How does the Knock-Out work?

The Knock-Out is a predefined price level that, if reached, automatically terminates the BTC Accumulator. Once Bitcoin reaches that level under the structure’s agreed observation rules, the accumulator stops and no further weekly accumulation occurs.

The client keeps all BTC or the cash equivalent accumulated through the last completed observation. There are no additional accumulation obligations after the Knock-Out occurs, and the remaining scheduled purchases are cancelled. The Knock-Out therefore determines when the accumulation schedule ends and how many observations are completed during the life of the structure.

For example, suppose an accumulator has completed several weekly observations and the client has already accumulated BTC through those observations. If the Knock-Out is subsequently triggered, the structure ends at that point. The BTC or cash equivalent already accumulated remains with the client, and future weekly accumulation stops.

A Knock-Out can occur before the structure’s scheduled maturity. This means the client should account for the possibility of an early finish when considering how much BTC they may accumulate. The final amount depends on the observations completed before termination.

Once the Knock-Out is triggered, any future double-up exposure also ends. The client has no obligation to make additional purchases under the terminated structure. Any BTC already retained continues to carry exposure to changes in Bitcoin’s market price.