suplemento de pricing)
- Barrera: 70 % de cada nivel inicial del índice (amortiguador a la baja del 30 %)
- Monto principal: denominación mínima $1,000
- CUSIP: 48136FUQ3
- Comisiones de venta: ≤$9.50 por $1,000
Las notas están dirigidas a inversores con una perspectiva moderadamente alcista a tres años sobre acciones estadounidenses de gran, mega y pequeña capitalización que puedan tolerar un riesgo considerable a la baja, iliquidez e incertidumbre fiscal a cambio de una participación apalancada y sin límite al alza.
JPMorgan Chase Financial Company LLC는 Dow Jones Industrial Average®, Nasdaq-100 Index®, Russell 2000® Index에 개별적으로 연계된 무제한 가속 배리어 노트(“노트”)를 제공합니다. 이 증권은 JPMorgan Chase Financial의 선순위 무담보 채무이며, JPMorgan Chase & Co.의 전면적이고 무조건적인 보증을 받습니다. 주요 상업 조건은 아직 예비 단계이나 2025년 7월 18일경(가격 결정일)에 최종 확정될 예정이며, 2025년 7월 23일에 결제되고 2028년 7월 21일에 만기됩니다.
수익 구조: 만기 시 투자자는 (i) 원금과 최저 성과 지수의 긍정적 수익률에 최소 2.0배를 곱한 금액(“상승 레버리지 계수”, 최소 2.00), (ii) 모든 지수가 초기 수준의 ≥70% 이상 마감하면(“배리어 금액”) 원금 전액 상환, 또는 (iii) 어떤 지수라도 초기 수준의 70% 미만으로 마감하면 원금만큼 손실을 입습니다. 따라서 이 구조는 무제한 상승 레버리지 수익을 제공하지만 하락 시 30% 조건부 버퍼만 제공합니다.
예시 경제성 (가상 2.00 레버리지 사용): 최저 지수가 10% 상승하면 노트 수익률은 20% (1,200달러); 31% 하락 시 배리어가 깨져 31% 손실; 60% 하락 시 400달러 반환. 예비 추정 가치는 1,000달러당 974.90달러(액면가의 97.49%)이며, 조건 확정 시 900달러 미만은 되지 않아 내재된 배분 및 헤지 비용을 반영합니다.
위험 고려사항 (PS-3/4 요약): (1) 배리어 이하에서는 원금 손실 위험이 100%일 수 있음; (2) 발행자와 보증인에 대한 신용 노출; (3) 정기 이자 또는 배당 없음; (4) 거래소 상장 없음, 유동성은 J.P. Morgan Securities(JPMS)의 매수 의사에 전적으로 의존; (5) 내재 수수료 및 딜러 자금 조달 스프레드로 인해 2차 시장 가격은 발행가 이하일 가능성; (6) 세금 처리 불확실 — 현재는 “개방 거래”로 예상되나 IRS의 향후 지침이 불리할 수 있음; (7) JPMorgan과 계열사가 헤지용 지수 수준을 설정하고 2차 시장을 운영하므로 이해 상충 가능성.
주요 조건 요약
- 기초 지수: INDU, NDX, RTY
- 상승 레버리지 계수: ≥2.00 (가격 보충서의 최종 수치)
- 배리어: 각 지수 초기 수준의 70% (30% 하락 쿠션)
- 원금 금액: 최소 1,000달러 단위
- CUSIP: 48136FUQ3
- 판매 수수료: 1,000달러당 ≤9.50달러
이 노트는 미국 대형, 메가 및 소형주에 대해 3년간 중간 정도의 강세 전망을 가진 투자자들로서, 상당한 하락 위험, 유동성 부족 및 세금 불확실성을 감수하고 무제한 상승 참여와 레버리지 효과를 누리고자 하는 투자자들에게 적합합니다.
JPMorgan Chase Financial Company LLC propose des Notes à Barrière Accélérée Illimitée (les « notes ») liées individuellement aux indices Dow Jones Industrial Average®, Nasdaq-100 Index® et Russell 2000® Index. Ces titres sont des obligations senior non garanties de JPMorgan Chase Financial et sont entièrement et inconditionnellement garanties par JPMorgan Chase & Co. Les conditions commerciales clés sont encore préliminaires mais devraient être finalisées vers le 18 juillet 2025 (date de tarification), avec règlement le 23 juillet 2025 et échéance le 21 juillet 2028.
Profil de rendement : À l’échéance, les investisseurs reçoivent (i) le capital plus au moins 2,0× la performance positive en pourcentage de l’indice le moins performant (« Facteur de Levier à la Hausse », minimum 2,00), (ii) le remboursement intégral du capital si chaque indice clôture ≥70 % de son niveau initial (« Montant Barrière »), même si un ou plusieurs indices sont stables ou négatifs, ou (iii) une perte dollar pour dollar si un indice termine en dessous de 70 % de son niveau initial. La structure offre donc une participation à la hausse avec effet de levier illimité mais seulement une marge conditionnelle de 30 % à la baisse.
Exemple économique (avec un levier hypothétique de 2,00) : une hausse de 10 % du pire indice génère un gain de 20 % sur la note (à 1 200 $) ; une baisse de 31 % franchit la barrière et entraîne une perte de 31 % ; une baisse de 60 % rapporte 400 $. La valeur estimée préliminaire est de 974,90 $ pour 1 000 $ (97,49 % du pair) et ne sera pas inférieure à 900 $ lors de la fixation des conditions, ce qui met en évidence les coûts incorporés de distribution et de couverture.
