Bonus Certificate

advanced
bonusbarrierparticipation

Participate in upside with a minimum guaranteed bonus return, as long as the underlying stays above the barrier level.

Parameters

70%
40%95%
110%
100%150%
100%
50%200%

Payoff at Expiry

ProfitLoss
parStrike 100%Barrier 70%16508311715018430%53%77%100%123%147%170%Final Level (%)$110
100%
30%170%
Payoff
110.0%
P&L
+10.0%
Return
+10.0%
Barrier
INTACT
Bonus
EARNED

Scenario Analysis

How Bonus Certificates Work

The barrier is set below the initial price. The bonus level is set above. Three distinct payoff regions:

ABOVE BONUS LEVEL

Full participation in the upside beyond the bonus level.

BETWEEN BARRIER AND BONUS (Barrier Intact)

Receive the bonus amount as a minimum guaranteed return.

BELOW BARRIER (Barrier Breached)

Bonus forfeited. 1:1 exposure to the underlying — investor bears the full loss.

Structurer Variables (Section 6.6.3)

  • Participation/Cap level — lowering reduces cost, enables higher bonus
  • Bonus level — the minimum guaranteed return if barrier intact
  • Barrier level — the knock-out trigger below initial
  • Maturity — longer maturity = higher risk but potentially higher bonus

Key Risks

  • Loss equivalent to the negative performance if barrier breached
  • Investor surrenders dividends of the underlying
  • Issuer credit risk