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Index (the “Index”). Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund (“Shares”). You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below. <div id="xdx_A80_eoef--AnnualFundOperatingExpensesTableTextBlock_zPrOtBkFSCPf"></div> <table cellpadding="0" cellspacing="0" id="xdx_A51_dU_zCKxkQQtbvPk" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Annual Fund Operating Expenses"> <tr style="vertical-align: bottom"> <td id="xdx_98B_eoef--OperatingExpensesCaption_c20260709__20260709__dei--LegalEntityAxis__custom--S000105657Member_znIuHLDf5pKl" style="border-top: black 1pt solid;width: 94%; text-align: justify">Annual Fund Operating Expenses(1) (expenses that you pay each year as a percentage of the value of your investment)</td> <td id="xdx_49E_20260709__20260709__oef--ClassAxis__custom--C000276441Member_ziNUeiKRIYi4" style="border-top: black 1pt solid;width: 6%">1 </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="text-align: center"> </td></tr> <tr id="xdx_40C_eoef--ManagementFeesOverAssets_dpn_z6sTbKsKvGSf" style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: justify">Management Fees </td> <td style="text-align: center">1.29%</td></tr> <tr id="xdx_406_eoef--DistributionAndService12b1FeesOverAssets_dpn_zXgEOYmTpm6c" style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: justify">Distribution and/or Service (12b-1) Fees </td> <td style="text-align: center">0.00%</td></tr> <tr id="xdx_40C_eoef--OtherExpensesOverAssets_dpn_zdF7GZFhpT1e" style="vertical-align: bottom"> <td style="padding-left: 8.65pt; text-align: justify">Other Expenses(2) </td> <td style="border-bottom: black 1pt solid;text-align: center">0.02%</td></tr> <tr id="xdx_40A_eoef--ExpensesOverAssets_dpn_zdhOwcnUBrd4" style="vertical-align: bottom"> <td style="text-align: justify">Total Annual Fund Operating Expenses(3) </td> <td style="border-bottom: black 2.25pt double;text-align: center">1.31%</td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid;"> </td> <td style="border-bottom: black 1pt solid;"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Schedule - Annual Fund Operating Expenses"> <tr style="vertical-align: top"> <td style="width: 38px">(1)</td> <td style="text-align: justify">The Fund’s investment adviser, Tidal Investments LLC (the “Adviser”), a Tidal Financial Group company, will pay all expenses incurred by the Fund (except for advisory fees ) excluding interest charges on any borrowings made for investment purposes, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”), and litigation expenses and other non-routine or extraordinary expenses.</td></tr> <tr style="vertical-align: top"> <td>(2)</td> <td style="text-align: justify">Based on estimated amounts for the current fiscal year.</td></tr> <tr style="vertical-align: top"> <td>(3)</td> <td style="text-align: justify">The cost of investing in swaps, including the embedded cost of the swap and the operating expenses of the referenced assets, is an indirect expense that is not included in the above fee table and is not reflected in the expense example.</td></tr> </table> Annual Fund Operating Expenses(1) (expenses that you pay each year as a percentage of the value of your investment) 0.0129 0.0000 0.0002 0.0131 Based on estimated amounts for the current fiscal year. Expense Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then hold or redeem all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example does not take into account brokerage commissions that you may pay on your purchases and sales of Shares. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <div id="xdx_A81_eoef--ExpenseExampleWithRedemptionTableTextBlock_zDQtLD0GnlA5"></div> <table cellpadding="0" cellspacing="0" id="xdx_A5D_dU_zLhuoOAzbwEf" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 30%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - Expense Example"> <tr style="vertical-align: bottom"> <td id="xdx_481_eoef--ExpenseExampleYear01_zcbCYU12wdt5" style="border-top: black 1pt solid; width: 50%; text-align: center">1 Year</td> <td id="xdx_48B_eoef--ExpenseExampleYear03_zHq0mXW6TFg5" style="border-top: black 1pt solid; width: 50%; text-align: center">3 Years</td></tr> <tr id="xdx_41A_20260709__20260709__oef--ClassAxis__custom--C000276441Member_zhiTVup9Jixh" style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">$133</td> <td style="border-bottom: black 1pt solid; text-align: center">$415</td></tr> </table> 133 415 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the Example, affect the Fund’s performance. Because the Fund is newly organized, portfolio turnover information is not yet available. Principal Investment Strategies The Fund is an actively managed exchange traded fund that attempts to achieve 2 times the inverse (-200%) of the daily percentage change in the performance of the Index by employing derivatives, namely swap agreements and/or listed options contracts. The Fund aims to generate 2 times the inverse of the daily performance of the Index for a single day, and not for any other period. A “single day” is defined as being calculated “from the close of regular trading on one trading day to the close on the next trading day.” The Fund seeks to gain leveraged inverse (-200%) exposure to the daily performance of the Index primarily through swap agreements or listed options strategies (described below). If the Fund encounters limitations in implementing its strategies, whether due to market conditions, derivative availability, counterparty issues, or other factors, the Fund may not achieve investment results, before fees and expenses, that correspond to 2 times the inverse (-2X) the daily performance of the Index, and may return substantially less during such periods. During such periods, the Fund’s actual leverage levels may differ substantially from its intended target, both intraday and at the close of trading, potentially resulting in significantly lower returns. The Index The Index aims to track the performance of New York Stock Exchange (“NYSE”) and Nasdaq Stock Market LLC (“Nasdaq”) listed U.S. or non-U.S. companies (including those traded