Company: EUO
Filing Date: 2025-03-18
Form Type: S-3/A
Source: 0001193125-25-056731
Chunk: 87

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-3/A
Chunk 87
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ared Fund involves risks that are different from and additional to the risks of investments in other types of funds. An investor in a Geared Fund could potentially lose the full value of their investment within a single day. The amount of exposure each Fund has to a specific combination of Financial Instruments differs with each particular Fund and may be changed without shareholder approval or advance notice at any given time. Currently, the Funds anticipate that, under normal course of business and absent any unforeseen circumstances, they will be exposed to the specific Financial Instruments below as follows:

|                                            | Swaps |      | Futures |      | Options |      |
|                                            | Low   | High | Low     | High | Low     | High |
| ProShares Ultra VIX Short-Term Futures ETF | 0%    | 25%  | 125%    | 150% |         | 0%   |
| ProShares Short VIX Short-Term Futures ETF |       | 0%   |         | -50% |         | 0%   |
| ProShares VIX Short-Term Futures ETF       |       | 0%   |         | 100% |         | 0%   |

The amount of each Fund’s exposure should be expected to change from time to time at the discretion of the Sponsor based on market conditions and other factors. In addition, the Sponsor has the authority to change a Fund’s investment objective, benchmark or investment strategy at any time, or to terminate the Trust or a Fund, in each case, without shareholder approval or advance notice, subject to applicable regulatory requirements. Swap Agreements Each Fund may enter into swaps referencing its benchmark or particular futures contracts comprising its benchmark. Swaps are contracts that have traditionally been entered into primarily by institutional investors in OTC markets for a specified period ranging from a day to many years. Certain types of swaps may be cleared, and certain types are, in fact, required to be cleared. The types of swaps that may be cleared are generally limited to only swaps where the most liquidity exists and a clearinghouse is willing to clear the trade on standardized terms. Swaps with customized terms or those of which significant market liquidity does not exist are generally not able to be cleared. In a standard swap transaction, the parties agree to exchange the returns on, among other things, a particular predetermined security, commodity, interest rate, or index for a fixed or floating rate of return (the “interest rate leg,” which will also include the cost of borrowing for short swaps) in respect of