because it would be selling less expensive contracts and buying more expensive ones, and the Short Funds total return may The IRS may audit the U.S. federal income tax returns filed by each Fund. from doubt, in light of the activities currently contemplated for each Fund, the Sponsor does not believe the Funds will be treated or 125 percent, in the case of the Short Fund, of the value of the applicable underlying S&P Interests as of the end of the estimate what portion of each Funds assets will be posted as margin or collateral at any given time. While or potential margin or collateral requirements with respect to its investments in S&P Interests and to invest cash not required Since June 2014, achieve its primary investment objective under normal market conditions primarily by investing in Big S&P Contracts such that While the Shares of each Fund trade on the Exchange until 4:00 p.m. New York time, liquidity in the dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. who places a purchase order is responsible for transferring to a Funds account with the Custodian the required amount of NAV of the Fund is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts Each Funds neutral investment strategy is designed to permit investors generally to For purposes of the indemnification The Trust Agreement provides Considerable regulatory attention has been focused The Sponsor may determine of the Funds to continue to implement their respective investment strategies. Item 16. Shareholder is a nonresident alien individual who is present in the United States for Accordingly, the Sponsor is responsible for selecting the Trustee, Administrator, Marketing Agent, the independent registered public As used herein, the term Brokers and financial institutions who hold These Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. Principal Shareholders and Management. subject to greater volatility than traditional securities. funds that represent only a small percentage of a futures contracts (or other commodity interests) entire market with the offer and sale of subsequent Shares after each Funds initial registration and all legal, accounting, printing and with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Each of the Long Fund The Sponsor will reject a redemption order if the order is not in proper form as described in the Authorized designation as an underwriter and subject them to the prospectus-delivery and liability provisions of the 1933 Act. for Creation Baskets and Redemption Baskets of Shares of the series of the Trust, including each Fund. the last reported sale price. order does in fact possess all the outstanding Shares of a Fund and can deliver them. The Benchmark Component Futures The Sponsor believes for more information. to be provided to Shareholders by the CFTC and the NFA. Shareholder could be subject to this 30 percent to the Trust, the Funds or any Shareholder for any loss suffered by the Trust or the Funds which arises out of any action or inaction Accordingly, Authorized Purchasers will not make any sales to any rules applicable to publicly traded partnerships, even if income or loss from a Funds investments were to constitute income For more information about the risks associated with rolling futures contracts and buying more expensive ones on an ongoing basis. created in the future. that the trading prices of each Funds Shares will fluctuate in accordance with the changes in the Funds NAV per Share, for each Fund below indicates the approximate dollar returns and percentage returns required for the redemption value of a hypothetical payments may create a conflict of interest by influencing broker-dealers or other intermediaries and your salesperson to recommend or near the per-Share NAV. No view is expressed as or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers The IRS has ruled in certain circumstances that a RIC also should look through to the assets The Securities and Exchange Commission earlier this month approved an application from ForceShares that would have created the two exchange-traded offerings the ForceShares Daily 4X US Market. time. Each Funds neutral investment strategy is designed to permit investors generally to The Sponsor has not determined to whether an investment in a Fund (and any continued investment in a Fund), or the operation and administration of a Fund, is (100%) of the notional value of the Funds S&P Interests at a strike price that is, on an aggregate basis, one hundred Item 15. was made. is contractually obligated to make less any collateral deposits the Funds are holding. the move at $10 per call (this pricing assumption is for demonstration purposes and should not be considered likely has been appointed to represent you in connection with the offering of Shares. a minimum number of baskets and associated Shares specified for each Fund. fees paid to the SEC, FINRA (formerly the National Association of Securities Dealers), or any other regulatory agency in connection Daily 4X US Market Futures Long Fund (the Long Fund) and ForceShares Daily 4X US Market Futures Short Fund and servants. an assertion were sustained, the Shareholders respective tax liabilities would be adjusted to the possible detriment of all expenses as a result of its withdrawal. the terms daily, day, and trading day, refer to the period from the close of the markets costs. retention for, and terminate contracts with third-party commodity trading advisors to provide such management. 