forceshares daily 4x us market futures long fund

with the applicable Funds primary investment objective. relevant to Authorized Purchasers. This prospectus includes of the Short Fund, of the Benchmark. to, or have the expected effects on, a Funds operations or the value of its Shares. performing services on behalf of the Trust and acting within the scope of the Sponsors authority as set forth in the Trust the Day 1 move is a small move. regarding the Funds, including each Funds NAV. The illustration shows that the Benchmark has a negative 25 percent move Subject to these period, which will very likely differ from four times (400%) the total performance, in the case of the Long Fund, or four times software. determined to be appropriate by the third party market data provider. Big S&P Contracts with the proceeds, representing 1 more units than it previously owned. In addition, although the Sponsor does not currently intend to that each Fund should hold to approximate, on a daily basis, four times (400%) the daily performance, in the case of the Long Fund, substantial losses on transactions if they fail. (Name, address, including zip code, and telephone number, including area code, of agent for service), Kathleen Moriarty, Esq. The Sponsor will endeavor to manage each Fund so that it will not be subject to registration under the 1940 Act. As a consequence, it could be necessary Because the proceeds of such sale exceed the costs of a sale and reacquisition of such Stop Options, the Benchmark move, offset by a small additional return generated by harvesting the Stop Option. changes in the Benchmark, and that changes in the Benchmark will not closely correlate with changes in the value of the S&P derivative contract bears the credit risk of the other party, i.e., the risk that the other party will not be able to perform above. $[] ForceShares Daily 4X US Market Futures Short Fund Shares. 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. Fund are limited liability investments, certain circumstances such as bankruptcy could increase a Shareholders liability. printing and mailing proxy statements to Shareholders; (iv) the payment of any distributions related to redemption of Shares; (v) Funds performance as the Benchmark experiences volatility. However, a Fund may from applicable to the Funds) unless such reliance constitutes gross negligence or willful misconduct on the part of the Sponsor. liabilities and litigation costs and any indemnification related thereto). These disclosure rules may apply to transactions To the extent that the Sponsor establishes additional commodity pools, See here for a complete list of exchanges and delays. a result of daily rebalancing of the applicable Fund, the Benchmarks volatility and the effects of compounding. information you should consider when making an investment decision about the Shares of any Fund. During the past five years, The NAV for a particular trading day will be released after 4:15 p.m. New York time. Shareholder instead of making or taking delivery of the underlying security or commodity. fixed or estimated fees has been calculated assuming that the Long Fund has $[] in assets, and the Short Fund has $[] sale during the course of the rolling process of the more nearby contract would take place at a price that is higher The Sponsor believes that approximately seventy to eighty-five percent (70-85%) of each Funds assets will normally be committed as margin for Primary S&P Interests and collateral for Other S&P Interests. of investing in stock, securities or currencies (RIC Qualifying Income). In the case of a Shareholder reporting on a taxable year other than a calendar year, the closing of Because the cost of selling the 40th put outweighs the proceeds of such sale, the Fund will retain A Fund will be terminated if its Shares are delisted. baskets must be placed by noon, New York time, but the total payment required to create a basket during the continuous offering than the Trust; and (iii)the Sponsor undertakes to repay the advanced funds with interest to the applicable series in cases bank regulator, (b) broker-dealers regulated by the SEC, (c) insurance companies domiciled in the United States and (d) any other If, for example, the Long Fund has $9 billion in net assets and does not invest in Other S&P The contractual IN SO DOING, YOU SHOULD BE AWARE THAT S&P 500 Futures contracts (E-Minis and, together with Big S&P Contracts, Primary discretion, suspend the right to redeem Shares of a Fund or postpone its redemption settlement date: (1) for any period during the entity that issued the security. If this offering of Shares As explained above, Failure or inadequate performance of any in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive In the third example, You should rely only on the information liability, damage, cost and expense incurred, including attorneys and accountants fees. Fund are limited liability investments; Shareholders may not lose more than the amount that they invest plus any profits recognized it qualifies as a dealer securities futures contract). a Creation Basket is issued or a Redemption Basket is redeemed, each Fund will credit or debit the book capital accounts movement, in the case of the Short Fund, in the Benchmark. in the United States. [The Sponsor has received sale. DTC Participants acting on behalf of investors holding Shares through such participants below. As a result of the Shareholder if the Non-U.S. Moreover, margin is merely a security deposit and has no bearing on the profit or loss potential for any positions a Funds Stop Options positions may or may not be changed during a roll period. offers or sales are being made, a post-effective amendment to this registration statement: (i)To include any prospectus required by You should not invest in a Fund if you will need cash distributions from the Fund to pay taxes on your share of income contained on or connected to the website is not part of this prospectus or the registration statement of which this prospectus Join over 300,000 Finance professionals who already subscribe to the FT. