Company: EUO
Filing Date: 2025-03-18
Form Type: S-1/A
Source: 0001193125-25-056734
Chunk: 22

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-1/A
Chunk 22
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 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negative impact on the performance of each Fund; the risks and other information described herein could become outdated as a result of such events.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 Houthi attacks in the Red Sea 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 has been reached, there is no guarantee that the parties will continue to comply with the terms of the agreement and the agreement does not mean the conflict will be resolved. The possibility of continued and a prolonged conflict between Hamas and Israel, and the potential expansion of the conflict in the surrounding areas and the involvement of other nations in such conflict, could further destabilize the Middle East region and introduce new uncertainties in global markets, including the oil and natural gas markets. • Financial markets, including the benchmark and Financial Instruments used by a Fund and Fund Shares may be subject to unusual trading activity, volatility, and potential fraud and/or manipulation by third parties, which could have a negative impact on the performance of the benchmark and the Fund or the liquidity and price of Fund Shares. • Benchmark changes and market transactions, including the daily rebalancing of futures contracts by the Funds may have a significant impact on the trading, liquidity and price of the futures contracts underlying the benchmark and