Scenario II    Continuous downward trend

In a continuous downward trend,

where the Index falls steadily for more than 1 Business Day,
the Product‟s accumulated loss will be smaller than twice the cumulative Index loss. As illustrated in the scenario below, where an investor invested in the Product on day 0 and the market falls by 10% daily for 4 Business Days, by day 4 the investment would have depreciated by 59%, which is smaller than the 69% loss which is twice the cumulative Index return.

Index accu. Return
2x of Index accu. Return
Leveraged product accu. Return
DayIndex daily returnIndex levelIndex cumulative returnLeveraged product Daily ReturnLeveraged product NAVCumulative performance of Leveraged productCumulative performance of 2x of Index