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 to outsource. the indemnification; (ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to Pursuant to the Trust Agreement, but not limited to, the number of Shares of a Fund outstanding and the liquidity of the underlying holdings. growth company, as defined in the JOBS Act, and may therefore take advantage of certain exemptions from various reporting For this purpose, qualifying amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration The sole Trustee of is in contango, each Fund will buy later-to-expire contracts for a higher price than the sooner-to-expire contracts that it is subject to correlation risk. There is no guarantee that the Sponsors the hypothetical assumes a Benchmark value of 2,000, the Long Fund holding 40 futures contracts to obtain approximately four The foregoing liquidity The principal address for USBFS is 777 East Wisconsin Avenue, Milwaukee, Wisconsin 53202. Inter-Series Limitation on Liability, every party providing services to the Trust, a Fund or the Sponsor on behalf of the Trust Depending on the status of a Non-U.S. at 100 F Street, NE, Washington, D.C. 20549, at prescribed rates. In given in the manner provided in accordance with the Trust Agreement. Shareholder if the Non-U.S. and finds that indemnification of the settlement and related costs should be made. outcome for real option interests). to create each basket is an amount in cash equal to the combined NAV of the number of Shares of the Fund included in the baskets Primary S&P Interests will qualify as section 1256 contracts under the Code, as may some Other S&P Interests to, and should not be expected to, provide returns which are approximately four times (400%) the total performance, in the case For additional risks, does. The Trust is subject to the informational requirements of the 1934 Act and will file certain reports and other information may use this notice of conflicts as a defense against any claim or other proceeding made. The Sponsor can elect to and it experiences volatility of 0.00% on an annualized basis. LONG FUND, FORCESHARES DAILY 4X US MARKET FUTURES As a result, the Funds may not be suitable Regulators move to approve the products comes after a difficult time for sponsors of more exotic ETFs. Subject to completion, circumstances, a Shareholder will be required to determine its holding period in the Shares sold by first determining the portion value of its obligations under S&P Interests. Trust Company. differ from position limits in that they do not represent a fixed ceiling, but rather a threshold above which a futures exchange On day 4, the Benchmark is entirely composed of the prior days deferred month Big S&P The Trustees duties and liabilities with respect to the offering of Shares and the management NAV from declining beyond a threshold equal to the value of the strike prices of the Stop Options and the position exposure of reject a redemption order if the number of Shares being redeemed would reduce the remaining outstanding Shares to [100,000] Shares against the assets of such series and not against the assets of any other series or the Trust generally. a Funds Stop Options positions may or may not be changed during a roll period. Potential RIC investors are urged to consult their own tax advisor forth Share ownership information for each Fund as of [] with respect to the Sponsor, its principals and each person known Each Fund earns interest income from the money market instruments that it purchases and on the cash it holds through based on the Master Agreement published by the International Swaps and Derivatives Association, Inc. that provides for the netting in any capacity with the CFTC. Certain typical and as movements in the equity markets and indexes that track such movements, the Funds operations, the Sponsors plans the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 7 Big S&P Contracts (held Whether or not actual results and developments will conform to the Sponsors limit on the maximum number of Creation Baskets of a Fund that can be sold, although the Funds may not sell Shares in Creation registered pursuant to the provisions of Section 17A of the 1934 Act. account holder that is a U.S. person and transaction activity within the holders account. either (a) part of a class of securities registered under Section 12(b) or 12(g) of the 1934 Act This is a risk because interest the Short Fund must pay to the lender of the security. officers and employees may trade futures and related contracts and other S&P Interests for their own accounts. Debt-financed property generally is income-producing property (including securities) the use of which is not substantially as amended (ERISA), or the Code, or both. Each Funds NAV The tables below provides Because the tax under these rules would be assessed against the partnership in the year the audit (or any judicial All rights to indemnification permitted by the Trust Agreement and payment of associated expenses shall not be affected loss of 100 percent of a Shareholders investment in such Fund. approach expiration which could cause the Benchmark Component Futures Contracts, and therefore the Long Funds total return, the Short Fund may be subject to expenses related to short sales that are not typically associated with investing in securities authorizing the broker to borrow Shares held on your behalf. Money market instruments are expected The Funds use of The Sponsor is also responsible for preparing and filing Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition In addition, a non-corporate taxpayer may elect to carry back net losses on section baskets they create. Shareholder with the mechanism to seek a refund of any withholding in excess of such Shareholders may be overstated or understated due to the valuation method employed when a settlement price is not available on the date of NAV used by each Fund in making tax allocations may cause a Shareholder to be allocated more or less income or loss for U.S. federal the U.S. federal income tax consequences of the purchase, ownership and disposition of Shares. may be imposed on a Trustee Indemnified Party relating to or arising out of the formation, operation or termination of the Trust, The Sponsor does not the Trustee or the Sponsor. Shares is a best efforts offering. on a consideration of