JPMorgan Chase Financial Company LLC
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August 2016
Pricing Supplement
Registration Statement Nos. 333-209682
and 333-209682-01
Dated August 26, 2016
Filed pursuant to Rule 424(b)(2)
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STRUCTURED INVESTMENTS
Opportunities in U.S. Equities
Contingent Income Auto-Callable Securities due August
31, 2017
Based on the Performance of the Common Stock of
Biogen Inc.
Principal at Risk Securities
Fully and Unconditionally Guaranteed by JPMorgan
Chase & Co.
Contingent Income Auto-Callable Securities do not guarantee
the payment of interest or the repayment of principal. Instead, the securities offer the opportunity for investors to earn a contingent
quarterly payment equal to 2.75% of the stated principal amount, with respect to each determination date on which the closing price
of the underlying stock is greater than or equal to 75% of the initial stock price, which we refer to as the downside threshold
level. However, if, on any determination date, the closing price of the underlying stock is less than the downside threshold level,
you will not receive any contingent quarterly payment for that quarterly period. In addition, if the closing price of the underlying
stock is greater than or equal to the initial stock price on any determination date (other than the final determination date),
the securities will be automatically redeemed for an amount per security equal to the stated principal amount
plus
the contingent
quarterly payment. If the securities have not been automatically redeemed prior to maturity, and the final stock price is greater
than or equal to the downside threshold level, the payment at maturity due on the securities will be the stated principal amount
and the contingent quarterly payment with respect to the final determination date. If, however, the securities have not been automatically
redeemed prior to maturity and the final stock price is less than the downside threshold level, you will be exposed to the decline
in the underlying stock, as compared to the initial stock price, on a 1-to-1 basis and will receive a cash payment at maturity
that is less than 75% of the stated principal amount of the securities and could be zero. The securities are for investors who
are willing to risk their principal and seek an opportunity to earn interest at a potentially above-market rate in exchange for
the risk of receiving few or no contingent quarterly payments and also the risk of receiving a cash payment at maturity that is
significantly less than the stated principal amount of the securities and could be zero.
Accordingly, investors could lose their
entire initial investment in the securities.
Investors will not participate in any appreciation of the underlying stock. The
securities 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., issued as part of JPMorgan
Financial's Medium-Term Notes, Series A, program.
Any payment on the securities is subject to the credit risk of JPMorgan Financial,
as issuer of the securities, and the credit risk of JPMorgan Chase & Co., as guarantor of the securities.
Issuer:
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JPMorgan Chase Financial Company LLC
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Guarantor:
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JPMorgan Chase & Co.
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Underlying stock:
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Common stock of Biogen Inc.
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Aggregate principal amount:
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$4,149,100
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Early redemption:
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If, on any determination date (other than the final determination date), the closing price of the underlying stock is
greater than or equal to
the initial stock price, the securities will be automatically redeemed for an early redemption payment on the first contingent payment date immediately following the related determination date. No further payments will be made on the securities once they have been redeemed.
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Early redemption payment:
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The early redemption payment will be an amount equal to (i) the stated principal amount
plus
(ii) the contingent quarterly payment with respect to the related determination date.
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Contingent quarterly payment:
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●
If, on any determination date, the closing price is greater than or equal to the downside threshold level, we will pay a
contingent quarterly payment of $0.275 (2.75% of the stated principal amount) per security on the related contingent payment date.
●
If, on any determination date, the closing price is less than the downside threshold level, no contingent quarterly payment
will be made with respect to that determination date.
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Determination dates:
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November 28, 2016, February 27, 2017, May 26, 2017 and August 28, 2017, subject to postponement for non-trading days and certain market disruption events.
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Contingent payment dates:
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With respect to each determination date other than the final determination date, the third business day after the related determination date. The payment of the contingent quarterly payment, if any, with respect to the final determination date will be made on the maturity date.
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Payment at maturity:
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●
If the final stock price is
greater than or equal to
the downside threshold level:
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(i) the stated principal amount
plus
(ii) the contingent quarterly payment with respect to the final determination date
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●
If the final stock price is
less than
the downside threshold level:
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(i) the stated principal amount
times
(ii) the stock performance factor. This cash payment will be less than 75% of the stated principal amount of the securities and could be zero.
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Downside threshold level:
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$231.1275, which is equal to 75% of the initial stock price
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Initial stock price:
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$308.17, which was the closing price of the underlying stock on the pricing date
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Final stock price:
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The closing price of the underlying stock on the final determination date
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Stock adjustment factor:
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The stock adjustment factor is referenced in determining the closing price of the underlying stock and is set initially at 1.0 on the pricing date. The stock adjustment factor is subject to adjustment in the event of certain corporate events affecting the underlying stock.
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Stock performance factor:
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final stock price / initial stock price
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Stated principal amount:
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$10 per security
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Issue price:
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$10 per security (see “Commissions and issue price” below)
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Pricing date:
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August 26, 2016
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Original issue date:
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August 31, 2016 (settlement date)
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Maturity date:
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August 31, 2017, subject to postponement in the event of certain market disruption events and as described under “General Terms of Notes — Postponement of a Payment Date” in the accompanying product supplement
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CUSIP/ISIN:
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46646X654 / US46646X6546
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Listing:
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The securities will not be listed on any securities exchange.
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Agent:
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J.P. Morgan Securities LLC (“JPMS”)
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Commissions and issue price:
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Price to public
(1)
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Fees and commissions
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Proceeds to issuer
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Per security
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$10.00
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$0.125
(2)
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$9.825
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$0.05
(3)
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Total
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$4,149,100.00
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$72,609.25
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$4,076,490.75
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(1)
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See “Additional Information about the Securities — Supplemental use of proceeds and hedging” in this document
for information about the components of the price to public of the securities.
