Subject to Completion

PRELIMINARY PRICING SUPPLEMENT

Dated January 24, 2019

Filed Pursuant to Rule 424(b)(2)

Registration Statement No. 333-225551

(To Prospectus dated October 31, 2018, Index Supplement dated October 31, 2018 and Product Supplement dated October 31, 2018)

Investment Description

Features

Potential for Periodic Contingent Coupons UBS will pay a contingent coupon on a coupon payment date only if the closing level of each underlying asset is equal to or greater than its coupon barrier on the applicable observation date (including the final valuation date). Otherwise, if the closing level of any underlying asset is less than its coupon barrier on the applicable observation date, no contingent coupon will be paid for the relevant coupon payment date.

Automatic Call Feature UBS will automatically call the Notes and pay you the principal amount of your Notes plus the contingent coupon otherwise due on the related coupon payment date if the closing level of any underlying asset is equal to or greater than its initial level on any observation date Quarterly, beginning after 6 months prior to the final valuation date. If the Notes were previously subject to an automatic call, no further payments will be owed to you under the Notes.

Contingent Repayment of Principal at Maturity with Potential for Full Downside Market Exposure If by maturity the Notes have not been subject to an automatic call and the final level of each underlying asset is equal to or greater than its downside threshold, UBS will repay you the principal amount per Note at maturity. If, however, the final level of any underlying asset is less than its downside threshold, UBS will pay you a cash payment per Note that is less than the principal amount, if anything, resulting in a percentage loss on your investment equal to the underlying return of the least performing underlying asset. The contingent repayment of principal applies only if you hold the Notes to maturity. Any payment on the Notes including any repayment of principal, is subject to the creditworthiness of UBS.

Key Dates*

Trade Date

January 24, 2019

Settlement Date

January 28, 2019

Observation Dates

Quarterly (callable after 6 months) (see page )

Final Valuation Date

January 24, 2022

Maturity Date

January 27, 2022

Note Offering

Underlying Asset

Bloomberg Ticker

Contingent Coupon Rate

Initial Levels

Downside Thresholds

Coupon Barriers

CUSIP

ISIN

S&P 500 Index

SPX

7.65% to 8.24% per annum

, 80.00% of the Initial Level

, 80.00% of the Initial Level

90270KXA2

US90270KXA23

Russell 2000 Index

RTY

, 80.00% of the Initial Level

, 80.00% of the Initial Level

Offering of Notes

Issue Price to Public

Underwriting Discount(1)(2)

Proceeds to UBS AG(1)(2)

Total

Per Note

Total

Per Note

Total

Per Note

Notes linked to the least performing of the S&P 500 Index and the Russell 2000 Index

$1,000.00

$20.00

$980.00

(1)

Our affiliate, UBS Securities LLC, will receive an underwriting discount of $20.00 per principal amount for each Note sold in this offering. UBS Securities LLC intends to re-allow the full amount of this discount to a third party dealer.

(2)

Certain registered investment advisers unaffiliated from UBS may purchase Notes from such third party dealer at a purchase price of at least $980.00 per principal amount of the Notes, and such third party dealer, with respect to sales made to such registered investment advisers, may forgo some or all of the underwriting discount with respect to such sales.

UBS Securities LLC

UBS Investment Bank

Additional Information about UBS and the Notes

ii

Investor Suitability

The Notes may be suitable for you if:

The Notes may not be suitable for you if:

You fully understand the risks inherent in an investment in the Notes, including the risk of loss of a significant portion or all of your initial investment.

You do not fully understand the risks inherent in an investment in the Notes, including the risk of loss of a significant portion or all of your initial investment.

You understand and accept that an investment in the Notes is linked to the performance of the least performing underlying asset and not a basket of the underlying assets, that you will be exposed to the individual market risk of each underlying asset on each observation date and on the final valuation date and that you may lose a significant portion or all of your initial investment if the closing level of any underlying asset is less than its downside threshold on the final valuation date.

You do not understand or are unwilling to accept that an investment in the Notes is linked to the performance of the least performing underlying asset and not a basket of the underlying assets, that you will be exposed to the individual market risk of each underlying asset on each observation date and on the final valuation date and that you may lose a significant portion or all of your initial investment if the closing level of any underlying asset is less than its downside threshold on the final valuation date.

You can tolerate a loss of a significant portion or all of your initial investment and are willing to make an investment that may have the same downside market risk as a hypothetical investment in the least performing underlying asset or the stocks comprising the underlying assets (the "underlying constituents.")

You require an investment designed to provide a full return of principal at maturity.

You are willing to receive no contingent coupons and believe the closing level of each underlying asset will be equal to or greater than its coupon barrier on the specified observation dates and the final level of each underlying asset will be equal to or greater than its downside threshold on the final valuation date.

You cannot tolerate a loss of a significant portion or all of your initial investment or are unwilling to make an investment that may have the same downside market risk as a hypothetical investment in the least performing underlying asset.

You can accept that the risks of each underlying asset are not mitigated by the performance of any other underlying asset and the risks of investing in securities with a return based on the performance of multiple underlying assets.

