An autocallable contingent yield note (ACYN) that represents an unsubordinated, unsecured debt obligation issued a firm (the issuer), linking it to a certain common stock (underlying asset). The note is equipped with a memory feature (memory interest feature), whereby the issuer pays a contingent coupon on the related coupon payment date, in addition to any previously unpaid contingent coupons in relation to any previous observation dates, if the closing price of the underlying asset on the applicable observation date (including the final valuation date), is equal to or above the coupon barrier. Otherwise, no contingent coupon will be paid on that coupon payment date.

And if the closing level of the underlying asset on any observation date (beginning after a year) prior to the final valuation date is equal to or above the call threshold level (a level of the underlying asset forming a percentage of the initial level), the issuer can automatically call the notes before maturity.

If the notes are not embedded with an automatic call, the issuer will pay the holder on the coupon payment date corresponding to such observation date (call settlement date), a cash payment equal to the principal amount plus any contingent coupon otherwise due and any previously unpaid contingent coupons in relation to any previous observation dates pursuant to the memory feature.

If the notes are not embedded with an automatic call and the closing price of the underlying asset on the final valuation date is equal to or above the downside threshold, at maturity, the issuer will pay the holder a cash payment equal to the principal amount.

If, however, the notes are not embedded with an automatic call and the final level is less than the downside threshold, at maturity, the  issuer will the holder a cash payment lower than the principal amount, if any, resulting in a percentage loss on the initial investment equal to the percentage decline in the underlying asset from the initial level to the final level, and in extreme situations, all initial investment could be lost.