You will find a link to the accompanying preliminary pricing supplement for the Notes above and links to the accompanying product supplement and accompanying prospectus for the Notes under “Additional Information about UBS and the Notes” in the preliminary pricing supplement, which you should read and understand prior to investing in the Notes.
UBS has filed a registration statement (including a prospectus as supplemented by a product supplement and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement, and the accompanying product supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-833-653-0401. Our Central Index Key, or CIK, on the SEC web site is 0001114446.
Selected Risk Considerations
The risks set forth below are discussed in more detail in the “Key Risks” section in the preliminary pricing supplement. Please review those risks, along with the additional risks discussed in the accompanying product supplement and accompanying prospectus, before making an investment decision.
Risks Relating to Return Characteristics
♦Risk of loss at maturity — The Notes differ from ordinary debt securities in that UBS will not necessarily make periodic coupon payments or repay the full principal amount of the Notes at maturity. If the Notes are not subject to an automatic call and the final level of any underlying asset is less than its downside threshold, you will lose a percentage of your principal amount equal to the underlying return of the least performing underlying asset and in extreme situations, you could lose all of your initial investment.
♦The stated payout from the issuer applies only if you hold your Notes to maturity
♦You may not receive any contingent coupons with respect to your Notes
♦Your potential return on the Notes is limited to any contingent coupons, you will not participate in any appreciation of any underlying asset or underlying constituents and you will not receive dividend payments on an underlying equity or have the same rights as holders of an underlying equity or any underlying equity constituent
♦A higher contingent coupon rate or lower downside thresholds or coupon barriers may reflect greater expected volatility of each of the underlying assets, and greater expected volatility generally indicates an increased risk of loss at maturity
♦Reinvestment risk
Risks Relating to Characteristics of the Underlying Assets
♦You are exposed to the market risk of each underlying asset
♦Because the Notes are linked to the least performing underlying asset, you are exposed to a greater risk of no contingent coupons and losing a significant portion or all of your initial investment at maturity than if the Notes were linked to a single underlying asset or fewer underlying assets
♦Market risk
♦There can be no assurance that the investment view implicit in the Notes will be successful
♦Changes affecting an underlying index, including regulatory changes, could have an adverse effect on the market value of, and return on, your Notes
♦There is no affiliation between any underlying equity issuer, underlying constituent issuer or index sponsor and UBS, and UBS is not responsible for any disclosure by such entities
♦The value of an underlying equity may not completely track the value of its underlying constituents
♦Fluctuation of NAV
♦The Nasdaq-100® Technology Sector IndexSM and Russell 2000® Index reflects price return, not total return
♦The Notes are subject to risks associated with the technology sector
♦The Notes are subject to small-capitalization stock risks
♦Failure of the Energy Select Sector SPDR® Fund to track the level of its target index
♦The Energy Select Sector SPDR® Fund utilizes a passive indexing investment approach
♦The Notes are subject to risks associated with the energy sector
Estimated Value Considerations
♦The issue price you pay for the Notes will exceed their estimated initial value
♦The estimated initial value is a theoretical price; the actual price at which you may be able to sell your Notes in any secondary market (if any) at any time after the trade date may differ from the estimated initial value
♦Our actual profits may be greater or less than the differential between the estimated initial value and the issue price of the Notes as of the trade date
Risks Relating to Liquidity and Secondary Market Price Considerations
♦There may be little or no secondary market for the Notes
♦The price at which UBS Securities LLC and its affiliates may offer to buy the Notes in the secondary market (if any) may be greater than UBS’ valuation of the Notes at that time, greater than any other secondary market prices provided by unaffiliated dealers (if any) and, depending on your broker, greater than the valuation provided on your customer account statements
♦Economic and market factors affecting the terms and market price of Notes prior to maturity
♦Impact of fees and the use of internal funding rates rather than secondary market credit spreads on secondary market prices
Risks Relating to Hedging Activities and Conflicts of Interest
♦Following certain events, the calculation agent can make adjustments to an underlying equity and the terms of the Notes that may adversely affect the market value of, and return on, the Notes
♦Potential UBS impact on price
♦Potential conflicts of interest
♦Potentially inconsistent research, opinions or recommendations by UBS
Risks Relating to General Credit Characteristics
♦Credit risk of UBS
♦The Notes are not bank deposits
♦If UBS experiences financial difficulties, FINMA has the power to open restructuring or liquidation proceedings in respect of, and/or impose protective measures in relation to, UBS, which proceedings or measures may have a material adverse effect on the terms and market value of the Notes and/or the ability of UBS to make payments thereunder
Risks Relating to U.S. Federal Income Taxation
♦Uncertain tax treatment — Significant aspects of the tax treatment of the Notes are uncertain. You should consult your tax advisor about your tax situation. See “What Are the Tax Consequences of the Notes?” herein and “Material U.S. Federal Income Tax Consequences”, including the section “— Securities Treated as Prepaid Derivatives or Prepaid Forwards with Associated Contingent Coupons”, in the accompanying product supplement.