You are unwilling to receive no contingent coupons during the term of the Notes and believe that the closing level of at least one underlying asset will decline during the term of the Notes and is likely to be less than its coupon barrier on at least one observation date or that the final level of any underlying asset will be less than its downside threshold on the final valuation date.

You understand and accept that you will not participate in any appreciation of any underlying asset and that your potential return is limited to the contingent coupons specified in the applicable pricing supplement.

You cannot accept that the risks of each underlying asset are not mitigated by the performance of any other underlying asset or the risks of investing in securities with a return based on the performance of multiple underlying assets.

You can tolerate fluctuations in the price of the Notes prior to maturity that may be similar to or exceed the downside fluctuations in the levels of the underlying assets.

You seek an investment that participates in the full appreciation in the levels of the underlying assets or that has unlimited return potential.

You would be willing to invest in the Notes based on the downside threshold(s) and coupon barrier(s) specified on the cover hereof and if the contingent coupon rate was set equal to the bottom of the range specified on the cover hereof (the actual contingent coupon rate will be set on the trade date).

You seek an investment that participates in the full appreciation in the levels of the underlying assets or that has unlimited return potential.

You do not seek guaranteed current income from your investment and are willing to forgo any dividends paid on the underlying constituents.

You cannot tolerate fluctuations in the price of the Notes prior to maturity that may be similar to or exceed the downside fluctuations in the levels of the underlying assets.

You are willing to invest in Notes that may be subject to an automatic call and you are otherwise willing to hold such Notes to maturity and you accept that there may be little or no secondary market for the Notes.

You would be unwilling to invest in the Notes based on the downside threshold(s) or coupon barrier(s) specified on the cover hereof or if the contingent coupon rate was set equal to the bottom of the range specified on the cover hereof (the actual contingent coupon rate will be set on the trade date).

You understand and are willing to accept the risks associated with the underlying assets.

You seek guaranteed current income from this investment or prefer to receive any dividends paid on the underlying constituents.

You are willing to assume the credit risk of UBS for all payments under the Notes, and understand that if UBS defaults on its obligations you may not receive any amounts due to you including any repayment of principal.

You are unable or are unwilling to invest in Notes that may be subject to an automatic call, you are otherwise unable or unwilling to hold the Notes to maturity or you seek an investment for which there will be an active secondary market for the Notes.

You understand that the estimated initial value of the Notes determined by our internal pricing models is lower than the issue price and that should UBS Securities LLC or any affiliate make secondary markets for the Notes, the price (not including their customary bid-ask spreads) will temporarily exceed the internal pricing model price.

You do not understand or are unwilling to accept the risks associated with the underlying assets.

You are unwilling to assume the credit risk of UBS for all payments under the Notes, including any repayment of principal.

Preliminary Terms

Issuer:

UBS AG, London Branch

Principal Amount:

$1,000 per Note

Term:

Approximately 3 years, unless subject to an automatic call.

Underlying Assets:

The S&P 500 Index and the Russell 2000 Index

Contingent Coupon and Contingent Coupon Rate:

If the closing level of each underlying asset is equal to or greater than its coupon barrier on any observation date (including the final valuation date), UBS will pay you the contingent coupon applicable to such observation date on the related coupon payment date.

If the closing level of any underlying asset is less than its coupon barrier on any observation date (including the final valuation date), the contingent coupon applicable to such observation date will not accrue or be payable and UBS will not make any payment to you on the relevant coupon payment date.

The contingent coupon will be a fixed amount based upon equal periodic installments at the contingent coupon rate, which is a per annum rate. The table below sets forth the range of the contingent coupon rate and contingent coupon for each Note that would be applicable to each observation date on which the closing level of each underlying asset is greater than or equal to its coupon barrier. The actual contingent coupon rate will be determined on the trade date.

Contingent Coupon Rate

7.65% - 8.24%

Contingent Coupon

$19.125 - $20.60

Contingent coupons on the Notes are not guaranteed. UBS will not pay you the contingent coupon for any observation date on which the closing level of any underlying asset is less than its coupon barrier.

Automatic Call Feature:

UBS will automatically call the Notes if the closing level of each underlying asset on any observation date (Quarterly, beginning after 6 months) prior to the final valuation date is equal to or greater than its initial level.

If the Notes are subject to an automatic call, UBS will pay you on the corresponding coupon payment date (which will be the call settlement date) a cash payment per Note equal to your principal amount plus the contingent coupon otherwise due on such date. Following an automatic call, no further payments will be made on the Notes.

Payment at Maturity (per Note):

If the Notes are not subject to an automatic call and the final level of each underlying asset is equal to or greater than its downside threshold, UBS will pay you a cash payment equal to:

Principal Amount of $1,000

If the Notes are not subject to an automatic call and the final level of any underlying asset is less than its downside threshold, UBS will pay you a cash payment that is less than the principal amount, if anything, equal to:

$1,000 x (1+ Underlying Return of the least performing Underlying Asset)

In such a case, you will suffer a percentage loss on your initial investment equal to the underlying return of the least performing underlying asset regardless of the underlying return of any other underlying asset.

