The information in this “agreement” section is qualified in its entirety by the more detailed explanation set forth elsewhere in this product supplement and the accompanying offering circular, as well as the applicable term sheet. None of us, EasyCoins, have authorized any other person to provide you with any information different from the information set forth in these documents. If anyone provides you with different or inconsistent information about the notes, you should not rely on it.
1 USDT per share
90 days / 180 days / 360 days (Investors are NOT allowed to redeem before the product matures or knock-out is triggered)
BTC or ETH @ EasyCoins
The nature days start from 8:00:00 am to 7:59:59:am on T+1. The nature days are normally the same as the trading days. 365days per year.
Initial level date
Note sold out/ subscription completed date.
Interest commencement date
Initial level date +1.
/ Initial Price:
With respect to each underlying asset (E.X. BTC or ETH). For example, assume that the Snowball note subscription is completed on day T, then the Estimated Initial Price / Initial Level is set to be equal to the average price of the underlying asset from 7:46 a.m. to 8:00 a.m. (minute frequency) on day T+1. (The initial level may be modified after the investment is completed)
/ Settlement Price:
With respect to each underlying asset (E.X. BTC or ETH). For example, if the knock-out event never happened, the Settlement Level / Settlement Price equals the average price of the underlying asset from 7:46 a.m. to 8:00 a.m. (minute frequency) on the following day after the maturity day.
It can be calculated as:
A knock-in event occurs if, on any date during the tenor, the price of the underlying asset price < Knock-in Price.
A knock-out event occurs if, on any Knock-out observation date during the tenor, the average price of the underlying asset price from 7:46 a.m. to 8:00 a.m. > Knock-out Price.
(For structured products) Agreed dates on which market prices are used to determine the performance of a structured note.
Knock-in Observation Dates
The dates to observe whether Knock-in Events happened. Usually daily, from the initial day to maturity day.
Knock-out Observation Dates
The dates to observe whether Knock-out Event happened. Normally monthly, see the law of the particular product you buy for details.
A Lock-up Period typically lasts 2 months. The first knock-out observation date is usually the first day the lockup ends.
The first date to observe whether Knock-out Event happened. Note that NO other Knock-out observation date is set before the “First Knock-out Observation Date”.
The lower bound of the price of the underlying asset. Once the price of the underlying asset falls down the Knock-in Price on the Knock-in observation dates, the Knock-in mechanism is triggered. We have
The upper bound of the price of the underlying asset, namely the level/price at which an option contract ceases to exist. An option is “knocked out” when it hits that level/price. Once the price of the underlying asset exceeds the Knock-out Price on the Knock-out observation dates, the Knock-out mechanism is triggered, then the contract ends and investors will get paid.
For example, assume that the note you hold matures on day T, then the Knock-out Price equals the average price of the underlying asset from 7:46 a.m. to 8:00 a.m. (minute frequency) on day T+1. We have
You will receive a Redemption Amount that is based on the performance of the underlying asset. Any payment, including any repayment of principal, is subject to the credit risk of EasyCoins. The Redemption Amount MAY be less than zero.
The Redemption Amount will be as follows.
Agreed Conditional Yield is disclosed on the offering circular.
You will lose some or all of the principal amount of the notes if the Settlement Price is less than the initial level price. The return on the notes could be negative.
This product supplement relates only to the Snowball and does not relate to any other wealth management investment product mentioned on the website. You should read carefully the entire offering circular and product supplement, together with the applicable term sheet, to understand fully the terms of your Snowball, as well as the tax and other considerations important to you in deciding whether to invest in Snowball. In particular, you should review carefully the sections in this product supplement and the accompanying offering circular entitled “Risk Factors,” which highlight some risks of an investment in the notes, to determine whether an investment in the notes is appropriate for you. If the information in this product supplement is inconsistent with the offering circular, this product supplement will supersede that document. However, if information in any term sheet is inconsistent with this product supplement, that term sheet will supersede this product supplement.
