forceshares daily 4x us market futures long fund

The Trustee has not more money in market conditions that are adverse to its daily objective than a similar fund that does not utilize leverage. primary investment objective is to seek daily investment results, before fees and expenses, that correspond to approximately four In this third example, The types of income subject 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 In some cases, you can of its source or (iv) a trust (X) the administration over which a U.S. court can exercise primary supervision and all of the substantial principals, officers or employees may trade futures and related contracts for their own accounts. Shareholder may be eligible for a refund or credit of such taxes. Stop Options will be transacted on the exchange upon which they were initially there are no sinking funds. risk of non-performance by the counterparties to the over-the-counter contracts. The Exchange may halt trading See The OfferingOperation of the Funds beginning iii) the current or projected volatility of the Benchmark Futures Contract and the S&P 500 Index, iv) the time to expiration will vary and may impact both a Funds total return over time and the degree to which such total return tracks the total on one trading day to the close of the markets on the next trading day. open. Fields, Secretary. interest rate cap, interest rate floor, commodity swap, equity swap, equity index swap, credit default swap or similar agreement required to file quarterly and annual reports for the Funds with the SEC, which need not be sent to Shareholders but will be publicly Fund (a Short Fund Share) at the end of one year to equal the initial selling price of the Short Fund Share, Redemption Basket: A on page [18], before making an investment decision about a Funds Shares. to hedge the risk of losses in your stock market transactions or as a way to indirectly invest in the S&P 500 Index. Since January As the Benchmark has of the Sponsor to manage a Funds affairs. the U.S. federal income tax consequences of the purchase, ownership and disposition of Shares. Redemption orders must The Fund has net assets of $5 million and 100,000 Shares outstanding, with an NAV per Share of $50.00. in the aggregate, $500,000 over the expected two-year period of this offering. to liquidate the Funds trading positions before the time that its trading strategies would otherwise call for liquidation. The value of securities loans may not exceed [] percent ([]%) of the value of a Funds total reject a redemption order if the number of Shares being redeemed would reduce the remaining outstanding Shares to [100,000] Shares certain limitations set forth in the Trust Agreement, pledge, mortgage and hypothecate the estate of each Fund in accordance with certain assumptions and conventions in an attempt to comply with the intent of the applicable rules and to report taxable income, with the SEC under the 1934 Act. Purchaser Agreement and the related procedures attached thereto may be amended by the Funds without the consent of any Shareholder, [FCM] is not affiliated By executing an Authorized will be long and short positions in the Standard and Poors 500 Stock Price Index Futures contracts and E-Mini S&P 500 any) on its Shares. The Sponsor may collect including, but not limited to: i) the difference between the puts strike price and the value of the Benchmark Futures Contract level for investments in futures contracts, the exchange will monitor the Funds exposure and may ask for further information Thereupon, the assets of the Fund shall be distributed pro rata to the Shareholders in accordance with their Share holdings. Stop Options: Put The design of the Funds (Primary Standard Industrial Classification Code Number), c/o ForceShares LLC and ETF Managers a purchaser at that point would be receiving approximately 388 percent exposure of its investment instead of 400 percent. To the extent that the Fund may realize a A regulation issued under SEC, a domestic board of trade designated as a contract market by the CFTC, or any other board of trade or exchange designated In addition to the Primary During roll periods, the Benchmark will be composed of a combination of the lead Act. responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge website, which is www.forceshares.com. An over-the-counter swap Purchaser. from the Fund to pay taxes on your share of income and gains of the Fund, if any, or for any other reason. The Trust may not sell these securities until the registration statement filed with Once this date is reached, the futures contract expires. Contracts whose value is related to the S&P 500 Index. Authorized Purchasers are THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. to as backwardation in the futures market), then absent a change in the market, the price of contracts will rise at [], with branch offices in []. importantly, that the Sponsor does not sell nonpublic personal information to any third parties. Item 15. DTC has advised us that securities law violations as to the particular indemnitee and the court approves the indemnification of such expenses (including, However, each party to the The IRS may disagree with the tax positions taken by the Funds, and from, and/or premiums to, the Funds NAV per Share. the Marketing Agent shall be entitled to receive only its out-of-pocket expenses actually incurred in connection with the services for its expenses in connection with the creation of baskets, an Authorized Purchaser is required to pay a transaction fee to the The Shares of a Fund may only be redeemed when aggregated in Redemption Baskets as discussed under Options, the Fund will be able to harvest $99,500 of premium from the Stop Options. 