Company: RFMZ
Filing Date: 2025-03-07
Form Type: N-CSRS
Source: 0001398344-25-005064
Chunk: 20

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 20
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 and the Fund. Typically, the
associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objective, but
are the additional risks from investing in derivatives. The use of derivatives is a highly specialized activity that involves investment
techniques and risks different from those associated with investments in more traditional securities and instruments.

Examples of these associated risks are liquidity
risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty
credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund.

In the ordinary course of business, the Fund may
enter into transactions subject to enforceable International Swaps and Derivatives Association, Inc. master agreements or other similar
arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows the Fund to offset certain
securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty
based on the terms of the agreements.

RiverNorth Flexible Municipal Income Fund II, Inc.

Futures

The Fund may invest in futures contracts in accordance
with its investment objectives. The Fund does so for a variety of reasons including for cash management, hedging or non-hedging purposes
in an attempt to achieve the Fund’s investment objective. A futures contract provides for the future sale by one party and purchase
by another party of a specified quantity of the security or other financial instrument at a specified price and time. A futures contract
on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference
between the value of the index at the close of the last trading day of the contract and the price at which the index contract was originally
written. Futures transactions may result in losses in excess of the amount invested in the futures contract. There can be no guarantee
that there will be a correlation between price movements in the hedging vehicle and in the portfolio securities being hedged. An incorrect
correlation could result in a loss on both the hedged securities in a fund and the hedging vehicle so that the portfolio return might
have been greater had hedging not been attempted. There can be no assurance that a liquid market will exist at a time when a fund seeks
to close out a futures contract or a futures option position. Lack of a liquid market for any reason may prevent a fund