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Structured Notes

Definition

Structured Notes are debt instruments whose returns are linked to the performance of an underlying asset, index, or basket of assets, often with embedded derivatives. These complex financial products are designed to offer customized risk-return profiles, such as principal protection with participation in market upside, or enhanced yield with specific downside limitations. Their payoff structure is non-linear and can be tailored to meet specific investor objectives. In the digital asset realm, structured notes can be constructed using cryptocurrencies as underlying assets.