A structured certificate (structured product) that guarantees the payment of its face value (par value) on the maturity date. Additionally, the certificate provides unlimited upward participation (unlimited income) if the underlying asset price moves upward exceeding the initial level. If the price of the underlying asset at the time of expiration (maturity) of the certificate is higher than the initial price, the certificate will be converted into the underlying asset.

Being a capital-protected product without a cap (uncapped capital-protected product), this certificate provides a guaranteed repayment of the principle (upon maturity) as well as  participation in price gains of the underlying asset/ instrument.

However, due to the existence of a guarantee mechanism, the participation rate is usually lower than what an investor would otherwise realize by outright exposure to the underlying asset. Certain index-based products can avoid such an impact on the participation rate, by allowing the issuer to finance all or a part of the guarantee by means of the dividends gained on the underlying.

It is also known as an exchangeable certificate or simply as a convertible certificate.