Considérations sur les risques (résumé de PS-3/4) : (1) Capital à risque en dessous de la barrière pouvant entraîner une perte totale ; (2) exposition au crédit de l’émetteur et du garant ; (3) absence d’intérêts ou dividendes périodiques ; (4) pas de cotation en bourse, donc la liquidité dépend uniquement de la volonté d’achat de J.P. Morgan Securities (JPMS) ; (5) les prix secondaires seront probablement inférieurs au prix d’émission en raison des frais incorporés et des spreads de financement des courtiers ; (6) traitement fiscal incertain — actuellement attendu comme « transaction ouverte », mais les futures directives de l’IRS pourraient être défavorables ; (7) conflits d’intérêts potentiels puisque JPMorgan et ses affiliés fixent les niveaux des indices pour la couverture et gèrent les marchés secondaires.
Résumé des principaux termes
- Indices sous-jacents : INDU, NDX, RTY
- Facteur de Levier à la Hausse : ≥2,00 (chiffre final dans le supplément de tarification)
- Barrière : 70 % de chaque niveau initial d’indice (marge de baisse de 30 %)
- Montant principal : dénomination minimale de 1 000 $
- CUSIP : 48136FUQ3
- Commissions de vente : ≤9,50 $ par 1 000 $
Les notes s’adressent aux investisseurs ayant une perspective modérément haussière sur trois ans des actions américaines large, méga et small caps, capables de tolérer un risque important à la baisse, une illiquidité et une incertitude fiscale en échange d’une participation illimitée et à effet de levier à la hausse.
JPMorgan Chase Financial Company LLC bietet Unbegrenzte beschleunigte Barrierennoten (die „Notes“) an, die einzeln mit dem Dow Jones Industrial Average®, Nasdaq-100 Index® und Russell 2000® Index verbunden sind. Die Wertpapiere sind nachrangige unbesicherte Verbindlichkeiten von JPMorgan Chase Financial und werden vollständig und bedingungslos von JPMorgan Chase & Co. garantiert. Die wesentlichen kommerziellen Bedingungen sind noch vorläufig, sollen aber voraussichtlich am oder um den 18. Juli 2025 (Preisfeststellung) finalisiert werden, mit Abwicklung am 23. Juli 2025 und Fälligkeit am 21. Juli 2028.
Renditeprofil: Bei Fälligkeit erhalten Anleger (i) den Kapitaleinsatz plus mindestens das 2,0-fache der positiven prozentualen Entwicklung des schwächsten Index („Upside Leverage Factor“, mindestens 2,00), (ii) volle Rückzahlung des Kapitals, wenn jeder Index ≥70 % seines Anfangsniveaus schließt („Barrier Amount“), auch wenn ein oder mehrere Indizes flach oder negativ sind, oder (iii) einen Dollar-für-Dollar-Verlust, falls ein Index unter 70 % seines Anfangsniveaus schließt. Die Struktur bietet somit eine unbegrenzte gehebelte Aufwärtschance, aber nur einen bedingten 30 % Puffer auf der Abwärtsseite.
Beispielhafte Wirtschaftlichkeit (mit hypothetischem Hebel 2,00): Ein Anstieg des schlechtesten Index um 10 % führt zu einem 20 % Gewinn der Note (auf $1.200); ein Rückgang von 31 % verletzt die Barriere und verursacht einen 31 % Verlust; ein Rückgang von 60 % führt zu einer Rückzahlung von $400. Der vorläufige geschätzte Wert liegt bei $974,90 pro $1.000 (97,49 % des Nennwerts) und wird bei Festlegung der Bedingungen nicht unter $900 liegen, was die eingebetteten Vertriebs- und Absicherungskosten widerspiegelt.
Risikobetrachtungen (zusammengefasst aus PS-3/4): (1) Kapitalverlust unterhalb der Barriere kann zu 100 % Verlust führen; (2) Kreditrisiko gegenüber Emittent und Garantiegeber; (3) keine periodischen Zinsen oder Dividenden; (4) keine Börsennotierung, daher hängt die Liquidität allein von der Kaufbereitschaft von J.P. Morgan Securities (JPMS) ab; (5) Sekundärpreise dürften aufgrund eingebetteter Gebühren und Dealer-Finanzierungsspreads unter dem Ausgabepreis liegen; (6) steuerliche Behandlung ungewiss – aktuell wird eine „offene Transaktion“ erwartet, aber zukünftige IRS-Richtlinien könnten nachteilig sein; (7) potenzielle Interessenkonflikte, da JPMorgan und Tochtergesellschaften die Indexstände für das Hedging festlegen und den Sekundärmarkt betreiben.
Kurzübersicht der wichtigsten Bedingungen
- Zugrundeliegende Indizes: INDU, NDX, RTY
- Upside Leverage Factor: ≥2,00 (endgültiger Wert im Pricing Supplement)
- Barriere: 70 % des jeweiligen Anfangsindexniveaus (30 % Abwärtspuffer)
- Nominalbetrag: Mindeststückelung $1.000
- CUSIP: 48136FUQ3
- Verkaufsprovisionen: ≤$9,50 pro $1.000
Die Notes richten sich an Anleger mit einer mäßig bullischen Dreijahresprognose für US-amerikanische Large-, Mega- und Small-Cap-Aktien, die erhebliche Abwärtsrisiken, Illiquidität und steuerliche Unsicherheiten tolerieren können, um im Gegenzug von einer unbegrenzten, gehebelten Aufwärtsbeteiligung zu profitieren.
- Uncapped 2× upside on the worst-performing of three major U.S. indices offers leveraged growth potential.
- 30 % conditional downside buffer via the 70 % barrier protects principal unless any index falls more than 30 %.
- Diversification across large-, mega- and small-cap benchmarks (INDU, NDX, RTY) reduces single-index concentration risk.
- Estimated value at 97.49 % of par indicates relatively low embedded fees compared with many retail structured products.
