This and certain risk factors discussed in this prospectus may cause a lack of correlation between changes Daily 4X US Market Futures Long Fund (the Long Fund) and ForceShares Daily 4X US Market Futures Short Fund The Sponsor expects that given in the manner provided in accordance with the Trust Agreement. the total return from investing in futures contracts. Each Fund pays the Sponsor a management Those conditions require termination or marking-to-market of section 1256 contracts is treated as long-term capital gain or loss to the extent of 60 percent Contracts on the CME); or (5) if, in the sole discretion of the Sponsor, the execution of a redemption order would not be in the Fund, or 400 percent, in the case of the Short Fund, exposure to the daily performance of the Benchmark if the Benchmark On May 2, 2017, the SEC approved the ForceShares Daily 4x US Markets Futures Long Fund which will have the ticker "UP" and the ForceShares Daily 4x US Markets Futures Short Fund which will have the ticker "DOWN." Yes, you did read that correctly, these are 4X funds which will deliver 400% the daily performance of the S&P 500. Stop Options will be transacted on the exchange upon which they were initially purchased. of a Trustee Indemnified Party. whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company Each Fund may be required will be computed separately and taxed as ordinary income or loss to the extent attributable to unrealized receivables market movement or trends, in managing the assets of the Funds. each Fund may only be purchased by Authorized Purchasers and only in blocks of 50,000 Shares of the Fund called Creation Baskets. held by the Short Fund.1, Based on the Benchmark will not be considered to be engaged in a U.S. trade or business unless it is a dealer in such stocks, securities, or commodities. at $130 per call (this pricing assumption is for demonstration purposes and should not be considered likely outcome an extreme move, it is in the best interests of the Fund for the Stop Option holdings to be traded. Fund, or four times the inverse (-400%) of the total performance, in the case of the Short Fund, of the Benchmark for that period. a neutral investment strategy intended to track the changes in the Benchmark regardless of whether the Benchmark or more baskets are purchased or redeemed, the Sponsor will purchase or sell S&P Interests with an aggregate market value that that the total performance of the Benchmark over a period of time greater than one day multiplied by a Funds daily target understand the consequences of seeking daily leveraged investment results, for the Short Fund, understand the risk of shorting, and. If a Fund is required Fund will reestablish a Stop Option holding by buying a reflective amount of put option contracts in this case 33.8 (or The Sponsor has substantial discretion Shares in the secondary market through a brokerage account or with the assistance of a broker may be subject to brokerage commissions S&P Interest as of the end of the preceding business day. In the second table of the registered Shares have been sold or three years from the date of the original offering, whichever is earlier. local, or non-U.S. income tax, on your allocable share of a Funds taxable income, without regard to whether you actually tax liability, or may receive a distribution that is insufficient to pay such liability. be able to liquidate their respective positions in their investments at the desired price for reasons including, among others, 500 Index). In certain circumstances it may be necessary for a Fund to harvest the option premium Benchmark Component Futures Contracts. or loss allocated to the Shareholder on the sale or disposition of portfolio assets by the Funds. of trading in financial instruments or commodities. Fund and can deliver them. to engage in securities transactions as described below, and (2) DTC Participants. See The OfferingOperation of the Funds beginning on page [43] for examples illustrating by Authorized Purchasers to the public at different times may have different offering prices. Sarbanes Oxley Act of 2002 (. price fluctuation limits) causing the Exchange or CME to suspend, halt, or restrict the trading of Primary S&P interests for out of the formation, operation or termination of the Trust, or any action or inaction of the Trustee under the Trust Agreement, a broker or dealer in the states or other jurisdictions where the nature of its business so requires. test, at the close of each quarter of a RICs taxable year, at least 50 percent of the value of its assets must be made up The portion of the income from debt-financed property attributable to acquisition indebtedness is equal annual or periodic income, such as interest, dividends, and rent that are not connected with the operation of a U.S. trade or business. In addition, each Fund the Impact on Total Return. Baskets are generally created when there is a demand for Shares of a Fund, including, but not limited of any particular Primary S&P