Least Performing Underlying Asset:

The underlying asset with the lowest underlying return as compared to the other underlying asset(s)

Underlying Return:

For each underlying asset, the quotient, expressed as a percentage, of the following formula:

Downside Threshold:(1)

For each underlying asset, a specified level of the underlying asset that is less than its initial level, equal to a percentage of its initial level and equal to its coupon barrier, as indicated on the cover hereof and as determined by the calculation agent.

Coupon Barrier:(1)

For each underlying asset, a specified level of the underlying asset that is less than its initial level, equal to a percentage of the initial level and equal to the downside threshold, as indicated on the cover hereof and as determined by the calculation agent.

Initial Level:(1)

The closing level of each underlying asset on the trade date, as determined by the calculation agent.

Final Level:(1)

The closing level of each underlying asset on the final valuation date, as determined by the calculation agent.

(1)

As may be adjusted as described under General Terms of the Securities Discontinuance of or Adjustment to an Underlying Index; Alteration of Method of Calculation in the accompanying product supplement.

Investment Timeline

Observation Dates and Coupon Payment Dates(1)(2)

Observation Dates

Coupon Payment Dates

April 24, 2019*

April 29, 2019*

July 24, 2019*

July 29, 2019

October 24, 2019

October 29, 2019

January 24, 2020

January 29, 2020

April 24, 2020

April 29, 2020

July 24, 2020

July 29, 2020

October 26, 2020

October 29, 2020

January 25, 2021

January 28, 2021

April 26, 2021

April 29, 2021

July 26, 2021

July 29, 2021

October 25, 2021

October 28, 2021

January 24, 2022**

January 27, 2022***

*

The Notes are not callable until the first potential call settlement date, which is July 29, 2019.

**

This is also the final valuation date.

***

This is also the maturity date.

(1)

Subject to the market disruption event provisions set forth in the accompanying product supplement.

(2)

3 business days following each observation date, except that the coupon payment date for the final valuation date is the maturity date.

Key Risks

Risk of loss at maturity The Notes differ from ordinary debt securities in that UBS will not necessarily make periodic coupon payments or repay the principal amount of the Notes at maturity. If the Notes are not subject to an automatic call and the final level of any underlying asset is less than its downside threshold, you will lose a percentage of your principal amount equal to the underlying return of the least performing underlying asset and, in extreme situations, you could lose all of your initial investment.

The contingent repayment of principal applies only at maturity You should be willing to hold your Notes to maturity. If you are able to sell your Notes prior to an automatic call or maturity in the secondary market, you may have to sell them at a loss relative to your initial investment even if the level of each underlying asset is equal to or greater than its downside threshold. All payments on the Notes are subject to the creditworthiness of UBS.

You may not receive any contingent coupons with respect to your Notes UBS will not necessarily make periodic coupon payments on the Notes. UBS will pay a contingent coupon for each observation date on which the closing level of each underlying asset is equal to or greater than its coupon barrier. If the closing level of any underlying asset is less than its coupon barrier on any observation date, UBS will not pay you the contingent coupon applicable to such observation date. If the closing level of any underlying asset is less than its coupon barrier on each of the observation dates, UBS will not pay you any contingent coupons during the term of, and you will not receive a positive return on, your Notes. Generally, this non-payment of the contingent coupon coincides with a period of greater risk of principal loss on your Notes.

Your potential return on the Notes is limited to the contingent coupons and you will not participate in any appreciation of any underlying asset or underlying constituents The return potential of the Notes is limited to the pre-specified contingent coupon rate, regardless of any appreciation of any underlying asset. In addition, your return on the Notes will vary based on the number of observation dates, if any, on which the requirements of the contingent coupon have been met prior to maturity or an automatic call. Further, if the Notes are subject to an automatic call, you will not receive any contingent coupons or any other payment in respect of any observation dates after the applicable call settlement date. Because the Notes may be subject to an automatic call as early as the first potential call settlement date, the total return on the Notes could be less than if the Notes remained outstanding until maturity. Furthermore, if the Notes are not subject to an automatic call, you may be subject to the decline of the least performing underlying asset even though you cannot participate in any appreciation of any underlying asset or underlying constituents. As a result, the return on an investment in the Notes could be less than the return on a hypothetical direct investment in any or all of the underlying assets or underlying constituents. In addition, as an owner of the Notes, you will not have voting rights or any other rights of a holder of the underlying constituents.

A higher contingent coupon rate or lower downside thresholds or coupon barriers may reflect greater expected volatility of the underlying assets, and greater expected volatility generally indicates an increased risk of loss at maturity The economic terms for the Notes, including the contingent coupon rate, coupon barriers and downside thresholds, are based, in part, on the expected volatility of each underlying asset at the time the terms of the Notes are set. Volatility refers to the frequency and magnitude of changes in the level of each underlying asset. The greater the expected volatility of each underlying asset as of the trade date, the greater the expectation is as of that date that the closing level of each underlying asset could be less than its coupon barrier on any observation date and that the final level of each underlying asset could be less than its downside threshold on the final valuation date and, as a consequence, indicates an increased risk of not receiving a contingent coupon and an increased risk of loss, respectively. All things being equal, this greater expected volatility will generally be reflected in a higher contingent coupon rate than the yield payable on our conventional debt securities with a similar maturity or on otherwise comparable securities, and/or lower downside thresholds and/or coupon barriers than those terms on otherwise comparable securities. Therefore, a relatively higher contingent coupon rate may indicate an increased risk of loss. Further, relatively lower downside threshold(s) and/or coupon barrier(s) may not necessarily indicate that the Notes have a greater likelihood of a return of principal at maturity and/or paying contingent coupons. You should be willing to accept the downside market risk of the least performing underlying asset and the potential to lose a significant portion or all of your initial investment.