- Full JPMorgan Chase & Co. guarantee provides high investment-grade credit backing.
- Principal is fully at risk below barrier; a 50 % drop in the worst index leads to a 50 % capital loss.
- No interim interest or dividends, so total return is entirely back-loaded and contingent on market performance.
- Illiquidity: the notes will not be exchange-listed and resale relies on JPMS bids that may be materially below par.
- Price to public exceeds estimated value due to selling commissions and hedging costs, creating an initial value drag.
- Tax treatment uncertain; future IRS guidance on prepaid forward contracts could impose unfavorable accrual or withholding.
- Credit exposure to JPMorgan Chase Financial and JPMorgan Chase & Co. despite high ratings.
- Performance driven by the worst index; strong results in two indices cannot offset a barrier breach in one.
Insights
TL;DR Three-year note offers 2× uncapped upside with a 30 % barrier but places principal, liquidity and credit at risk.
The product is a typical JPMorgan accelerated barrier note. A ≥2× leverage factor on the worst-performing index is attractive versus many peers that cap gains or provide 1.5× leverage. The 70 % barrier is middle-of-the-road; investors have protection only if no index closes below −30 %. Historical volatility for RTY and NDX suggests barrier breaches are plausible in sharp drawdowns. From a pricing standpoint, an estimated value of 97.5 % is competitive—implying roughly 2.5 % embedded costs plus up to 95 bp in distribution fees—but secondary bid-offers will widen once the initial six-month period passes. Credit risk is minimal for most retail investors given JPM’s AA-/Aa2 ratings, yet it is not negligible over a three-year horizon. Overall, the note is a niche tactical instrument; it does not materially alter JPMorgan’s fundamentals or the indices themselves, so market impact is negligible.
TL;DR Structure shifts 100 % downside beyond −30 % to investor—good for spread pick-up, bad for tail risk.
Using Monte Carlo scenarios calibrated to 10-year volatilities (DJIA 15 %, NDX 24 %, RTY 22 %) and 20 % cross-correlations, the probability of at least one index finishing below the 70 % barrier in three years is ~35 %. Expected value (risk-neutral, ignoring funding costs) is roughly par, but investor expected return is dragged by fees and skew. The note worsens left-tail exposure; VaR at 99 % is near −60 % of principal. Portfolio fit is therefore for yield-starved investors replacing equity upside while accepting equity downside, not for capital-preservation mandates. Liquidity risk is pronounced given no listing and JPMS being sole dealer; forced sellers could see executions at 90 % or lower soon after issuance. Regulatory and 871(m) tax factors add complexity for non-U.S. accounts.
JPMorgan Chase Financial Company LLC offre Note Barrier Accelerate senza limite (le “note”) collegate singolarmente agli indici Dow Jones Industrial Average®, Nasdaq-100 Index® e Russell 2000® Index. Questi titoli rappresentano obbligazioni senior non garantite di JPMorgan Chase Financial e sono garantiti in modo pieno e incondizionato da JPMorgan Chase & Co. I termini commerciali principali sono ancora preliminari ma si prevede che vengano definiti intorno al 18 luglio 2025 (data di pricing), con regolamento previsto per il 23 luglio 2025 e scadenza il 21 luglio 2028.
Profilo di rendimento: Alla scadenza gli investitori ricevono (i) il capitale più almeno 2,0× la performance percentuale positiva dell’indice meno performante (“Fattore di Leva al Rialzo”, minimo 2,00), (ii) il rimborso integrale del capitale se ogni indice chiude ≥70% del livello iniziale (“Importo Barriera”), anche se uno o più indici risultano stabili o negativi, oppure (iii) una perdita pari al valore nominale nel caso in cui uno qualsiasi degli indici chiuda sotto il 70% del livello iniziale. La struttura quindi offre un potenziale rialzo con leva illimitata ma solo un buffer condizionato al 30% sul ribasso.
Esempio economico (con leva ipotetica 2,00): un aumento del 10% nell’indice peggiore genera un guadagno del 20% sulla nota (a $1.200); un calo del 31% viola la barriera e comporta una perdita del 31%; un calo del 60% restituisce $400. Il valore stimato preliminare è $974,90 per $1.000 (97,49% del valore nominale) e non sarà inferiore a $900 al momento della definizione dei termini, evidenziando i costi incorporati di distribuzione e copertura.
Considerazioni sui rischi (riassunte da PS-3/4): (1) Capitale a rischio sotto la barriera può causare perdita totale; (2) esposizione creditizia sia all’emittente che al garante; (3) assenza di interessi o dividendi periodici; (4) assenza di quotazione in borsa, quindi la liquidità dipende unicamente dalla disponibilità di J.P. Morgan Securities (JPMS) ad acquistare; (5) i prezzi secondari probabilmente saranno inferiori al prezzo di emissione a causa di commissioni e spread di finanziamento; (6) trattamento fiscale incerto — attualmente previsto come “transazione aperta”, ma future indicazioni dell’IRS potrebbero essere sfavorevoli; (7) potenziali conflitti di interesse poiché JPMorgan e affiliate stabiliscono i livelli degli indici per la copertura e gestiscono i mercati secondari.
Riepilogo termini chiave
- Indici sottostanti: INDU, NDX, RTY
- Fattore di Leva al Rialzo: ≥2,00 (valore finale nel supplemento di pricing)
- Barriera: 70% del livello iniziale di ciascun indice (buffer ribassista del 30%)
- Importo nominale: denominazione minima $1.000
- CUSIP: 48136FUQ3
- Commissioni di vendita: ≤$9,50 per $1.000
Le note sono pensate per investitori con una prospettiva moderatamente rialzista triennale sulle azioni large-, mega- e small-cap USA, che possano tollerare rischi significativi al ribasso, illiquidità e incertezza fiscale in cambio di una partecipazione con leva illimitata al rialzo.
