A single premium, high income bond, typically for five years, under which the full return of capital depends on a stock market-measure (e.g. FTSE 100) performing to a minimum level over the life of the product. If the index/measure under-performs investors may not receive a full return of capital; the return drops ever lower as the index/measure continues to fall (the ‘precipice effect’). The FSA requires firms to give clear explanations of the risks involved and follow certain other requirements.