Reinvestment risk The Notes will be subject to an automatic call if the closing level of each underlying asset is equal to or greater than its initial level on certain observation dates prior to the final valuation date as set forth under Observation Dates and Coupon Payment Dates above. Because the Notes could be subject to an automatic call, the term of your investment may be limited. In the event that the Notes are subject to an automatic call, there is no guarantee that you would be able to reinvest the proceeds at a comparable return and/or with a comparable contingent coupon rate for a similar level of risk. In addition, to the extent you are able to reinvest such proceeds in an investment comparable to the Notes, you may incur transaction costs such as dealer discounts and hedging costs built into the price of the new securities. Generally, however, the longer the Notes remain outstanding, the less likely the Notes will be subject to an automatic call due to the decline in the level of an underlying asset and the shorter time remaining for the level of any such underlying asset to recover. Such periods generally coincide with a period of greater risk of principal loss on your Notes.

You are exposed to the market risk of each underlying asset Your return on the Notes is not linked to a basket consisting of the underlying assets. Rather, it will be contingent upon the performance of each individual underlying asset. Unlike an instrument with a return linked to a basket of indices, common stocks or other underlying securities, in which risk is mitigated and diversified among all of the components of the basket, you will be exposed equally to the risks related to each underlying asset. Poor performance by any underlying asset over the term of the Notes will negatively affect your return and will not be offset or mitigated by a positive performance by any other underlying asset. For instance, you may receive a negative return equal to the underlying return of the least performing underlying asset if the closing level of one underlying asset is less than its downside threshold on the final valuation date, even if the underlying return of any other underlying asset is positive or has not declined as much. Accordingly, your investment is subject to the market risk of each underlying asset.

Because the Notes are linked to the least performing underlying asset, you are exposed to a greater risk of no contingent coupons and losing a significant portion or all of your initial investment at maturity than if the Notes were linked to only one underlying asset The risk that you will not receive any contingent coupons and lose a significant portion or all of your initial investment in the Notes is greater if you invest in the Notes than the risk of investing in substantially similar securities that are linked to the performance of only one underlying asset. With more underlying assets, it is more likely that the closing level of any underlying asset will be less than its coupon barrier on any observation date or decline to a closing level that is less than its downside threshold than if the Notes were linked to fewer underlying assets.

In addition, the lower the correlation is between the performance of a pair of underlying assets, the more likely it is that one of the underlying assets will decline in value to a closing level or final level, as applicable, that is less than its coupon barrier or downside threshold on any observation date or on a final valuation date, respectively. Although the correlation of the underlying assets performance may change over the term of the Notes, the economic terms of the Notes, including the contingent coupon rate, downside threshold and coupon barrier are determined, in part, based on the correlation of the underlying assets performance calculated using our internal models at the time when the terms of the Notes are finalized. All things being equal, a higher contingent coupon rate and lower downside threshold and coupon barrier is generally associated with lower correlation of the underlying assets. Therefore, if the performance of a pair of underlying assets is not correlated to each other or is negatively correlated, the risk that you will not receive any contingent coupons or that the final level of any underlying asset is less than its downside threshold will occur is even greater despite a lower downside threshold and coupon barrier. Therefore, it is more likely that you will not receive any contingent coupons and that you will lose a significant portion or all of your initial investment at maturity.

Credit risk of UBS The Notes are unsubordinated, unsecured debt obligations of UBS and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the Notes, including any repayment of principal, depends on the ability of UBS to satisfy its obligations as they come due. As a result, UBSs actual and perceived creditworthiness may affect the market value of the Notes. If UBS were to default on its obligations, you may not receive any amounts owed to you under the terms of the Notes and you could lose all of your initial investment.

Market risk The return on the Notes, which may be negative, is directly linked to the performance of the underlying assets and indirectly linked to the value of the underlying constituents. The level of the underlying assets can rise or fall sharply due to factors specific to the underlying assets and its underlying constituents and their issuers (each, an underlying constituent issuer), such as stock price volatility, earnings and financial conditions, corporate, industry and regulatory developments, management changes and decisions and other events, as well as general market factors, such as general stock market or commodity market volatility and levels, interest rates and economic and political conditions.

Fair value considerations.