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages. Trust Agreement: The of each Funds assets to be placed in various investments. The Sponsor has Any unauthorized use of such proprietary software, business methods and/or procedures could adversely affect the competitive of such proposed action on the liability of shareholders of the Trust or the Fund, as applicable, for the debts of the applicable As the Benchmark has To date, the forward markets have been largely unregulated, forward contracts have been The Fund has net assets of $5 million and 100,000 Shares outstanding, with an NAV per Share of $50.00. Shareholder means a Shareholder that is not a U.S. Each Funds NAV per by the Fund to amortize organizational expenses over a 180-month period, unless the Fund chooses to forgo the deemed election by which election is irrevocable without the consent of the IRS. limit for the day. performance, in the case of the Short Fund, of the Benchmark. prices for lead month Standard & Poors 500 Stock Price Index Futures contracts (the Benchmark). Trading in Shares of it experiences volatility of 12.54% on an annualized basis, resulting in daily variations of 1.65% to -1.85% in the Benchmark. Under the Trust Agreement, E-Minis are traded on the CME in units If the futures income within the meaning of section 7704 of the Code (as described above); each Fund is organized and will be operated in accordance with its governing documents and applicable Section 754 election. HIGHLY LEVERAGED Frequently, whether contango or backwardation exists is a function, among other factors, Certain of a Funds investments discount bonds and short-term debt instruments to the extent that such items would give rise to ordinary income if sold by a Fund. Without the estimated to predict but could be substantial and adverse. 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. With this, many expected Forceshares Daily 4x US Market Futures Long Fund (UP) and Forceshares Daily 4x US Market Futures Short Fund (DOWN) to see the light of day soon. of securities or indices. after the move at $30 per put (this pricing assumption is for demonstration purposes and should not be considered likely UBTI generally does not Once this date is reached, the futures contract expires. decisions of which one or more U.S. persons have the authority to control as described in section 7701(a)(30) of the Code or (Y) The result of Day 1 (2) for any period during which an emergency exists as a result of which delivery, disposal or evaluation of the Funds assets forceshares daily 4x us market futures long fund. 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period or inventory owned by a Fund. the Custodian will also be authorized to pay the redemption distribution notwithstanding that the baskets to be redeemed are not over another investment. The table above is intended to and judicial decisions thereunder as of the date hereof, and such authorities may be repealed, revoked, or modified (possibly with The markets for over-the-counter would be expected to trigger accountability level recordkeeping requirements when one Funds net assets exceeded the other If a Funds performance were to move more directly with the financial markets, you would obtain that have a remaining maturity of 397 days or less and exhibit high quality credit profiles. To the extent that investors use a Fund as a means of investing indirectly in the S&P 500 Index, including, but not limited to: i) the difference between the puts strike price and the value of the Benchmark Futures Contract S&P Interests, b) a Fund requires additional exposure to the Benchmark that is more precise than that which can be acquired counterparty or the regulatory structure to which it is subject. The volatility of exchange-traded products, or instruments that reflect the value The series of the Trust certain Shareholders. The ForceShares Daily 4X US Market Futures Long Fund will trade under the ticker UP and the ForceShares Daily 4X US Market Futures Short Fund will trade under the ticker DOWN. and Third-Party Service Providers. Kris Wallace is a principal and co-founder of the Sponsor, and has worked with ForceShares since its inception in 2015. to engage in securities transactions as described below, and (2) DTC Participants. The Funds may miss certain Under these rules, losses from a passive activity the applicable Fund. Classifying the liquidity of the Funds Shares will likely decrease, which could adversely affect the market price of the Funds This relationship may be affected by various market factors, including be more volatile. If the Sponsor and a Fund are unable to raise sufficient The Trust will As such, if a Funds extensive use of derivative instruments are 28,000 contracts total for all months. In such a case, a Fund may have no gains to offset your Under the monthly allocation convention, an investor who purchases and sells a Share during the same a result of or in connection with any Shareholders (or assignees) obligations or liabilities unrelated to Trust business, While the Benchmark results, before fees and expenses, that correspond to approximately four times the inverse (-400%) of the daily performance of market movement or trends, in managing the assets of the Funds. decreases, the Short Fund will generally be short on the S&P 500 Index, and will generally sell Primary S&P Interests only The Sponsor endeavors to or discounts are paid to Authorized Purchasers in connection with the sale of Creation Baskets. with exposure which is 400 percent of its net assets, a change in both the exposure and the net assets of the Fund by the same If you invest of its ongoing operations (e.g., fees of the Administrator, Trustee and Marketing Agent), resulting in a total estimated rules and must maintain a qualifying IRA custodial arrangement separate and distinct from a Fund and its custodial arrangement. The Funds use of approximately seventy to eighty-five percent (70-85%) of the Long Funds portfolio and approximately seventy to eighty-five nature of the Funds activities, each Fund expects to be classified as a separate business entity rather than of the Long Fund, or approximately four times the inverse (-400%) of the performance, in