JPMorgan Chase Financial Introduces Trigger PLUS Leveraged International Equity Securities with 151.80% Upside Potential

Composition of the Basket and Index Weightings

The Trigger PLUS securities are based on a weighted basket of five international indices representing key equity markets in Europe, Asia, and the Pacific. The EURO STOXX 50 Index forms the largest portion at 40%, serving as the main performance driver. On the pricing date of July 17, 2026, the EURO STOXX 50 Index had an initial value of 6,230.87, which serves as the benchmark for return calculations over the three-year term.

The other indices provide geographic diversification: the TOPIX Index (Tokyo) is weighted at 25% with an initial value of 3,919.21; the FTSE 100 Index (London) comprises 17.50% with an initial closing level of 10,600.37; the Swiss Market Index accounts for 10% with an initial value of 14,343.70; and the S&P/ASX 200 Index (Australia) holds 7.50% with an initial value of 8,796.750. This uneven weighting means European equities will heavily influence the securities’ maturity payoff.

Leverage and Upside Return Structure

These securities feature a 151.80% leverage factor that amplifies gains when the final basket value exceeds the initial value. Investors receive their $1,000 principal plus an upside payment calculated by multiplying the leverage factor by the basket’s percentage increase. For instance, a 10% basket gain results in a leveraged payment of $1,000 x 151.80% x 0.10, offering enhanced returns compared to direct index investments. This structure targets investors willing to sacrifice interest income for magnified international equity gains.

The leverage applies uniformly across the entire basket, with no separate factors for individual indices. The estimated value of the Trigger PLUS on pricing day was $957.20 per $1,000 principal, reflecting embedded time decay and risk. Investors paying the $1,000 issue price effectively pay a premium above this estimated value due to structuring costs, commissions, and the asymmetric payoff profile.

Principal Protection and Trigger Level Details

The securities include partial downside protection via an 80% trigger level based on the initial basket value. If the final basket value remains at or above this level, investors receive their full $1,000 principal at maturity without additional payment, even if the basket declines by up to 20%. This protection is a contractual obligation of JPMorgan Chase Financial Company LLC, fully guaranteed by JPMorgan Chase & Co., but is not backed by traditional insurance or hedging.

If the basket closes below the 80% trigger, investors incur losses proportional to the basket’s decline. The maturity payment equals $1,000 multiplied by the ratio of the final to initial basket value. For example, a 30% drop below the trigger results in a $700 payment per $1,000 principal, representing a 30% loss. The documents warn that losses will exceed 20% in such cases, with a 1% loss for every 1% basket decline beneath the trigger.

Issuance Framework and Guarantee Status

JPMorgan Chase Financial Company LLC issued the Trigger PLUS as unsecured, unsubordinated obligations under its Medium-Term Notes Series A program, with all payments fully guaranteed by JPMorgan Chase & Co. The securities are registered under SEC numbers 333-293684 and 333-293684-01 pursuant to Rule 424(b)(2). This structure places investor claims on par with other unsecured creditors of JPMorgan Chase Financial, while the parent company guarantee adds credit support. However, these securities are not bank deposits, are not FDIC insured, and are not obligations of any banking institution.

The offering totaled $6,238,000 with units issued at $1,000 principal each on July 23, 2026, following the July 17 pricing. J.P. Morgan Securities LLC acted as agent, and Morgan Stanley Wealth Management earned $25.00 selling commissions plus $5.00 structuring fees per unit, totaling $187,140 or about 3% of gross proceeds. Net proceeds to the issuer were $6,050,860 after fees.

Valuation, Settlement, and Maturity Schedule

The final basket performance will be measured on July 31, 2029, with maturity and payment on August 6, 2029, allowing a six-day settlement period. This roughly three-year investment term aligns with medium-term planning horizons and incorporates time decay in pricing. The basket’s initial value is normalized to 100 on July 17, 2026, serving as the baseline for performance calculations at maturity. Final basket values are weighted sums of each index’s closing level on the valuation date.

