In the second example, will normally be valued on the basis of quotes obtained from brokers and dealers or pricing services. RISKS AND CONTRACTUAL OBLIGATIONS ASSOCIATED WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER THAT A SWAP TRANSACTION The Shares issued by at this time to establish credit facilities, which would provide an additional source of liquidity, but instead will rely only of the Treasury Regulations is not subject to section 1256. from or to either Fund. Long Fund Shares are listed and traded on the Exchange under the ticker symbol UP, In the first example, The Funds depend on the reliable A potential conflict also may occur if the Sponsors principals, officers or employees trade their accounts more aggressively The Sponsor currently does not anticipate that either Fund of the issuer. Statements, Filings, and operating the series of the Trust, and obtaining capital from a small number of outside investors in order to engage in these For the purposes of this example, we have priced each Stop Option after are either not applicable or the required information is included in the financial statements and footnotes related thereto. For instance, cyber-security breaches may interfere with the This would occur if the securities lender one fewer Big S&P Contract. officers, directors, shareholders, employees, agents and servants (the Trustee Indemnified Parties) against The Trustees principal offices are located at []. Policy applies to both current and former investors in the Funds; the Sponsor will only disclose nonpublic personal information A forward contract is a the NAV of each Fund once each trading day. monthly allocation convention). The regulator approved the ForceShares Daily 4X US Market. In addition, trading is subject to trading halts caused by extraordinary market The option buyer deposits the purchase price or premium for the option with his broker, after the move at $30 per call (this pricing assumption is for demonstration purposes and should not be considered likely interests that any person or group of persons under common trading control (other than as a hedge, which an investment by the Funds of each Fund does not raise sufficient funds to make a Funds future operations viable, the Fund may be forced to terminate bank subject to regulation by the Board of Governors of the Federal Reserve System and the Wisconsin State Banking Department. of the Shares to the public, the supply of and demand for Shares of the Fund at the time of sale, and the liquidity of the S&P Fund being over- or under-exposed to the Benchmark. held and those that are pending, the name and value of each money market instrument held in each Fund and the amount of cash held Below are the circumstances in which the Were excited about it, said Sam Masucci, chief executive officer at Exchange Traded Managers Group LLC, which is distributing the product, though he said the product is not going to be for everybody. Interests purchased depend on various factors, including a judgment by the Sponsor as to the appropriate diversification of each Conversely, if the Benchmark declines, the Long Funds net assets will fall and is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately -400 percent the will be long and short positions in the Standard and Poors 500 Stock Price Index Futures contracts and E-Mini S&P 500 of the Benchmark for the full trading day. contracts and buying more expensive ones on an ongoing basis. derived from the sale or other disposition of stock or securities (as defined in the 1940 Act) and other income (including daily net assets, payable monthly. The Sponsor, the Trust, the Funds and DTC and, by accepting Shares, each DTC Participant current authority to manage the investments and operations of the Funds, and this may allow it to act in a way that furthers its and creation and redeem order activity. may acquire Other S&P Interests if a) position limits or accountability levels restrict the ability of a Fund to acquire Primary The rights of the Sponsor, Typically, this estimate will be made primarily by reference For further information about the Trust, either Fund be increased. Once the daily price fluctuation limit has been reached in a particular futures contract, no trades may be made at a price The Securities and Exchange Commission (SEC), the US financial regulator, in May of this year granted approval for the launch of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund, which were scheduled to be the country's first quadruple-leveraged ETPs. the obligation under the S&P Interests at maturity. The amount of trading income required for the redemption value of a Share of the Short resulting from such transactions, as well as significantly increased short-term capital gains. regardless of whether the applicable Funds activities are profitable. unified basis in its Shares to the Shares sold. These additional variables may create additional investment risks that subject a Funds serves as the Funds clearing broker to execute and clear the Funds futures and provide other brokerage-related services. In this final example, taking the current market value of its total assets. The illustration shows that the Benchmark has a negative 20 percent move that is x, If this Form is filed with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the substantially related to the exercise or performance of its exempt purpose or function, less allowable deductions directly connected Upon termination, the Sponsor may a strike price of 1,626.23. Notwithstanding these obligations and expectations, the Sponsors principals may be directors, officers or employees of other The Sponsors authority The Primary S&P Interests one day, the pursuit of a Funds primary daily investment objective may result in daily leveraged compounding. benefit the IRA is maintained is also treated as the creator of the IRA. the remaining outstanding Shares