Company: SVIX
Filing Date: 2025-09-16
Form Type: 424B3
Source: 0001213900-25-087932
Chunk: 71

Company: VS Trust
Filing Date: 2025-09-16
Form: 424B3
Chunk 71
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Y ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. VOLATILITY SHARES LLC HAS HAD LITTLE OR NO EXPERIENCE IN TRADING ACTUAL ACCOUNTS FOR ITSELF OR FOR CUSTOMERS. BECAUSE THERE ARE NO ACTUAL TRADING RESULTS TO COMPARE TO THE HYPOTHETICAL PERFORMANCE RESULTS, CUSTOMERS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THESE HYPOTHETICAL PERFORMANCE RESULTS. Principal Investment Strategies In seeking to achieve each Fund’s investment objective, the Sponsor uses a mathematical approach to investing. Using this approach, the Sponsor determines the type, quantity and mix of investment positions that it believes, in combination, should produce daily returns consistent with each Fund’s objective. Under normal market conditions, each Fund intends to meet its investment objective by investing all or substantially all of its assets in positions in first and second month VIX futures contracts, though it may invest in any one of, or combinations of, Financial Instruments (e.g., futures contracts, options contracts and swap transactions), such that a Fund typically has exposure intended to approximate the Index at the time of its NAV calculation. Under normal market conditions, SVIX’s portfolio will comprise short positions, and UVIX’s portfolio will comprise long positions, on first- and second -monthVIX futures contracts. The number and type of these contracts will naturally change day -to -dayas each Fund takes a daily rolling position in such contracts. 38 In the event that accountability rules, price limits, position limits, margin limits or other exposure limits are reached with respect to VIX futures contracts, the Sponsor may cause a Fund to obtain exposure to the Index through the use of options contracts or swap transactions referencing the VIX futures contracts. Furthermore, the FCMs utilized by the Funds may impose additional position limits or risk limits on the Funds that may require the use of options contracts referencing the VIX index or the VIX futures contracts to reduce the Funds’ respective exposure to their respective Indexes under extreme conditions. These option contracts may cause the Funds’ performance to deviate from the Indexes, particularly during periods of elevated volatility. The Funds’ investment objective is to seek daily investment results, before fees and expenses, that correspond to the performance of their respective Indexes for a single day, not for any other period. The purchase of options may cause the Funds to underperform the respective Indexes over a single day or over