Structured products typically provide exposure to an asset or a basket of assets. Investors are exposed to market risk that the underlying assets perform unfavorably, resulting in the investment not paying a return and/or a partial loss of the original investment amount where the capital protection level is less than 100%.

Structured products are designed to be held until maturity date. If an investor decides to withdraw their investment, whether in whole or in part, before the maturity date there is a risk that they will be unable to do so, and if they are able, then they may receive less than was initially invested. The losses incurred by an early withdrawal may be significant.

There may be certain events beyond the control of the issuer of the
structured product that result in a structured product being terminated. If this
occurs, the issuer of the structured product may be forced to liquidate the
investment prior to the maturity date and the investor may receive less than
was initially invested. The losses incurred by an early termination may be
significant.

When a structured product is either partially capital protected or not capital protected, investors are exposed to the maximum potential loss of all their invested principal. This may occur in the event of a significant fall in one or more of the underlying assets. In addition, if the investment is withdrawn by the investor or terminated by the issuer of structured product, it is possible that the redemption proceeds may fall below their initial investment amount.

Unlike traditional deposits, structured products have an investment element and returns may vary. The overall return on the structured product may be less than returns on a bank deposit or a non-structured fixed coupon bond or a direct investment in the underlying assets, or other investments. In addition, investors may receive no return over the life of the investment.

The potential return is dependent on various factors including the performance of the underlying asset, securities, indices, commodities, interest rates, etc. (as stated in the structured products terms and conditions) and may be less than returns on a direct investment in the underlying assets, a bank deposit or other investments. The proceeds at maturity may comprise of only the principal or a portion of the principal.

Prospective investors should be aware that receipt of any sums at maturity to an investor are subject to the creditworthiness of the issuer of the structured product. Investors assume the risk that the issuer of the structured product will not be able to satisfy their obligations under the structured product.

Investors may not be able to liquidate or sell some or the entire structured product as and when they require or at an amount equal to or more than the principal. There is currently no active or liquid secondary trading market for these structured products and they are not traded on any regulated markets or listed on any exchange.