Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

Index Linked Notes
Index linked Notes ("Index Linked Notes") are Notes, the redemption or interest payment of
which is directly or indirectly linked to the performance of one or more indices. Depending
on the calculation method of the interest and/or redemption amount and the Final Term the
investor may receive only limited or no income from the Notes and may lose all or part of
its investment.
Equity Linked Notes
Interest payments and/or redemption payments on equity linked Notes ("Equity Linked
Notes") depend on the market value of an underlying equity security or basket of equity
securities. Equity Linked Notes may also provide that redemption will be made by delivery
of the underlying security, exposing investors to the risk that the value of such security may
be substantially below the purchase price of the Note.
Commodity Linked Notes
The interest payments and/or redemption payments on commodity linked Notes ("Commodity
Linked Notes") are calculated by reference to one or more underlying commodities.
Fluctuations in the value of the underlying commodity will have an impact on amounts payable
under the Note.
Fund Linked Notes
Interest payments and/or redemption payments on fund linked Notes ("Fund Linked Notes")
depend on the market value of an underlying fund or basket of funds. Fund Linked Notes
may also provide that redemption will be made by delivery of units in the underlying fund,
exposing investors to the risk that the value of such fund units may be substantially below
the purchase price of the Note.
Notes Linked to Hedge Funds
Special investment considerations apply to Notes (including Certificates and Warrants)
linked to hedge funds: An investment in Notes which economically represent a hedge fund
carries a high degree of risk. Hence only a small part of the disposable funds should be invested
into such Notes and not all disposable funds or funds financed by credit should be
invested into such Notes. An investment into such Notes will be offered to investors particularly
knowledgeable in investment matters. Investors should participate in the investment
only if they are in a position to consider carefully the risks associated with such Notes.
Turbo Certificates
Turbo Certificates entitle an investor to redemption payments equal to the amount by which
the reference value of a defined Underlying (e.g. a share or an index) on a specified date
exceeds or falls short of a base value of the Underlying defined in the final terms of such
Turbo Certificate. An important characteristic of Turbo Certificates is the leverage effect. It
shows to what extent the Turbo Certificate’s development exceeds the performance of the
Underlying. The closer the value of the Underlying at a given moment is to the exercise
price, the stronger the leverage. The leverage is variable and changes whenever the value of
the Underlying changes.
The terms and conditions of Turbo Certificates specify a barrier. If during the term of the
Turbo Certificate the value of the Underlying reaches or - depending on the type of Turbo
Certificate - exceeds or falls short of such value, the Turbo Certificate is terminated and the
investor receives the residual value. Although such value is calculated within a maximum of
three trading hours, there is a risk that it amounts to zero.
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