Company: EUO
Filing Date: 2025-03-18
Form Type: S-3/A
Source: 0001193125-25-056731
Chunk: 34

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-3/A
Chunk 34
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 the calculation that determines the level of the VIX. As a result, the behavior of a VIX futures contract may be different from a traditional futures contract whose settlement price is based on a specific tradable asset and may differ from an investor’s expectations. The market for VIX futures contracts may fluctuate widely based on a variety of factors including changes in overall market movements, political and economic events and policies, wars, acts of terrorism, natural disasters (including disease, epidemics and pandemics), changes in interest rates or inflation rates. High volatility may have an adverse impact on the performance of the Funds. The UltraFund’s leverage factor (1.5x) increases the potential for loss on an investment in this Fund. An investor in any of the Funds could potentially lose the full principal of his or her investment within a single day. Generally, a VIX of over 20 indicates a high degree of volatility. The ProShares VIX Short-Term Futures ETF was in contango for 80% of the year and in backwardation 20% of the time, not much different from historical norms. The ProShares Ultra VIX Short-Term Futures ETF was in contango for 80% of the year and in backwardation 20% of the time, not much different from historical norms. The ProShares Short VIX Short-Term Futures ETF was in contango for 80% of the year and in backwardation 20% of the time, not much different from historical norms. Compared to previous years impacted by COVID, there was less market volatility. However, there is no certainty that such levels will persist even if the scope and duration of the disruption caused by the COVID-19 pandemic is prolonged or if other economic or political developments contribute to volatility and investor uncertainty. Such performance is not typical and may not continue for a sustained period of time. Index changes and market transactions, including the daily rebalancing of futures contracts by the Funds, may have a significant impact on the performance of the Index and the Funds and the trading, liquidity and price of Fund Shares. Index changes and transactions by market participants in the futures contracts underlying the Index, including the daily rebalancing of such futures contracts by each Fund, may have a significant impact on the trading, liquidity and the price of such futures contracts and, in turn, a significant impact on the performance of the Index and the Funds. The trading activity associated with such transactions will contribute to the existing open interest and trading volume of the underlying futures contracts and could have a significant