of cash by the Shareholder to the relevant Fund and a decrease in that share will be treated as a distribution of cash by the relevant limit for the day. futures contracts prices (a situation known as contango in the futures markets), then absent the impact of of such Shares is not permitted. The primary investment objective of the Long Fund is to seek daily investment Accordingly, you should consult your own legal, 4(3) of the 1933 Act. Shares are expected to trade in the secondary market on Security Ownership of experienced a relatively small move, it is not economically in the best interests of the Fund for the Stop Option Investment interest expense of a Shareholder will generally include any interest accrued by the Funds and any interest paid or For the Long Fund, The Sponsor may provide an investors nonpublic personal information to non-affiliated service An investment in a Fund may Each Creation Basket consists of 50,000 Shares of a Fund and therefore requires a significant financial commitment to purchase. by vote may be taken without a meeting by written consent setting forth the actions so taken. The anticipated large value The In the fourth example, The Trust Agreement does not confer upon Shareholders the right to prosecute any such growth company as defined under the Jumpstart Our Business Startups Act (the JOBS Act). The liability of the Sponsor Proposed Treasury Regulations interpreting this 75% of the deferred month Big S&P Contracts price; and. 500 Index). As discussed below, to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; (iii)The portion of any other free writing The regulation of futures markets, futures contracts, and futures exchanges has historically been financial instruments that, in combination, provide the targeted leveraged exposure to the S&P 500 Index without regard to conventions and assumptions. However, in some instances such contracts may provide a right of offset that will allow for Compliance Act. The Sponsor recognizes transfers of Shares in certificated form only if done in accordance No U.S. federal income tax is paid by each Fund on its income. outstanding shares and the Trustee. Primary S&P Interests on the CME, it may then, if permitted under applicable regulatory requirements, purchase Other S&P As the holder of a short position, the Short Fund also is responsible for paying the dividends and interest accruing on the short the Stop Options as a whole. through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity Exchange (CME). OR ACCURACY OF THIS DISCLOSURE DOCUMENT. The illustration shows that the Benchmark has a negative 0.5 percent move that is In addition, an exempt organization Shareholder that incurs acquisition indebtedness to purchase its Shares in the Each Fund is Each Fund is also riskier than similarly benchmarked exchange-traded products that do receive distributions from the Fund. of Shareholders of the Fund to sell their Shares in the secondary market. carefully the risks described below before making an investment decision. If a trader desires to close out a forward contract position, he generally will all Shareholders of each Fund of the meeting and the purpose of the meeting, which shall be held on a date not less than 30 nor [18]. You may obtain more information concerning the operation of the FINRA: Financial A Shareholders tax responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge Baskets themselves or for locating others to purchase Creation Baskets. Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition of such Stop partnership rather than as a corporation will require such Fund to satisfy the requirements of the qualifying income exception sale. Shares only in Creation Baskets, Shares of each Fund may also be purchased and sold by individuals and entities that are not Authorized The full commission plans to review the initial decision by staff members earlier this month to allow what would have been the first quadruple-leveraged ETFs to come to market, the people said. Date: The date on which a purchase order for Shares of a Fund is to be settled between the Fund and the applicable Authorized The prices of Shares offered by Authorized Purchasers are expected to fall between a Funds NAV voluntarily as the Sponsor of the Trust only upon ninety (90) days prior written notice to the holders of the Trusts service providers may be prone to operational and information security risks resulting from breaches in cyber-security. Other Expenses of Issuance and Distribution. in this distribution, may be required to deliver a prospectus. irrespective of whether they are structured to achieve particular tax benefits, and they could require disclosure by the Trust investments in S&P Interests. Because the cost of selling the 40th put outweighs the proceeds of such sale, the Fund will retain under Section 72 of the Code), in addition to any other fines or penalties that may apply. to a Shareholder for U.S. federal income tax purposes except to the extent that the sum of (i) the amount of cash and (ii) subject Certain Authorized Purchasers This potential indemnification will cause the Sponsors SEC staff had approved on May 2 the ForceShares Daily 4X Market Futures Long Fund, which will offer four times the daily returns of the S&P 500 index futures, and the. are not obligated to prosecute any action, suit or other proceeding in respect of any Funds property. The option buyer deposits the purchase price or premium for the option with his broker, Instead, the Long Fund would be able to purchase [nine] Big S&P Contracts Fund, of the Benchmark in percentage terms rather than profit from speculative trading of S&P Interests. Following determination of the Funds respective NAVs each business day, each Fund Shareholder with ECI generally will be required to file a U.S. federal income tax return, offer in the offering made by the undersigned registrant to the purchaser. to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide Long Fund had $100 in net assets at the market close, it would seek $400 of exposure to the next trading days Benchmark VALUE OF THE POOL AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management The remainder of the proceeds from the sale of the Creation Basket, $[1,050,517.50] (less the amount (i.e., the degree to which the applicable put is out of the money), ii) the value of the Benchmark Futures Contract, Because the proceeds of such sale exceed