None of us, the agents, or our respective affiliates is making an offer to sell the Snowball in any jurisdiction where the offer or sale is not permitted. This product supplement and the accompanying offering circular are not an offer to sell the notes to anyone and are not soliciting an offer to buy the
Snowball from anyone in any jurisdiction where the offer or sale is not permitted. Certain capitalized terms used and not defined in this product supplement have the meanings ascribed to them in the offering circular. Unless otherwise indicated or unless the context requires otherwise, all references in this product supplement to “we,” “us,” “our,” or similar references are to EasyCoins.
You are urged to consult with your attorneys and business and tax advisors before making
a decision to purchase any notes.
You will be subject to significant risks not associated with conventional fixed-income products. You should understand the risks of investing in the Snowball and should reach an investment decision only after careful consideration with your advisors with respect to the Snowball in light of your particular financial and other circumstances and the information set forth in the relevant term sheet, this product supplement, and the accompanying offering circular.
Your investment may result in a loss; there is no guaranteed return on principal.
There is no fixed principal repayment amount on maturity day. The return on the product will be based on the performance of the underlying asset and therefore, you may lose all or a significant portion of your investment if the value of the BTC / ETH decreases from the initial level to the Settlement Price (when it is “knocked-in” but is not “knocked-out” during the resting tenor). The return on the product could be negative.
Your return on the Snowball may be less than the yield on a conventional fixed or floating rate debt security of comparable maturity. Any return that you receive on the Snowball may be less than the return you would earn if you purchased a conventional fixed-income investment with the same maturity date. As a result, your investment in the Snowball may not reflect the full opportunity cost to you when you consider factors, such as inflation, that affect the time value of money.
Your investment return will be limited to the return represented by the Agreed Conditional Yield, if any, and may be less than a comparable investment directly in the underlying assets. You will not receive a payment on the Snowball greater than the principal amount plus the principal amount times the Agreed Conditional Yield, regardless of the appreciation of the underlying assets. In contrast, direct investment in the underlying assets would allow you to receive the full benefit of any appreciation in the value of the underlying assets (E.X. BTC, or ETH).
In addition, the Initial Level / Initial Price or the Settlement Level / Settlement Price will not reflect the value of dividends paid, or distributions made, on the underlying assets, or any other rights associated with the underlying assets. Thus, any return on the Snowball will not reflect the return you would realize if you own the underlying assets.
Additionally, no matter what kind of currency you pay in, and if the value of that currency strengthens against the U.S. dollar during the tenor, you may not obtain the benefit of that increase, which you would have received if you had owned the cash.
You may not receive any Coupons. If the Snowball is “knocked-in” but not “knocked-out”, you will not be paid the Agreed Conditional Yield times the principal, which can be viewed as the fixed coupon payments. In this case, you may not receive a positive return on the product.
If the Snowball is “knocked-out” before maturity day, the term of the notes will be short. In such a case, the product you hold closes prior to maturity and thus the redemption will be calculated as “Principal + Principal × Agreed Conditional Yield × how many days you have held the product / 365 ”, which means that you will not be paid the coupons yielded from the “Knock-out” day to the maturity day. In order words, there is no guarantee that you would be paid all of the coupons compared to the case that the product is neither “knocked-in” nor “knocked-out”.
Redemption Payments on the product will not reflect changes in the value of the underlying asset other than on the Observation Dates, the Knock-out Observation Dates, or the Knock-in Observation Dates. Changes in the value of the underlying asset during the tenor of the product other than on the Observation Dates, the Knock-out Observation Dates, or the Knock-in Observation Dates, will NOT be reflected in the determinations with respect to coupons or whether the product will be automatically knocked out or in the calculation of the Redemption Amount. To make these determinations and calculations, the calculation agent will refer only to the value of the underlying asset on the Observation Dates, the Knock-out Observation Dates, or the Knock-in Observation Dates. As a result, even if the value of the underlying asset has increased at certain times during the tenor, you will not receive any contingent coupon payments if the observation value on each Observation Date is less than its Knock-out Price, the Snowball will not be knocked-out if the observation value on each Knock-out Observation Date is less than its Knock-out Price, and you will receive a Redemption Amount that is equal to the principal value plus the coupons calculated through the whole maturity.
