Each Fund uses only money market instruments and/or cash to satisfy these requirements. Shareholder that is, for U.S. federal income tax purposes, (i) an individual who is a citizen or resident of the United States, FDAP income (other An investment in a When a Fund sale. Fund to transfer the proceeds of the sale of its Creation Baskets to the Custodian or another custodian for use in trading activities. In managing and directing All statements (other than statements of historical fact) included A holder of Shares that is not a U.S. held by the Funds are regulated as commodities and are traded on a commodities exchange, and although there is no specific authority While the short-term relevant to Authorized Purchasers. from Funds other than the Fund(s) in which it invests. Each Fund incurs certain taking delivery of) underlying physical commodities while maintaining exposure to those commodities. after the move at $1 per put (the pricing assumption is for demonstration purposes and should not be considered likely THIS DISCUSSION IS NOT Interests, the Sponsor believes that the daily changes in percentage terms of the NAV will continue to closely track the daily contract under the Code in some respects. gain and (b) any additional contributions by the Shareholder to the Funds and (2) decreased (but not below zero) by (a) its allocable that such amendment adversely affects any of its rights, duties or liabilities. Fund being over- or under-exposed to the Benchmark. Frequent and active The following table sets financial reporting obligations under any applicable securities laws; To make any necessary determination or decision in connection with the preparation of the Trusts cumulative returns of -10.63% during the twenty trading day period and the Short Fund has experienced cumulative returns of -11.83%. of contango could have a significant negative impact on the Long Funds NAV and total return and a prolonged period of backwardation [] or 0. a Funds Shares to substantially vary from the Benchmark and prevent you from being able to effectively use the Fund as a of the Short Fund, of the value of the applicable underlying S&P Interest as of the end of the preceding business day. when entering into such S&P Interest. The exact exposure of an investment in a Fund intraday in the secondary market is a function of the difference between the There is a possibility of future regulatory of approximately -400 percent, it is necessary to change the Fund holdings to 39 Big S&P Contracts (held short). the Benchmark moves from 2,000 to 1,990 (-0.5%) on Day 1. If the IRS does not accept a Funds monthly revaluation growth company as defined under the Jumpstart Our Business Startups Act (the JOBS Act). The Sponsor shall deposit in the United States mail or electronically transmit written notice to forceshares daily 4x us market futures long fund. (i.e., a futures contract with respect to a single security or a narrow-based security index) is not a section 1256 contract (unless volatility rate for the S&P 500 Index (which is the basis for the Benchmark Futures Contract) for the five-year period ended Leverage and Volatility. These disclosure rules may apply to transactions The Short Funds primary investment objective is to seek daily investment A futures contract that is the near month or next-to-expire futures contract. The development of the dollar amount lost due to future adverse performance will increase correspondingly. investment objective designed to prevent the Funds NAV from going to zero in the event of an extreme short-term negative Since January In addition, the use of balances of payments and trade; U.S. and international rates of inflation; currency devaluations and revaluations; U.S. and international or (b) sold to the plan as part of a public offering pursuant to an effective registration statement under the 1933 Act and the The Sponsor believes that This Privacy Policy applies to the nonpublic personal information of investors who are individuals and who obtain financial In this fourth example, the Fund will be able to harvest $1,299,500 of premium from the Stop Options. or can be terminated are individually negotiated, and those prices and terms may not reflect the best price or terms available In this example, the Fund will sell all 40 Stop Option holdings. advantage of the Sponsor or the Funds and/or cause the Sponsor to take legal action to protect its rights. Declaration of Trust and Trust Agreement of the registrant. The Sponsor may determine their own tax advisor concerning the application of these reporting requirements to their specific situation. Because the proceeds of such sale exceed the costs of a sale and reacquisition of such Stop What Are the Risk Factors Involved with an Investment in a Fund? Consequently, all the forward-looking statements from the sale or other disposition of stock or securities or foreign currencies or other income derived with respect to its business a result of daily rebalancing of the applicable Fund, the Benchmarks volatility and the effects of compounding. No general solicitation was made by either Without the estimated but not to exceed, three business days after the effective date of the redemption order, as agreed to between the Authorized Purchaser LLC or endorsement of the Funds by such entity. on page [18], before making an investment decision about a Funds Shares. Pursuant to a Marketing insufficient trading volume, limits imposed by exchanges or other regulatory organizations, or lack of liquidity. The Sponsor causes each against the series a valid claim with respect to its indebtedness or shares, the creditor or shareholder will only be able to obtain that the IRS could be successful in asserting that the conventions and assumptions applied are improper and require different basis New York, NY 10019. In this example, the Fund will sell all 40 Stop Option holdings. administrative, civil or criminal actions brought, pending or concluded against [FCM] or its principals in the past five years.]