Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement No. 333-177923
Dated May 1, 2014
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North America Structured Investments
24 month EEM capped BREN
Overview
May be appropriate for investors anticipating a moderate appreciation in the
Fund over the term of the notes. The notes offer the opportunity to enhance
Fund returns through leverage within the specified range and, additionally, the
notes can outperform a direct investment in the Fund in down market scenarios
by virtue of the Buffer Amount. In exchange, investors should be willing to
accept a maximum return under the notes. Any payment on the notes is subject to
the credit risk of JPMorgan Chase and Co.
Summary of Terms
Issuer: JPMorgan Chase and Co.
Minimum Denomination: $1,000
Fund: iShares MSCI Emerging Markets ETF
Upside Leverage Factor: 2.0
Maximum Total Return: 20%-24%*
Buffer Amount: 10%
Final Share Price: The Fund closing level on the Observation Date
Initial Share Price: The Fund closing level on the Pricing Date
Pricing Date: May 27, 2014
Observation Date: May 25, 2016
Maturity Date: May 31, 2016
CUSIP: 48127DGK8
Preliminary Term Sheet: http://sp.jpmorgan.com/document/cusip/48127DGK8/doctype/Product_Termsheet/document.pdf
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For information about the estimated value of the notes, which likely will be lower than the price you paid for the notes,
see the hyperlink above.
Return Profile
If the Final Share Price is greater than the Initial Share Price, you will
receive a cash payment that provides you with a return per $1,000 principal
amount note equal to the Fund return multiplied by the Upside Leverage Factor,
subject to the Maximum Total Return on the notes.
If the Final Share Price is equal to or less than the Initial Share Price by up
to the Buffer Amount, you will receive the principal amount of your notes at
maturity. If the Fund declines from the Initial Share Price by greater than the
Buffer Amount, you will lose 1% of the principal amount of your notes for every
1% that the Fund has declined beyond the Buffer Amount.
Hypothetical Returns on the Notes at Maturity**
Note Payoff at Maturity Fund Peformance $1,300
$1,200 Maturity $1,100 at $1,000 Payment $900
$800 $700 -30% -20% -10% 0% 10% 20% 30% Fund Return
Hypothetical Hypothetical Note Hypothetical
Fund Return Return Payment at
Maturity
100.00% 20.00% $1,200.00
80.00% 20.00% $1,200.00
50.00% 20.00% $1,200.00
40.00% 20.00% $1,200.00
15.00% 20.00% $1,200.00
10.00% 20.00% $1,200.00
7.50% 15.00% $1,150.00
5.00% 10.00% $1,100.00
0.00% 0.00% $1,000.00
-10.00% 0.00% $1,000.00
-15.00% -5.00% $950.00
-30.00% -20.00% $800.00
-40.00% -30.00% $700.00
-100.00% -90.00% $100.00
* To be determined on the Pricing Date, but not less than 20%
** Reflects a Maximum Total Return of 20% for illustrative purposes. The
hypothetical returns and hypothetical payments on the Notes shown above apply
only at maturity. These hypotheticals do not reflect fees or expenses that
would be associated with any sale in the secondary market. If these fees and
expenses were included, the hypothetical returns and hypothetical payments
shown above would likely be lower
J. P. Morgan Structured Investments | 1 800 576 3529 |
jpm_structured_investments@jpmorgan.com
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North America Structured Investments
24 month EEM capped BREN
Selected Benefits
[] Diversified exposure to international equity markets through the iShares
MSCI MSCI Emerging Markets ETF
[] Provides enhanced or leveraged equity returns, subject to the Maximum Total
Return at maturity.
[] You are entitled to repayment of principal in full at maturity, even if the
Fund declines by up to the Buffer Amount.
[] Minimum denomination of $1,000 and integral multiples in excess thereof.
[] Potential for Long Term Capital Gains tax treatment if held longer than one
year.
Selected Risks
[] Your investment in the notes may result in a loss.
[] Payment on the notes at maturity is subject to our credit risk. Therefore
the value of the notes prior to maturity will be subject to changes in the
market's view of our creditworthiness.
[] Your maximum gain on the notes is limited to the Maximum Total Return.
[] If the Fund declines from its initial level by more than 10%, you could lose
up to $900 for each $1,000 note.
[] No interest payments, dividend payments or voting rights.
[] The tax consequences of the notes may be uncertain. You should consult your
tax advisor regarding the U. S. federal income tax consequences of an
investment in the notes.
Selected Risks (continued)
[] JPMS's estimated value is not determined by references to our credit spreads
for our conventional fixed rate debt.
[] JPMS's estimated value does not represent future values and may differ from
others' estimates.
[] The value of the notes, which may be reflected in customer account
statements, may be higher than JPMS's current estimated value for a limited
time period.
[] Lack of liquidity: J. P. Morgan Securities LLC, acting as agent for the
Issuer (and who we refer to as JPMS), intends to offer to purchase the notes in
the secondary market but is not required to do so. The price, if any, at which
JPMS will be willing to purchase notes from you in the secondary market, if at
all, may result in a significant loss of your principal.
[] Potential conflicts: We and our affiliates play a variety of roles in
connection with the issuance of notes, including acting as calculation agent
and hedging our obligations under the notes, and making the assumptions used to
determine the pricing of the notes and the estimated value of the notes when
the terms of the notes are set. It is possible that such hedging or other
trading activities of J. P. Morgan or its affiliates could result in
substantial returns for J. P. Morgan and its affiliates while the value of the
notes decline.
The risks identified above are not exhaustive. Please see "Risk Factors" in the
applicable product supplement and "Selected Risk Considerations" in the
applicable term sheet for additional information.
Disclaimer
SEC Legend: JPMorgan Chase and Co. has filed a registration statement (including
a prospectus) with the SEC for any offerings to which these materials relate.
Before you invest, you should read the prospectus in that registration
statement and the other documents relating to this offering that JPMorgan Chase
and Co. has filed with the SEC for more complete information about JPMorgan Chase
and Co. and this offering. You may get these documents without cost by visiting
EDGAR on the SEC Web site at www.sec.gov. Alternatively, JPMorgan Chase and Co.,
any agent or any dealer participating in the this offering will arrange to send
you the prospectus and each prospectus supplement as well as any product
supplement and term sheet if you so request by calling toll-free
1-866-535-9248.
IRS Circular 230 Disclosure: JPMorgan Chase and Co. and its affiliates do not
provide tax advice. Accordingly, any discussion of U.S. tax matters contained
herein (including any attachments) is not intended or written to be used, and
cannot be used, in connection with the promotion, marketing or recommendation
by anyone unaffiliated with JPMorgan Chase and Co. of any of the matters address
herein or for the purpose of avoiding U.S. tax-related penalties.
Investment suitability must be determined individually for each investor, and
the financial instruments described herein may not be suitable for all
investors. This information is not intended to provide and should not be relied
upon as providing accounting, legal, regulatory or tax advice. Investors should
consult with their own advisors as to these matters.
This material is not a product of J.P. Morgan Research Departments.
J. P. Morgan Structured Investments | 1 800 576 3529 |
jpm_structured_investments@jpmorgan.com
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