The Redemption Amount is associated with the underlying asset with greater expected volatility and therefore can indicate a greater risk of loss. “Volatility” refers to the frequency and magnitude of changes in the value of the underlying asset. The greater the expected volatility with respect to the underlying asset during the tenor, the higher the expectation of the value of the underlying asset on the Knock-in Observation dates during the tenor could drop below the Knock-in Price, as applicable, indicating a higher expected risk of loss on the product. This greater expected risk will generally be reflected in a higher return rate than the yield payable on the conventional fixed-income securities with similar maturity, or more favorable terms (such as a higher APY or lower Knock-in Level) than for similar securities linked to the performance of an underlying asset with lower expected volatility as during the tenor. You should therefore understand that a relatively higher APY may indicate an increased risk of loss. Further, a relatively lower Knock-in Level may not necessarily indicate that the notes have a greater likelihood of a stable coupon rate or repayment of principal at maturity. The price of the underlying asset can change significantly over the term of the notes. The value of the underlying asset for your notes could fall sharply, which could adversely affect the return on the product.
If your notes are linked to a Basket, changes in the values of one or more of the Basket Components may be offset by changes in the values of one or more of the other Basket Components. The underlying asset of your notes may include a Basket. In such a case, changes in the values of one or more of the Basket Components may not correlate with changes in the values of one or more of the other Basket Components. The values of one or more Basket Components may increase, while the values of one or more of the other Basket Components may decrease or not increase as much. Therefore, in calculating the value of the Basket at any time, increases in the value of one Basket Component may be moderated or wholly offset by decreases or lesser increases in the values of one or more of the other Basket Components. If the weightings of the applicable Basket Components are not equal, adverse changes in the values of the Basket Components which are more heavily weighted could have a greater impact on the value of the Basket and, consequently, the return on the product.
Payments on the notes are subject to our credit risk and the credit risk of the Guarantor, and any actual or perceived changes in our or the Guarantor’s creditworthiness are expected to affect the value of the notes. The notes are our senior unsecured bank notes, the payments on which will be fully and unconditionally guaranteed by the Guarantor. The notes are not guaranteed by any entity other than the Guarantor. As a result, your receipt of any payment on the notes is dependent upon our ability to repay our obligations under the notes on the applicable payment date, regardless of the performance of the underlying asset. No assurance can be given as to what our financial condition or the financial condition of the Guarantor will be on any date. If we become unable to meet our respective financial obligations as they become due, you may not receive the amounts payable on the settlement of the notes.
In addition, our credit ratings and the credit ratings of the Guarantor are assessments by rating agencies of our respective abilities to pay our obligations. Consequently, our or the Guarantor’s perceived creditworthiness and actual or anticipated decreases in our or the Guarantor’s credit ratings or increases in the spread between the yield on our respective securities and the yield on U.S. Treasury securities (the “credit spread”) prior to the maturity date may adversely affect the market value of the notes. However, because your return on the notes depends upon factors in addition to our ability and the ability of the Guarantor to pay our respective obligations, such as the value of the applicable underlying asset, an improvement in our or the Guarantor’s credit ratings will not reduce the other investment risks related to the notes.
- Economic and Other Conditions Generally.The general economic conditions of the capital markets in India, as well as geopolitical conditions and other financial, political, regulatory, and judicial events and related uncertainties that affect Cryptocurrencies markets generally, may adversely affect the price of the BTC or ETH and thus the market value of the notes. Moreover, the underlying assets are also traded in one or more non-India markets, the value of your notes may also be adversely affected by similar events in the markets of the relevant foreign countries.
- Interest Rates.We expect that changes in interest rates will affect the real value of the notes. In general, if the interest rates increase, we expect that the real value of the notes will decrease. In general, we expect that the longer the amount of time that remains until maturity, the more significant the impact of these changes will be on the value of the notes. Additionally, the level of interest rates in the relevant foreign countries may also affect their economies and, in turn, the value of the BTC or ETH, and, thus, the market value of the notes may be adversely affected.
