Is the 17.5% coupon guaranteed?

No, income is not guaranteed. The 17.5% [1] figure is a target annualized distribution rate, not a promise. Coupon payments are contingent on the underlying stocks remaining above their respective coupon barriers on each observation date. If a stock is below its barrier on a given date, that coupon is skipped for that position. The memory feature means missed coupons can be recovered later, but there is no assurance the stocks will recover. In a prolonged or severe market decline, income would be reduced or suspended, and capital could be at risk. ARKY seeks the target yield and current income exposure through Synthetic Equity-Linked Notes (‘Synthetic ELNs’). A Synthetic ELN is a structured instrument, built using options or other derivatives rather than a traditional issued note, that is designed to replicate the economic exposure of an equity-linked note. In ARKY’s case, this exposure is tied to the performance of ARK’s innovation equity universe.

[1] ARKY seeks the target yield and current income exposure through Synthetic Equity-Linked Notes (‘Synthetic ELNs’). A Synthetic ELN is a structured instrument, built using options or other derivatives rather than a traditional issued note, that is designed to replicate the economic exposure of an equity-linked note. In ARKY’s case, this exposure is tied to the performance of ARK’s innovation equity universe.