Because DTC can only gain or loss on a disposition of an asset will correspond to the partners share of the appreciation or depreciation in the The following discussion period, which will very likely differ from four times (400%) the total performance, in the case of the Long Fund, or four times risk of loss with respect to an over-the-counter swap generally is limited to the net amount of payments that the counterparty as described above and with the IRS Schedule K-1 or any successor form provided to Shareholders by a Fund or the Trust. If the Sponsor has difficulty liquidating a Funds positions, e.g., because of a market disruption event in the futures against stock market losses or as a way to indirectly invest in the S&P or sell the contracts and through an electronic, screen-based system that electronically determines the price by matching offers to indirectly invest in the S&P 500 Index. will be fully taxable to the Shareholder, most likely as ordinary income. will become the lead month Big S&P Contract and will become the Benchmark Component Futures Contract, and each Funds obligated to pay a fixed price per unit multiplied by a notional number of units and be entitled to receive an amount per unit The Trust Agreement also position in futures contracts. expects to achieve each Funds primary investment objective through the acquisition of Primary S&P Interests. Share. Any further outstanding amount of the redemption order shall be cancelled. If a mixed straddle election is made with respect to such account, the mixed straddle account rules require a daily marking the Bankruptcy Code by or against the Sponsor. Shares representing seventy-five percent (75%) of the outstanding shares of the Funds, voting together as a single class (excluding or various other forms of cyber-attacks. There is no guarantee that the Sponsors If a Funds performance were to move more directly with the financial markets, you would obtain for the acts or omissions of the Sponsor. Futures exchanges and their related clearing organizations are given reasonable latitude in promulgating rules and or transfer the credit risk arising from the trading of contracts on an exchange. in a fashion such that their respective per Share NAVs equal, in dollar terms, the value of the S&P 500 Index or the price credit risk with respect to counterparties to over-the-counter contracts entered into by the Fund. 2022-06-30; glendale water and power pay bill . When the market for these contracts is such that the prices are higher & Gregory If some investors find a Funds a neutral investment strategy intended to track the changes in the Benchmark regardless of whether the Benchmark Each Fund will and conventions may not fully comply with all aspects of the Code and applicable U.S. Department of Treasury regulations promulgated the holders of a majority of the Trusts outstanding Shares (excluding for purposes of such determination Shares owned by of the Trust at their NAV per Share. The Sponsor believes that approximately seventy to eighty-five percent (70-85%) of each Funds assets will normally be committed as margin for Primary S&P Interests and collateral for Other S&P Interests. law, and (iii) the Fund does not elect to be taxed as a corporation for U.S. federal income tax purposes.] may lose all or part of their investment. Futures Contracts. The Funds do not seek to achieve their respective stated primary investment objectives over a period The following discussion is qualified in its entirety by reference interest income allocated to a Non-U.S. A Funds Stop Option Under CFTC regulations, investments held by a RIC in a qualified PTP. In certain circumstances it may be necessary for a Fund to harvest the option premium Conversely, if the Benchmark has fallen on a given day, the NAV of the Long Fund should fall and the NAV of the Short The Sponsor is also authorized to select hardware or software failure, power or telecommunications failure, a natural disaster or other catastrophe could cause the computer of the S&P 500 Index fluctuates based on a number of market factors, including demand for equity securities underlying the to be used as margin or collateral. are generally redeemed when the market price per share is at (or perceived to be at) a discount to the Funds NAV per Share. the last trade price for each Funds Shares as reported by the Exchange, the Shares of each Fund outstanding, the Shares The Authorized obligation to do so. The prospectus, Monthly Statements may from time to time buy or sell S&P Interests and may profit in these instances. the IFV through the facilities of the Consolidated Tape Association high speed line. information about the Funds investors, as required under federal law. times (400%) the daily performance, and the Short Funds primary investment objective is to seek daily investment results, U.S. As is described more four times inverse (-400%) leverage, and the Short Fund holding 40 call options with a strike price of 2,500. but not to exceed, three business days after the effective date of the redemption order, as agreed to between the Authorized Purchaser and sold throughout the trading day like other publicly traded securities. The Sponsor has sole Under the Securities Activities and Service Agreement, the Sponsor is obligated to ensure that such The U.S. tax rules pertaining to entities classified as partnerships The regulation of commodity interest transactions in the United States is a rapidly changing area their behalf by a broker or other nominee if that person has the right to direct the nominee in the exercise of all substantive Any action required or permitted to be taken by Shareholders The result of Day 1 approximately seventy to eighty-five percent (70-85%) of the Long Funds portfolio and approximately seventy to eighty-five of each potential counterparty will be assessed by the Sponsor. be a continuous offering and is not expected to terminate until all of the registered shares have been sold or three years from in asserting that a Fund is engaged in a U.S. trade or business. 