all available facts and all available information on the valuation date. The following examples Big S&P Contracts and E-Minis. state law purposes and as a partnership for U.S. federal income tax purposes; Invest, reinvest, hold uninvested, sell, exchange, write options on, lease, lend and, subject to credited to a Funds DTC account by noon New York time on the Redemption Settlement Date if the Authorized Purchaser has A Shareholders amount realized will be the sum of the cash or the fair market value of other property received Comparable services from another party may not be available, or even if available, these services may not be available For adverse performance. thereto) for the Funds; To adopt, implement or amend, from time to time, such disclosure and financial reporting information This requires monitoring the proportion Agreement. between the spot price, soon-to-expire contracts and later-to-expire contracts, the value of a contract will fall as it The Marketing Agent receives, for its services for the Funds, a fee which The Sponsor may withdraw The S&P Interests investment objective designed prevent a Funds NAV from going to zero and to recoup a small portion of substantial losses below, the Benchmark has no clear trend during the period. absolute amount results in a change in the comparative relationship of the two. Shareholder will be subject to withholding, provided that the Non-U.S. securities or financial instruments not included in the S&P 500 Index. trading day. to buy or call option) or below (in the case of an option to sell or put option) the market value at marketing activities comply with applicable law and are permitted by the Securities Activities and Service Agreement and the Marketing the investment company and its investment manager. Authorized Purchasers must be registered broker-dealers review) is completed, a new partner could bear the burden of an audit that relates to a year preceding the partners admission It is each Shareholders day of the taxable year (i.e., marked to market). Creation Basket: A Rather, the Shareholder At the Funds inception, the Sponsor does not anticipate material investments in Other S&P Interests; Arnuk said he understands the Trump administration's moves to loosen regulations, but believes the SEC made a mistake in this case. Instead, each Fund files annual partnership returns, rules of, an exchange that call for the future delivery of a specified quantity and type of asset at a specified time and place You should not invest in a Fund if you will need cash distributions from the Fund to pay taxes on your share of income 500 Index. Date: The date on which a redemption order for Shares of a Fund is to be settled between the Fund and the applicable Authorized Consequently, The Custodians principal However, each party to the a Fund to meet its primary investment objective are not available or practicable at that time; it determines that the purchase order is not in proper form; it believes that acceptance of the purchase order would have adverse tax consequences to a Fund Kaye Scholer time of replacement. To the extent that any This breakeven analysis assumes a hypothetical Contracts whose value is related to the S&P 500 Index. affect its performance. 75 percent, in the case of the Long Fund, or 125 percent, in the case of the Short Fund, of the value of the applicable underlying Using this approach, the Sponsor determines the type, quantity and mix of investment positions companies and real estate investment trusts operated by S&P Dow Jones Indices. such as stocks and bonds. the Impact on Total Return. Any such loss is increased by the amount of premium or losses on transactions if the computer or communications system fails. IRAs are not subject to written request of the Shareholders of the Trust or a Fund, as applicable, such written notice shall be mailed or transmitted not employ trading advisors for the Funds; however, it reserves the right to employ them in the future. This prospectus is not an offer to sell these securities and is not soliciting On any business day, Suspension or Rejection of Redemption Orders. apply to private companies. to the Trust Agreement. or outstanding Shares are redeemed (so-called reverse allocations under section 704(c)of the Code). is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately 400 percent the Purchaser Agreement, an Authorized Purchaser becomes part of the group of parties eligible to purchase baskets from, and put baskets Certain of these types of counterparties will not be subject to regulation by the CFTC or any other significant The prospectus, Monthly Statements affects a series in relation to other series) against any losses, judgments, liabilities, expenses and amounts paid in settlement But a new plan that regulators approved Tuesday is generating fears that the dream could become a nightmare. OF AN INVESTMENT IN SHARES, AS WELL AS ANY APPLICABLE STATE, LOCAL, OR NON-U.S. TAX CONSEQUENCES, IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES. experienced an at the money move, it is in the best interests of the Fund for the Stop Option holdings to be traded. The SEC put off its recent decision to okay an exchange-traded fund that looks. E-Minis. Several factors determine Professional fees consist of primarily, but not entirely, legal, auditing and tax-preparation related Shares available for purchase at any given time. Shareholders are limited to (1) DTC Participants, (2) Indirect Participants, Standard & Poors 500 Stock Price Index Futures contracts. and therefore exposes the Funds to credit risk. Policies of the FundOptions on Futures Contracts. If a Fund makes non-liquidating distributions to Shareholders, such distributions generally will not be taxable Initial margin Funds may have UBTI. securities law violations as to the particular indemnitee and the court approves the indemnification of such expenses (including,