- Dividend Yields. In general, if the cumulative dividend yields on the underlying assets increase, we anticipate that the market value of the notes will decrease. Further, unless otherwise set forth in the applicable term sheet, any payments on the notes will not include any income generated by dividends paid on BTC or ETH.
- Exchange Rate Movements and Volatility.You will get your paid in spot or USTD (instead of INR) at maturity, or when the Snowball is knocked out. Note that there may include any changes in, and the volatility of, the exchange rates between the INR and the U.S. dollar (and thus the USTD), and it could have an adverse impact on the value of your notes, and the payments on the notes may depend in part on the relevant exchange rates.
- Our and the Guarantor’s Financial Condition and Creditworthiness.Our and the Guarantor’s perceived creditworthiness, including any increases in our credit spreads and those of the Guarantor and any actual or anticipated decreases in our respective credit ratings, may adversely affect the market value of the notes. In general, we expect the longer the amount of time that remains until maturity, the more significant the impact will be on the value of the notes. However, a decrease in our or the Guarantor’scredit spreads or an improvement in our or the Guarantor’s credit ratings will not necessarily increase the market value of the notes.
- Time to Maturity or the Next Observation Date.There may be a disparity between the market value of the notes prior to maturity or prior to an Observation Date and their value at maturity or as of the next Observation Date. This disparity is often called a time “value,” “premium,” or “discount,” and reflects expectations concerning the value of the underlying assets prior to the maturity date.
Trading and hedging activities by us, the Guarantor, the agents, and our respective affiliates may affect your return on the notes and their market value. We, the Guarantor, the agents, and our respective affiliates may buy or sell BTC or ETH, any of its underlying assets, futures, options contracts or exchange-traded instruments on the underlying assets, or other listed or over-the-counter derivative instruments whose value is derived from the Market Measure or any of its underlying assets. We, the Guarantor, the agents, and our respective affiliates may execute such purchases or sales for our own or their accounts, for business reasons, or in connection with hedging our obligations under the notes. These transactions could adversely affect the value of the underlying asset in a manner that could be adverse to your investment in the notes. On or before the applicable pricing date, any purchases or sales by us, the Guarantor, the agents, our respective affiliates, or others on our or their behalf (including those to hedge some or all of our anticipated exposure in connection with the notes) may increase the value of the Market Measure. Consequently, the values of that Market Measure may decrease subsequent to the pricing date of an issue of the notes, which may adversely affect the market value of the notes.
We, the Guarantor, the agents, or one or more of our respective affiliates may also engage in hedging activities that could increase the value of the underlying assets on the Knock-out Observation date. In addition, these activities may make the Snowball knock out in advance, and thus decrease the total coupon you gain from investing in the Snowball, and thus may adversely affect the payments on the notes.
Our trading, hedging, and other business activities, and those of the Guarantor, the agents, or one or more of our respective affiliates, may create conflicts of total redemption with you. We, the Guarantor, the agents, or one or more of our respective affiliates may engage in trading activities related to the underlying assets that are not for your account or on your behalf. We, the Guarantor, the agents, or one or more of our respective affiliates also may issue or underwrite other financial instruments with returns based upon the applicable underlying assets. These trading and other business activities may present a conflict of interest between your total redemption in the notes and the wealth we, the Guarantor, the agents, and our respective affiliates may have in our proprietary accounts, in facilitating transactions, including block trades, for our or their other customers, and in accounts under our or their management.
These trading and other business activities, if they influence the value of the underlying assets of your notes, could be adverse to your return as a beneficial owner of the notes. We, the Guarantor, the agents, and our respective affiliates expect to enter into arrangements or adjust or close out existing transactions to hedge our obligations under the notes. We, the Guarantor, the agents, or our respective affiliates also may enter into hedging transactions relating to other securities or instruments that we or they issue, some of which may have returns calculated in a manner related to that of a particular issue of the notes. We may enter into such hedging arrangements with one or more of our subsidiaries or affiliates, or with one or more of the agents or their affiliates. Such a party may enter into additional hedging transactions with other parties relating to the notes and the applicable underlying assets. This hedging activity is expected to result in a profit for those engaging in the hedging activity, which could be more or less than initially expected, but could also result in a loss.