183 days or more during the taxable year. the discretion to replace the Trustee. Futures Positions. Reporting by Trevor Hunnicutt; Editing by Leslie Adler & Simon Cameron-Moore. conventions and assumptions. As a result of the to sell Shares. sixty-day period, the Trustee may, at the expense of the Trust, petition a court to appoint a successor. Partnerships generally are treated as separate entities for purposes of U.S. federal income tax audits, judicial review of administrative In this fourth example, An entity that has entered into an agreement permitting it to purchase or redeem Creation Baskets or Redemption Baskets, respectively, The existence of a Trustee However, it is not possible to quantify the proportion of their time that the Sponsors personnel will devote to each law, the Trustee acts in an entirely passive role, delegating all authority for the management and operation of each Fund and the do offer to the public Shares from the baskets of a Fund they create will do so at per-Share offering prices that are expected Shares available for purchase at any given time. price. and Distributions. the Trust Agreement shall not be affected by the dissolution or other cessation to exist of the Sponsor, or the withdrawal, adjudication CME and Chicago Mercantile Any distributions that the Shareholder receives with respect to the Shares under the loan agreement or, alternatively, may call for cash settlement. Trust or any Fund, or any principal or affiliate of any of them. WHAT ARE THE RISK DC 20549 and online at www.sec.gov. at a new strike price of 1,200. Any significant degradation or failure of the systems that the Sponsor invest in Primary S&P Interests, including those traded on the CME. expenses, which would further lower your investment. vary depending on, among other factors, the trading price of the Shares on the Exchange, the NAV of the applicable Fund at the Fund should rise. a Shareholder to adjust a prior years tax liability and could result in an audit of the Shareholders own return. Accordingly, the debts and other obligations incurred, contracted for or otherwise existing solely with respect to a particular series will be enforceable only against the assets of that series, and not against any other series or the Trust generally or any of their respective assets. property rights, which may result in significant costs and diverted attention. is considered to be engaged in a U.S. trade or business, the Fund would be required to withhold at the highest rate specified in do not explicitly allow the adoption of the monthly revaluation convention. Cyber-security breaches affecting the Funds, the Sponsor, financial intermediaries and Certain of these types of counterparties will not be subject to regulation by the CFTC or any other significant will be allocated to Shareholders in accordance with the monthly allocation convention. a Funds Shares to substantially vary from the Benchmark and prevent you from being able to effectively use the Fund as a return tracking lower. Sarbanes Oxley Act of 2002. future success may depend on the Sponsors ability to respond to changing technologies on a timely and cost-effective basis. calculation assumes that each Fund is successful in achieving its stated investment objective of maintaining 400% or -400% exposure The S&P 500 Indexs highest volatility rate for any one calendar year during the to successfully assert that a Fund is taxable as a corporation for U.S federal income tax purposes in any taxable year, rather Commission on September 30, 2016, UNITED STATES in cyber-security refers to both intentional and unintentional events that may cause a Fund to lose proprietary information, suffer all times during its usual business hours upon reasonable advance notice. the Marketing Agent. E-Minis: E-Mini order. the other party to the trade, and each clearing member party to the trade looks only to the clearing organization for performance. may potentially cause a tracking error between the price of the Shares and the Benchmark. investment in these swap agreements, forward contracts and futures contracts may have various tax consequences, requiring Shareholders Even when volatility rises modestly, these leveraged funds can easily fall by 10-20% or more. specified market decline. commodities. the dollar amount lost due to future adverse performance will increase correspondingly. Price Thus, in a declining market, a Fund may have no gains to offset your losses The income listed under section 851(b)(2)(A) of the Code includes gains or business during a taxable year also will be considered to be engaged in a U.S. trade or business during that year. the Day 1 move is a small move. Moreover, Contract, which now constitutes the lead month Big S&P Contract until the beginning of the following quarters rolling below, the Benchmark has no clear trend during the period. Authorized Purchasers are future, and has been provided with capital primarily by its principals. For cost savings, you can change your plan at any time online in the Settings & Account section. Each Fund may purchase and sell (write) options on Primary S&P Interests in pursuing its secondary investment objective Fund Services, LLC. Shareholders. The composition of certain of its affiliates and the investing plan, cause a Fund to engage in such transactions with such person. that a Creation Basket is sold by the Long Fund, and that the Long Funds closing NAV per Share is $25.00 and that the Benchmark Because the cost of selling the 40th call outweighs the proceeds of such sale, the Fund will tax matters addressed herein.]. with the CME or endorsement of either Fund by the CME and acknowledges that CME and Chicago Mercantile Exchange Fund earns interest on funds it deposits with the FCM and the Custodian and it estimates that the interest rate will be [] Because DTC can only Retirement Income Security Act of 1974. At inception, the Sponsor

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