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(2)
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JPMS, acting as agent for JPMorgan Financial, will pay all of the selling commissions of $0.125 per $10 stated principal amount
security it receives from us to Morgan Stanley Smith Barney LLC (“Morgan Stanley Wealth Management”). See “Plan
of Distribution (Conflicts of Interest)” in the accompanying product supplement.
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(3)
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Reflects a structuring fee payable to Morgan Stanley Wealth Management by the agent or its affiliates of $0.05 for each $10
stated principal amount security.
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The estimated value of the securities on the pricing date
was $9.704 per $10 stated principal amount security.
See “Additional Information about the Securities — The estimated
value of the securities” in this document for additional information.
Investing in the securities involves a number of risks.
See “Risk Factors” beginning on page PS-10 of the accompanying product supplement and “Risk Factors” beginning
on page 7 of this document.
Neither the Securities and Exchange Commission (the “SEC”)
nor any state securities commission has approved or disapproved of the securities or passed upon the accuracy or the adequacy of
this document or the accompanying product supplement, prospectus supplement and prospectus. Any representation to the contrary
is a criminal offense.
The securities 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.
You should read this document together
with the related product supplement, prospectus supplement and prospectus, each of which can be accessed via the hyperlinks below.
Please also see “Additional Information about the Securities” at the end of this document.
Product supplement no. MS-1-I dated June
3, 2016:
http://www.sec.gov/Archives/edgar/data/19617/000095010316013935/crt_dp64833-424b2.pdf
Prospectus supplement and prospectus,
each dated April 15, 2016:
http://www.sec.gov/Archives/edgar/data/19617/000095010316012636/crt_dp64952-424b2.pdf
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
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Investment Summary
The Contingent Income Auto-Callable Securities due August
31, 2017 Based on the Performance of the Common Stock of Biogen Inc., which we refer to as the securities, provide an opportunity
for investors to earn a contingent quarterly
payment, which is an amount equal to $0.275 (2.75% of the stated principal
amount) per security, with respect to each quarterly determination date on which the closing price is greater than or equal to
75% of the initial stock price, which we refer to as the downside threshold level. The contingent quarterly payment, if any, will
be payable quarterly on the relevant contingent payment date, which is the third business day after the related determination date
or, in the case of the contingent quarterly payment, if any, with respect to the final determination date, the maturity date. If
the closing price of the underlying stock is less than the downside threshold level on any determination date, investors will receive
no contingent quarterly payment for the related quarterly period. It is possible that the closing price of the underlying stock
could be below the downside threshold level on most or all of the determination dates so that you will receive few or no contingent
quarterly payments. We refer to these payments as contingent, because there is no guarantee that you will receive a payment on
any contingent payment date. Even if the underlying stock was at or above the downside threshold level on some quarterly determination
dates, the underlying stock may fluctuate below the downside threshold level on others.
If the closing price is greater than or equal to the initial
stock price on any determination date (other than the final determination date), the securities will be automatically redeemed
for an early redemption payment equal to the stated principal amount
plus
the contingent quarterly payment with respect
to the related determination date. If the securities have not previously been redeemed and the final stock price is greater than
or equal to the downside threshold level, the payment at maturity will also be the sum of the stated principal amount and the contingent
quarterly payment with respect to the final determination date. However, if the securities have not previously been redeemed and
the final stock price is less than the downside threshold level, investors will be exposed to the decline in the closing price
of the underlying stock, as compared to the initial stock price, on a 1-to-1 basis. Under these circumstances, the payment at maturity
will be (i) the stated principal amount
times
(ii) the stock performance factor, which will be less than 75% of the stated
principal amount of the securities and could be zero. Investors in the securities must be willing to accept the risk of losing
their entire principal and also the risk of receiving few or no contingent quarterly payments over the term of the securities.
In addition, investors will not participate in any appreciation of the underlying stock.
Supplemental Terms of the Securities
For purposes of the accompanying product supplement,
the underlying stock is a “Reference Stock.”
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
Key Investment Rationale
The securities offer investors an opportunity to earn a
contingent quarterly payment equal to 2.75% of the stated principal amount with respect to each determination date on which the
closing price is greater than or equal to 75% of the initial stock price, which we refer to as the downside threshold level. The
securities may be redeemed prior to maturity for the stated principal amount per security
plus
the applicable contingent
quarterly payment, and the payment at maturity will vary depending on the final stock price, as follows:
Scenario 1
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On any determination date (other
than the final determination date), the closing price is
greater than or equal to
the initial stock price.
■
The securities will be automatically redeemed for (i) the stated principal amount
plus
(ii) the contingent quarterly
payment with respect to the related determination date.
■
Investors will not participate in any appreciation of the underlying stock from the initial stock price.
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Scenario 2
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The securities are not automatically
redeemed prior to maturity, and the final stock price is
greater than or equal to
the downside threshold level.
■
The payment due at maturity will be (i) the stated principal amount
plus
(ii) the contingent quarterly payment with
respect to the final determination date.
■
Investors will not participate in any appreciation of the underlying stock from the initial stock price.
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Scenario 3
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The securities are not automatically
redeemed prior to maturity, and the final stock price is
less than
the downside threshold level.
■
The payment due at maturity will be (i) the stated principal amount
times
(ii) the stock performance factor.
■
Investors will lose some, and may lose all, of their principal in this scenario.
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JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
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How the Securities Work
The following diagrams illustrate the potential outcomes
for the securities depending on (1) the closing price and (2) the final stock price.
Diagram #1: Determination Dates
(Other Than the Final Determination Date)
Diagram #2: Payment at Maturity
if No Automatic Early Redemption Occurs
For more information about the payment upon an early
redemption or at maturity in different hypothetical scenarios, see “Hypothetical Examples” starting on page 5.
