Structured Product transaction Sample Clauses

Structured Product transaction. (1) Definition A． Structured Product: Refers to the Structured Product transaction that combines fixed income products with financial derivatives (such as Options). It may link a large number of subjects, including transactional contracts derived from interest rate, exchange rate, stock price, index, commodity, credit event or other interests and their combinations. Structured Product is not a general traditional savings account, but an investment. Its profit and loss are influenced by many factors, such as the price of the target asset, the volatility of the index or the performance, or the occurrence of the agreed credit event. In the situation where certain conditions are met, the profit of Structured Product may be higher than that of the common simple deposit rate; otherwise, it may reduce and erode the investment principal. The Bank does not promise to return all investment principal when the agreement is terminated before maturity, and capital preservation at maturity is depending on the condition set up. Each transaction that agreed by the Customer according to this Agreement takes the Transaction Confirmation as the voucher. Structured Product is not protected by deposit insurance.