JPMorgan Chase Financial Launches $1.27 Million Leveraged European Market-Linked Securities Maturing in 2032

Structure and Maturity Details of the Securities

JPMorgan Chase Financial Company LLC, a wholly owned subsidiary of JPMorgan Chase & Co., issued these securities under its Global Medium-Term Notes, Series A program. The offering consists of 1,270 securities at $1,000 principal each, priced on July 17, 2026, with settlement on July 22, 2026. All payments are guaranteed by JPMorgan Chase & Co., creating a two-tier credit structure between issuer and guarantor.

The maturity payment depends on the lowest-performing underlying asset among the three European benchmarks as of the calculation date, July 19, 2032, with maturity on July 22, 2032, establishing a six-year investment horizon. Unlike traditional debt, these notes do not pay periodic interest or dividends but provide a single maturity payment that may be above, equal to, or below the $1,000 principal.

Enhanced Upside Participation and Positive Return Scenarios

Featuring a 252% upside participation rate, investors receive the $1,000 principal plus 2.52 times the percentage gain of the lowest-performing underlying. For instance, a 10% gain in that underlying results in $1,252 per security ($1,000 plus $252). The starting values on pricing date were: EURO STOXX 50 Index at 6,230.87, STOXX Europe 600 Index at 641.53, and iShares MSCI EAFE ETF at $103.33. These serve as benchmarks for calculating returns at maturity.

Downside Risk and Capital Exposure Thresholds

The securities offer contingent capital protection activating only if the lowest-performing underlying stays above 70% of its initial value. Thresholds set on pricing date were 4,361.609 for EURO STOXX 50, 449.071 for STOXX Europe 600, and $72.331 for iShares MSCI EAFE ETF. If the underlying closes between 70% and 100% of its initial value, investors receive full principal back without gains or losses.

If the lowest-performing underlying closes below its threshold, investors bear full downside risk, potentially losing more than 30% or all principal. For example, a 40% decline results in a $400 loss per security. This structure concentrates risk on the single worst-performing benchmark among the three.

Multi-Index Linkage and Lowest-Performer Payoff Mechanism

The payoff depends solely on the lowest-performing index or fund among the EURO STOXX 50 (SX5E), STOXX Europe 600 (SXXP), and iShares MSCI EAFE ETF (EFA). Even if two underlyings perform well, the worst-performing one determines the return, eliminating diversification benefits and concentrating risk across these European equity exposures.

Pricing and Distribution Details

The securities were priced at $1,000 each, totaling $1,270,000. Wells Fargo Securities, LLC acted as distribution agent, earning $43.70 per security in selling commissions, totaling $55,499. Net proceeds to the issuer were $1,214,501 after fees. Wells Fargo Securities may provide dealers, including Wells Fargo Advisors, with selling concessions and distribution expense fees. J.P. Morgan Securities LLC may pay selected dealers $3.00 per security for marketing services. The estimated value at pricing was $919 per security, indicating a markup over intrinsic value.

Credit and Guarantee Structure

JPMorgan Chase Financial Company LLC is the issuer, with JPMorgan Chase & Co. providing an unconditional payment guarantee. This guarantee creates a direct claim against the parent company. However, the securities are unsecured and unsubordinated obligations subject to credit risk of both issuer and guarantor.

These securities are not bank deposits, lack FDIC or government insurance, and are not guaranteed by any bank in a depository capacity. Investor recovery depends solely on the creditworthiness of JPMorgan entities. Poor underlying performance exposes investors to principal loss and potential credit deterioration risks.

Risk Concentration and Investment Complexity

The securities embed multiple risks distinct from conventional debt. The lowest-performing underlying linkage negates benefits from other indices’ gains. The 70% threshold creates a binary payoff, triggering full downside risk if breached. The six-year term exposes investors to prolonged European economic, currency (Euro vs. USD), and sector-specific risks. Geopolitical or policy events impacting any one index can significantly affect returns.

Illiquidity and Hold-to-Maturity Design

Not listed on any exchange, these securities are intended to be held until maturity on July 22, 2032. Secondary market trading is limited to private negotiations, creating illiquidity risk. Investors should be prepared to hold the securities for the full term without relying on interim liquidity or market price transparency.

Registration and Regulatory Status

Issued under Registration Statement Nos. 333-293684 and 333-293684-01, with pricing update filed per SEC Rule 424(b)(2). Offering documents include prospectus materials dated April 17, 2026, such as Prospectus Supplement, Product Supplement no. WF-1-I, and Underlying Supplement no. 1-I, which govern the securities’ terms.

The SEC and state securities commissions have neither approved nor disapproved the securities or verified the accuracy of the offering documents. Any contrary claim is a criminal offense. Investors bear sole responsibility for assessing suitability in consultation with financial advisors.