We, the Guarantor, the agents, and our respective affiliates will price these hedging transactions with the intent to realize a profit, regardless of whether the value of the notes increases or decreases, whether the notes will be automatically called, or whether the Redemption Amount on the notes is more or less than the principal amount of the notes. Any profit in connection with such hedging activities will be in addition to any other compensation that we, the Guarantor, the agents, and our respective affiliates receive for the sale of the notes, which creates an additional incentive to sell the notes to you.
There may be potential conflicts of interest involving the calculation agent. We may appoint and remove the calculation agent. We or one of our affiliates may be the calculation agent or act as a joint calculation agent for the notes and, as such, will determine the Initial Price, the Price Multiplier, the Observation Value, the Settlement Value, and whether the Coupons are payable, whether the notes will be Knocked-in and Knocked-out and the Redemption Amount. Under some circumstances, these duties could result in a conflict of interest between our status as issuer and our responsibilities as calculation agent. These conflicts could occur, for instance, in connection with the calculation agent’s determination as to whether a Market Disruption Event has occurred, or in connection with judgments that the calculation agent would be required to make if the publication of an underlying asset is discontinued or certain events occur with respect to BTC or ETH. The calculation agent will be required to carry out its duties in good faith and using its reasonable judgment. However, because we may serve as the calculation agent, potential conflicts of interest could arise. None of us, the Guarantor, the agents, or any of our respective affiliates will have any obligation to consider your interests as a holder of the notes in taking any action that might affect the value of the notes.
Market Measure-related Risks
Exchange rate movements may adversely impact the total redemption payment of the notes. Note that the underlying asset is BTC/ETH, and you will be paid with USTD/spot finally, which may all suffer volatile exchange rates with the U.S. dollars, and, for purposes of calculating the value of the notes, is converted into U.S. dollars, then the value of the Market Measure may depend in part on the relevant exchange rates. If the value of the U.S. dollar strengthens against the currencies of those underlying assets, the value that you are paid may be adversely affected. In that case, the Observation Value may not be greater than or equal to the Knock-in Level on the Knock-in Observation Date, and the Settlement Price may not be greater than or equal to the Initial Level or the Knock-out Price, if applicable.
Therefore, a Coupon may not be payable for the relevant maturity date, your notes may not be Knocked-out but may be Knocked-in and the Redemption Amount may be less than the principal amount. Exchange rate movements may be particularly impacted by existing and expected rates of inflation and interest rate levels; political, civil, or military unrest; the balance of payments between countries; and the extent of government surpluses or deficits in the relevant countries and the United States. All of these factors are in turn sensitive to the monetary, fiscal, and trade policies pursued by the governments of those countries and the United States and other countries important to international trade and finance.
No sponsor, publisher, or investment advisor of an Underlying Fund or an Index (each a “Market Measure Publisher”) will have any obligations relating to the notes. No Market Measure Publisher will have any financial or legal obligation with respect to the notes or the amounts to be paid to you, including any obligation to take our needs or the needs of noteholders into consideration for any reason, including taking any actions that might affect the value of the Market Measure or the value of the notes. No Market Measure Publisher will receive any of the proceeds from any offering of the notes, and no Market Measure Publisher will be responsible for or participate in, the offering of the notes. No Market Measure Publisher will be responsible for or participate in, the determination or calculation of the amount receivable by holders of the notes.
Neither we nor any agent has made any independent investigation as to the completeness or accuracy of the publicly available information regarding any underlying asset or as to the future performance of any underlying asset. Any prospective purchaser of the notes should undertake such independent investigation of any underlying assets as in its judgment is appropriate to make an informed decision with respect to an investment in the notes.
You must rely on your own evaluation of the merits of an investment linked to the applicable Market Measure. In the ordinary course of business, we, the agents, and our respective affiliates may have expressed views on expected movements in any underlying asset and may do so in the future. These views or reports may be communicated to our clients and clients of these entities. However, these views are subject to change from time to time.