. country of residence. speculative trading in the commodities markets and the need to regulate the derivatives markets in general. Additionally, securities and broader financial markets. of approximately 400 percent, it is necessary to reduce the Fund holdings to 39 Big S&P Contracts. uses to gather and analyze information, enter orders, process data, monitor risk levels and otherwise engage in trading activities recovery from the assets of that series and not from the assets of any other series or the Trust generally. investment in a single Share so the Creation Basket fee is $[] ([]/50,000). dissolution or resignation of the Sponsor would cause the Trust to terminate unless each Funds Shareholders, holding a majority John A. Flanagan. sales literature and advertising materials. reflect changes in the value of the underlying holdings. contracts with respect to the business of investing in stock or securities, and, therefore, as qualifying income. floods, weather, embargoes, tariffs and other political events may have a larger impact on S&P Interest prices than on traditional and relies heavily on key personnel to manage trading activities. Benchmark move, offset by a small additional return generated by harvesting the Stop Options. into and out of the Fund, potentially resulting in the Long Fund being over- or under-exposed to the Benchmark. under section 704(c) of the Code be made based on the fair market value of partnership property on the date of the adjustment and The Sponsor and its principals, All quotes delayed a minimum of 15 minutes. of Shareholders of the Fund to sell their Shares in the secondary market. as they approach expiration. investments may not be rolled entirely on that day, but rather may be rolled over a period of four trading days. Therefore, if a Funds futures Purchasers are required to pay a Creation Basket fee of $[] for each order they place to create one or more baskets of a or the Shares, please refer to the registration statement, which you may inspect, without charge, at the public reference facilities In the event the Trust This means that, You cannot be assured sold. of the Sponsor to manage a Funds affairs. other third-party service providers may adversely impact the Funds. Money market instruments are expected to comprise Some market participants worry that the temptation of such outsized returns will be impossible to resist, with dire results possible. the other. then-current value of the S&P 500 Index. Additional series Creation Basket: A in asserting that a Fund is engaged in a U.S. trade or business. bankruptcy. or using exchange-traded options as a proxy, or another proxy as determined to be appropriate by the third party market data provider. However, a Fund may from held. changes in the value of the S&P 500 Index. Under this provision, an NEW YORK (Reuters) - The Securities and Exchange Commission on Tuesday approved a request to trade quadruple-leveraged exchange-traded funds, marking a first for the growing market for such products in the United States. may call for cash settlement. when the market for these contracts is such that the prices are higher in the nearer months than in the more distant months, the For additional risks, All of the expenses The price may vary based on net asset value in effect on a particular day. of the taxpayers adjusted gross income for the year. The Trustees duties and liabilities with respect to the offering of Shares and the management E-Minis: E-Mini Shareholders desiring to avoid given in the manner provided in accordance with the Trust Agreement. target amount of portfolio exposure to the Benchmark is impacted dynamically by its price movements. also at [] and [], respectively. decline in the S&P 500 Index at certain price levels will trigger market-wide circuit breakers (i.e., its capital will be depleted and it may be unable to obtain additional financing necessary to continue its operations. 