Potentially, yes. ARNs do not give investors any guarantees that they will recover the total value of their initially invested capital at the maturity date. This absence of downside protection is the most significant risk. If the underlying asset depreciates, the investor accepts total exposure, deducted from their capital, before the balance is returned. An ARN does not operate like a fixed-rate bond and does not pay periodic interest during the product's lifespan. Instead, the investor receives the return and any repaid capital at the term end, calculated based on the performance of the linked assets, such as currencies, commodities, or securities. Most ARN product packages offer a multiple of the gain, such as two or three times the positive movement of the asset, although they have a returns cap, so they do not provide unlimited returns or exponential profitability if the index or stock appreciates significantly.