Moreover, other professionals who deal in markets relating to an underlying asset may at any time have significantly different views from our views and the views of these entities. For these reasons, you are encouraged to derive information concerning the underlying assets from multiple sources, and you should not rely on our views or the views expressed by these entities.
As a noteholder, you will have no rights to receive any other distribution of the underlying assets except for what we have listed explicitly. The notes are our debt securities. They are not equity instruments, shares of stock, or securities of any other issuer, other than the related guarantees, which are the securities of the Guarantor. Investing in the notes will not make you a holder of the underlying assets. You will not have any voting rights, any rights to receive dividends or other distributions, any rights against a Market Measure Publisher, or any other rights with respect to the Market Measure or any of its underlying assets. As a result, the return on your notes may not reflect the return you would realize if you actually owned the Market Measure or any of its underlying assets and received any other dividends paid or other distributions made in connection with them. Additionally, the values of the underlying assets reflect only the prices of them included in those Indices or Underlying Funds and do not take into consideration the value of dividends paid on those securities. At the maturity date or the Settlement Date (consider the case that it is Knocked-out in advance), your notes will be paid in spot (BTC or ETH) or USTD, and you have no right to receive any other kind of assets.
If the Market Measure to which your notes are linked includes equity securities traded on foreign exchanges, your return may be affected by factors affecting international securities markets. The value of securities traded outside of the U.S. may be adversely affected by a variety of factors relating to the relevant securities markets. Factors that could affect those markets, and therefore the return on your notes, include Market Liquidity and Volatility. The relevant foreign securities markets may be less liquid and/or more volatile than in the U.S. or other securities markets and may be affected by market developments in different ways than in the U.S. or other securities markets.
- Political, Economic, and Other Factors.The prices and performance of the underlying assets may be affected by political, economic, financial, and social factors in those regions. Direct or indirect government intervention to stabilize a particular securities market and cross-shareholdings in companies in the relevant foreign markets may affect prices and the volume of trading in those markets. In addition, recent or future changes in government, economic, and fiscal policies in the relevant jurisdictions, the possible imposition of, or changes in, currency exchange laws, or other laws or restrictions, and possible fluctuations in the rate of exchange between currencies, are factors that could adversely affect the relevant securities markets. The relevant foreign economies may differ from the U.S. and the Indian economy in economic factors such as the growth of the gross national product, rate of inflation, capital reinvestment, resources, and self-sufficiency.
In particular, many emerging nations are undergoing rapid change, involving the restructuring of economic, political, financial, and legal systems. Regulatory and tax environments may be subject to change without review or appeal, and many emerging markets suffer from the underdevelopment of capital markets and tax systems. In addition, in some of these nations, issuers of the relevant securities face the threat of expropriation of their assets, and/or nationalization of their businesses. The economic and financial data about some of these countries may be unreliable.
- Publicly Available Information.There is generally less publicly available information about foreign companies than about U.S. companies that are subject to the reporting requirements of the SEC. In addition, accounting, auditing, and financial reporting standards and requirements in foreign countries differ from those applicable to U.S. reporting companies.
Unless otherwise outlined in the applicable term sheet, we, the Guarantor, and the agents do not control any company included in any Market Measure and have not verified any disclosure made by any other company. We, the Guarantor, the agents, or our respective affiliates currently, or in the future, may engage in business with companies included in a Market Measure, and we, the Guarantor, the agents, or our respective affiliates may from time to time own securities of companies included in a Market Measure. However, none of us, the Guarantor, the agents, or any of our respective affiliates has the ability to control the actions of any of these companies or has undertaken any independent review of, or made any due diligence inquiry with respect to, any of these companies, unless (and only to the extent that) the securities of us, the Guarantor, the agents, or our respective affiliates are represented by that Market Measure. In addition, unless otherwise set forth in the applicable term sheet, none of us, the Guarantor, the agents, or any of our respective affiliates is responsible for the calculation of any Index or Underlying Fund, or any Underlying Index.
