<aside> 💡 By default, every Principal Hedged note is structured with 100% principal protection. This guarantees the return of the full principal amount to the investor, irrespective of the final performance of the Bitcoin Index

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• Customizable Principal Hedge Levels: Customers or advisors have the flexibility to choose the desired level of principal hedge for each note. This customization allows them to align the note with their specific risk tolerance and return objectives.
• Default Principal Hedge Setting: As a standard practice, every note is fully hedged for its principal by default. In practical terms, this translates to a guarantee of principal repayment at the note's maturity, irrespective of the final value of the Bitcoin Index.
• Adjustment of Principal Hedge Percentage: Opting for a lower percentage of principal hedging results in the acquisition of a greater number of call spreads. This adjustment enables investors to modify the risk-reward balance of their note.
• Limitation on Call Spread Acquisition: The acquisition of call spreads is subject to a cap, set at a maximum of 100% of the notional Bitcoin exposure. This cap ensures that the note does not provide leveraged exposure to Bitcoin, maintaining a controlled risk profile.

Step by Step Guide

1. After customizing a note, the “Principal Hedge” slider defaults to 100%.

   

2. Drag the slider to decrease principal hedge level to a desired position:

1. The note’s terms, return profile, ROI, and max loss at maturity all will automatically be refreshed to reflect the change in the principal hedge level.

1. The synthetic composition of the note will adjust based on the changing principal hedge level. All price and quantity are automatically refreshed.