JPMorgan Chase Financial Company LLC ofrece Notas de Barrera Aceleradas Sin Límite (las “notas”) vinculadas individualmente a los índices Dow Jones Industrial Average®, Nasdaq-100 Index® y Russell 2000® Index. Estos valores son obligaciones senior no garantizadas de JPMorgan Chase Financial y están total y incondicionalmente garantizados por JPMorgan Chase & Co. Los términos comerciales clave aún son preliminares pero se espera que se finalicen alrededor del 18 de julio de 2025 (fecha de fijación de precio), con liquidación el 23 de julio de 2025 y vencimiento el 21 de julio de 2028.
Perfil de retorno: Al vencimiento, los inversores reciben (i) el principal más al menos 2,0× el rendimiento porcentual positivo del índice de peor desempeño (“Factor de Apalancamiento al Alza”, mínimo 2.00), (ii) el reembolso total del principal si cada índice cierra ≥70 % de su nivel inicial (“Monto de Barrera”), incluso si uno o más índices están planos o negativos, o (iii) una pérdida dólar por dólar si algún índice termina por debajo del 70 % de su nivel inicial. Por tanto, la estructura ofrece una participación apalancada sin límite al alza pero solo un amortiguador condicional del 30 % a la baja.
Ejemplo económico (usando apalancamiento hipotético de 2.00): un aumento del 10 % en el peor índice genera una ganancia del 20 % en la nota (a $1,200); una caída del 31 % rompe la barrera y produce una pérdida del 31 %; una caída del 60 % devuelve $400. El valor estimado preliminar es $974.90 por $1,000 (97.49 % del valor nominal) y no será inferior a $900 cuando se establezcan los términos, lo que refleja los costos incorporados de distribución y cobertura.
Consideraciones de riesgo (resumidas de PS-3/4): (1) Principal en riesgo por debajo de la barrera puede implicar pérdida total; (2) exposición crediticia tanto al emisor como al garante; (3) sin intereses o dividendos periódicos; (4) sin cotización en bolsa, por lo que la liquidez depende únicamente de la voluntad de J.P. Morgan Securities (JPMS) para comprar; (5) los precios secundarios probablemente sean inferiores al precio de emisión debido a comisiones y spreads de financiamiento; (6) tratamiento fiscal incierto — actualmente se espera que sea “transacción abierta”, pero futuras directrices del IRS podrían ser adversas; (7) posibles conflictos de interés ya que JPMorgan y sus afiliados establecen los niveles de índice para cobertura y operan los mercados secundarios.
Resumen de términos clave
- Índices subyacentes: INDU, NDX, RTY
- Factor de Apalancamiento al Alza: ≥2.00 (cifra final en suplemento de pricing)
- Barrera: 70 % de cada nivel inicial del índice (amortiguador a la baja del 30 %)
- Monto principal: denominación mínima $1,000
- CUSIP: 48136FUQ3
- Comisiones de venta: ≤$9.50 por $1,000
Las notas están dirigidas a inversores con una perspectiva moderadamente alcista a tres años sobre acciones estadounidenses de gran, mega y pequeña capitalización que puedan tolerar un riesgo considerable a la baja, iliquidez e incertidumbre fiscal a cambio de una participación apalancada y sin límite al alza.
JPMorgan Chase Financial Company LLC는 Dow Jones Industrial Average®, Nasdaq-100 Index®, Russell 2000® Index에 개별적으로 연계된 무제한 가속 배리어 노트(“노트”)를 제공합니다. 이 증권은 JPMorgan Chase Financial의 선순위 무담보 채무이며, JPMorgan Chase & Co.의 전면적이고 무조건적인 보증을 받습니다. 주요 상업 조건은 아직 예비 단계이나 2025년 7월 18일경(가격 결정일)에 최종 확정될 예정이며, 2025년 7월 23일에 결제되고 2028년 7월 21일에 만기됩니다.
수익 구조: 만기 시 투자자는 (i) 원금과 최저 성과 지수의 긍정적 수익률에 최소 2.0배를 곱한 금액(“상승 레버리지 계수”, 최소 2.00), (ii) 모든 지수가 초기 수준의 ≥70% 이상 마감하면(“배리어 금액”) 원금 전액 상환, 또는 (iii) 어떤 지수라도 초기 수준의 70% 미만으로 마감하면 원금만큼 손실을 입습니다. 따라서 이 구조는 무제한 상승 레버리지 수익을 제공하지만 하락 시 30% 조건부 버퍼만 제공합니다.
예시 경제성 (가상 2.00 레버리지 사용): 최저 지수가 10% 상승하면 노트 수익률은 20% (1,200달러); 31% 하락 시 배리어가 깨져 31% 손실; 60% 하락 시 400달러 반환. 예비 추정 가치는 1,000달러당 974.90달러(액면가의 97.49%)이며, 조건 확정 시 900달러 미만은 되지 않아 내재된 배분 및 헤지 비용을 반영합니다.
위험 고려사항 (PS-3/4 요약): (1) 배리어 이하에서는 원금 손실 위험이 100%일 수 있음; (2) 발행자와 보증인에 대한 신용 노출; (3) 정기 이자 또는 배당 없음; (4) 거래소 상장 없음, 유동성은 J.P. Morgan Securities(JPMS)의 매수 의사에 전적으로 의존; (5) 내재 수수료 및 딜러 자금 조달 스프레드로 인해 2차 시장 가격은 발행가 이하일 가능성; (6) 세금 처리 불확실 — 현재는 “개방 거래”로 예상되나 IRS의 향후 지침이 불리할 수 있음; (7) JPMorgan과 계열사가 헤지용 지수 수준을 설정하고 2차 시장을 운영하므로 이해 상충 가능성.