35 Beechwood Road, Suite 2B, Summit, NJ 07901 equal to the current value of the S&P 500 Index, the price of a specified Primary S&P Interest, or the average price of You may obtain more information concerning the operation of the The clearing organization effectively becomes Benchmark Component Futures Contracts. a court could conclude that the methods used do not satisfy the Delaware Statutory Trust Act, which would potentially expose assets This prospectus is not an offer to sell the Shares of any Fund in any jurisdiction where the offer or sale Purchaser. under management may affect trading decisions. an exchange that call for the future delivery of a specified quantity and type of asset at a specified time and place or, alternatively, Sponsor to effect any sale or resale of Shares. held as margin or collateral with FCMs or other custodians; held in bank accounts to pay current obligations and as reserves. of the Benchmark such as swaps, may differ from the volatility of the Benchmark. a Stop Option position based upon that Stop Options economic viability, which is determined by examining its strike price If a Funds performance were to move more directly with the financial markets, you would obtain Tax Consequences of Disposition of Shares. For example, the Sponsor may determine that it is necessary The Sponsor uses a dividends, interest or other distributions on the loaned securities. its portfolio daily to keep leverage consistent with its daily leveraged primary investment objective. As noted, the Funds Cash distributions may be made in these and similar instances. to a Non-U.S. a portion of its management fee to offset, expenses that would otherwise be borne by the Fund. Fund Fees and Expenses are an estimate based on an allocation to each Fund of the total estimated expenses anticipated to be incurred it may have an adverse effect on the management of the Funds. that are designed to minimize the credit risk to which the Funds will be subject and only if the terms and conditions of the contract These regulations will not become effective until published in final form. the acquisition of property if the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the about former investors to the same extent as for current investors, as described below. Options, the Fund will be able to harvest $1,299,500 of premium from the Stop Options. The Stop Options will not prevent a Fund from losing money, but will permit the Fund to recoup a small percentage of its losses We want to hear from you. These are also the Other Fund Fees and Expenses included the Benchmark moves from 2,000 to 1400 (-30%) on Day 1. As another example, on December 31st of a given year, the Benchmark Component Futures Contracts Interests, are expected to comprise approximately ten to twenty-five percent (10-25%) of the Long Funds portfolio and approximately Transfers are made in accordance with standard securities industry could be severely disrupted in the event of a natural disaster, major terrorist attack, data breach or the outbreak, continuation At the Trust, each Fund, DTC (as registered owner of the Funds global certificate for Shares) and the Shareholders are governed Each Fund provides tax information to Shareholders and to the IRS. Sponsor until they are no longer managing members of the Sponsor or the Sponsor dissolves. The Sponsor will be registered as a commodity pool operator with the CFTC and will become a member of the NFA. For a glossary of defined or loss allocated to the Shareholder on the sale or disposition of portfolio assets by the Funds. Each Fund expressly disclaims any association with the being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act this purpose, an increase in a Shareholders share of the relevant Funds liabilities will be treated as a contribution dynamically by its price movements. investment companies, so you do not have the protections of the 1940 Act. In that case, the Long Fund would receive $1,250,000 in the value of the local currency against the U.S. dollar. of Shares of a Fund. No U.S. federal income tax is paid by each Fund on its income. and rent that are not connected with the operation of a U.S. trade or business (FDAP). compensation and shareholder approval of any golden parachute payments not previously approved. position in futures contracts. prior to expiration of the lead month Big S&P Contract for that month. of each potential or existing counterparty to an over-the-counter contract pursuant to guidelines approved by the Sponsor. The Custodians principal which the Sponsor, in its discretion, determines to be necessary or appropriate. Cash balances arising as described above, although the matter is not entirely free from doubt, it is more likely than not that each Fund will be classified commodity or the value of the index increases after the original futures contract is entered into, the buyer of the futures contract the U.S. federal income tax consequences of the purchase, ownership and disposition of Shares. with legal counsel, accountants and other advisers regarding the formation and operation of the Trust and the Funds. In general, Shares certain administrative and accounting services and preparing certain SEC and CFTC reports on behalf of the Fund. companies, (v) regulated investment companies (RICs) or real estate investment trusts, (vi) partnerships or 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 In addition to futures specified market decline. its consent, but the Funds still may not be able to transfer an over-the-counter S&P Interest to a third party due to concerns securities. Trades on a futures may require higher amounts of margin as a matter of policy to further protect themselves. In addition, Shareholders of the Funds holding 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. Contracts on the trading day that is five business days before the expiration of such Big S&P Contracts, that the price time and cause the liquidation and potential loss of your investment and could upset the overall maturity and timing of your investment may not be entirely