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
Hypothetical Examples
The below examples are based on the following terms:
Stated principal amount:
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$10 per security
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Hypothetical initial stock price:
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$308.00
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Hypothetical downside threshold level:
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$231.00, which is 75% of the hypothetical initial stock price
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Hypothetical stock adjustment factor:
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1.0
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Contingent quarterly payment:
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$0.275 (2.75% of the stated principal amount) per security
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In Examples 1 and 2, the closing price of the underlying
stock fluctuates over the term of the securities and the closing price of the underlying stock is greater than or equal to the
initial stock price on one of the first three determination dates. Because the closing price is greater than or equal to the initial
stock price on one of the first three determination dates, the securities are automatically redeemed following the relevant determination
date. In Examples 3 and 4, the closing price on the first three determination dates is less than the initial stock price, and,
consequently, the securities are not automatically redeemed prior to, and remain outstanding until, maturity.
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Example 1
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Example 2
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Determination
Dates
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Hypothetical
Closing Price
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Contingent
Quarterly Payment
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Early
Redemption Payment*
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Hypothetical
Closing Price
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Contingent
Quarterly Payment
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Early
Redemption Payment*
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#1
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$308.00
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—*
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$10.275
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$261.80
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$0.275
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N/A
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#2
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N/A
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N/A
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N/A
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$150.92
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$0
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N/A
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#3
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N/A
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N/A
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N/A
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$385.00
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—*
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$10.275
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Final
Determination
Date
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N/A
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N/A
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N/A
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N/A
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N/A
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N/A
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*The early redemption payment includes the unpaid contingent quarterly
payment with respect to the determination date on which the closing price is greater than or equal to the initial stock price and
the securities are redeemed as a result.
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■
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In
Example 1
, the securities are automatically redeemed following the first determination date as the closing price
on the first determination date is equal to the initial stock price. You receive the early redemption payment, calculated as follows:
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stated principal amount + contingent
quarterly payment = $10 + $0.275 = $10.275
In this example, the early redemption feature limits
the term of your investment to approximately 3 months and you may not be able to reinvest at comparable terms or returns. If the
securities are redeemed early, you will stop receiving contingent quarterly payments.
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■
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In
Example 2
, the securities are automatically redeemed following the third determination date as the closing price
on the third determination date is greater than the initial stock price. As the closing price on the first determination date is
greater than the downside threshold level, you receive the contingent quarterly payment of $0.275 with respect to that determination
date. Following the third determination date, you receive an early redemption payment of $10.275, which includes the contingent
quarterly payment with respect to the third determination date.
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In this example, the early redemption feature limits
the term of your investment to approximately 9 months and you may not be able to reinvest at comparable terms or returns. If the
securities are redeemed early, you will stop receiving contingent quarterly payments. Further, although the underlying stock has
appreciated by 25% from the initial stock price on the third determination date, you only receive $10.275 per security upon redemption
and do not benefit from this appreciation. The total payments on the securities will amount to $10.55 per security.
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
|
Example 3
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Example 4
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Determination
Dates
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Hypothetical
Closing
Price
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Contingent
Quarterly
Payment
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Early
Redemption Payment
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Hypothetical
Closing
Price
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Contingent
Quarterly
Payment
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Early
Redemption Payment
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#1
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$200.20
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$0
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N/A
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$184.80
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$0
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N/A
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#2
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$184.80
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$0
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N/A
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$200.20
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$0
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N/A
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#3
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$123.20
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$0
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N/A
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$184.80
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$0
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N/A
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Final
Determination
Date
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$154.00
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$0
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N/A
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$231.00
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—*
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N/A
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Payment at
Maturity
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$5.00
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$10.275
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* The final contingent quarterly payment, if any,
will be paid at maturity.
Examples 3 and 4 illustrate the payment at maturity per
security based on the final stock price.
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■
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In
Example 3
, the closing price of the underlying stock remains below the downside threshold level throughout the term
of the securities. As a result, you do not receive any contingent quarterly payment during the term of the securities and, at maturity,
you are fully exposed to the decline in the closing price of the underlying stock. As the final stock price is less than the downside
threshold level, you receive a cash payment at maturity calculated as follows:
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stated principal amount × stock
performance factor = $10 × ($154.00 / $308.00) = $5.00
In this example, the payment you receive at maturity
is significantly less than the stated principal amount.
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■
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In
Example 4
, the closing price of the underlying stock decreases to a final stock price of $231.00. Although the final
stock price is less than the initial stock price, because the final stock price is still not less than the downside threshold level,
you receive the stated principal amount
plus
a contingent quarterly payment with respect to the final determination date.
Your payment at maturity is calculated as follows:
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$10 + $0.275 = $10.275
In this example, although the final stock price represents
a 25% decline from the initial stock price, you receive the stated principal amount per security plus the contingent quarterly
payment, equal to a total payment of $10.275 per security at maturity.
The hypothetical returns and hypothetical payments on the
securities shown above apply
only if you hold the securities for their entire term or until early redemption.
These hypotheticals
do not reflect 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.
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
Risk Factors
The following is a non-exhaustive list of certain key
risk factors for investors in the securities. For further discussion of these and other risks, you should read the section entitled
“Risk Factors” of the accompanying product supplement. We urge you to consult your investment, legal, tax, accounting
and other advisers in connection with your investment in the securities.
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■
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The securities do not guarantee the return of any principal and your investment in the securities may result in a loss.
The terms of the securities differ from those of ordinary debt securities in that the securities do not guarantee the return of
any of the principal amount at maturity. Instead, if the securities have not been automatically redeemed prior to maturity and
if the final stock price is less than the downside threshold level, you will be exposed to the decline in the closing price of
the underlying stock, as compared to the initial stock price, on a 1-to-1 basis and you will receive for each security that you
hold at maturity a cash payment equal to the stated principal amount
times
the stock performance factor. In this case, your
payment at maturity will be less than 75% of the stated principal amount and could be zero.
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■
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You will not receive any contingent quarterly payment for any quarterly period where the closing price on the relevant determination
date is less than the downside threshold level.