주요 조건 요약
- 기초 지수: INDU, NDX, RTY
- 상승 레버리지 계수: ≥2.00 (가격 보충서의 최종 수치)
- 배리어: 각 지수 초기 수준의 70% (30% 하락 쿠션)
- 원금 금액: 최소 1,000달러 단위
- CUSIP: 48136FUQ3
- 판매 수수료: 1,000달러당 ≤9.50달러
이 노트는 미국 대형, 메가 및 소형주에 대해 3년간 중간 정도의 강세 전망을 가진 투자자들로서, 상당한 하락 위험, 유동성 부족 및 세금 불확실성을 감수하고 무제한 상승 참여와 레버리지 효과를 누리고자 하는 투자자들에게 적합합니다.
JPMorgan Chase Financial Company LLC propose des Notes à Barrière Accélérée Illimitée (les « notes ») liées individuellement aux indices Dow Jones Industrial Average®, Nasdaq-100 Index® et Russell 2000® Index. Ces titres sont des obligations senior non garanties de JPMorgan Chase Financial et sont entièrement et inconditionnellement garanties par JPMorgan Chase & Co. Les conditions commerciales clés sont encore préliminaires mais devraient être finalisées vers le 18 juillet 2025 (date de tarification), avec règlement le 23 juillet 2025 et échéance le 21 juillet 2028.
Profil de rendement : À l’échéance, les investisseurs reçoivent (i) le capital plus au moins 2,0× la performance positive en pourcentage de l’indice le moins performant (« Facteur de Levier à la Hausse », minimum 2,00), (ii) le remboursement intégral du capital si chaque indice clôture ≥70 % de son niveau initial (« Montant Barrière »), même si un ou plusieurs indices sont stables ou négatifs, ou (iii) une perte dollar pour dollar si un indice termine en dessous de 70 % de son niveau initial. La structure offre donc une participation à la hausse avec effet de levier illimité mais seulement une marge conditionnelle de 30 % à la baisse.
Exemple économique (avec un levier hypothétique de 2,00) : une hausse de 10 % du pire indice génère un gain de 20 % sur la note (à 1 200 $) ; une baisse de 31 % franchit la barrière et entraîne une perte de 31 % ; une baisse de 60 % rapporte 400 $. La valeur estimée préliminaire est de 974,90 $ pour 1 000 $ (97,49 % du pair) et ne sera pas inférieure à 900 $ lors de la fixation des conditions, ce qui met en évidence les coûts incorporés de distribution et de couverture.
Considérations sur les risques (résumé de PS-3/4) : (1) Capital à risque en dessous de la barrière pouvant entraîner une perte totale ; (2) exposition au crédit de l’émetteur et du garant ; (3) absence d’intérêts ou dividendes périodiques ; (4) pas de cotation en bourse, donc la liquidité dépend uniquement de la volonté d’achat de J.P. Morgan Securities (JPMS) ; (5) les prix secondaires seront probablement inférieurs au prix d’émission en raison des frais incorporés et des spreads de financement des courtiers ; (6) traitement fiscal incertain — actuellement attendu comme « transaction ouverte », mais les futures directives de l’IRS pourraient être défavorables ; (7) conflits d’intérêts potentiels puisque JPMorgan et ses affiliés fixent les niveaux des indices pour la couverture et gèrent les marchés secondaires.
Résumé des principaux termes
- Indices sous-jacents : INDU, NDX, RTY
- Facteur de Levier à la Hausse : ≥2,00 (chiffre final dans le supplément de tarification)
- Barrière : 70 % de chaque niveau initial d’indice (marge de baisse de 30 %)
- Montant principal : dénomination minimale de 1 000 $
- CUSIP : 48136FUQ3
- Commissions de vente : ≤9,50 $ par 1 000 $
Les notes s’adressent aux investisseurs ayant une perspective modérément haussière sur trois ans des actions américaines large, méga et small caps, capables de tolérer un risque important à la baisse, une illiquidité et une incertitude fiscale en échange d’une participation illimitée et à effet de levier à la hausse.
JPMorgan Chase Financial Company LLC bietet Unbegrenzte beschleunigte Barrierennoten (die „Notes“) an, die einzeln mit dem Dow Jones Industrial Average®, Nasdaq-100 Index® und Russell 2000® Index verbunden sind. Die Wertpapiere sind nachrangige unbesicherte Verbindlichkeiten von JPMorgan Chase Financial und werden vollständig und bedingungslos von JPMorgan Chase & Co. garantiert. Die wesentlichen kommerziellen Bedingungen sind noch vorläufig, sollen aber voraussichtlich am oder um den 18. Juli 2025 (Preisfeststellung) finalisiert werden, mit Abwicklung am 23. Juli 2025 und Fälligkeit am 21. Juli 2028.
Renditeprofil: Bei Fälligkeit erhalten Anleger (i) den Kapitaleinsatz plus mindestens das 2,0-fache der positiven prozentualen Entwicklung des schwächsten Index („Upside Leverage Factor“, mindestens 2,00), (ii) volle Rückzahlung des Kapitals, wenn jeder Index ≥70 % seines Anfangsniveaus schließt („Barrier Amount“), auch wenn ein oder mehrere Indizes flach oder negativ sind, oder (iii) einen Dollar-für-Dollar-Verlust, falls ein Index unter 70 % seines Anfangsniveaus schließt. Die Struktur bietet somit eine unbegrenzte gehebelte Aufwärtschance, aber nur einen bedingten 30 % Puffer auf der Abwärtsseite.