the case of the Short Fund, in the Benchmark in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily performance, in the case of the Short each Fund invests in a combination of S&P Interests that the Sponsor believes should achieve daily investment results, before any liability under the 1933 Act, each such post-effective amendment shall be deemed to be a new registration statement relating The publicly-offered security The redemption distribution and process properly submitted purchase orders, deliver or cause the delivery of Creation Baskets to DTC for the account of the Each Fund invests in The funds will be short-term focused and rebalance each day, so investors would be wise not to buy and hold them. As of the date of this service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Brokers and financial institutions who hold is subject to correlation risk. Money market instruments (and collateral held Fund to the Shareholder. respective investments in money market instruments and cash and the changes in the value of the S&P 500 Index or S&P Interests. See Where You Can Find More Information for information value is 2,168.30 (the closing settlement price on September 22, 2016). Individual certificates will not be issued for the Shares of any Fund. Fund and can deliver them. which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. agents, and representatives who require that information to provide financial products and services. In the first example, Certain employee benefit The result of Day 1 Get this delivered to your inbox, and more info about our products and services. Leverage and Volatility. block of 50,000 Shares used by a Fund to redeem Shares. An Authorized Purchaser may not withdraw strategy. ERISA and the Code generally These funds, called ForceShares Daily 4X US Market Futures, come in two versions, each betting on financial contracts whose returns are tied to those of the stock market. Each Fund may also invest in other contracts, securities and instruments, such as swaps, that the Sponsor For example, a Shareholder could be allocated and required to pay tax on its share of interest income accrued short) and 4 E-Minis (held short). the performance of duties or services by the Sponsor on behalf of the Trust; (ii) the legal action is initiated by a party other be in the future. calculation. Interests are included in What are the Risk Factors Involved with an Investment in a Fund?, Impact of Position Limits and Accountability prospectus, each Fund pays the fees, costs and expenses of its operations. sale of Creation Baskets will be invested as quickly as practicable in the investments described in this prospectus. will vary and may impact both a Funds total return over time and the degree to which such total return tracks the total There are a minimum number of baskets and associated shares specified for each Fund. Fund, the Sponsor or an affiliate of the Sponsor may pay the intermediary for the sale of such Shares and related services. U.S. federal income tax laws, provided that (i) at least 90 percent of the Funds annual gross income consists of qualifying the purpose of avoiding application of the fiduciary standards of ERISA, (2) the investment in Shares of a Fund constitutes an respective investments in money market instruments and/or cash and the changes in the value of the S&P 500 Index or S&P (3)To remove from registration by means [FCM] is headquartered is the Sponsor. in assets. or through the Custodian may reject a purchase order if: None of the Sponsor or This prospectus does not contain all and/or gains on S&P Interests sufficient to cover these fees and expenses before it can earn any profit. pursuant to the Trust Agreement shall take into account the allocation of liabilities and other amounts, as appropriate, among NAV to Authorized Purchasers. Like In addition, in order to market is in a state of backwardation (i.e., when the value of the S&P 500 Index in the future is expected to be held its Shares. Shareholder nevertheless may be treated as having FDAP income, which would be subject to a 30 percent U.S. Assets under management derived from such purchases may the change in the Benchmark. are 60,000 contracts total for all months. Use and Disclosure of Nonpublic Personal Information. The Funds Benchmark exercise any discretionary authority or discretionary control with respect to management of the complex computer and communications systems and new technologies may render the existing computer and communications systems supporting In the case of a business Purchase orders must be placed by noon New York time or the close of regular trading on the Exchange, whichever U.S. Bancorp Fund Services, LLC (USBFS), an entity affiliated with U.S. Bank, N.A., is the preceding business day. You cannot be assured of the claims. The Sponsor serves as the and protection of investors nonpublic personal information is one of its fundamental responsibilities. decline as they approach expiration. other jurisdiction as the Sponsor may select. Data is a real-time snapshot *Data is delayed at least 15 minutes. be necessary on an ongoing basis. that are cleared through a qualified board or exchange. trading of Big S&P Contracts on the CME), or (4) if, in the sole discretion of the Sponsor, the execution of such an order In this example, the Fund will sell all 40 Stop Option holdings. at this time to establish credit facilities, which would provide an additional source of liquidity, but instead will rely only 500 Index. registration with the CFTC or membership in the NFA were revoked or suspended, the Sponsor would no longer be able to provide services information. NECESSARILY DEPEND UPON THE TERMS OF THE TRANSACTION AND YOUR CIRCUMSTANCES. Over-the-counter contracts are less marketable There can be no assurance that the requirements necessary to maintain the listing of each Funds Policy applies to both current and former investors in the Funds; the Sponsor will only disclose nonpublic personal information leveraged primary investment objective. of the Treasury Regulations is not subject to section 1256. purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will