The issue price you pay for the Notes will exceed their estimated initial value The issue price you pay for the Notes will exceed their estimated initial value as of the trade date due to the inclusion in the issue price of the underwriting discount, hedging costs, issuance costs and projected profits. As of the close of the relevant markets on the trade date, we will determine the estimated initial value of the Notes by reference to our internal pricing models and it will be set forth herein. The pricing models used to determine the estimated initial value of the Notes incorporate certain variables, including the levels and volatility of the underlying assets and underlying constituents, the correlation among the underlying assets, any expected dividends of the and underlying constituents, if applicable, prevailing interest rates, the term of the Notes and our internal funding rate. Our internal funding rate is typically lower than the rate we would pay to issue conventional fixed or floating rate debt securities of a similar term. The underwriting discount, hedging costs, issuance costs, projected profits and the difference in rates will reduce the economic value of the Notes to you. Due to these factors, the estimated initial value of the Notes as of the trade date will be less than the issue price you pay for the Notes.

The estimated initial value is a theoretical price; the actual price that you may be able to sell your Notes in any secondary market (if any) at any time after the trade date may differ from the estimated initial value The value of your Notes at any time will vary based on many factors, including the factors described above and in Market risk above and is impossible to predict. Furthermore, the pricing models that we use are proprietary and rely in part on certain assumptions about future events, which may prove to be incorrect. As a result, after the trade date, if you attempt to sell the Notes in the secondary market, the actual value you would receive may differ, perhaps materially, from the estimated initial value of the Notes determined by reference to our internal pricing models. The estimated initial value of the Notes does not represent a minimum or maximum price at which we or any of our affiliates would be willing to purchase your Notes in any secondary market at any time.

Our actual profits may be greater or less than the differential between the estimated initial value and the issue price of the Notes as of the trade date We may determine the economic terms of the Notes, as well as hedge our obligations, at least in part, prior to the trade date. In addition, there may be ongoing costs to us to maintain and/or adjust any hedges and such hedges are often imperfect. Therefore, our actual profits (or potentially, losses) in issuing the Notes cannot be determined as of the trade date and any such differential between the estimated initial value and the issue price of the Notes as of the trade date does not reflect our actual profits. Ultimately, our actual profits will be known only at the maturity of the Notes.

Limited or no secondary market and secondary market price considerations.

There may be little or no secondary market for the Notes The Notes will not be listed or displayed on any securities exchange or any electronic communications network. UBS Securities LLC and its affiliates intend, but are not required, to make a market for the Notes and may stop making a market at any time. If you are able to sell your Notes prior to maturity, you may have to sell them at a substantial loss. Furthermore, there can be no assurance that a secondary market for the Notes will develop. The estimated initial value of the Notes does not represent a minimum or maximum price at which we or any of our affiliates would be willing to purchase your Notes in any secondary market at any time.

The price at which UBS Securities LLC and its affiliates may offer to buy the Notes in the secondary market (if any) may be greater than UBS valuation of the Notes at that time, greater than any other secondary market prices provided by unaffiliated dealers (if any) and, depending on your broker, greater than the valuation provided on your customer account statement For a limited period of time following the issuance of the Notes, UBS Securities LLC or its affiliates may offer to buy or sell such Notes at a price that exceeds (i) our valuation of the Notes at that time based on our internal pricing models, (ii) any secondary market prices provided by unaffiliated dealers (if any) and (iii) depending on your broker, the valuation provided on customer account statements. The price that UBS Securities LLC may initially offer to buy such Notes following issuance will exceed the valuations indicated by our internal pricing models due to the inclusion for a limited period of time of the aggregate value of the underwriting discount, hedging costs, issuance costs and theoretical projected trading profit. The portion of such amounts included in our price will decline to zero on a straight line basis over a period ending no later than the date specified under Supplemental Plan of Distribution (Conflicts of Interest); Secondary Markets (if any). Thereafter, if UBS Securities LLC or an affiliate makes secondary markets in the Notes, it will do so at prices that reflect our estimated value determined by reference to our internal pricing models at that time. The temporary positive differential relative to our internal pricing models arises from requests from and arrangements made by UBS Securities LLC with the selling agents of structured debt securities such as the Notes. As described above, UBS Securities LLC and its affiliates intend, but are not required, to make a market for the Notes and may stop making a market at any time. The price at which UBS Securities LLC or an affiliate may make secondary markets at any time (if at all) will also reflect its then current bid-ask spread for similar sized trades of structured debt securities. UBS Securities LLC reflects this temporary positive differential on its customer statements. Investors should inquire as to the valuation provided on customer account statements provided by unaffiliated dealers.

Economic and market factors affecting the terms and market price of Notes prior to maturity Because structured notes, including the Notes, can be thought of as having a debt component and a derivative component, factors that influence the values of debt instruments and options and other derivatives will also affect the terms and features of the Notes at issuance and the market price of the Notes prior to maturity. These factors include the levels of the underlying assets and their underlying constituents; the volatility of the underlying assets and their underlying constituents; the correlation among the underlying assets; the dividend rate paid on the underlying constituents, if applicable; the time remaining to the maturity of the Notes; interest rates in the markets; geopolitical conditions and economic, financial, political, force majeure and regulatory or judicial events; whether each of the underlying assets is currently or has been less than its coupon barrier; the availability of comparable instruments; the creditworthiness of UBS; the then current bid-ask spread for the Notes and the factors discussed under Potential conflict of interest below. These and other factors are unpredictable and interrelated and may offset or magnify each other.