Unless otherwise specified therein, any information in the term sheet regarding the underlying assets is derived from publicly available information. You should make your own investigation into the underlying assets.
Unless otherwise set forth in the applicable term sheet, none of the Market Measure Publishers, their affiliates, or any other companies will be involved in any offering of the notes or will have any obligation of any sort with respect to the notes. As a result, none of those companies will have any obligation to take your interests as holders of the notes into consideration for any reason, including taking any corporate actions that might adversely affect the value of the securities represented by the Market Measure or the value of the notes.
The business activities of us, the Guarantor, and those of the agents relating to the companies represented by a Market Measure or the notes may create conflicts of interest with you. We, the Guarantor, the agents, and our respective affiliates, at the time of any offering of the notes or in the future, may engage in business with the companies represented by the Market Measure, including making loans to, equity investments in, or providing investment banking, asset management, or other services to those companies, their affiliates, and their competitors. In connection with these activities, any of these entities may receive information about those companies that we will not divulge to you or other third parties. We, the Guarantor, the agents, and our respective affiliates have published, and in the future may publish, research reports on one or more of these companies. The agents may also publish research reports relating to our or our affiliates’ securities, including the notes. This research is modified from time to time without notice and may express opinions or provide recommendations that are inconsistent with purchasing or holding your notes. Any of these activities may adversely affect the value of the Market Measure and, consequently, the final total redemption payment of your notes. None of us, the Guarantor, the agents, or our respective affiliates makes any representation to any purchasers of the notes regarding any matters whatsoever relating to the issuers of the securities included in a Market Measure. Any prospective purchaser of the notes should undertake an independent investigation of the companies included in the Market Measure to a level that, in its judgment, is appropriate to make an informed decision regarding an investment in the notes. The composition of the Market Measure does not reflect any investment recommendations from us, the agents, or our respective affiliates.
The respective publishers of the applicable underlying asset may adjust those assets in a way that affects their levels, and these publishers have no obligation to consider your interests. Unless otherwise specified in the term sheet, we, the Guarantor, the agent, and our respective affiliates have no affiliation with the publisher of each asset to which your notes are linked (each, a “Crypto Publisher”). Consequently, we have no control over the actions of any Crypto Publisher. The Crypto Publisher can make any methodological changes that could change its level. New rules for the Crypto may cause it to perform significantly better or worse than before, and the performance will impact the level of your redemption. Additionally, a “Crypto Publisher” may alter, discontinue, or suspend the calculation or dissemination of a Crypto. Any of these actions could adversely affect the value of your notes. The Crypto Publishers will have no obligation to consider your interests in calculating or revising any Index.
Additional Risks Relating to Underlying Funds
There are liquidity and management risks associated with an underlying asset. Although Cryptos are popular products and a number of similar products have been traded for varying periods of time, there is no assurance that an active trading market will continue for the shares of that underlying asset or that there will be liquidity in the trading market.
Underlying assets are subject to management risk, which is the risk that the investment adviser’s investment strategy, the implementation of which is subject to a number of constraints, may not produce the intended results.
The holders and traders of Cryptos in a way that affects their value, and they have no obligation to consider your interests. A BTC (or ETH trader) can change the investment policies of the applicable underlying asset or the policies concerning the calculation of the applicable underlying asset’s net asset value, as the case may be, or make other methodological changes that could change the value of that underlying asset. Additionally, holders and traders may alter, discontinue, or suspend the calculation or dissemination of the price of its underlying asset, the net asset value of its underlying asset, or the level of its underlying asset, as the case may be. Any of these actions could adversely affect the value of the underlying asset. This could also result in the early redemption of your notes. The holders and traders will have no obligation to consider your interests in investing or trading BTC / ETH.
Risks associated with the applicable underlying assets will affect the price of that underlying asset, and thus the value of the notes. While the notes are linked to an underlying asset, risks associated with it will affect the price of the underlying asset and hence the value of the notes. Some of the risks that relate to the underlying asset, which you should review before investing in the notes.
The performance of an underlying asset may not correlate with the performance of its historical series, especially during periods of market volatility. The price series in different periods generally will vary due to, for example, transaction costs, management fees, certain economic actions, and timing variances.
