Company: EUO
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001193125-25-065644
Chunk: 18

Company: ProShares Trust II
Filing Date: 2025-03-27
Form: 424B3
Chunk 18
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 Regulatory and exchange daily price limits, position limits and accountability levels may cause the Sponsor to restrict the creation of Creation Units which could have a negative impact on the operation of each Fund, prevent a Fund from achieving its investment objective, and disrupt secondary market trading of Fund Shares. • The use of futures contracts may expose the Funds to liquidity and other risks, which could result in significant loss to the Funds. • Margin requirements and position limits applicable to futures contracts and the ability of and market required by swap counterparties may limit a Fund’s ability to achieve sufficient exposure and prevent a Fund from achieving its investment objective. • The insolvency of a futures commission merchant (“FCM”) or clearinghouse or the failure of an FCM or clearinghouse to properly segregate Fund assets held as margin on futures transactions may result in losses to the Funds. • A Fund’s performance could be adversely affected if an FCM reduces its internal risk limits for the Fund. • The use of derivatives, such as swap agreements may expose the Funds to significant loss, liquidity risk, counterparty credit risk and other risks. • The use of options strategies may be costly and expose the Funds to significant loss and liquidity, counterparty and other risks. Such a strategy may not protect a Fund from losing value. • Shareholders’ tax liability may exceed cash distributions on Shares. • Natural disasters and public health disruptions may have a significant negative impact on the performance of each Fund; the risks and other information described herein could become outdated as a result of such events. • In response to Russia’s ongoing invasion of Ukraine that started in February 2022 and the current conflict between those two countries, the U.S. and other countries, as well as the European Union, have issued broad-ranging economic sanctions designed to impose severe pressure on Russia’s economy. Currently, such sanctions, and the conflict generally, have caused adverse effects on regional and global economic and commodity markets, may result in increased volatility, and could have a negative impact on the performance of a Fund and its or the liquidity and price of Fund Shares. • The Israel-Hamas conflict and the Houthi movement’s attacks on marine vessels in the Red Sea and U.S. responses may have an impact on certain commodities markets, particularly the market for natural gas, commodity futures markets, including futures on natural gas, and the prices of the Natural Gas Funds. While a ceasefire agreement between Israel and Hamas was reached in January 2025, there is no guarantee that the parties will continue to comply with the terms of the agreement and the agreement does