Nonguaranteed structured deposits

• Clients assume certain level of risk (initial investment may not be fully recovered in extreme cases) with a view to generate higher returns on their investments
• Clients are exposed to risks of an option seller – in case an option is exercised, the seller is in a situation, where the current market price of underlying assets sold by the seller may be significantly higher than the strike price or, conversely, the current market price of underlying assets purchased by the seller may be considerably lower than the strike price (to which the seller committed)
• Dual deposits offer above-standard interest rates as well; however, they are not guaranteed structured deposits (with guaranteed principal) – in case the defined limit condition is met and the transaction is subsequently executed, the client’s loss from such transaction (compared to the current exchange rate) may exceed any received interest
• Deposits in the form of deposit promissory notes cannot be terminated early
  
  

This document does not represent an investment recommendation under Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse. Moreover, nor does it represent investment advice pursuant to Act No. 256/2004 Coll., on Capital market undertakings, as amended. The information specified herein shall not be considered an offer to purchase or sell any investment instrument or any other solicitation or invitation regarding the purchase or sale thereof. 

By law, Komerční banka, a. s. may not provide legal or tax advice. Before investing, clients should carry out their own risk analysis in terms of legal, tax, and accounting consequences, without relying solely on the information included in this document and, if necessary, consult tax or other advisors. 

Komerční banka, a. s. assumes no liability for damage incurred as a result of the use of this document or any information contained herein in excess of any liability foreseen by the applicable legislation. Each investor shall adopt their own informed decision regarding the investment suitability, as the investment instrument specified herein may not be suitable for all investors. 

Past performance of investment instruments is not necessarily indicative of future performance. Expected future performance depends on premises that may not materialise. Investment instruments and other investments are associated with different investment risks, whereas investments may fluctuate in value and even the initially invested amount may not be fully recovered. Furthermore, investment instruments denominated in other foreign currencies are also exposed to risks arising from changes in foreign exchange rates, with potential positive or negative impact on investment instrument prices and consequently the investment returns. 

Employees of Komerční banka, a.s. and of other companies of the same financial group, including their close persons and authors of this document, may – from time to time – trade in or hold the investment instruments described herein or derivatives derived therefrom. This document shall not be binding on Komerční banka, a.s. or other companies of the same financial group in connection with the provision of their investment services to their clients. 

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• Deposit product that offers higher returns to clients on their disposable funds, provided they predict the market development correctly
• Deposits in the form of term deposits
• In case of deposit promissory notes:
  - Instrument issued by Komerční banka and kept in custody of KB
  - No need to present the note in person at maturity - with automatic settlement by Komerční banka
• Clients assume certain level of risk (initial investment may not be fully recovered in extreme cases) with a view to generate higher returns on their investments
  
  

• Consult the Markets in Financial Instruments Directive
• Receive current information about financial market developments

Dual Structured Deposit

• Clients receive above-standard interest rates
• Given transaction also involves binding conditions that specify the deposit payment method and currency – payment of principal and interest either in the deposit currency or another agreed currency, at a predetermined limit exchange rate
• Final payment currency depends on the relation of the value of the reference exchange rate to the limit exchange rate as of the reference date
• Agreed parameters namely include:
  - Limit exchange rate
  - Second currency agreed for payment (i.e. a reference exchange rate together with the deposit currency)
  - Defined ratio of the reference exchange rate to the limit exchange rate for settlement in the original deposit currency
  - Reference date relevant for the final payment currency selection