For the foregoing reasons, the performance of an underlying asset may not match the performance of any prediction or historical series. Because of this variance, the return on the notes to the extent dependent on the real performance of the underlying asset only during the maturity.
If an Underlying Fund holds underlying assets traded on foreign exchanges, time zone differences may create discrepancies between the values of those underlying assets and the value of the notes. As a result of the time zone difference, if applicable, there may be discrepancies between the values of the relevant underlying assets and the trading prices of that underlying asset. In addition, there may be periods when the foreign exchange markets are closed for trading (for example during holidays in another country) that may result in the values of the relevant foreign underlying assets remaining unchanged for multiple Market Measure Business Days in the locations where the notes (or any related underlying asset) trade.
The payment on the notes will not be adjusted for all events that could affect an underlying asset. The Price Multiplier(s), each Observation Value, the Settlement Price, the amount payable on the notes, and other terms of the notes may be adjusted for the specified events affecting any underlying asset.
However, these adjustments do not cover all events that could affect the market price of an underlying asset. The occurrence of any event that does not require the calculation agent to adjust the applicable Price Multiplier or the amount paid to you at maturity or upon a call may adversely affect the Market Price of any underlying asset, each Observation Value, the Settlement Value, and the amount payable upon a call or at maturity, and, as a result, the market value of the notes.
This structured product is a principal-at-risk product. You may lose some or all of your initial investment amount. There is no assurance from EasyCoins (or otherwise) that at maturity, you will receive repayment of your entire initial investment amount. You may suffer a loss on your investment if the structured product is settled in the alternate currency at maturity.
This is not a deposit. There is no assurance from EasyCoins (or otherwise) that at maturity, the return on the Snowball will be equal to or greater than any potential return that you may have earned from a direct investment in the underlying assets (for example, BTC or ETH), in a bank deposit or non-structured fixed coupon bond. As the payment mechanics and terms of the structured product are not variable, you should note that even if your view of the direction of the underlying assets’ performance is correct, you will not gain more than the amount specified under such payment mechanics and terms.
Credit and Counterparty Risk
You assume the full credit risk of EasyCoins. The structured product constitutes direct, unsecured, and unsubordinated general obligations of us. Hence, if EasyCoins becomes insolvent or defaults on its payment and other obligations, or fails in any other way, you may not receive any payments due to you under the structured product, including your initial investment amount. A credit rating is not a recommendation or assurance as to our creditworthiness or the risks, returns, or suitability of the structured product.
Events Adjustment Risk
We, EasyCoins, have the discretion to make adjustments to the terms of the structured product if we determine that certain adjustments or extraordinary events have occurred (including, but not limited to, market disruption, changes in taxation law, and other economic, political or social conditions). The exercise of such discretion may have an unforeseen and adverse impact on the payments that you receive under the structured product.
Structured products are not liquid instruments and are not designed to be short-term trading instruments. You must be prepared to hold the structured product until the scheduled maturity as it is not transferable and there is no market for this structured product, which means that you will not be able to sell it. You will also not be able to terminate this structured product or make any withdrawals before the stated maturity date without our consent.
If you have used leverage to purchase the structured product or if there is leverage embedded in the terms of the structured product, a relatively small movement in the market or the underlying asset levels or prices will have a significantly larger impact on the structured product and your returns under such structured product. This may work for you as well as against you.
Other Risk Factors Relating to the Applicable Market Measure
The applicable term sheet may set forth additional risk factors as to the Market Measure that you should review prior to purchasing the notes.
The income tax in India's consequences of an investment in the notes are uncertain and may be adverse to a holder of the notes. No statutory, judicial, or administrative authority directly addresses the characterization of the notes or securities similar to the notes for income tax in India purposes. As a result, significant aspects of the income tax of India's consequences of an investment in the notes are not certain.
YOU ARE URGED TO CONSULT WITH YOUR OWN TAX ADVISOR REGARDING ALL ASPECTS OF THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF INVESTING IN THE NOTES.