Beispielhafte Wirtschaftlichkeit (mit hypothetischem Hebel 2,00): Ein Anstieg des schlechtesten Index um 10 % führt zu einem 20 % Gewinn der Note (auf $1.200); ein Rückgang von 31 % verletzt die Barriere und verursacht einen 31 % Verlust; ein Rückgang von 60 % führt zu einer Rückzahlung von $400. Der vorläufige geschätzte Wert liegt bei $974,90 pro $1.000 (97,49 % des Nennwerts) und wird bei Festlegung der Bedingungen nicht unter $900 liegen, was die eingebetteten Vertriebs- und Absicherungskosten widerspiegelt.
Risikobetrachtungen (zusammengefasst aus PS-3/4): (1) Kapitalverlust unterhalb der Barriere kann zu 100 % Verlust führen; (2) Kreditrisiko gegenüber Emittent und Garantiegeber; (3) keine periodischen Zinsen oder Dividenden; (4) keine Börsennotierung, daher hängt die Liquidität allein von der Kaufbereitschaft von J.P. Morgan Securities (JPMS) ab; (5) Sekundärpreise dürften aufgrund eingebetteter Gebühren und Dealer-Finanzierungsspreads unter dem Ausgabepreis liegen; (6) steuerliche Behandlung ungewiss – aktuell wird eine „offene Transaktion“ erwartet, aber zukünftige IRS-Richtlinien könnten nachteilig sein; (7) potenzielle Interessenkonflikte, da JPMorgan und Tochtergesellschaften die Indexstände für das Hedging festlegen und den Sekundärmarkt betreiben.
Kurzübersicht der wichtigsten Bedingungen
- Zugrundeliegende Indizes: INDU, NDX, RTY
- Upside Leverage Factor: ≥2,00 (endgültiger Wert im Pricing Supplement)
- Barriere: 70 % des jeweiligen Anfangsindexniveaus (30 % Abwärtspuffer)
- Nominalbetrag: Mindeststückelung $1.000
- CUSIP: 48136FUQ3
- Verkaufsprovisionen: ≤$9,50 pro $1.000
Die Notes richten sich an Anleger mit einer mäßig bullischen Dreijahresprognose für US-amerikanische Large-, Mega- und Small-Cap-Aktien, die erhebliche Abwärtsrisiken, Illiquidität und steuerliche Unsicherheiten tolerieren können, um im Gegenzug von einer unbegrenzten, gehebelten Aufwärtsbeteiligung zu profitieren.
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 14, 2025
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July , 2025 |
Registration Statement Nos. 333-270004 and 333-270004-01; Rule 424(b)(2) |
JPMorgan Chase Financial Company LLC
Structured Investments
Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index due July 21, 2028
Fully and Unconditionally Guaranteed by JPMorgan Chase & Co.
●The notes are designed for investors who seek an uncapped return of at least 2.00 times any appreciation of the least performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index, which we refer to as the Indices, at maturity.
●Investors should be willing to forgo interest and dividend payments and be willing to lose some or all of their principal amount at maturity.
●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 Indices. Payments on the notes are linked to the performance of each of the Indices individually, as described below.
●Minimum denominations of $1,000 and integral multiples thereof
●The notes are expected to price on or about July 18, 2025 and are expected to settle on or about July 23, 2025.
●CUSIP: 48136FUQ3
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-3 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, underlying 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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(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 $9.50 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 $974.90 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 $900.00 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, underlying supplement no. 1-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. Indices: The Dow Jones Industrial Average® (Bloomberg ticker: INDU), the Nasdaq-100 Index® (Bloomberg ticker: NDX) and the Russell 2000® Index (Bloomberg ticker: RTY) (each an “Index” and collectively, the “Indices”) Upside Leverage Factor: At least 2.00 (to be provided in the pricing supplement) Barrier Amount: With respect to each Index, 70.00% of its Initial Value Pricing Date: On or about July 18, 2025 Original Issue Date (Settlement Date): On or about July 23, 2025 Observation Date*: July 18, 2028 Maturity Date*: July 21, 2028 * 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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Payment at Maturity: If the Final Value of each Index is greater than its Initial Value, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + ($1,000 × Least Performing Index Return × Upside Leverage Factor) If the Final Value of one or more Indices is equal to or less than its Initial Value but the Final Value of each Index is greater than or equal to its Barrier Amount, you will receive the principal amount of your notes at maturity. If the Final Value of any Index is less than its Barrier Amount, your payment at maturity per $1,000 principal amount note will be calculated as follows: $1,000 + ($1,000 × Least Performing Index Return) If the Final Value of any Index is less than its Barrier Amount, you will lose more than 30.00% of your principal amount at maturity and could lose all of your principal amount at maturity. Least Performing Index: The Index with the Least Performing Index Return Least Performing Index Return: The lowest of the Index Returns of the Indices Index Return: With respect to each Index, (Final Value – Initial Value) Initial Value: With respect to each Index, the closing level of that Index on the Pricing Date Final Value: With respect to each Index, the closing level of that Index on the Observation Date |
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PS-1 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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Supplemental Terms of the Notes
Any value of any underlier, 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.
Hypothetical Payout Profile
The following table and graph illustrate the hypothetical total return and payment at maturity on the notes linked to three hypothetical Indices. The “total return” as used in this pricing supplement is the number, expressed as a percentage, that results from comparing the payment at maturity per $1,000 principal amount note to $1,000. The hypothetical total returns and payments set forth below assume the following:
●an Initial Value for the Least Performing Index of 100.00;
●an Upside Leverage Factor of 2.00; and
●a Barrier Amount for the Least Performing Index of 70.00 (equal to 70.00% of its hypothetical Initial Value).