Impact of fees and the use of internal funding rates rather than secondary market credit spreads on secondary market prices All other things being equal, the use of the internal funding rates described above under Fair value considerations as well as the inclusion in the issue price of the underwriting discount, hedging costs, issuance costs and any projected profits are, subject to the temporary mitigating effect of UBS Securities LLCs and its affiliates market making premium, expected to reduce the price at which you may be able to sell the Notes in any secondary market.

There can be no assurance that the investment view implicit in the Notes will be successful It is impossible to predict whether and the extent to which the levels of the underlying assets will rise or fall and there can be no assurance that the closing level of each underlying asset will be equal to or greater than its coupon barrier on any observation date, or, if the Notes are not subject to an automatic call, that the final level of each underlying asset will be equal to or greater than its downside threshold. The level of each underlying asset will be influenced by complex and interrelated political, economic, financial and other factors that affect the underlying constituent issuers. You should be willing to accept the downside risks associated with the relevant markets tracked by each such underlying asset in general and the underlying assets and its underlying constituents in particular, and the risk of losing a significant portion or all of your initial investment.

The Notes are subject to small-capitalization stock risks The Notes are subject to risks associated with small-capitalization companies because the Russell 2000 Index is comprised of stocks of companies that may be considered small-capitalization companies. These companies often have greater stock price volatility, lower trading volume and less liquidity than large-capitalization companies and therefore the underlying asset may be more volatile than an index in which a greater percentage of the underlying equity constituents are issued by large-capitalization companies. Stock prices of small-capitalization companies are also more vulnerable than those of large-capitalization companies to adverse business and economic developments, and the stocks of small-capitalization companies may be thinly traded. In addition, small-capitalization companies are typically less stable financially than large-capitalization companies and may depend on a small number of key personnel, making them more vulnerable to loss of personnel. Small-capitalization companies are often given less analyst coverage and may be in early, and less predictable, periods of their corporate existences. Such companies tend to have smaller revenues, less diverse product lines, smaller shares of their product or service markets, fewer financial resources and less competitive strengths than large-capitalization companies and are more susceptible to adverse developments related to their products.

UBS cannot control actions by the index sponsors and the index sponsors have no obligation to consider your interests UBS and its affiliates are not affiliated with the index sponsors and have no ability to control or predict their actions, including any errors in or discontinuation of public disclosure regarding methods or policies relating to the calculation of the underlying assets. The index sponsors are not involved in the Notes offering in any way and have no obligation to consider your interest as an owner of the Notes in taking any actions that might affect the market value of your Notes.

The underlying assets reflect price return, not total return The return on your Notes is based on the performance of the underlying assets, which reflect the changes in the market prices of the underlying constituents. They are not, however, linked to a total return index or strategy, which, in addition to reflecting those price returns, would also reflect dividends paid on the underlying constituents. The return on your Notes will not include such a total return feature or dividend component.

Changes affecting the underlying assets could have an adverse effect on the value of the Notes The policies of each index sponsor as specified under Information About the Underlying Assets (together, the "index sponsors"), concerning additions, deletions and substitutions of the underlying equity constituents and the manner in which the index sponsor takes account of certain changes affecting those underlying equity constituents may adversely affect the levels of the underlying assets. The policies of the index sponsors with respect to the calculation of the underlying assets could also adversely affect the levels of the underlying assets. The index sponsors may discontinue or suspend calculation or dissemination of the underlying assets. Any such actions could have an adverse effect on the value of the Notes.

Potential UBS impact on the underlying assets Trading or transactions by UBS or its affiliates in the underlying assets or any underlying constituent, listed and/or over-the-counter options, futures, exchange-traded funds or other instruments with returns linked to the performance of the underlying assets or any underlying constituent, may adversely affect the levels of the underlying assets and, therefore, the market value of the Notes.

Potential conflict of interest UBS and its affiliates may engage in business with an underlying asset issuer or any underlying constituent issuer, which may present a conflict between the obligations of UBS and you, as a holder of the Notes. There are also potential conflicts of interest between you and the calculation agent, which will be an affiliate of UBS and which will make potentially subjective judgments. The calculation agent will determine whether the contingent coupon is payable to you on any coupon payment date, whether the Notes are subject to an automatic call and the payment at maturity of the Notes, if any, based on observed levels of the underlying assets. The calculation agent can postpone the determination of the initial level, closing level or final level of any underlying asset (and therefore the settlement date, the related coupon payment date or the maturity date, as applicable), on the trade date, any observation date or the final valuation date, respectively, if a market disruption event occurs and is continuing on such date. As UBS determines the economic terms of the Notes, including the contingent coupon rate, downside threshold and coupon barrier, and such terms include the underwriting discount, hedging costs, issuance costs and projected profits, the Notes represent a package of economic terms. There are other potential conflicts of interest insofar as an investor could potentially get better economic terms if that investor entered into exchange-traded and/or OTC derivatives or other instruments with third parties, assuming that such instruments were available and the investor had the ability to assemble and enter into such instruments.