The terms of the securities differ from those of ordinary debt securities in
that the securities do not guarantee the payment of regular interest. Instead, a contingent quarterly payment will be made with
respect to a quarterly period only if the closing price on the relevant determination date is greater than or equal to the downside
threshold level. If the closing price is below the downside threshold level on any determination date, you will not receive a contingent
quarterly payment for the relevant quarterly period. It is possible that the closing price of the underlying stock could be below
the downside threshold level on most or all of the determination dates so that you will receive few or no contingent quarterly
payments. If you do not earn sufficient contingent quarterly payments over the term of the securities, the overall return on the
securities may be less than the amount that would be paid on a conventional debt security of ours of comparable maturity.
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■
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The contingent quarterly
payment is based solely on the closing prices on the specified determination dates.
Whether the contingent quarterly payment will be made with respect to a determination date will be based on the closing price on
that determination date. As a result, you will not know whether you will receive the contingent quarterly payment until the related
determination date. Moreover, because the contingent quarterly payment is based solely on the closing price on a specific determination
date, if that closing price is less than the downside threshold level, you will not receive any contingent quarterly payment with
respect to that determination date, even if the closing price of the underlying stock was higher on other days during the term
of the securities.
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■
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The securities are subject to the credit risks of JPMorgan Financial and JPMorgan Chase & Co., and any actual or anticipated
changes to our or JPMorgan Chase & Co.’s credit ratings or credit spreads may adversely affect the market value of the
securities.
Investors are dependent on our and JPMorgan Chase & Co.’s ability to pay all amounts due on the securities.
Any actual or anticipated decline in our or JPMorgan Chase & Co.’s credit ratings or increase in our or JPMorgan Chase
& Co.’s credit spreads determined by the market for taking that credit risk is likely to adversely affect the market
value of the securities. If we and JPMorgan Chase & Co. were to default on our payment obligations, you may not receive any
amounts owed to you under the securities and you could lose your entire investment.
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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. Aside
from the initial capital contribution from JPMorgan Chase & Co., substantially all of our assets relate to obligations of our
affiliates to make payments under loans made by us or other intercompany agreements. As a result, we are dependent upon payments
from our affiliates to meet our obligations under the securities. If these affiliates do not make payments to us and we fail to
make payments on the securities, 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.
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■
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Investors will not participate in any appreciation in the price of the underlying stock.
Investors will not participate
in any appreciation in the price of the underlying stock from the initial stock price, and the return on the securities will be
limited to the contingent quarterly payment that is paid with respect to each determination date on which the closing price is
greater than or equal to the downside threshold level.
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|
■
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Early redemption risk.
The term of your investment in the securities may be limited to as short as approximately three
months by the automatic early redemption feature of the securities. If the securities are redeemed prior to maturity, you will
receive no more contingent quarterly payments and may be forced to reinvest in a lower interest rate environment and may not be
able to reinvest the proceeds from an investment in the securities at a comparable return for a similar level of risk.
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■
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Economic interests of the issuer, the guarantor, the calculation agent, the agent of the offering of the securities and
other affiliates of the issuer may be different from those of investors.
We and our affiliates play a variety of roles in connection
with the issuance of the securities, including acting as calculation agent and as an agent of the offering of the
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JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
securities, hedging our obligations under the securities
and making the assumptions used to determine the pricing of the securities and the estimated value of the securities, which we
refer to as the estimated value of the securities. In performing these duties, our and JPMorgan Chase & Co.’s economic
interests and the economic interests of the calculation agent and other affiliates of ours are potentially adverse to your interests
as an investor in the securities. The calculation agent has determined the initial stock price and the downside threshold level
and will determine the final stock price and whether the closing price of the underlying stock on any determination date is greater
than or equal to the initial stock price or is below the downside threshold level. Determinations made by the calculation agent,
including with respect to the occurrence or non-occurrence of market disruption events, may affect the payment to you at maturity
or whether the securities are redeemed early.
In addition, our and JPMorgan Chase & Co.’s business activities, including hedging and trading activities, could cause
our and JPMorgan Chase & Co.’s economic interests to be adverse to yours and could adversely affect any payment on the
securities and the value of the securities. It is possible that hedging or trading activities of ours or our affiliates in connection
with the securities could result in substantial returns for us or our affiliates while the value of the securities declines. Please
refer to “Risk Factors — Risks Relating to Conflicts of Interest” in the accompanying product supplement for
additional information about these risks.
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■
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The estimated value of the securities is lower than the original issue price (price to public) of the securities.
The
estimated value of the securities is only an estimate determined by reference to several factors. The original issue price of the
securities exceeds the estimated value of the securities because costs associated with selling, structuring and hedging the securities
are included in the original issue price of the securities. These costs include the selling commissions, the structuring fee, the
projected profits, if any, that our affiliates expect to realize for assuming risks inherent in hedging our obligations under the
securities and the estimated cost of hedging our obligations under the securities. See “Additional Information about the
Securities — The estimated value of the securities” in this document.
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■
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The estimated value of the securities does not represent future values of the securities and may differ from others’
estimates. The estimated value of the securities is determined by reference to internal pricing models of our affiliates.
This
estimated value of the securities is based on market conditions and other relevant factors existing at the time of pricing and
assumptions about market parameters, which can include volatility, dividend rates, interest rates and other factors. Different
pricing models and assumptions could provide valuations for securities that are greater than or less than the estimated value of
the securities. 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 securities 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 securities from you in secondary market transactions.
See “Additional Information about the Securities — The estimated value of the securities” in this document.
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The estimated value of the securities is derived by reference to an internal funding rate.
The internal funding rate
used in the determination of the estimated value of the securities is based on, among other things, our and our affiliates’
view of the funding value of the securities as well as the higher issuance, operational and ongoing liability management costs
of the securities
in comparison to those costs for the conventional fixed-rate debt of JPMorgan Chase & Co.
