A Structured Note is a hybrid security. It has two pieces: the bond portion and the derivative portion.
The bond component of the note is where the bulk of the investment is. This protects your principal. The derivative component is what increases the earning potential of the note.
The thing you need to watch out for in Structured Notes is the complexity of the derivative part. It can be very volatile and complicated. Investing in derivatives can include huge risk. They are complex and should only be purchased by experienced and extremely knowledgeable investors.
Structured Notes are not listed on security exchanges. It’s very hard to buy or sell them on a secondary market. Liquidity is an issue. You should plan on holding the investment until it reaches its maturity date.