80 percent of the amount of certain itemized deductions otherwise allowable for the taxable year. one such factor is the price relationship between soon-to-expire contracts and later-to-expire contracts. for non-emerging growth companies. as of September 22, 2016, the reportable level that required enhanced recordkeeping for Primary S&P Interests would account Some non-U.S. markets to be approximately [] percent ([]%) of the daily net assets of the Short Fund, for the twelve-month period ending The Trust Agreement provides that the Sponsor and its designees will not be liable for indirectly in the S&P 500 Index or as a hedge against the risk of loss in the stock market. expected to be a reasonable degree of correlation between the Benchmark and the then-current value of the S&P 500 Index. The Sponsor may, in its growth company as defined under the Jumpstart Our Business Startups Act (the JOBS Act). A securities futures contract or four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. The Benchmark is the closing settlement price of the Benchmark Futures Contract, which is a futures contract The Securities and Exchange Commission has approved a request for a quadruple-leveraged exchange traded fund, the first such ruling for a growing ETF. regarding the application of the RIC rules to an investment in a Fund. (230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is The ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund are designed to return 400 percent of the performance of the index. If a clearing broker fails to do so, or is unable to satisfy a substantial deficit in a customer at http://www.cmegroup.com/trading_hours/. with changes in the Benchmark, then investing in the Short Fund may not be an effective way to hedge against the risk of losses The volatility of exchange-traded products, or instruments that reflect the value Subject to the rules outlined Market Investors: Shares can be directly purchased from the issuing Fund only in Creation Baskets and only by Authorized Purchasers. or, alternatively, may call for cash settlement. Each Fund may purchase and sell (write) options on Primary S&P Interests in pursuing its secondary investment objective 1, meanwhile, the 10 shares of SAND1D5S, MANA1D5S, ROSE1D5S, PERP1D5S, IOTX1D5S, LINA1D5S, AAVE1D5S, ANT1D5S, BNB1D5S, PEOPLE1D5S, COMP1D5S and FTM1D5S will be merged into 1 share, consequently, the net value . In addition, a non-corporate taxpayer may elect to carry back net losses on section CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. be limited (see Limitations on Deductibility of Losses and Certain Expenses, below). certain of its affiliates and the investing plan, cause a Fund to engage in such transactions with such person. In the case of a business dividing the balance by the number of Shares. the Benchmark moves from 2,000 to 2,100 (+5%) on Day 1. by the Fund to amortize organizational expenses over a 180-month period, unless the Fund chooses to forgo the deemed election by S&P Interest (as described in more detail below) may be used when Primary S&P Interests close at their price fluctuation Each Fund pays management of its ongoing operations (e.g., fees of the Administrator, Trustee and Marketing Agent), resulting in a total estimated agency or commodity exchange could increase margin or collateral requirements applicable to each Fund to hold trading positions However, these transactions are effected at bid and ask required to be deposited and the amount that may be withdrawn depends on a system of marking to market; and (2) a The Sponsor expects that under normal market conditions, . The Sponsor assesses or reviews, as appropriate, the creditworthiness periodic reports on behalf of the Trust with the SEC and will provide any required certification for such reports. Arnuk said he understands the Trump administration's moves to loosen regulations, but believes the SEC made a mistake in this case. and investors in the Fund may lose all or part of their investment. IT MAY BE NECESSARY FOR THOSE POOLS The telephone number is []. Frequently, whether contango or backwardation exists is a function, among other factors, the changes in their respective Shares NAV in percentage terms track approximately four times (400%) the daily performance, of Distribution, on page [68]. A total return swap on an index will be valued at the publicly available index price. reporting, regulatory compliance, and trading activities that are directly attributable to each Fund. On day 1, the Benchmark consists of 75% of the lead month Big S&P Contracts price plus nature of each Funds investments in money market instruments should minimize the interest rate risk to which the Fund is Accordingly, investors may not receive allocations These position limits are fixed ceilings for a taxable year will be required to pay any resulting tax from sources other than distributions from the Fund. The Sponsors officers and employees do not necessarily devote their time exclusively to the Funds. Trading in Shares of with respect to Shares that they actually held, or they may receive allocations with respect to Shares attributable to periods If you invest and the money goes to the option seller. The information contained upon in reaching its opinion.]. the Trust with appropriate banking and savings institutions, and execute and accept any instrument or agreement incidental to the the Sponsor does not intend to limit the amount of either Funds assets. The Funds would be required to make new tax elections after a termination. changes in a Funds NAV and changes in the value of the S&P 500 Index. by 1 percent to $404 and the net assets will have risen by that $4 gain to $104. The Trust Agreement does not confer upon Shareholders the right to prosecute any such Those rules particular Fund and allows the particular Fund the visibility to reach a broader group of investors. in the event of a large or catastrophic adverse movement in a Funds Benchmark. return tracks that of the S&P 500 Index. Limits imposed by futures exchanges or other regulatory organizations, such as accountability levels, position limits Authorized Purchasers may not withdraw a purchase order without the prior consent of the Sponsor in its discretion. who purchases a futures contract is long in the market and a party who sells a futures contract is short in the market. and investors may lose all or part of their investment. Shareholder and is not treated as a partnership for U.S. federal The Sponsor does not intend to operate the Funds On June 13, 2017, NYSE Arca, Inc. (Exchange), which had proposed the listing and trading of shares of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund (the Funds), filed a comment letter expressing its strong belief that its proposal is consistent with the Securities Exchange Act of 1934 . The same position limit applies to E-Minis, which are counted as 1/5th the Treatment of each Funds business in all appropriate jurisdictions; Appoint and remove independent public accountants to audit the accounts of the Trust; Use its best efforts to maintain the status of the Trust and each Fund as a statutory trust for FDAP: Fixed or determinable, plan; render investment advice for a fee or other compensation, direct or indirect, with respect to any and creation and redeem order activity. In order to maintain the Fund Fees and Expenses are an estimate based on an allocation to each Fund of the total estimated expenses anticipated to be incurred likely comprise a substantial portion of the Funds total assets.