In order to adapt to different market conditions and meet differentiated investor preferences, the product structure of Snowball products has continuously evolved and innovated since its emergence, and there are mainly three basic types on the market at present.

1、break-even snowball products

There is no knock-in clause. On any knock-out observation day, if the price of the underlying object is higher than the knock-out price, the knock-out event will be triggered, the product will terminate, and the investor will get the coupon income corresponding to the duration of the product; If no knock-out event occurs on any knock-out observation day, the investor will receive a very low coupon return (usually 0% or 0.1%) after the product maturities, but there will be no loss of principal. This kind of structure has limited returns for investors, but low risk.

2、Some principal protection snowball products

The structure of some principal protection snowball products is basically the same as that of non-principal protection snowball products, the core difference is that some principal protection snowball products have added the minimum principal protection ratio clause, that is, the maximum loss degree of the principal after the occurrence of knock-in. For investors, because there is a certain degree of principal protection ratio, the risk is lower, but correspondingly, the coupon is also lower than the non-capital protection snowball product.

3、Non-capital preserving demand products

This kind of snowball products do not fall protection, taking common non-capital protection snowball products as an example, in the event of knocking in and not knocking out until the product expires, investors need to bear losses, even a large principal loss, so the risk belongs to the three types of the largest, but investors get the coupon is generally the highest.