What is the 50 to 60% coupon barrier, and what does it mean in practice?

The coupon barrier is the level below which a stock must fall before ARKY stops receiving a coupon for that position. Setting it at 50 to 60% of the stock's initial price means the underlying stock can decline by 40 to 50% and the coupon still pays. This is a significant built-in cushion relative to many other income structures. It does not mean ARKY is low risk, but it does mean income is designed to be resilient through moderate market downturns. Only a major, sustained decline would put coupons at risk.