on the NYSE or Nasdaq via depositary receipts (e.g., American Depositary Receipts (“ADRs”)) that are primarily engaged in the space economy. Such companies can be characterized as “pure space” companies as they are principally engaged in orbital launch services, satellite manufacturing, next-generation space connectivity and related activities (as described below). The Index is constructed and maintained by BITA GmbH., a provider of public indices utilized by institutional investment managers worldwide. To be eligible for inclusion in the Index’s “initial universe” of constituents, the constituent companies must be primarily engaged in the space economy and fall within the following “pure space” categories or themes: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Space Access and Launch Systems: Companies that generate revenue from the development and operation of orbital launch vehicles and propulsion systems. This includes the design of rockets, solid and liquid propellants, and spaceport infrastructure required to transport payloads, satellites, and humans from the Earth’s surface into orbit and beyond.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Spacecraft and Ground Segment Hardware: Companies that design, manufacture, and produce physical space assets and the terrestrial equipment required for their operation. This involves the production of satellite buses, payloads, orbital data storage systems, solar arrays, and space-hardened electronics, as well as the ground-based terminals, antennas, and gateway hardware used for telemetry, tracking, and command (TT&C).</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Satellite Communications and Networks: Companies engaged in the provision of satellite-based connectivity services. These companies operate networks that provide direct-to-device (D2D), broadband, and narrowband communications, enabling global data transmission and internet access for aviation, maritime, and remote industrial sectors.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Space Domain Awareness and Security: Companies involved in the development of technologies that monitor and protect orbital assets. This includes Space Domain Awareness (SDA) systems for tracking debris and preventing collisions, as well as cybersecurity solutions designed to safeguard satellite command links and ground control stations from unauthorized interference or jamming.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Earth Observation and Space Data Analytics: Companies that generate revenue from the operation of remote sensing constellations and in-orbit data processing services. This includes the capture of optical, synthetic aperture radar (SAR), and hyperspectral imagery, as well as the operation of orbital edge computing platforms that convert raw extraterrestrial data into actionable intelligence for environmental, economic, and industrial monitoring.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">National Security Space Solutions: Companies engaged in the development of specialized space systems for government and defense applications. This encompasses technologies for intelligence, surveillance, and reconnaissance (ISR) from orbit, missile warning and tracking sensors, and secure, jam-resistant communications networks dedicated to strategic national defense.</td></tr> </table> From this initial universe of pure space companies, the Index will include as final eligible Index constituents only those companies: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">i.</td> <td style="text-align: justify">That derive at least 50% of their total revenue from at least one of the above-described categories or themes within the pure space ecosystem;</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">ii.</td> <td style="text-align: justify">With a minimum market capitalization of at least $250 million;</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">iii.</td> <td style="text-align: justify">With a free-float percentage (i.e., the proportion of total shares outstanding that are traded publicly) of at least 10%;</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">iv.</td> <td style="text-align: justify">With securities having a 3-month average daily traded value (ADTV) above $1 million; and</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">v.</td> <td style="text-align: justify">With ordinary shares or ADRs listed on the NYSE or Nasdaq.</td></tr> </table> From the resulting group of final eligible Index constituent companies, the companies are ranked according to their respective market capitalization, and the top 10 companies so ranked are selected for inclusion in the Index (or if fewer than 10 companies are eligible for inclusion, all eligible companies will be included as constituents). The Index constituents are weighted equally and the Index is reconstituted and rebalanced quarterly. The Index launched in 2026 with a base date (i.e., the starting point for measuring an index’s performance) of January 1, 2023. The Index is published daily under the ticker symbol BUSPCE. The Index is based on a proprietary rules-based methodology created by BITA through which it constructs the Index universe and determines the Index constituents using the methodology’s rules-based approach. Current information regarding Index constituents is publicly available from BITA on its website at https://www.bitadata.com/index. None of the Trust, the Adviser or the Fund’s Sponsor are affiliated with BITA. The Adviser contracts with BITA under license to receive index data for the Index and for other BITA indexes. Derivatives Portfolio Selection The Fund will enter into one or more swap agreements with financial institutions for a specified period, which may range from one day to longer than a year. Through each swap agreement, the Fund and the financial institution will agree to exchange the return (or differentials in rates of return) earned or realized on one or more constituent securities of the Index. The gross return (meaning the return before deducting any fees or expenses) to be exchanged or “swapped” between the parties