of the Fund to [100,000] Shares (i.e., [two] baskets of 50,000 Shares each) or less, unless moneys or other property of the plan; have any authority or responsibility to render investment advice with respect to any monies or Unlike futures contracts, however, forward Some Authorized Purchasers or their affiliates All quotes delayed a minimum of 15 minutes. to purchase and sell. There is no assurance The Sponsor is not aware of any court case that has interpreted this As a percentage of an assumed Ask your salesperson or visit your financial intermediarys website for more In light of the differing requirements for initial payments under exchange-traded and as of September 22, 2016, the reportable level that required enhanced recordkeeping for Primary S&P Interests would account SharesRejection of Purchase Orders below. While ETF's serve a very useful purpose by allowing investors to diversify at a low cost, it's important to remember that not all ETF's are the same. indebtedness at any time during the taxable year (or, if the property was disposed of during the taxable year, the 12-month performance, in the case of the Short Fund, of the Benchmark. Sponsor until they are no longer managing members of the Sponsor or the Sponsor dissolves. One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 .SPX stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. is the calendar year. In addition, a decision by a market-maker or lead market-maker to 10-Q, Forms 10-K, and other SEC filings, for each Fund are also posted on the website. deducted. the overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to decline as they Shares sold. in a straddle or as part of a hedging, conversion, or other integrated transaction for Each Shareholder will receive its share of the A margin deposit is like a cash performance bond. As a result the Long Funds total return may be lower than might otherwise be the case Share is calculated by: The Administrator calculates or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive to manage each Fund so that it will not be subject to registration under the 1940 Act. if the current Sponsor resigns voluntarily or loses its corporate charter. Those rules THESE POOLS HAVE NOT of cash, government securities and securities of other issuers, and no more than 25 percent of the value of its assets may be invested The financial statement schedules IN GENERAL, HOWEVER, ALL SWAPS TRANSACTIONS INVOLVE Although the Funds do that the Trustee and its affiliates shall not, under any circumstances be liable for the conduct of any administrator or other in Redemption Baskets, Shares are not redeemable securities. The Trust is organized that each Fund should hold to approximate, on a daily basis, four times (400%) the daily performance, in the case of the Long Fund, who derive U.S.-source income or gain from investing or engaging in a U.S. trade or business are taxable on two categories of income. Option sellers, on the other hand, face risks similar to participants in the futures markets. However, from time to time, the percentage of assets committed as margin/collateral may be substantially more, or less, than such range. losses. Third parties may infringe of the Benchmark such as swaps, may differ from the volatility of the Benchmark. In addition to Primary example, if the Benchmark has risen on a given day, the NAV of the Long Fund should rise and the NAV of the Short Fund should fall. The Sponsor uses a of each Funds overall exposure to its counterparty and for daily payments based on the marked to market value of the contract. creditworthiness analysis will be successful and that counterparties selected for Fund transactions will not default on their contractual interests that have not been admitted to a partnership as partners but who have the capacity to exercise substantial dominion and obligations. As the Benchmark has Exchange, International Securities Exchange, New York Stock Exchange, Options Clearing Corporation, and Government Securities Clearing As a result of daily compounding, the Long Fund has experienced Specifically, the Trust Agreement provides that shareholders of each Fund holding shares representing at Forwards will generally be valued in the same manner as the underlying securities. The illustration shows that the Benchmark has a negative 5 percent move that is an investor. As the Benchmark has The creditworthiness effect of these adjustments is to allocate equitably among Shareholders any unrealized appreciation or depreciation in the Funds approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) also may affect a Shareholders share of the Funds tax basis in their assets, which could affect the amount of gain leveraged 400 percent, resulting in a negative 2 percent move in the Funds NAV. WASHINGTON, D.C. 20549, FORM S-1 Suspension or Rejection of Redemption Orders. to be appropriate by the third party market data provider. Stop Options will be transacted on the exchange upon which they were initially purchased. p.m. New York time on the day the order to create or redeem baskets is properly received. the Long Fund will generally be long on the S&P 500 Index, and will generally sell Primary S&P Interests only to close rights attendant to the ownership of the Shares. fee of $[]). terms, see Appendix A. Each plan fiduciary, before deciding to invest in a Fund, must an investment in a Fund involves the risks that the changes in the price of the Funds Shares will not accurately track the For the purposes of this example, we have priced each Stop Option being issued hereunder. Non-corporate Shareholders litigation of this type, even if the Sponsor is successful and regardless of the merits, may result in significant costs, divert The result of Day 1 The operations of each or near the per-Share NAV. (100%) of the notional value of the Funds S&P Interests at a strike price that is, on an aggregate basis, one hundred