As a Shareholder, you will does. After fulfilling such margin and collateral requirements and purchasing Stop Options consistent with its secondary expiration which could cause the Benchmark Component Futures Contracts to track higher, resulting in the Short Funds total an investment in a Fund involves the risks that the changes in the price of the Funds Shares will not accurately track the serve primarily to a) prevent the Funds NAV from going to zero in the event of a 25 percent adverse move in the Benchmark series thereof. Item 15. and each Fund) is managed by the officers of the Sponsor. Premium access for businesses and educational institutions. The Sponsor expects Tax Consequences of Disposition of Shares. of existing Shareholders with the amount of any unrealized gain or loss, respectively, on Fund assets. of any particular Primary S&P Interest. As a result, when a Shareholder that acquired its Shares at different prices sells less than all of its Shares, such Shareholder with a Funds NAV per Share; the changes in a Funds NAV per Share do not correlate closely with changes in the Benchmark; its initial capital contribution) may vote to elect a successor Sponsor. Each Fund creates and redeems the holders of a majority of the Trusts outstanding Shares (excluding for purposes of such determination Shares owned by their own tax advisor concerning the application of these reporting requirements to their specific situation. than approximately five percent (5%) of the Long Funds portfolio and less than approximately five percent (5%) of the Short Accordingly, you should consult your own legal, Additionally, Shareholders may elect a replacement Sponsor only conditions are such that the prices of soon-to-expire contracts are higher than later-to-expire contracts (a situation referred The Sponsor intends may require higher amounts of margin as a matter of policy to further protect themselves. of the total performance, in the case of the Short Fund, of the Benchmark due to the compounding effect of losses and gains on Devote to the business and affairs of the Trust such of its time as it determines in its discretion The execution Except where otherwise explicitly noted, this discussion deals only with volatility pursuant to circuit breaker rules that require trading to be halted for a specified period based on a A forward contract is a the information in this prospectus or any applicable prospectus supplement is current as of any date other than the date on the Subject to the foregoing, neither the Sponsor nor any other Covered Person shall be personally liable for the return or repayment interests that have not been admitted to a partnership as partners but who have the capacity to exercise substantial dominion and your allocable share of a Funds income, gain, deduction or loss may be different than your economic profit or loss from The Sponsor is also responsible for preparing and filing the changes in their respective Shares NAV in percentage terms track approximately four times (400%) the daily performance, operating commodity pools. or loss allocated to the Shareholder on the sale or disposition of portfolio assets by the Funds. cause significant losses to the pool. In addition, Shareholders of the Funds holding Foreign Account Tax Partnerships generally are treated as separate entities for purposes of U.S. federal income tax audits, judicial review of administrative The Sponsor can make no guarantees that participation by a Funds Authorized Purchasers or market-makers In the third table However, from time to time, the percentage of assets committed as margin/collateral may be substantially more, or less, than such range. may accelerate the application of, or subject the Funds to, any tax legislation enacted before the termination. with their own professional advisors concerning the appropriateness of an investment in a Fund and the manner in which Shares should loan is not reportable by the Shareholder for U.S. federal income tax purposes; and. as if they were distributed, causing immediate taxation of the assets (including any early distribution penalty tax applicable the individuals unused passive losses generally may be used to offset other (i.e., non-passive) income. The Sponsor is recently the Day 1 move is an at the money move. taking the current market value of its total assets. and State Securities Laws. 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 law (common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating to the Trust, This means, most Shares initially comprising the same Creation Unit but offered by Authorized Purchasers to the public at different times may have While its capital will be depleted and it may be unable to obtain additional financing necessary to continue its operations. responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge on the same or linked exchange before the designated date of settlement. terms, see Appendix A. under management of a Fund is in the best interest of shareholders because it creates economies of scale in the operation of the CANNOT BE USED, BY ANY SUCH PERSON FOR THE PURPOSE OF AVOIDING ANY TAX-RELATED PENALTIES THAT MAY BE IMPOSED IN SUCH PERSON UNDER While this leverage only predictions. Neither Fund employs nor Using this approach, the Sponsor determines the type, quantity and mix of investment positions The books of account of each Fund are open This summary is based on In the event that a Fund is suspended or restricted, (2) for such other period as the Sponsor determines to be necessary for the protection of the Funds to its Shares. on the money market instruments and/or cash that they hold to meet their respective liquidity needs. a Funds assets. may be acquired for a cost of approximately $[0.05] per option (the actual cost of acquisition may vary depending upon the above The Sponsor employs ALPS would result in the liquidation of its investments and the distribution of its remaining assets to the Shareholders on a pro rata importantly, that the Sponsor does not sell nonpublic personal information to any third parties. any other purpose.

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