The use
of an internal funding rate and any potential changes to that rate may have an adverse effect on the terms of the securities and
any secondary market prices of the securities. See “Additional Information about the Securities — The estimated value
of the securities” in this document.
|
|
■
|
The value of the securities as published by JPMS (and which may be reflected on customer account statements) may be higher
than the then-current estimated value of the securities for a limited time period.
We generally expect that some of the costs
included in the original issue price of the securities will be partially paid back to you in connection with any repurchases of
your securities by JPMS in an amount that will decline to zero over an initial predetermined period. These costs can include selling
commissions, the structuring fee, projected hedging profits, if any, and, in some circumstances, estimated hedging costs and our
internal secondary market funding rates for structured debt issuances. See “Additional Information about the Securities —
Secondary market prices of the securities” in this document for additional information relating to this initial period. Accordingly,
the estimated value of your securities during this initial period may be lower than the value of the securities as published by
JPMS (and which may be shown on your customer account statements).
|
|
■
|
Secondary market prices of the securities will likely be lower than the original issue price of the securities.
Any
secondary market prices of the securities will likely be lower than the original issue price of the securities because, among other
things, secondary market prices take into account our secondary market credit spreads for structured debt issuances and, also,
because secondary market prices (a) exclude selling commissions and the structuring fee and (b) may exclude projected hedging profits,
if any, and estimated hedging costs that are included in the original issue price of the securities. As a result, the price, if
any, at which JPMS will be willing to buy securities 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
|
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
loss to you. See the immediately following risk factor
for information about additional factors that will impact any secondary market prices of the securities.
The securities are not designed to be short-term trading
instruments. Accordingly, you should be able and willing to hold your securities to maturity. See “— Secondary trading
may be limited” below.
|
■
|
Secondary market prices of the securities will be impacted by many economic and market factors.
The secondary market
price of the securities 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, structuring fee, projected hedging profits, if any, estimated hedging
costs and the closing price of one share of the underlying stock, including
|
|
o
|
any actual or potential change in our or JPMorgan Chase & Co.'s creditworthiness or credit spreads;
|
|
o
|
customary bid-ask spreads for similarly sized trades;
|
|
o
|
our internal secondary market funding rates for structured debt issuances;
|
|
o
|
the actual and expected volatility in the prices of the underlying stock;
|
|
o
|
the time to maturity of the securities;
|
|
o
|
whether the closing price of one share of the underlying stock has been, or is expected to be, less than the downside threshold
level on any determination date and whether the final stock price is expected to be less than the downside threshold level;
|
|
o
|
the likelihood of an early redemption being triggered;
|
|
o
|
the dividend rate on the underlying stock;
|
|
o
|
interest and yield rates in the market generally;
|
|
o
|
the occurrence of certain events affecting the issuer of the underlying stock that may or may not require an adjustment to
the stock adjustment factor, including a merger or acquisition; and
|
|
o
|
a variety of other economic, financial, political, regulatory and judicial events.
|
Additionally, independent pricing vendors and/or third
party broker-dealers may publish a price for the securities, which may also be reflected on customer account statements. This price
may be different (higher or lower) than the price of the securities, if any, at which JPMS may be willing to purchase your securities
in the secondary market.
|
■
|
Investing in the securities is not equivalent to investing in the common stock of Biogen Inc.
Investors in the securities
will not have voting rights or rights to receive dividends or other distributions or any other rights with respect to the underlying
stock.
|
|
■
|
No affiliation with Biogen Inc.
Biogen Inc. is not an affiliate of ours, is not involved with this offering in any way,
and has no obligation to consider your interests in taking any corporate actions that might affect the value of the securities.
We have not made any due diligence inquiry with respect to Biogen Inc. in connection with this offering.
|
|
■
|
We may engage in business with or involving Biogen Inc. without regard to your interests.
We or our affiliates may presently
or from time to time engage in business with Biogen Inc. without regard to your interests and thus may acquire non-public information
about Biogen Inc. Neither we nor any of our affiliates undertakes to disclose any such information to you. In addition, we or our
affiliates from time to time have published and in the future may publish research reports with respect to Biogen Inc., which may
or may not recommend that investors buy or hold the underlying stock.
|
|
■
|
The anti-dilution protection for the underlying stock is limited and may be discretionary.
The calculation agent will
make adjustments to the stock adjustment factor and other adjustments for certain corporate events affecting the underlying stock.
However, the calculation agent will not make an adjustment in response to all events that could affect the underlying stock. If
an event occurs that does not require the calculation agent to make an adjustment, the value of the securities may be materially
and adversely affected. You should also be aware that the calculation agent may make adjustments in response to events that are
not described in the accompanying product supplement to account for any diluting or concentrative effect, but the calculation agent
is under no obligation to do so or to consider your interests as a holder of the securities in making these determinations.
|
|
■
|
Hedging and trading activities by the issuer and its affiliates could potentially affect the value of the securities.
The hedging or trading activities of the issuer’s affiliates and of any other hedging counterparty with respect to the securities
on or prior to the pricing date and prior to maturity could have adversely affected, and may continue to adversely affect, the
value of the underlying stock. Any of these hedging or trading activities on or prior to the pricing date could have affected the
initial stock price and, as a result, the downside threshold level, which is the price at or above which the underlying
|
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
stock must close on each determination date in order
for you to earn a contingent quarterly payment or, if the securities are not redeemed prior to maturity, in order for you to avoid
being exposed to the negative price performance of the underlying stock at maturity. Additionally, these hedging or trading activities
during the term of the securities could potentially affect the price of the underlying stock on the determination dates and, accordingly,
whether investors will receive one or more contingent quarterly payments, whether the securities are automatically redeemed prior
to maturity and, if the securities are not redeemed prior to maturity, the payment to you at maturity. It is possible that these
hedging or trading activities could result in substantial returns for us or our affiliates while the value of the securities declines.
|
■
|
Secondary trading may be limited.
