WHAT YOU SHOULD KNOW BEFORE INVESTING IN MARKET-LINKED PRODUCTS

What you should know before investing in Market-Linked Products…

Speak with your financial professional about the risks and suitability of Market-Linked Products in your portfolio.

Call Risk
Some Market-Linked Products are callable, or redeemable, solely at the option of the issuer. The issuer is not obligated to redeem a callable note and will typically call Market-Linked Products when it is most advantageous for them to do so. If the MLN is called, it is possible that you may be unable to reinvest in an Products with similar or better terms. 

Credit Risk
Market-Linked Products represents a senior unsecured debt that is subject to the credit risk of the issuer. If the issuer goes into default, any return of principal, as well as interest and gains generated, could be at risk of loss. 

Fees
Market-Linked Products are subject to fees and costs, including commission paid to your financial professional, structuring and development costs, and offering expenses. There are also trading costs, including costs to hedge the product. Any sales prior to maturity will be reduced by all associated fees and costs, which are detailed in the offering documents. 

Liquidity Risk
Market-Linked Products are intended to be held until maturity, and there is no formal secondary market for the product, which makes early redemptions difficult and subject to a variety of market-related factors. If you are able to redeem Market-Linked Products prior to maturity, the redemption proceeds may be less than the amount you invested due to fluctuations in the underlying assets and other market-related factors. 

Market Risk
Market-Linked Products are linked to the performance of specified underlying assets. The return on Market-Linked Products can be adversely impacted if the underlying assets perform poorly, and as a result, the payment you receive at maturity may be less than the principal amount invested. 

Performance Risk
The Market-Linked Products pays a return at maturity based upon the performance of an underlying asset as outlined in the offering documents. These terms could include interim caps which represents the highest level of growth or maximum return you can receive from an investment, regardless of the actual return of the underlier, if applicable. Other terms could include rates of participation which refers to the degree or method to which an investor can participate in the potential growth or appreciation of the underlier. Market-Linked Products do not pay dividends. If dividends are declared on the underlying asset, they will be excluded when calculating Market-Linked Product performance. There are a variety of factors that may influence the performance of the underlying asset(s) such as volatility, interest rate moves, and time to maturity. Additionally, potential fees charged on the underlying asset may reduce or eliminate any positive return in that underlying asset, thereby reducing the return on the Market-Linked Product. 

Principal Risk
The value of the investment may be worth less than the principal amount if sold prior to maturity. Depending on the performance of the underlying asset, the payment you receive at maturity may be less than the principal amount you invested. 

Tax Implications
The tax treatment of Market-Linked Products varies depending on the structure, and in some cases is uncertain. For specific terms, please refer to the offering documents, or consult a tax professional.

FDIC Insurance 

Some Market-Linked Products, specifically Market-Linked Certificates of Deposit or Market-Linked CDs, carry FDIC insurance, MLCDs are FDIC-insured in the event of issuer insolvency, up to the applicable limits of $250,000 per account ownership category and for each account owner and each of their beneficiaries. Any investment that exceeds the FDIC limit is subject to the credit risk of the issuer. If the issuer has guaranteed the return of principal, the FDIC will cover both the principal and any accrued interest, up to the applicable insurance limit. However, if interest is only credited at maturity and the issuer were to become insolvent prior to the maturity of the CD, no interest would be insured. InspereX only partners with bank issuers of MLCDs that are insured with the FDIC. While there is no maximum limit on the amount that you can invest in MLCDs, FDIC insurance only covers MLCDs up to the maximum insurance limits.