The magic statement is a notification leaders give to subordinates to let them know that continued poor performance could result in separation from the military. It is also known as the Standard Derogatory Statement. There are many ways to write this statement. It usually lists the types of discharges you could receive, the impact of separation on veterans benefits, employment, and education benefits. It also often addresses the fact that it is difficult to change the type of discharge you receive once you are out. Your local JAG may have a statement available for you, or you can find a good example in the book entitled the Mentor.