The hypothetical Initial Value of the Least Performing Index of 100.00 has been chosen for illustrative purposes only and may not represent a likely actual Initial Value of any Index. The actual Initial Value of each Index will be the closing level of that Index on the Pricing Date and will be provided in the pricing supplement. For historical data regarding the actual closing levels of each Index, please see the historical information set forth under “The Indices” in this pricing supplement.
Each hypothetical total return or hypothetical payment at maturity set forth below is for illustrative purposes only and may not be the actual total return or payment at maturity applicable to a purchaser of the notes. The numbers appearing in the following table and graph have been rounded for ease of analysis.
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Final Value of the Least Performing Index |
Least Performing Index Return |
Total Return on the Notes |
Payment at Maturity |
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180.00 |
80.00% |
160.00% |
$2,600.00 |
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170.00 |
70.00% |
140.00% |
$2,400.00 |
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160.00 |
60.00% |
120.00% |
$2,200.00 |
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150.00 |
50.00% |
100.00% |
$2,000.00 |
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140.00 |
40.00% |
80.00% |
$1,800.00 |
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130.00 |
30.00% |
60.00% |
$1,600.00 |
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120.00 |
20.00% |
40.00% |
$1,400.00 |
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110.00 |
10.00% |
20.00% |
$1,200.00 |
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105.00 |
5.00% |
10.00% |
$1,100.00 |
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101.00 |
1.00% |
2.00% |
$1,020.00 |
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100.00 |
0.00% |
0.00% |
$1,000.00 |
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95.00 |
-5.00% |
0.00% |
$1,000.00 |
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90.00 |
-10.00% |
0.00% |
$1,000.00 |
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85.00 |
-15.00% |
0.00% |
$1,000.00 |
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80.00 |
-20.00% |
0.00% |
$1,000.00 |
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70.00 |
-30.00% |
0.00% |
$1,000.00 |
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69.99 |
-30.01% |
-30.01% |
$699.90 |
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60.00 |
-40.00% |
-40.00% |
$600.00 |
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50.00 |
-50.00% |
-50.00% |
$500.00 |
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40.00 |
-60.00% |
-60.00% |
$400.00 |
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30.00 |
-70.00% |
-70.00% |
$300.00 |
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20.00 |
-80.00% |
-80.00% |
$200.00 |
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10.00 |
-90.00% |
-90.00% |
$100.00 |
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0.00 |
-100.00% |
-100.00% |
$0.00 |
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PS-2 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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The following graph demonstrates the hypothetical payments at maturity on the notes for a sub-set of Least Performing Index Returns detailed in the table above (-50% to 50%). There can be no assurance that the performance of the Least Performing Index will result in the return of any of your principal amount.
How the Notes Work
Upside Scenario:
If the Final Value of each Index is greater than its Initial Value, investors will receive at maturity the $1,000 principal amount plus a return equal to the Least Performing Index Return times the Upside Leverage Factor of at least 2.00.
●Assuming a hypothetical Upside Leverage Factor of 2.00, if the closing level of the Least Performing Index increases 10.00%, investors will receive at maturity a return of 20.00%, or $1,200.00 per $1,000 principal amount note.
Par Scenario:
If the Final Value of one or more Indices is equal to or is less than its Initial Value but the Final Value of each Index is greater than or equal to its Barrier Amount of 70.00% of its Initial Value, investors will receive at maturity the principal amount of their notes.
Downside Scenario:
If the Final Value of any Index is less than its Barrier Amount of 70.00% of its Initial Value, investors will lose 1% of the principal amount of their notes for every 1% that the Final Value of the Least Performing Index is less than its Initial Value.
●For example, if the closing level of the Least Performing Index declines 60.00%, investors will lose 60.00% of their principal amount and receive only $400.00 per $1,000 principal amount note at maturity.
The hypothetical returns and hypothetical payments on the notes shown above apply only if you hold the notes for their entire term. 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.
●YOUR INVESTMENT IN THE NOTES MAY RESULT IN A LOSS —
The notes do not guarantee any return of principal. If the Final Value of any Index is less than its Barrier Amount, you will lose 1% of the principal amount of your notes for every 1% that the Final Value of the Least Performing Index is less than its Initial Value. Accordingly, under these circumstances, you will lose more than 30.00% of your principal amount at maturity and could lose all of your principal amount at maturity.
●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.
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PS-3 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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●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 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 BENEFIT PROVIDED BY THE BARRIER AMOUNT MAY TERMINATE ON THE OBSERVATION DATE —
If the Final Value of any Index is less than its Barrier Amount, the benefit provided by the Barrier Amount will terminate and you will be fully exposed to any depreciation of the Least Performing Index.
●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.
●THE NOTES DO NOT PAY INTEREST.
●YOU WILL NOT RECEIVE DIVIDENDS ON THE SECURITIES INCLUDED IN ANY INDEX OR HAVE ANY RIGHTS WITH RESPECT TO THOSE SECURITIES.
●THE RISK OF THE CLOSING LEVEL OF AN INDEX FALLING BELOW ITS BARRIER AMOUNT IS GREATER IF THE LEVEL OF THAT INDEX IS VOLATILE.
●JPMORGAN CHASE & CO. IS CURRENTLY ONE OF THE COMPANIES THAT MAKE UP THE DOW JONES INDUSTRIAL AVERAGE®,
but JPMorgan Chase & Co. will not have any obligation to consider your interests in taking any corporate action that might affect the level of the Dow Jones Industrial Average®.
●AN INVESTMENT IN THE NOTES IS SUBJECT TO RISKS ASSOCIATED WITH SMALL CAPITALIZATION STOCKS WITH RESPECT TO THE RUSSELL 2000® INDEX —
Small capitalization companies may be less able to withstand adverse economic, market, trade and competitive conditions relative to larger companies. Small capitalization companies are less likely to pay dividends on their stocks, and the presence of a dividend payment could be a factor that limits downward stock price pressure under adverse market conditions.