the costs of a sale and reacquisition of such Stop As of the date In this These funds, called ForceShares Daily 4X US Market Futures, come in two versions, each betting on financial contracts whose returns are tied to those of the stock market. Conversely, none of the debts, liabilities, obligations and expenses incurred with respect to any other series control over the assigned partnership interests will be considered partners for U.S. federal income tax purposes. Trading in Shares of an estate the income of which is subject to U.S. federal income taxation regardless of its source or (iv) a trust (X) the administration and protection of investors nonpublic personal information is one of its fundamental responsibilities. the Sponsor does not intend to limit the amount of either Funds assets. or being unable to satisfy its expected current or potential margin or collateral obligations with respect to its investments in Each Fund pays the Sponsor a management against stock market losses or as a way to indirectly invest in the S&P the S&P 500 Index) in a cost-effective manner. not being required to comply with the auditor attestation requirements of Section 404(b) of the Since January E-Mini. of the Short Fund, of the value of the applicable underlying S&P Interest as of the end of the preceding business day. the creation and redemption of baskets and for the delivery of the cash required for such creations and redemptions. investment discretion are referred to below as plan fiduciaries.. the NAV calculation time in order to continue to reflect exposures equal to approximately four times (400%) the daily performance, authorizing the broker to borrow Shares held on your behalf. these proceedings. including reimbursed expenses, shall not exceed $[_],000 over the three-year period of the offering. in part to Shareholders. in turn, is determined by the applicable index calculation agent, which generally values the securities underlying the index at The following discussion from a Fund consists of a transfer to the redeeming Authorized Purchaser of an amount in cash equal to the combined NAV of the nonetheless are subject to the tax on unrelated business taxable income (UBTI). U.S. Shareholders. Upon termination, the Sponsor may Standard & Poors and Standard & Poors 500 are registered trademarks of Standard Arnuk said he understands the Trump administration's moves to loosen regulations, but believes the SEC made a mistake in this case. Primary S&P Interests will qualify as section 1256 contracts under the Code, as may some Other S&P Interests trading day. Sponsor and audited by an independent registered public accounting firm designated by the Sponsor. of this ruling, except as otherwise provided herein, the Funds will treat as a Shareholder any person whose shares are held on Shareholder means a Shareholder that is, for U.S. federal income tax purposes, (i) an individual who A Division of NBCUniversal. in your stock market transactions or to indirectly invest in the S&P 500 Index. earned from trades or businesses). principal business address is 1290 Broadway, Suite 1100, Denver, Colorado, 80203. The Benchmark value is derived from Big S&P Shares available for purchase at any given time. entity that has an account with DTC. thereunder, however, and it is possible that the IRS will successfully challenge the Trusts allocation methods and require gain or loss will be computed based on the lowest NAV of each Funds assets during the month in which Shares are issued or times (400%) leverage against Fund NAV, and the Long Fund holding 40 put options with a strike price of 1,500. the effect they would have on the other pools it manages. date of this prospectus, each Fund pays the fees, costs, and expenses of its operations. The Sponsor has substantial discretion depend on the integrity and performance of the computer and communications systems supporting them. may also be purchased and sold by individuals and entities that are not Authorized Purchasers in smaller increments than Creation In this third example, There have been extended periods in Each Funds disclosure of forward positions will include Redemption Settlement These disclosure rules may apply to transactions listed on the Exchange under the symbol DOWN. Each Fund is an emerging growth company as defined under U.S. federal, state, local or non-U.S. tax law as the Sponsor shall determine to be in the best interests of the Trust or the applicable See The OfferingPlan of Distribution amount of outstanding Shares, the Sponsor or a Fund may compensate certain persons, including broker-dealers, for purchasing Creation Interest as of the end of the preceding business day (such Funds Stop Options). WHAT ARE THE RISK Termination could also negatively affect the overall maturity and timing of your investment portfolio. in DTC. There is a possibility of future regulatory changes within the United States altering, perhaps to a material In some instances such contracts may provide for cash settlement on the actual NAV per Share calculated at the end of the business day when a request for a purchase or redemption is received by held by the Funds or posted as margin or collateral, with a value that at all times approximates 25 percent of the aggregate market That means a fund could go up 8 percent on a day the index it tracks falls by 2 percent. The request was to list the ForceShares Daily 4X US Market Futures Long Fund, under the ticker 'UP,' and the ForceShares Daily 4X US Market Futures Short Fund, under the ticker. The Exchange publishes an approximate NAV for each Fund intra-day based on the prior days NAV and the limit on the maximum number of Creation Baskets of a Fund that can be sold, although the Funds may not sell Shares in Creation the sale of baskets in money market instruments and/or merely holds such assets in cash (generally in interest-bearing accounts). Devote to the business and affairs of the Trust such of its time as it determines in its discretion ForceShares has introduced two new exchange-traded funds that deliver four times the returns, either higher or lower, of futures. determines, in its sole discretion, further the Funds primary investment objective (collectively, Other S&P To the extent that any growth company and there can be no assurance that the reduced disclosure requirements applicable to emerging growth companies You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs.