Company: DBO
Filing Date: 2025-11-10
Form Type: 424B3
Source: 0001193125-25-273330
Chunk: 11

Company: Invesco DB Oil Fund
Filing Date: 2025-11-10
Form: 424B3
Chunk 11
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 an oversupply of the reference commodity, in what is referred to as a “super contango” market. See the “Risk Factors” section below for a discussion of the risks associated with a “super contango” market. Conversely, where there is a downward-sloping price curve for futures contracts, the implied roll yield is expected to be positive, which is a market condition called backwardation. Backwardation exists when prices are higher for contracts with shorter-term expirations than those with longer-term expirations, a condition that is typically associated with commodities that are consumed quickly instead of being held in storage. Rolling in a backwardated market will tend to enhance returns from futures trading. The Index’s selection of a new futures contract on the Index Commodity in such market conditions is designed to maximize the impact of positive roll yield. The Index takes the impact of implied roll yield into consideration by selecting, as the replacement for an expiring futures contract, from a predetermined set of eligible contracts the futures contract that generates the most favorable implied roll yield under the current market conditions. The Fund trades Index Contracts that are subject to position limits under regulations of the CFTC or futures exchange rules, as applicable. As the Fund approaches or reaches position limits, the Managing Owner may determine to invest in other futures contracts, or may do so if at any time it is impractical, including in scenarios wherein the futures market for an Index Contract is thinly traded, or inefficient to gain full or partial exposure to the Index Commodity through the use of Index Contracts. These other futures contracts may or may not be based on the Index Commodity. When they are not, the Managing Owner may seek to select futures contracts that it reasonably believes tend to exhibit trading prices that correlate with the Index Contract. The Index Sponsor calculates the Index on an excess return basis, which is the combined return based on the spot prices of the Index Commodity and the roll yield from trading futures contracts on the Index Commodity. The excess return basis calculation reflects the change in market value over time, whether positive or negative, of the applicable underlying commodity futures only. Unlike the Index’s methodology, the Fund also holds as collateral securities that are expected to generate income, including Treasury Securities and shares of money market mutual funds and T-Bill ETFs. These securities are held with the Custodian or the Commodity Broker (as defined herein). In addition, Treasury Securities for deposit may be held with the Commodity Broker for cash management purposes or as margin for the Fund’s futures positions. The Managing