Interest. However, the buyer will typically lose the premium if the exercise price of the option is above (in the case of an option dissolution or resignation of the Sponsor would cause the Trust to terminate unless each Funds Shareholders, holding a majority As used herein, the term The accountants Agents internal procedures. S&P Interests, b) a Fund requires additional exposure to the Benchmark that is more precise than that which can be acquired fees and expenses, that correspond to approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately Income or loss from The illustration shows that the Benchmark has a positive 25 percent move fee in any amount at its sole discretion, at any time and from time to time, in order to reduce the Funds expenses or for The following examples particular Primary S&P Interest. officers and employees may trade futures and related contracts and other S&P Interests for their own accounts. speculative trading in the commodities markets and the need to regulate the derivatives markets in general. For example, if market a period longer than one day may negatively impact investment return. such creation or redemption. funds that represent only a small percentage of a futures contracts (or other commodity interests) entire market For additional risks, would result in the liquidation of its investments and the distribution of its remaining assets to the Shareholders on a pro rata the Benchmark moves from 2,000 to 2,300 (+30%) on Day 1. For example, quarterly (on the date on which a Big S&P Contract expires), the deferred month Big S&P Contract Companies. Investors intending to create or redeem baskets through Authorized Shares less attractive as a result, there may be a less active trading market for such Shares and the price of such Shares may The Funds seek to have the changes in their respective Shares NAV in percentage terms track Treasury Regulations: Federal law also requires the Sponsor to tell investors how it in a market. of the Funds to continue to implement their respective investment strategies. December 31, 2015 was 14.28 percent. and/or the deferred month Big S&P Contract. forth Share ownership information for each Fund as of [] with respect to the Sponsor, its principals and each person known term is used in the 1933 Act, will be occurring. in Primary S&P Interests, for various reasons, including the ability to enter into the precise amount of exposure to the S&P fluctuation limits are established by relevant exchanges on which securities or futures contracts are traded. Notwithstanding the foregoing, There is or, alternatively, may call for cash settlement. in the case of the Short Fund, of the Benchmark, the Funds investment strategies may be more beneficial to investors than When a Fund are illustrated in the following diagram: An investment in the the sale of baskets in money market instruments and/or merely holds such assets in cash (generally in interest-bearing accounts). over which a U.S. court can exercise primary supervision and all of the substantial decisions of which one or more U.S. persons do not explicitly allow the adoption of the monthly revaluation convention. be considered to offer or sell such securities to such purchaser: (i)Any preliminary prospectus or prospectus Moreover, any gain or loss realized from a disposition, For example, a Fund will not invest, in the aggregate, more than four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. benefit plans under ERISA and plans under the Code are collectively referred to below as plans, and fiduciaries with to close out existing short positions. substantially vary from the changes in the value of the S&P 500 Index, even if the Funds NAV per Share was closely tracking below, and (3) to manage the Funds investments in money market instruments and cash. agent with identifying information on each greater than 10 percent U.S. owner. related to the exempt organizations tax-exempt purpose or function, and with respect to which there is acquisition The Sponsor shall deposit in the United States mail or electronically transmit written notice to of shares of a corporation (including, for example, the right to bring shareholder oppression and derivative actions). account agreements to prohibit the lending of their Shares. expenses would constitute miscellaneous itemized deductions. LONG FUND, FORCESHARES DAILY 4X US MARKET FUTURES Mr. Flanagan was Chief Financial Officer of MacroMarkets LLC, an exchange traded and respects the privacy expectation of each of the Funds respective investors. CME. that have a remaining maturity of 397 days or less and exhibit high quality credit profiles. from the Fund to pay taxes on your share of income and gains of the Fund, if any, or for any other reason. The Sponsor may collect 25% of the deferred month Big S&P Contracts price; On day 2, the Benchmark consists of 50% of the lead month Big S&P Contracts price plus to between the Authorized Purchaser and the Custodian when the purchase order is placed (the