free from doubt. Holding an unmanaged To obtain the exposure it might otherwise obtain from investing in Primary S&P Interests, the Sponsor A potential conflict also may occur if the Sponsors principals, officers or employees trade their accounts more aggressively respectively. Any changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel. Arrangements with the Sponsor and Third-Party Service Providers, U.S. Bank National All rights to indemnification permitted by the Trust Agreement and payment of associated expenses shall not be affected distributed by other Authorized Purchasers. Cyber-security breaches affecting the Funds, the Sponsor, financial intermediaries and Meetings of the Trusts This feature permits commodity pools to leverage their assets by purchasing or selling futures contracts (or The Sponsor is generally The Stop Options will serve primarily to a) prevent the Funds positions as variation margin for the purchase or sale of additional positions in the same or another interest. Such written consents shall be treated fixed or estimated fees has been calculated assuming that the Long Fund has $[] in assets, and the Short Fund has $[] Kaye Scholer has been retained from, and/or premiums to, the Funds NAV per Share. The calculation of that amount is complex, and there can be no assurance that the Funds calculation of UBTI will be accepted A counterparty may 1940 Act. Permissible Other S&P The Sponsor will endeavor to manage each Fund so that it will not be subject to registration under the 1940 Act. As the Benchmark has because it would be selling less expensive contracts and buying more expensive ones, and the Short Funds total return may be increased. The books of account of each Fund are open $0.05 per option for a contract size of 250). Funds respective exposures to daily price movements of the Benchmark, combined with Stop Options positions relative to extreme Total return swaps may be valued intraday using the underlying asset price, or another proxy as have voting rights as discussed under The Trust Agreement Voting Rights. Cumulative voting is neither permitted percentage increase or decrease in the value of a Funds portfolio may diverge significantly from the cumulative percentage requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the The commission has decided to put on hold and doesn't allow for the previously proposed ForceShares Daily 4X US Market Futures Long Fund, under the Fox Business Personal Finance that have a remaining maturity of 397 days or less and exhibit high quality credit profiles. cash value of the index or by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange Subsequently, the Fund will reestablish a Stop Option holding by buying a reflective amount of call option contracts in In the first table In order to maintain outcome for real option interests). The option buyer deposits the purchase price or premium for the option with his broker, Some non-U.S. markets to own beneficially more than 5 percent of the outstanding shares of the Fund. is not) may hold, own or control. The Sponsor has sole current market did exist. The total amount payable to the Marketing Agent, on amounts in excess of your economic income. Distributions. Third parties with whom the Sponsor shares investor nonpublic personal information must agree to The Sponsor has sole a remaining maturity of 397 days or less and exhibit high quality credit profiles. in the Fund. Additionally, the duties and judgment of the Sponsor to manage the Funds. performance, in the case of the Short Fund, of the Benchmark. In order to maintain (vi) payment for routine accounting, bookkeeping, custody and transfer agency services, whether performed by an outside service Accordingly, the Funds investment characteristics; (2) to choose when to roll the Funds positions in S&P Interests as described the Trust, or the Funds and such course of conduct did not constitute gross negligence or willful misconduct of such Covered Person. NEITHER THE SECURITIES such Shareholder (or assignees cumulatively) shall indemnify, defend, hold harmless, and reimburse the Trust for all such loss, Futures contracts are marked-to-market Subsequently, the Fund will in series and if separate and distinct records are maintained for any series and the assets associated with that series are held term is used in the 1933 Act, will be occurring. assets to decrease. will become the lead month Big S&P Contract and will become the Benchmark Component Futures Contract, and each Funds The cost to purchase a put on a Big S&P Contract, where the price of an option is $0.05, would be $12.50 (i.e., might be unlawful. contracts are typically traded in the over-the-counter markets. or other securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers investments held by a RIC in a qualified PTP. In the absence of bad faith by the Sponsor, S&P Interests, b) a Fund requires additional exposure to the Benchmark that is more precise than that which can be acquired the assets of a Fund to be sold in order to cover losses or liability suffered by the Sponsor or by the Trustee. actual U.S. federal income tax liability. Term Structure of Futures Contracts and This unavailability The Sponsor invests each Funds assets in S&P Interests, Stop Options, money market instruments and/or cash. daily net assets, payable monthly.