Additionally, UBS and its affiliates act in various capacities with respect to the Notes, including as a principal, agent or dealer in connection with the sale of the Notes. Such affiliates, and any other third-party dealers, will derive compensation from the distribution of the Notes and such compensation may serve as an incentive to sell these Notes instead of other investments. Furthermore, given that UBS Securities LLC and its affiliates temporarily maintain a market making premium, it may have the effect of discouraging UBS Securities LLC and its affiliates from recommending sale of your Notes in the secondary market.

Potentially inconsistent research, opinions or recommendations by UBS UBS and its affiliates publish research from time to time on financial markets and other matters that may influence the value of the Notes, or express opinions or provide recommendations that are inconsistent with purchasing or holding the Notes. Any research, opinions or recommendations expressed by UBS or its affiliates may not be consistent with each other and may be modified from time to time without notice. Investors should make their own independent investigation of the merits of investing in the Notes and the underlying assets to which the Notes are linked.

The Notes are not bank deposits An investment in the Notes carries risks which are very different from the risk profile of a bank deposit placed with UBS or its affiliates. The Notes have different yield and/or return, liquidity and risk profiles and would not benefit from any protection provided to deposits.

Under certain circumstances, the Swiss Financial Market Supervisory Authority (FINMA) has the power to take actions that may adversely affect the Notes Pursuant to article 25 et seq. of the Swiss Banking Act, FINMA has broad statutory powers to take measures and actions in relation to UBS if it (i) is overindebted, (ii) has serious liquidity problems or (iii) fails to fulfill the applicable capital adequacy provisions after expiration of a deadline set by FINMA. If one of these prerequisites is met, the Swiss Banking Act grants significant discretion to FINMA to open restructuring proceedings or liquidation (bankruptcy) proceedings in respect of, and/or impose protective measures in relation to, UBS. In particular, a broad variety of protective measures may be imposed by FINMA, including a bank moratorium or a maturity postponement, which measures may be ordered by FINMA either on a stand-alone basis or in connection with restructuring or liquidation proceedings. In a restructuring proceeding, the resolution plan may, among other things, (a) provide for the transfer of UBSs assets or a portion thereof, together with debts and other liabilities, and contracts of UBS, to another entity, (b) provide for the conversion of UBSs debt and/or other obligations, including its obligations under the Notes, into equity and/or (c) potentially provide for haircuts on obligations of UBS, including its obligations under the Notes. Although no precedent exists, if one or more measures under the revised regime were imposed, such measures may have a material adverse effect on the terms and market value of the Notes and/or the ability of UBS to make payments thereunder.

Uncertain tax treatment Significant aspects of the tax treatment of the Notes are uncertain. You should consult your tax advisor about your tax situation.

Hypothetical Examples of How the Notes Might Perform

Principal Amount:

$1,000

Term:

Approximately 3 years

Contingent Coupon Rate:

7.65% per annum (or 1.9125% per quarter)

Contingent Coupon:

$19.125 per quarter

Observation Dates:

Quarterly (callable after 6 months)

Initial Level:

Underlying Asset A

2,633.33

Underlying Asset B

1,460.490

Downside Threshold:

Underlying Asset A

2,106.66 (which is 80.00% of the initial level)

Underlying Asset B

1,168.392 (which is 80.00% of the initial level)

Coupon Barrier:

Underlying Asset A

2,106.66 (which is 80.00% of the initial level)

Underlying Asset B

1,168.392 (which is 80.00% of the initial level)

Date

Closing Level

Payment (per Note)

First Observation Date

Underlying Asset A: 2,765.00 (equal to or greater than Initial Level)

Underlying Asset B: 1,475.09 (equal to or greater than Initial Level)

$19.125 (Contingent Coupon Not Callable)

Second Observation Date

Underlying Asset A: 2,712.33 (equal to or greater than Initial Level)

Underlying Asset B: 1,489.70 (equal to or greater than Initial Level)

$1,019.125 (Settlement Amount)

Total Payment:

$1,038.25 (a 3.825% total return)

Date

Closing Level

Payment (per Note)

First Observation Date

Underlying Asset A: 2,712.33 (equal to or greater than Initial Level)

Underlying Asset B: 1,475.09 (equal to or greater than Initial Level)

$19.125 (Contingent Coupon Not Callable)

Second Observation Date through Eleventh Observation Date

Underlying Asset A: Various (all less than Coupon Barrier)

Underlying Asset B: Various (all equal to or greater than Initial Level)

$0.00

Final Valuation Date

Underlying Asset A: 2,580.66 (equal to or greater than Downside Threshold and Coupon Barrier; less than Initial Level)

Underlying Asset B: 1,431.28 (equal to or greater than Downside Threshold and Coupon Barrier; less than Initial Level)

$1,019.125 (Payment at Maturity)

Total Payment:

$1,038.25 (a 3.825% total return)

Date

Closing Level

Payment (per Note)

First Observation Date

Underlying Asset A: 2,190.93 (equal to or greater than Coupon Barrier; less than Initial Level)

