We want to give you upside exposure to the market while protecting you from downside risk, so we use a special asset that tracks the S&P 500 that ensures the value never dips below its initial purchase price.
When the market drops, the buffered ETF portion of your position is designed to absorb part of the decline during its 12-month outcome period. The rest of your position — anything above the protected principal — is in uncapped S&P 500 exposure and moves one-for-one with the market.
Because your account has no leverage and no margin debt, a downturn can reduce your take-home value (your gains), but you’ll never owe us more than your membership fees.
Example
If we advanced $10,000 for you and, years later, your position is worth $14,549.35:
$10,000 remains in the capped, buffered ETF (targeted downside cushion, capped upside).
$4,549.35 sits in uncapped S&P 500 exposure (full market participation).
By the time your position grows far above the protected amount, it’s likely most or all will be uncapped — unless markets fall back toward that original $10,000.