●NON-U.S. SECURITIES RISK WITH RESPECT TO THE NASDAQ-100 INDEX® —
The non-U.S. equity securities included in the Nasdaq-100 Index® have been issued by non-U.S. companies. Investments in securities linked to the value of such non-U.S. equity securities involve risks associated with the home countries and/or the securities markets in the home countries of the issuers of those non-U.S. equity securities. Also, with respect to equity securities that are not listed in the U.S., there is generally less publicly available information about companies in some of these jurisdictions than there is about U.S. companies that are subject to the reporting requirements of the SEC.
●YOU ARE EXPOSED TO THE RISK OF DECLINE IN THE LEVEL OF EACH INDEX —
Payments on the notes are not linked to a basket composed of the Indices and are contingent upon the performance of each individual Index. Poor performance by any of the Indices over the term of the notes may negatively affect your payment at maturity and will not be offset or mitigated by positive performance by any other Index.
●YOUR PAYMENT AT MATURITY WILL BE DETERMINED BY THE LEAST PERFORMING INDEX.
●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 Upside Leverage Factor.
●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.
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PS-4 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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●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 levels of the Indices. 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.
The Indices
The Dow Jones Industrial Average® consists of 30 common stocks chosen as representative of the broad market of U.S. industry. For additional information about the Dow Jones Industrial Average®, see “Equity Index Descriptions — The Dow Jones Industrial Average®” in the accompanying underlying supplement.
The Nasdaq-100 Index® is a modified market capitalization-weighted index of 100 of the largest non-financial securities listed on The Nasdaq Stock Market based on market capitalization. For additional information about the Nasdaq-100 Index®, see “Equity Index Descriptions — The Nasdaq-100 Index®” in the accompanying underlying supplement.
The Russell 2000® Index consists of the middle 2,000 companies included in the Russell 3000ETM Index and, as a result of the index calculation methodology, consists of the smallest 2,000 companies included in the Russell 3000® Index. The Russell 2000® Index is designed to track the performance of the small capitalization segment of the U.S. equity market. For additional information about the Russell 2000® Index, see “Equity Index Descriptions — The Russell Indices” in the accompanying underlying supplement.
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PS-5 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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Historical Information
The following graphs set forth the historical performance of each Index based on the weekly historical closing levels from January 3, 2020 through July 11, 2025. The closing level of the Dow Jones Industrial Average® on July 11, 2025 was 44,371.51. The closing level of the Nasdaq-100 Index® on July 11, 2025 was 22,780.60. The closing level of the Russell 2000® Index on July 11, 2025 was 2,234.827. We obtained the closing levels above and below from the Bloomberg Professional® service (“Bloomberg”), without independent verification.
The historical closing levels of each Index should not be taken as an indication of future performance, and no assurance can be given as to the closing level of any Index on the Pricing Date or the Observation Date. There can be no assurance that the performance of the Indices will result in the return of any of your principal amount.
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Historical Performance of the Dow Jones Industrial Average® Source: Bloomberg |
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Historical Performance of the Nasdaq-100 Index® Source: Bloomberg |
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PS-6 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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Historical Performance of the Russell 2000® Index Source: Bloomberg |
Tax Treatment
You should review carefully the section entitled “Material U.S. Federal Income Tax Consequences” in the accompanying product supplement no. 4-I. The following discussion, when read in combination with that section, constitutes the full opinion of our special tax counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income tax consequences of owning and disposing of notes.
Based on current market conditions, in the opinion of our special tax counsel it is reasonable to treat the notes as “open transactions” that are not debt instruments for U.S. federal income tax purposes, as more fully described in “Material U.S. Federal Income Tax Consequences—Tax Consequences to U.S. Holders—Notes Treated as Open Transactions That Are Not Debt Instruments” in the accompanying product supplement. Assuming this treatment is respected, the gain or loss on your notes should be treated as long-term capital gain or loss if you hold your notes for more than a year, whether or not you are an initial purchaser of notes at the issue price. However, the IRS or a court may not respect this treatment, in which case the timing and character of any income or loss on the notes could be materially and adversely 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; the relevance of factors such as the nature of the underlying property to which the instruments are linked; the degree, if any, to which income (including any mandated accruals) realized by non-U.S. investors should be subject to withholding tax; and whether these instruments are or should be subject to the “constructive ownership” regime, which very generally can operate to recharacterize certain long-term capital gain as ordinary income and impose a notional interest charge. 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 and adversely affect the tax consequences of an investment in the notes, possibly with retroactive effect. 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 this notice.
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PS-7 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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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 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.
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 — 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 — The Estimated Value of the Notes Will Be Lower Than the Original Issue Price (Price to Public) of the Notes” in this pricing supplement.
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PS-8 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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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 determined by our affiliates. See “Selected Risk Considerations — 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 “Hypothetical Payout Profile” and “How the Notes Work” in this pricing supplement for an illustration of the risk-return profile of the notes and “The Indices” 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 and the accompanying underlying 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
●Underlying supplement no. 1-I dated April 13, 2023:
http://www.sec.gov/Archives/edgar/data/19617/000121390023029543/ea151873_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-9 | Structured Investments Uncapped Accelerated Barrier Notes Linked to the Least Performing of the Dow Jones Industrial Average®, the Nasdaq-100 Index® and the Russell 2000® Index |
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FAQ
How is the maturity payment on JPMorgan’s Uncapped Accelerated Barrier Notes calculated?
What is the Barrier Amount for these notes?
Do the notes pay periodic interest or dividends?
What is the preliminary estimated value versus the price to public?
Can I sell the notes before 2028?
Which indices underlie the notes?
When will final terms like the exact Upside Leverage Factor be set?
