The calculation agent may postpone the determination of the
index starting level on the trade date if it determines that a market disruption event has occurred or is continuing with respect to the
index on that date. If the trade date is postponed, the calculation agent may adjust the settlement date as well as the expiration date
and the cash settlement payment date to ensure that the stated term of that offering of the Warrants remains the same. See “General
Terms of the Warrants - Market Disruption Event” beginning on page S-18.
RISKS RELATING TO CHARACTERISTICS OF THE INDEX
The Warrants are subject to increased market risk of the
index.
The return on the Warrants, which may be positive or negative,
is directly linked to the performance of the index and indirectly linked to the value of the index constituent stocks. The level of the
index can rise or fall sharply due to factors specific to the index or its index constituent stocks, such as stock price volatility, earnings,
financial conditions, corporate, industry and regulatory developments, management changes and decisions and other events, as well as general
market factors, such as general stock market volatility and levels, interest rates and economic and political conditions. In addition,
the Warrants have an increased sensitivity to market risk. Because your investment in the Warrants provides for leveraged exposure to
the index, changes in the level of the index (both positive and negative) will have a greater impact on the value of the Warrants prior
to the expiration date, and the cash settlement amount, if any, on your Warrants.
UBS and its affiliates have no affiliation with the index
sponsor and are not responsible for their public disclosure of information.
We and our affiliates are not affiliated with index sponsor
(except for licensing arrangements discussed herein) and have no ability to control or predict their actions, including any errors in
or discontinuation of public disclosure regarding methods or policies relating to the calculation of the index. If the index sponsor discontinues
or suspends the calculation of the index, it may become difficult to determine the market value of the Warrants and the cash settlement
amount. The calculation agent may designate a successor index. If the calculation agent determines that no successor index comparable
to the index exists, the payment you receive on the cash settlement payment date will be determined by the calculation agent. See “General
Terms of the Warrants - Market Disruption Event” beginning on page S-18 and “General Terms of the Warrants - Role of Calculation
Agent” beginning on page S-20. The index sponsor is not involved in the offer of the Warrants in any way. The index sponsor does
not have any obligation to consider your interests as an owner of the Warrants in taking any actions that might affect the market value
of your Warrants or the cash settlement amount.
We have derived the information about the index sponsor and
the index from publicly available information, without independent verification. UBS has not conducted any independent review or due diligence
of any publicly available information with respect to the index sponsor or the index. You, as an investor in the Warrants, should make
your own independent investigation into the index sponsor and the index for your Warrants.
Changes affecting the index, including regulatory changes,
could have an adverse effect on the market value of, and return on, your Warrants.
The policies of the index sponsor as specified under “Information
About the Index” (the “index sponsor”), concerning additions, deletions and substitutions of the index constituent stocks
and the manner in which the index sponsor takes account of certain changes affecting those index constituent stocks may adversely affect
the level of the index. The policies of an index sponsor with respect to the calculation of the index could also adversely affect the
level of the index. An index sponsor may discontinue or suspend calculation or dissemination of the index. Further, indices like the index
have been, and continue to be, the subject of regulatory guidance and proposal for reform, including the European Union’s Regulation
(EU) 2016/1011. The occurrence of a benchmark event (as defined below under “General Terms of the Warrants - Discontinuance of,
Adjustments to, or Benchmark Event or Change in Law Affecting, the Index; Alteration of Method of Calculation”), such as the failure
of a benchmark (the index) or the administrator (its index sponsor) or user of a benchmark (such as UBS), to comply with the authorization,
equivalence or other requirements of the benchmarks regulation, may result in the discontinuation of the relevant benchmark or a prohibition
on its use. If these or other events occur, then the calculation agent may select a successor index, reference a replacement basket or
use an alternative method of calculation, in each case, in a manner it considers appropriate, or, if it determines that no successor index,
replacement basket or alternative method of calculation would be comparable to the original index, it may deem the closing level of the
original index on the trading day immediately prior to the date of such event to be its closing level on each applicable date. Such events
and the potential adjustments are described further below under “General Terms of the Warrants - Discontinuance of, Adjustments
to, or Benchmark Event or Change in Law Affecting, the Index; Alteration of Method of Calculation”. Notwithstanding the ability
of the calculation agent to make any of the foregoing adjustments, any such change or event could adversely affect the market value of,
and return on, the Warrants.
Historical performance of the index should not be taken
as an indication of the future performance of the index during the term of the Warrants.
The market prices of the index constituent stocks will determine
the level of the index. The historical performance of the index should not be taken as an indication of the future performance of the
index. As a result, it is impossible to predict whether the level of the index will rise or fall. Market prices of the index constituent
stocks will be influenced by complex and interrelated political, economic, financial, judicial, force majeure and other factors that can
affect the market prices of such index constituent stocks.
The index reflects price return, not total return.
The return on your Warrants is based on the performance of
the index, which reflects the changes in the market prices of the index constituent stocks. It is not, however, linked to a “total
return” index or strategy, which, in addition to reflecting those price returns, would also reflect dividends paid on the index
constituent stocks. The return on your Warrants will not include such a total return feature or dividend component.
The Warrants are subject to risks associated with non-U.S.
companies.
The Nasdaq-100 Index® is comprised, in part,
of non-U.S. companies. Market developments may affect non-U.S. markets differently from U.S. securities markets and direct or indirect
government intervention to stabilize these non-U.S. markets, as well as cross shareholdings in non-U.S. companies, may affect trading
prices and volumes in those markets. Securities issued by non-U.S. companies are subject to political, economic, financial and social
factors that may be unique to the particular country. These factors, which could negatively affect the applicable underlying constituents
include the possibility of recent or future changes in the non-U.S. government’s economic and fiscal policies, the possible imposition
of, or changes in, currency exchange laws or other non-U.S.