Company: EUO
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001193125-25-065644
Chunk: 105

Company: ProShares Trust II
Filing Date: 2025-03-27
Form: 424B3
Chunk 105
---
 (a “Daily Target”) for any period other than a day. Each UltraShort Fund acquires inverse exposure through any one of or combinations of Financial Instruments such that each UltraShort Fund typically has exposure intended to approximate two times the inverse (-2x) of its corresponding benchmark at the time of its NAV calculation.

-60

There can be no assurance that any Fund will achieve its investment objective or avoid substantial losses. 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 the Sponsor believes, in combination, should produce daily returns consistent with each Fund’s objective. Investment Strategies of the VIX Futures Fund: The VIX Futures Fund takes long positions in VIX futures contracts in seeking to meet its investment objective. In the event accountability rules, price limits, position limits, margin limits or other exposure limits are reached with respect to VIX futures contracts, the Sponsor may cause the VIX Futures Fund to obtain exposure to the Mid-Term VIX Futures Index through swaps referencing the Mid-Term VIX Futures Index or particular VIX futures contracts comprising the Mid-Term VIX Futures Index. The Sponsor may cause the VIX Futures Fund to obtain exposure to the Mid-Term VIX Futures Index through swaps referencing the Mid-Term VIX Futures Index, particularly VIX futures contracts comprising the Mid-Term VIX Futures Index or swaps on funds that seek to track the performance of the Mid-Term VIX Futures Index. The VIX Futures Fund may utilize swap transactions in the event accountability rules, price limits, position limits, margin limits or other exposure limits are reached with respect to VIX futures contracts (which could potentially occur in connection with significant and rapid increases in the size of the VIX Futures Fund as a result of an increase in creation activity). The VIX Futures Fund may also invest in swaps if the market for a specific futures contract experiences emergencies ( e.g ., natural disaster, terrorist attack or an act of God) or disruptions ( e.g ., a trading halt or a flash crash) or in situations where the Sponsor deems it impractical or inadvisable to buy or sell futures contracts (such as during periods of market volatility or illiquidity or during periods of significant and/or rapid increases in the size of the Fund as a result of an increase in creation activity). In addition, the VIX Futures Fund may, but is not required to, seek to use options strategies