Underlying Asset B: 1,203.44 (equal to or greater than Coupon Barrier; less than Initial Level)

$19.125 (Contingent Coupon)

Second Observation Date through Eleventh Observation Date

Underlying Asset A: Various (all less than Coupon Barrier)

Underlying Asset B: Various (all equal to or greater than Initial Level)

$0.00

Final Valuation Date

Underlying Asset A: 1,053.33 (less than Downside Threshold and Coupon Barrier)

Underlying Asset B: 1,533.51 (equal to or greater than Initial Level)

$1,000.00 [1 + Underlying Return of the Least Performing Underlying Asset] =

$1,000.00 [1+(-60.00)%] =

$1,000.00 0.40 =

$400.00 (Payment at Maturity)

Total Payment:

$419.125 (a 58.0875% loss)

Information About the Underlying Assets

S&P 500 Index

Quarter Begin

Quarter End

Quarterly Closing High

Quarterly Closing Low

Quarterly Close

April 1, 2014

June 30, 2014

1,962.87

1,815.69

1,960.23

July 1, 2014

September 30, 2014

2,011.36

1,909.57

1,972.29

October 1, 2014

December 31, 2014

2,090.57

1,862.49

2,058.90

January 2, 2015

March 31, 2015

2,117.39

1,992.67

2,067.89

April 1, 2015

June 30, 2015

2,130.82

2,057.64

2,063.11

July 1, 2015

September 30, 2015

2,128.28

1,867.61

1,920.03

October 1, 2015

December 31, 2015

2,109.79

1,923.82

2,043.94

January 4, 2016

March 31, 2016

2,063.95

1,829.08

2,059.74

April 1, 2016

June 30, 2016

2,119.12

2,000.54

2,098.86

July 1, 2016

September 30, 2016

2,190.15

2,088.55

2,168.27

October 3, 2016

December 30, 2016

2,271.72

2,085.18

2,238.83

January 3, 2017

March 31, 2017

2,395.96

2,257.83

2,362.72

April 3, 2017

June 30, 2017

2,453.46

2,328.95

2,423.41

July 3, 2017

September 29, 2017

2,519.36

2,409.75

2,519.36

October 2, 2017

December 29, 2017

2,690.16

2,529.12

2,673.61

January 2, 2018

March 29, 2018

2,872.87

2,581.00

2,640.87

April 2, 2018

June 29, 2018

2,786.85

2,581.88

2,718.37

July 2, 2018

September 28, 2018

2,930.75

2,713.22

2,913.98

October 1, 2018

December 31, 2018

2,925.51

2,351.10

2,506.85

January 2, 2019

January 23, 2019*

2,670.71

2,447.89

2,638.70

*

The above table only includes data through this date. Accordingly, the Quarterly Closing High, Quarterly Closing Low and Quarterly Close data indicated are for this shortened period only and do not reflect complete data for this calendar quarter.

Russell 2000 Index

Quarter Begin

Quarter End

Quarterly Closing High

Quarterly Closing Low

Quarterly Close

April 1, 2014

June 30, 2014

1,192.960

1,095.986

1,192.960

July 1, 2014

September 30, 2014

1,208.150

1,101.676

1,101.676

October 1, 2014

December 31, 2014

1,219.109

1,049.303

1,204.696

January 2, 2015

March 31, 2015

1,266.373

1,154.709

1,252.772

April 1, 2015

June 30, 2015

1,295.799

1,215.417

1,253.947

July 1, 2015

September 30, 2015

1,273.328

1,083.907

1,100.688

October 1, 2015

December 31, 2015

1,204.159

1,097.552

1,135.889

January 4, 2016

March 31, 2016

1,114.028

953.715

1,114.028

April 1, 2016

June 30, 2016

1,188.954

1,089.646

1,151.923

July 1, 2016

September 30, 2016

1,263.438

1,139.453

1,251.646

October 3, 2016

December 30, 2016

1,388.073

1,156.885

1,357.130

January 3, 2017

March 31, 2017

1,413.635

1,345.598

1,385.920

April 3, 2017

June 30, 2017

1,425.985

1,345.244

1,415.359

July 3, 2017

September 29, 2017

1,490.861

1,356.905

1,490.861

October 2, 2017

December 29, 2017

1,548.926

1,464.095

1,535.511

January 2, 2018

March 29, 2018

1,610.706

1,463.793

1,529.427

April 2, 2018

June 29, 2018

1,706.985

1,492.531

1,643.069

July 2, 2018

September 28, 2018

1,740.753

1,653.132

1,696.571

October 1, 2018

December 31, 2018

1,672.992

1,266.925

1,348.559

January 1, 2019

January 23, 2019*

1,482.501

1,330.831

1,454.255

*

The above table only includes data through this date. Accordingly, the Quarterly Closing High, Quarterly Closing Low and Quarterly Close data indicated are for this shortened period only and do not reflect complete data for this calendar quarter.

Correlation of the Underlying Assets:

What Are the Tax Consequences of the Notes?

Supplemental Plan of Distribution (Conflicts of Interest); Secondary Markets (if any)