The securities will not be listed on a securities exchange. There may be little or
no secondary market for the securities. Even if there is a secondary market, it may not provide enough liquidity to allow you to
trade or sell the securities easily. JPMS may act as a market maker for the securities, but is not required to do so. Because we
do not expect that other market makers will participate significantly in the secondary market for the securities, the price at
which you may be able to trade your securities is likely to depend on the price, if any, at which JPMS is willing to buy the securities.
If at any time JPMS or another agent does not act as a market maker, it is likely that there would be little or no secondary market
for the securities.
|
|
■
|
The U.S. federal income tax consequences of an investment in the securities are uncertain.
There is no direct legal
authority as to the proper U.S. federal income tax treatment of the securities, and we do not intend to request a ruling from the
IRS. The IRS might not accept, and a court might not uphold, the treatment of the securities as prepaid forward contracts with
associated contingent coupons, as described in “Additional Information about the Securities — Additional Provisions
— Tax considerations” in this document and in “Material U.S. Federal Income Tax Consequences” in the accompanying
product supplement. If the IRS were successful in asserting an alternative treatment for the securities, the timing and character
of any income or loss on the securities could be materially affected. Although the U.S. federal income tax treatment of contingent
quarterly payments (including any contingent quarterly payments paid in connection with an early redemption or at maturity) is
uncertain, in determining our reporting responsibilities we intend (in the absence of an administrative determination or judicial
ruling to the contrary) to treat any contingent quarterly payments as ordinary income. 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 and the relevance of factors such as the nature of the underlying property to which the instruments are linked.
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 affect the tax consequences of an investment in the securities,
possibly with retroactive effect. You should review carefully the section entitled “Material U.S. Federal Income Tax Consequences”
in the accompanying product supplement and consult your tax adviser regarding the U.S. federal income tax consequences of an investment
in the securities, including possible alternative treatments and the issues presented by this notice.
|
Non-U.S. Holders — Tax Consideration.
The
U.S. federal income tax treatment of contingent quarterly payments is uncertain, and although we believe it is reasonable to take
a position that contingent quarterly payments are not subject to U.S. withholding tax (at least if an applicable Form W-8 is provided),
a withholding agent may nonetheless withhold on these payments (generally at a rate of 30%, subject to the possible reduction of
that rate under an applicable income tax treaty), unless income from your securities is effectively connected with your conduct
of a trade or business in the United States (and, if an applicable treaty so requires, attributable to a permanent establishment
in the United States). In the event of any withholding, we will not be required to pay any additional amounts with respect to amounts
so withheld. If you are not a United States person, you are urged to consult your tax adviser regarding the U.S. federal income
tax consequences of an investment in the securities in light of your particular circumstances.
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
Biogen Inc. Overview
Biogen is a biotechnology company focused on discovering,
developing, manufacturing and marketing therapies for treatment of multiple sclerosis and other autoimmune disorders, neurodegenerative
diseases and hemophilia. The underlying stock is registered under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). Information provided to or filed with the SEC by Biogen Inc. pursuant to the Exchange Act can be located by reference
to the SEC file number 000-19311 through the SEC’s website at www.sec.gov. In addition, information regarding Biogen Inc.
may be obtained from other sources including, but not limited to, press releases, newspaper articles and other publicly disseminated
documents.
Information as of market close on August 26, 2016:
|
Bloomberg Ticker Symbol:
|
BIIB
|
52 Week High (on 8/2/2016):
|
$330.11
|
|
|
Current Closing Price:
|
$308.17
|
52 Week Low (on 6/27/2016):
|
$224.60
|
|
|
52 Weeks Ago (on 8/26/2015):
|
$303.69
|
|
|
|
The table below sets forth the published high and low closing
prices of, as well as dividends on, the underlying stock for each quarter in the period from January 3, 2011 through August 26,
2016. The closing price of the underlying stock on August 26, 2016 was $308.17. The associated graph shows the closing prices of
the underlying stock for each day in the same period. We obtained the closing price information above and in the table and graph
below from the Bloomberg Professional
®
service ("Bloomberg"), without independent verification. The closing
prices may have been adjusted by Bloomberg for corporate actions such as stock splits, public offerings, mergers and acquisitions,
spin-offs, delistings and bankruptcy.
Since its inception, the closing price of the underlying
stock has experienced significant fluctuations. The historical performance of the underlying stock should not be taken as an indication
of its future performance, and no assurance can be given as to the price of the underlying stock at any time, including on the
determination dates.
Common Stock of Biogen Inc.
(CUSIP: 09062X103)
|
High
|
Low
|
Dividends
(Declared)
|
2011
|
|
|
|
First Quarter
|
$73.39
|
$65.08
|
—
|
Second Quarter
|
$108.98
|
$72.96
|
—
|
Third Quarter
|
$108.48
|
$85.03
|
—
|
Fourth Quarter
|
$118.72
|
$88.96
|
—
|
2012
|
|
|
|
First Quarter
|
$126.48
|
$113.50
|
—
|
Second Quarter
|
$144.38
|
$125.02
|
—
|
Third Quarter
|
$156.06
|
$139.23
|
—
|
Fourth Quarter
|
$154.22
|
$135.61
|
—
|
2013
|
|
|
|
First Quarter
|
$192.91
|
$142.82
|
—
|
Second Quarter
|
$240.86
|
$192.77
|
—
|
Third Quarter
|
$248.13
|
$206.53
|
—
|
Fourth Quarter
|
$295.88
|
$224.02
|
—
|
2014
|
|
|
|
First Quarter
|
$351.94
|
$273.52
|
—
|
Second Quarter
|
$320.13
|
$274.00
|
—
|
Third Quarter
|
$346.30
|
$299.29
|
—
|
Fourth Quarter
|
$360.67
|
$299.10
|
—
|
2015
|
|
|
|
First Quarter
|
$475.98
|
$334.65
|
—
|
Second Quarter
|
$430.96
|
$373.93
|
—
|
Third Quarter
|
$409.50
|
$272.28
|
—
|
Fourth Quarter
|
$309.67
|
$256.04
|
—
|
2016
|
|
|
|
First Quarter
|
$296.70
|
$245.11
|
—
|
Second Quarter
|
$290.23
|
$224.60
|
—
|
Third Quarter (through August 26, 2016)
|
$330.11
|
$242.03
|
—
|
We make no representation as to the amount of dividends,
if any, that Biogen Inc. may pay in the future. In any event, as an investor in the securities, you will not be entitled to receive
dividends, if any, that may be payable on the common stock of Biogen Inc.