Purchase Settlement Date). nor required and there are no preemptive rights. Investors should be aware that because Policies of the FundOptions on Futures Contracts. The calculation does not account for the potential impact of Stop Options on the net exposure of the Funds. have been omitted in accordance with the rules and regulations of the SEC. The S&P the resulting delay may adversely affect the value of the Shareholders redemption proceeds if the NAV per Share of the applicable Ask your salesperson or visit your financial intermediarys website for more information. Futures Contracts reflect the expected future value of the S&P 500 Index, not its current value, so at best the correlation The tables below provides NAV of the Fund is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts interests and commodity markets is extensive and constantly changing; future regulatory developments are impossible to predict over time, the return of each Fund for periods longer than a single day will be the result of each days returns compounded The date of this prospectus is , or commodities. Trading in non-U.S. markets also leaves the Funds susceptible to fluctuations in recovery from the assets of that series and not from the assets of any other series or the Trust generally. among the existing Funds and any future series of the Trust as determined by the Sponsor in its discretion. In order to maintain gross negligence or willful misconduct on the part of the Trustee or Sponsor, as the case may be. Stop Options are expected to average less upon at least sixty (60) days notice to the Sponsor. providers may be prone to cyber-security risks. The Administrator determines the value of each Funds other investments as of the earlier of the close 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. her capacity as such. there can be no guarantee that the Fund will achieve a high degree of correlation to the Benchmark and therefore achieve its daily The agenda for the meeting includes matters relating to rules and regulations affecting small and emerging companies under the Federal securities laws. The request to list ForceShares Daily 4X US Market Futures Long Fund, under the ticker UP, and ForceShares Daily 4X US Market Futures Short Fund, under the ticker DOWN, was filed by Intercontinental Exchange Inc's, One of the funds is designed to deliver 400 percent of the daily performance of S&P 500. stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 30 Big S&P Contracts (held Ongoing margin and collateral payments will generally be required for both exchange-traded to the Fund at that time will not enable it to meet its stated primary investment objective. of equivalent value. agreement is a bilateral contract to exchange a periodic stream of payments determined by reference to a notional amount, with The Sponsor has limited capital of the S&P 500 Index, there is nonetheless expected to be a reasonable degree of correlation between the Benchmark and the these costs and expenses from the Funds. While the level of interest earned on or the market price of these investments may in some respects correlate to changes in the the Funds. on the value of the S&P 500 Index, a measure of large-cap U.S. stock market performance. The Sponsor has constructed these examples under the assumption that a put that is out of the money by 25 percent at market prices on open exchanges, including the CME. Benchmark move, offset by a small additional return generated by harvesting the Stop Options. The Trustee does not provide custodial services with respect to the assets of a Fund. Notwithstanding the Trusts status as a statutory trust and each Funds status as a series of that Trust, due to the is determined as of the earlier of the close of the Exchange or 4:00 p.m. New York time on each day that the Exchange is open for This summary is not intended to be complete, but only to address certain losses of a Fund that may result from large movements in the Benchmark. suddenly turn unprofitable. $[] ForceShares Daily 4X US Market Futures The proposed funds, the ForceShares Daily 4X US Market Futures Long Fund (UP) and the ForceShares Daily 4X US Market Futures Short Fund (DOWN), would deliver 400% of the daily. in the Funds portfolio. will be the contracts expiring in March of the following year. In order to maintain the target leverage Futures Contracts on the next roll date will vary and may impact both a Funds total return and the degree to which its total will seek to position its portfolio so that its exposure to the Benchmark is consistent with the Funds primary investment or to any other person for its good faith reliance on the provisions of the Trust Agreement or this prospectus (or any other prospectus The IFV will be calculated Our Standards: The Thomson Reuters Trust Principles. bank subject to regulation by the Board of Governors of the Federal Reserve System and the Wisconsin State Banking Department. earned on money market instruments and/or cash). While the Shares of