VelocityShares Daily Inverse VIX Short Term ETN (XIV)

 

 

XIV:  VelocityShares Daily Inverse VIX Short-Term ETN
Note Information
Exchange Ticker  XIV
Exposure  Inverse
Reset Period  Daily
Indicative Value Ticker  XIVIV
Inception Date  11/29/2010
Maturity Date  12/04/2030
CUSIP   22542D795
Primary Exchange  NYSE Arca
Investor Fee *  1.35%
Issuer Information
Issuer Credit Suisse AG
Index Information
Index - S&P 500 VIX Short-Term Futures™ Index ER
Bloomberg Index Ticker - SPVXSP
Futures Weighted Average Maturity - 1 Month
*On any calendar day, the Daily Investor Fee is equal to the product of (1) the Closing Indicative on the immediately preceding calendar day
multiplied by (2) the Daily ETN Performance for that series on such calendar day multiplied by (3) the quotient of (a) 0.0135 divided by (b)
365.
The VelocityShares Daily Inverse VIX Short-Term
ETNs (the "ETNs") are senior, unsecured obligations
of Credit Suisse AG ("Credit Suisse") acting through its
Nassau branch. The return on the ETNs is linked to the
inverse of the daily performance of the S&P 500 VIX
Short-Term Futures™ Index ER less the investor fee.
The ETNs provide traders with an exchange traded
instrument enabling them to efficiently express their
market views on the short-term  futures contracts on
the CBOE  SPX  Volatility Index
®
(the "VIX
®
").     The
ETNs do not guarantee any return of principal at
maturity and do not pay any interest during their term.
The index was designed to provide investors with
exposure to one or more maturities of futures contracts
on the VIX
®
, which reflects implied volatility of the
S&P 500
®
Index  at various points along the volatility
forward curve. The calculation of the VIX
®
is based on
prices of put and call options on the S&P 500
®
Index.
The S&P 500  VIX Short-Term Futures™ Index ER
targets a constant weighted average maturity of 1
month. The ETNs are linked to the  daily  inverse
return of the index and do not represent an investment
in the inverse of the VIX
®
.
Benefits of Trading Volatility
  Volatility ETNs may be used to express short-term
views on the direction of volatility
  Volatility is often negatively correlated to the
performance of US equity markets
  Volatility appears to revert to the mean, which
indicates at historically low VIX
®
levels, there is a
higher probability that the next big move will be
up rather than down. Conversely, at historically
high VIX
®
levels, the next big move is more likely
to be down rather than up
Risks Associated with the ETNs
  You may lose all or a significant part of your
investment in the ETNs if the index increases or
does not decrease by an amount sufficient to offset
the applicable fees and charges
  The ETNs and payment of any amount due on the
ETNs are subject to the credit risk of Credit Suisse.
Any payment on the ETNs is subject to the ability
of Credit Suisse AG to satisfy its obligations as they
become due
  The ETNs are intended to be trading tools for
sophisticated investors and should be purchased
only by knowledgeable investors who understand
the potential consequences of investing in a
volatility index and of seeking inverse investment
results
  The ETNs may be redeemed at the investor's
option subject to certain restrictions described in
the prospectus such as a minimum number of
ETNs required for redemption and redemption
being limited to certain dates. Redemption prior
to maturity may result in the imposition of a
charge that would reduce the amount an investor
receives to less than the full amount of the Closing
Indicative Value
  The return at maturity, upon repurchase or early
redemption will be reduced by the fees and
charges associated with the ETN
  The ETNs are not linked to the VIX
®
  The ETNs are designed to obtain their stated
investment objectives on a daily basis
  If you hold your ETN as a long term investment, it
is likely that you will lose all or a substantial
portion of your investment  
XIV: VelocityShares Daily Inverse VIX Short-Term ETN
www.velocityshares.com  | 877-5-VELOCITY | 877-583-5624
Risks (continued from prior page)
  The issuer has the right to call your ETNs
  Although we intend to list the ETNs on NYSE
Arca, a trading market for your ETNs may not
develop
  The market price of your ETNs may be influenced
by many unpredictable factors
  Daily rebalancing will impair the performance of
the ETNs if the underlying index experiences
volatility
The risks set forth in the section entitled "Risks Associated with the ETNs" on the preceding page and "Risks (continued
from prior page)" on this page are only intended as summaries of some of the risks relating to an investment in the ETNs.
Prior to investing in the ETNs, you should, in particular,  review the "Risks Factors" section in the applicable pricing
supplement, which set forth risks related to an investment in the ETNs.
Credit Suisse has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the Securities
and Exchange Commission, or SEC, for the offering of securities. Before you invest, you should read the  applicable pricing supplement, the
prospectus supplement dated March 25, 2009, prospectus dated March 25, 2009 (File No. 333-158199-10), to understand fully the terms of
the notes and other considerations that are important in making a decision about investing in the securities. You may get th ese documents
without cost by visiting EDGAR on the SEC website at  www.sec.gov. Alternatively, Credit Suisse or VLS Securities LLC or any agent or
dealer participating in an offering will arrange to send you the applicable terms sheet  or pricing supplement, prospectus supplement and
prospectus if you so request by calling toll-free 1 800-221-1037.
Information contained in the VelocityShares website  (www.velocityshares.com)  is not incorporated by reference in, and should not be
considered a part of, this free writing prospectus or any pricing supplement of Credit Suisse AG, and to the extent any of such information
has not been filed by Credit Suisse AG, we have not participated in the preparation of, or verified, such publicly available information.
"Standard & Poor's
®
", "S&P
®
", "S&P 500
®
", "Standard & Poor's 500™", "S&P 500 VIX Short-Term Futures™" and "S&P 500 VIX Mid-Term Futures™" are trademarks of Standard & Poor's Financial Services LLC ("S&P") and have been licensed for use by VelocityShares
LLC. "VIX" is a trademark of the Chicago Board Options Exchange, Incorporated ("CBOE") and has been licensed for use by S&P. The ETNs
are not sponsored, endorsed, sold or promoted by S&P or CBOE and S&P and CBOE make no representation regarding the advisability of
investing in the ETNs.