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
The Common
Stock of Biogen Inc. - Daily Closing Prices*
January 3,
2011 to August 26, 2016
|
Source: Bloomberg
|
*The dotted line in the graph indicates the downside threshold level, equal to 75% of the initial stock price.
|
This document relates only to the securities offered
hereby and does not relate to the underlying stock or other securities of Biogen Inc. We have derived all disclosures contained
in this document regarding the common stock of Biogen Inc. from the publicly available documents described in the first paragraph
under this “Biogen Inc. Overview” section without independent verification. In connection with the offering of the
securities, neither we nor the agent has participated in the preparation of such documents or made any due diligence inquiry with
respect to Biogen Inc. Neither we nor the agent makes any representation that such publicly available documents or any other publicly
available information regarding Biogen Inc. is accurate or complete. Furthermore, we cannot give any assurance that all events
occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents
described in the first paragraph under this “Biogen Inc. Overview” section) that would affect the trading price of
the underlying stock (and therefore the price of the underlying stock at the time we priced the securities) have been publicly
disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning
Biogen Inc. could affect the value received at maturity with respect to the securities and therefore the trading prices of the
securities.
Neither we nor any of our affiliates makes any representation
to you as to the performance of the underlying stock.
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
Additional Information about the Securities
Please read this information in conjunction with the summary
terms on the front cover of this document.
Additional Provisions
|
|
Record date:
|
The record date for each contingent payment date is the date one business day prior to that contingent payment date.
|
Postponement of maturity date:
|
If the scheduled maturity date is not a business day, then the maturity date will be the following business day. If the scheduled final determination date is not a trading day or if a market disruption event occurs on that day so that the final determination date is postponed and falls less than three business days prior to the scheduled maturity date, the maturity date of the securities will be postponed to the third business day following that final determination date as postponed.
|
Minimum ticketing size:
|
$1,000/100 securities
|
Trustee:
|
Deutsche Bank Trust Company Americas (formerly Bankers Trust Company)
|
Calculation agent:
|
JPMS
|
The estimated value of the securities:
|
The estimated value of the securities set forth
on the cover of this document 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 securities, valued using the internal funding rate described below, and (2) the derivative
or derivatives underlying the economic terms of the securities. The estimated value of the securities does not represent a minimum
price at which JPMS would be willing to buy your securities in any secondary market (if any exists) at any time. The internal funding
rate used in the determination of the estimated value of the securities is based on, among other things, our and our affiliates’
view of the funding value of the securities as well as the higher issuance, operational and ongoing liability management costs
of the securities in comparison to those costs for the conventional fixed-rate debt of JPMorgan Chase & Co. For additional
information, see “Risk Factors — The estimated value of the securities is derived by reference to an internal funding
rate” in this document. The value of the derivative or derivatives underlying the economic terms of the securities 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 securities on the pricing date is based on market conditions and other relevant factors and assumptions
existing at that time. See “Risk Factors — The estimated value of the securities does not represent future values of
the securities and may differ from others’ estimates” in this document.
The estimated value of the securities is lower
than the original issue price of the securities because costs associated with selling, structuring and hedging the securities are
included in the original issue price of the securities. These costs include the selling commissions paid to JPMS and other affiliated
or unaffiliated dealers, the structuring fee, the projected profits, if any, that our affiliates expect to realize for assuming
risks inherent in hedging our obligations under the securities and the estimated cost of hedging our obligations under the securities.
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. We or one or more of our affiliates will retain any
profits realized in hedging our obligations under the securities. See “Risk Factors — The estimated value of the securities
is lower than the original issue price (price to public) of the securities” in this document.
|
Secondary market prices
of the securities:
|
For information about factors that will impact any secondary market prices of the securities, see “Risk Factors — Secondary market prices of the securities will be impacted by many economic and market factors” in this document. In addition, we generally expect that some of the costs included in the original issue price of the securities will be partially paid back to you in connection with any repurchases of your securities by JPMS in an amount that will decline to zero over an initial predetermined period that is intended to be the shorter of six months and one-half of the stated term of the securities. The length of any such initial period reflects the structure of the securities, whether our affiliates expect to earn a profit in connection with our hedging activities, the estimated costs of hedging the securities and when these costs are incurred, as determined by our affiliates. See “Risk Factors — The value of the securities as published by JPMS (and which may be reflected on customer account statements) may be higher than the then-current estimated value of the securities for a limited time period.”
|
Tax considerations:
|
You should review carefully the section entitled “Material U.S. Federal Income Tax Consequences” in the accompanying product supplement no. MS-1-I. In determining our reporting responsibilities we intend to treat (i) the securities for U.S. federal income tax purposes as prepaid forward contracts with associated contingent coupons and (ii) any contingent quarterly payments as ordinary income, as described in the section entitled “Material U.S. Federal Income Tax Consequences — Tax Consequences to U.S. Holders — Notes Treated as Prepaid Forward Contracts with Associated Contingent Coupons” in the accompanying product supplement. Based on the advice of Davis Polk & Wardwell LLP, our special tax counsel, we believe that this is a reasonable treatment, but that there are other reasonable treatments that the IRS or a court may adopt, in which case the timing and character of any income or loss on the securities could be materially
|
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
|
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 and the relevance of factors such as the nature of the underlying property to which the instruments
are linked. 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 affect the tax consequences of an investment in
the securities, possibly with retroactive effect. You should consult your tax adviser regarding the U.S. federal income tax consequences
of an investment in the securities, including possible alternative treatments and the issues presented by this notice.