The pricing supplement notes potential postponements of valuation, maturity, or payment dates due to market disruptions. The calculation agent may also adjust final payments reasonably if acceleration events occur. JPMorgan Chase Financial reserves the right to accelerate the securities under conditions outlined in the risk factors section of the full prospectus.

Fee Breakdown and Cost Analysis

The public offering price was set at $1,000 per unit, totaling $6,238,000. This includes a $25.00 selling commission and a $5.00 structuring fee per unit paid to Morgan Stanley Wealth Management, covering distribution and product servicing costs.

After fees, the issuer’s net proceeds were $970.00 per unit or $6,050,860 total. The $30 gap between public price and net proceeds reflects issuance and distribution friction costs. The estimated value of $957.20 per unit on pricing day further indicates implicit costs and time decay not itemized in fees. Investors should recognize that the difference between estimated value and issue price represents the fair value cost of entering the position.

Credit Risk and Guarantee Considerations

Payments depend on the creditworthiness of JPMorgan Chase Financial Company LLC and its guarantor, JPMorgan Chase & Co. While the full guarantee provides strong credit support, investors risk losing principal if either entity defaults or becomes insolvent. The pricing supplement advises investors to evaluate both entities’ credit profiles carefully.

The guarantee extends to JPMorgan Chase & Co.’s entire asset base, not just the issuing finance subsidiary, which matters in bankruptcy or resolution scenarios. Nonetheless, senior creditors and depositors have priority claims over Trigger PLUS holders. The securities rank equally with other unsecured, unsubordinated obligations of JPMorgan Chase Financial and are guaranteed on an unsecured basis by the parent.

Risks of International Equity Exposure

The basket’s 40% EURO STOXX 50 weighting exposes investors to concentrated risks from eurozone economic, political, and regulatory developments, which will heavily impact security performance. Currency risk is also significant, as indices are measured in local currencies without hedging against USD fluctuations, potentially affecting returns over the three-year term.

Additional geographic risks include Japanese market exposure via the 25% TOPIX weighting, UK equities through 17.50% FTSE 100, Swiss stocks at 10%, and Australian equities at 7.50%. Each market faces unique regulatory, geopolitical, and economic challenges. The pricing announcement does not detail specific geopolitical or sector risks or macroeconomic scenarios that could breach the trigger level. Investors should independently evaluate whether the basket’s diversification aligns with their risk tolerance.

Investor Suitability and Use Cases

Trigger PLUS securities target sophisticated investors seeking leveraged exposure to an unevenly weighted international equity basket who accept principal risk and forgo current income. The pricing supplement outlines three key use cases: as an alternative to direct index investment with enhanced returns via leverage; to gain exposure equivalent to larger index positions with less capital; and to benefit from partial downside protection if the basket declines up to 20% but stays above the trigger.

This downside protection is conditional and only applies if the basket remains at or above 80% of its initial value. The product is not recommended for income-focused investors, those unwilling to risk losses beyond 20%, or investors needing liquidity before the three-year maturity. The securities will not be exchange-listed, limiting secondary market liquidity and redemption options.

Registration and Disclosure Documentation

Issued under an established medium-term notes program, the Trigger PLUS are supported by detailed SEC-filed documentation accessible via EDGAR. Product supplement 3-I and underlying supplement 1-I, both dated April 17, 2026, define terms and index calculation methods. The prospectus supplement and prospectus, also dated April 17, 2026, provide the legal framework governing the offering.

The July 17, 2026 pricing supplement filed under SEC Rule 424(b)(2) finalizes terms including principal amount, leverage, trigger level, and fees. Investors should review all referenced materials to fully understand rights, obligations, and risks. The SEC has neither approved nor disapproved the Trigger PLUS nor verified the accuracy of offering documents, as stated in the pricing supplement.