JPMorgan Launches Capped Buffered Equity Notes Linked to Dow Jones and S&P 500 with 35.40% Maximum Return

Details of the Buffered Notes Structure

JPMorgan Chase Financial Company LLC, a wholly owned subsidiary of JPMorgan Chase & Co., has filed a preliminary pricing supplement for these structured notes. The notes are unsecured, unsubordinated obligations of JPMorgan Financial, with full payment guaranteed unconditionally by JPMorgan Chase & Co. Investors assume direct credit risk from both the issuer and guarantor, making the creditworthiness of JPMorgan Chase entities critical to performance.

The notes are linked to two separate equity indices rather than a combined basket. Payments depend on the individual performance of each index, not a blend. The final index performance will be observed on August 21, 2028, with maturity occurring three days later on August 24, 2028.

Return and Participation Features

Under the "Upside Scenario," investors receive their $1,000 principal plus a return equal to 1.00 times the Lesser Performing Index Return, capped at a minimum of 35.40%. This translates to a maximum payment of at least $1,354 per $1,000 note. The 1.00 times leverage means investors participate dollar-for-dollar in index gains up to the cap.

The Lesser Performing Index Return is the lower percentage return between the two indices, calculated by comparing the final closing level on the observation date to the initial closing level on the pricing date. This ensures returns are tied to the weaker index, potentially limiting gains if one index significantly outperforms.

Downside Buffer and Risk Exposure

The notes include a 30.00% buffer that shields investors from losses if the lesser-performing index declines by up to 30%. In such cases, investors receive their full $1,000 principal at maturity. This buffer applies whether one index outperforms while the other declines moderately or both indices fall within the buffer range.

However, investors face a maximum potential loss of 70.00% of principal if the lesser-performing index declines beyond the buffer. The filing’s hypothetical payout table shows that a total decline to zero in the lesser-performing index results in a $300 payment per $1,000 note, reflecting the 70% loss. Prospective investors must assess their ability to accept this risk.

No Interest or Dividend Payments

The notes require investors to forgo interest and dividend income. Unlike traditional bonds or dividend-paying equities, these structured notes generate returns solely through index appreciation subject to the cap and buffer. There are no periodic cash flows during the approximate two-year holding period.

This lack of interim income is a key consideration for investors accustomed to regular payments, as returns are realized only at maturity or through the downside buffer.

Pricing and Valuation Insights

The preliminary pricing supplement estimates the note value at about $986.30 per $1,000 principal if priced on the filing date, with a valuation floor of $950.00 per note (a 5.00% discount to par) guaranteed at final pricing. Pricing details, including fees and commissions, remain incomplete and will be finalized on or about August 21, 2026.

J.P. Morgan Securities LLC will pay selling commissions up to $1.50 per $1,000 note to affiliated or unaffiliated dealers. The final pricing supplement will provide complete terms.

Index Initial Value and Selection

The Initial Value for each index is their closing level on the Pricing Date, anticipated on or about August 21, 2026. This value serves as the baseline for return calculations. Illustrative examples in the filing use an Initial Value of 100.00 for simplicity and do not reflect actual index levels.

The two indices tracked are the Dow Jones Industrial Average (Bloomberg ticker: INDU) and the S&P 500 Index (Bloomberg ticker: SPX). Investors should consult the final pricing supplement for the official closing levels set on the pricing date.

Credit Risk and Guarantee Details

The notes are fully and unconditionally guaranteed by JPMorgan Chase & Co., the parent company of the issuer. Payments depend on the creditworthiness of both JPMorgan Financial and JPMorgan Chase & Co. The guarantee provides a backstop but does not eliminate credit risk.

These notes are not bank deposits, are not FDIC insured, and are not bank obligations. Investors must conduct their own credit evaluations as the guarantee depends solely on the financial strength of JPMorgan Chase & Co.

Settlement and Documentation

Settlement is expected on or about August 26, 2026, roughly five business days after pricing. The notes carry CUSIP 46661KUU0 and are registered under SEC Registration Statement Nos. 333-293684 and 333-293684-01. The preliminary pricing supplement is filed under Rule 424(b)(2).

The full documentation includes the preliminary pricing supplement, product supplement no. 3-I (dated April 17, 2026), underlying supplement no. 1-I (dated April 17, 2026), and prospectus materials dated April 17, 2026. Investors should review all materials carefully before investing. The final pricing supplement with completed terms will be available on or about August 21, 2026.

Risk Factors and Investment Suitability

Multiple risk factors are detailed across the prospectus supplement (starting page S-2), product supplement (starting page PS-12), and pricing supplement (starting page PS-4). These cover potential losses from index declines, issuer and guarantor credit risk, and structural limitations on returns.

Prospective investors must evaluate whether the capped upside, downside buffer with possible significant loss, and credit exposure align with their investment goals and risk tolerance. These notes suit investors seeking defined equity index exposure with specific risk parameters but may not fit all investment profiles.