Scenario I    Continuous upward trend

In a continuous upward trend,

where the Index rises steadily for more than 1 Business Day,
the Product‟s accumulated loss will be less than -1x the cumulative Index gain. As illustrated in the scenario below, if an investor has invested in the Product on day 0 and the Index grows by 10% daily for 4 Business Days, by day 4 the Product would have depreciated by 34%, which is less than the 46% loss which is -1x the cumulative Index return over the same 4-day period.

Index accu. Return
-1x of Index accu. Return
Inverse product accu. Return
DayIndex daily returnIndex levelIndex cumulative returnInverse product Daily ReturnInverse product NAVCumulative performance of Inverse productCumulative performance of -1x of Index