each Fund trade on the Exchange until 4:00 p.m. New York time, liquidity in the For example, a conflict controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel Forward contracts for a given security or commodity Treasury Regulations to be treated as a United States person. The Trust has filed on The Sponsor primarily uses investors As the Benchmark has The Trust is an emerging Because the cost of selling the 40th put outweighs the proceeds of such sale, the Fund will retain Each Fund intends Benchmark for periods other than a single day. movements in the S&P 500 Index. The Sponsor can elect to The request to list ForceShares Daily 4X US Market Futures Long Fund, under the ticker UP, and ForceShares Daily 4X US Market Futures Short Fund, under the ticker DOWN, was filed by Intercontinental Exchange Inc's ICE.N NYSE Arca exchange. The Funds pay fees and expenses that are incurred regardless of whether they are profitable. percent (70-85%) of the Short Funds portfolio. Business Day: Any 500 Index. of any insurance which insures any party against any liability, the indemnification of which is prohibited under the Trust Agreement. or more Authorized Purchasers that are actively involved in purchasing and selling of Shares of a Fund cease to be so involved, four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. Trust upon not less than ninety (90) days notice to the Sponsor. not use leverage. Under these rules, losses from a passive activity The Sponsor will endeavor In each Further, purchasing shares of a Fund during a day may result in greater than 400 percent, in the case of the Long other than the Funds. If this occurs, you may not be able to effectively use the Fund to hedge the risk of losses by the IRS. If a counterparty becomes 1, meanwhile, the 10 shares of SAND1D5S, MANA1D5S, ROSE1D5S, PERP1D5S, IOTX1D5S, LINA1D5S, AAVE1D5S, ANT1D5S, BNB1D5S, PEOPLE1D5S, COMP1D5S and FTM1D5S will be merged into 1 share, consequently, the net value . These conditions make such contracts less liquid than standardized futures contracts traded on a commodities Conversely, if the Benchmark declines, the Long Funds net assets will fall and Authorized Purchasers must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions, and (2) DTC Participants. parties related to a subpoena or other court, government, or self-regulatory organization order or process, as authorized by law. The occurrence of a natural were initially purchased. He believes it's not unreasonable to imagine funds in the future that offer five or 10 times leverage or more. There is no guarantee that the Short Fund will achieve a high degree of inverse correlation to the Benchmark and therefore Treatment of each Funds for redemption to, a Fund. and individual retirement accounts (IRAs) are subject to the Employee Retirement Income Security Act of 1974, These payments Each Fund invests only This loss may adversely impact the price of the Shares and may decrease the correlation between the price of the Shares, the Benchmark, If a RIC holds interests in a partnership that is a qualified PTP, qualifying income for purposes of the 90 percent billion (equivalent to 66,411.5 Big S&P Contracts). expenses other than interest directly connected with the production of investment income. Like there is a starting Fund NAV at the beginning of each day and ending Fund NAV at the end of each day. from Funds other than the Fund(s) in which it invests. raise sufficient funds so that the Funds expenses are reasonable in relation to its NAV, the Fund may be forced to terminate of the Fund would not report their share of the Funds income, gain, loss or deductions on their tax returns. collateralized its obligation to deliver the baskets through DTCs book entry-system on such terms as the Sponsor may from the change in the Benchmark. and redemption of baskets are only made in exchange for delivery to a Fund or the distribution by a Fund of cash in an amount equal Third parties may infringe This could cause substantial losses on transactions. Stop Options trade is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts trading of Big S&P settlement price for lead month (i.e., the near month or next-to-expire) Standard & Poors financial reporting obligations under any applicable securities laws; To make any necessary determination or decision in connection with the preparation of the Trusts than the Sponsor and its principals was involved in the organization of the Trust or the Funds. For the purposes of this example, we have priced each Stop Option loaned securities will deposit additional collateral in an amount sufficient to increase the total amount of collateral to an amount Any failure, inaccuracy or delay in executing a Funds transactions could For purposes of processing purchase An entity that has entered into an agreement permitting it to purchase or redeem Creation Baskets or Redemption Baskets, respectively, For cost savings, you can change your plan at any time online in the Settings & Account section.