Non-U.S. Holders — Tax Considerations.
The U.S. federal income tax treatment of contingent quarterly payments is uncertain, and although we believe it is reasonable
to take a position that contingent quarterly payments are not subject to U.S. withholding tax (at least if an applicable Form W-8
is provided), a withholding agent may nonetheless withhold on these payments (generally at a rate of 30%, subject to the possible
reduction of that rate under an applicable income tax treaty), unless income from your securities is effectively connected with
your conduct of a trade or business in the United States (and, if an applicable treaty so requires, attributable to a permanent
establishment in the United States). If you are not a United States person, you are urged to consult your tax adviser regarding
the U.S. federal income tax consequences of an investment in the securities in light of your particular circumstances.
Non-U.S. holders should also note that recently
promulgated Treasury regulations imposing a withholding tax on certain “dividend equivalents” under certain “equity
linked instruments” will not apply to the securities.
FATCA
. Withholding under legislation commonly
referred to as “FATCA” could apply to payments with respect to the securities that are treated as U.S.-source “fixed
or determinable annual or periodical” income (“FDAP Income”) for U.S. federal income tax purposes (such as interest,
if the securities are recharacterized, in whole or in part, as debt instruments, or contingent quarterly payments if they are otherwise
treated as FDAP Income). Under a recent IRS notice, withholding under FATCA will not apply to payments of gross proceeds (other
than any amount treated as FDAP Income) of a taxable disposition, including an early redemption or redemption at maturity, of the
securities. You should consult your tax adviser regarding the potential application of FATCA to the securities.
In the event of any withholding on the securities,
we will not be required to pay any additional amounts with respect to amounts so withheld.
|
Supplemental use of
proceeds and hedging:
|
The securities are offered to meet investor demand
for products that reflect the risk-return profile and market exposure provided by the securities. See “How the Securities
Work” in this document for an illustration of the risk-return profile of the securities and “Biogen Inc. Overview”
in this document for a description of the market exposure provided by the securities.
The original issue price of the securities is
equal to the estimated value of the securities plus the selling commissions paid to JPMS and other affiliated or unaffiliated dealers
and the structuring fee, plus (minus) the projected profits (losses) that our affiliates expect to realize for assuming risks inherent
in hedging our obligations under the securities, plus the estimated cost of hedging our obligations under the securities.
|
Benefit plan investor considerations:
|
See “Benefit Plan Investor Considerations” in the accompanying product supplement
|
Supplemental plan of distribution:
|
Subject to regulatory constraints, JPMS intends
to use its reasonable efforts to offer to purchase the securities in the secondary market, but is not required to do so. JPMS,
acting as agent for JPMorgan Financial, will pay all of the selling commissions it receives from us to Morgan Stanley Wealth Management.
In addition, Morgan Stanley Wealth Management will receive a structuring fee as set forth on the cover of this document for each
security.
We or our affiliate may enter into swap agreements
or related hedge transactions with one of our other affiliates or unaffiliated counterparties in connection with the sale of the
securities and JPMS and/or an affiliate may earn additional income as a result of payments pursuant to the swap or related hedge
transactions. See “— Supplemental use of proceeds and hedging” above and “Use of Proceeds and Hedging”
in the accompanying product supplement.
|
Validity of the securities:
|
In the opinion of Davis Polk & Wardwell LLP, as special products counsel to JPMorgan Financial and JPMorgan Chase & Co., when the securities offered by this pricing supplement have been executed and issued by JPMorgan Financial and authenticated by the trustee pursuant to the indenture, and delivered against payment as contemplated herein, such securities will be valid and binding obligations of JPMorgan Financial and the related guarantee will constitute a valid and binding obligation of JPMorgan Chase & Co., enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith),
provided
that such counsel expresses no opinion as to the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above. This opinion is given as of the date hereof and is limited to the laws of the State of New York, the General Corporation Law of the State of Delaware and the Delaware Limited Liability Company Act. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and its
|
JPMorgan Chase Financial Company LLC
Contingent Income Auto-Callable Securities due August 31, 2017
Based on the Performance of the Common Stock of Biogen Inc.
Principal at Risk Securities
|
|
authentication of the securities and the validity, binding nature and enforceability of the indenture with respect to the trustee, all as stated in the letter of such counsel dated February 24, 2016, which was filed as an exhibit to the Registration Statement on Form S-3 by JPMorgan Financial and JPMorgan Chase & Co. on February 24, 2016.
|
Contact:
|
Morgan Stanley Wealth Management clients may contact their local Morgan Stanley branch office or Morgan Stanley’s principal executive offices at 1585 Broadway, New York, New York 10036 (telephone number (800) 869-3326).
|
Where you can find more information:
|
You should read this document together with the
accompanying prospectus, as supplemented by the accompanying prospectus supplement, relating to our Series A medium-term notes
of which these securities are a part, and the more detailed information contained in the accompanying product supplement.
This document, together with the documents listed
below, contains the terms of the securities 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, stand-alone fact sheets, brochures or other educational materials of ours. You should carefully consider, among
other things, the matters set forth in the “Risk Factors” section of the accompanying product supplement, as the securities
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 securities.
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. MS-1-I dated June 3, 2016:
http://www.sec.gov/Archives/edgar/data/19617/000095010316013935/crt_dp64833-424b2.pdf
●
Prospectus supplement and prospectus, each dated April 15, 2016:
http://www.sec.gov/Archives/edgar/data/19617/000095010316012636/crt_dp64952-424b2.pdf
Our Central Index Key, or CIK, on the SEC website
is 1665650, and JPMorgan Chase & Co.’s CIK is 19617.
As used in this document, “we,” “us,”
and “our” refer to JPMorgan Financial.
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