is calculated with respect to a “notional amount,” (meaning the face amount of the instrument) (e.g., the return on or change in value of a particular dollar amount representing the constituent security or securities of the Index). At the end of each day, the Fund’s swaps are valued using market valuations and the Fund’s investment adviser rebalances the Fund’s holdings in an attempt to maintain leveraged inverse exposure of approximately -200% of the performance of the Index. The Fund may also utilize listed options to seek to achieve two times the inverse daily performance (-200%) to the Index. The Fund will primarily employ short-dated (a month or less) in-the-money call options (options with strike prices below the current market price of constituent securities of the Index, offering immediate intrinsic value). A “strike price” is the predetermined price at which the holder of an option can buy (call) or sell (put) the underlying constituent security. Additionally, the Fund may use other option strategies to produce similar exposure to the constituent securities of the Index, like buying calls and selling puts with identical strike prices. These options allow the Fund to adjust its leverage strategy in response to market conditions, liquidity constraints, or other factors that may affect the availability or pricing of swap agreements. The use of listed options provides additional flexibility in pursuing the Fund’s daily investment objective. In situations where swap availability is constrained, the Fund may rely more heavily on options contracts. Additionally, the Fund may use options in response to changing market dynamics. However, the use of option contracts is typically less efficient than swaps and may increase the likelihood that the Fund is unable to achieve its daily inverse -2X objective. See the provision in the Prospectus entitled “Additional Information About the Fund,” for more information about the Fund’s use of options. If the Fund is unable to obtain the necessary exposure through swaps or other derivatives, or encounters other constraints (e.g., market or regulatory), the Fund may not always achieve investment results, before fees and expenses, that correspond to two times the inverse daily performance (-2X) of the Index, and may return substantially less during such periods. Each trading day, the Fund’s current portfolio holdings will be published on the Fund’s website at www.defianceetfs.com. Fund performance for periods greater than one single day is primarily (but not solely) a function of the following factors: a) the volatility of the Index; b) the performance of the Index; c) period of time; d) financing rates associated with leveraged exposure; and e) other Fund expenses. For examples of a hypothetical investment in the Fund, see the prospectus section entitled “Additional Information About the Fund – Principal Investment Strategies.” Collateral The Fund will hold assets to serve as collateral for the Fund’s derivatives transactions. For those collateral holdings, the Fund may invest in (1) U.S. Government securities, such as bills, notes and bonds issued by the U.S. Treasury; (2) money market funds; (3) short term bond ETFs; and/or (4) corporate debt securities, such as commercial paper and other short-term unsecured promissory notes issued by businesses that are rated investment grade or of comparable quality. Fund Attributes The Fund is classified as “non-diversified” under the 1940 Act. The Fund has adopted a policy to have at least 80% of its net assets, plus borrowings for investment purposes, invested in financial instruments with economic characteristics that should provide 2 times the inverse (-2X) exposure to the Index’s daily performance. The Fund will concentrate its investments (i.e., invest 25% or more of its total assets) in financial instruments providing exposure to companies with principal business activities in an industry or group of related industries, if any, that are assigned to companies engaging in the space economy and in the development, deployment or operation of space-related technologies and services. Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from -200% of the return of the Index over the same period. The Fund will lose money if the Index’s performance is flat over time, and as a result of daily rebalancing, the Index volatility and the effects of compounding, the Fund may lose money over time while the Index’s performance decreases over a period longer than a single day. As a consequence, investors should not plan to hold shares of a Fund unmonitored for periods longer than a single trading day. The Fund has adopted a policy to have at least 80% of its net assets, plus borrowings for investment purposes, invested in financial instruments with economic characteristics that should provide 2 times the inverse (-2X) exposure to the Index’s daily performance. The Fund may not achieve its investment objective and there is a risk that you could lose all of your money invested in the Fund. Index Positive Performance Risk. The Fund’s inverse investment strategy attempts to achieve 2 times the inverse (-200%) of the daily percentage change in the price of the BITA US Space Select Index (the “Index”) via entry into swap agreements and option contracts based on the value of the Index and/or its constituent securities. The strategy subjects the Fund to certain of the same risks as if it shorted the shares of constituent securities of the Index directly, even though it does not. By virtue of the Fund’s indirect -2X exposure to changes in the Index’s performance, the Fund is subject to the risk that the Index has positive performance. If the Index’s performance is positive, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. Obtaining 2x inverse or “short” exposure is considered an aggressive investment technique. The costs of obtaining this short exposure will lower your returns. If the level of the Index approaches a 50% increase at any point in the day, an investor could lose their entire investment. As a result, an investment in the Fund may not be suitable for all investors. Compounding and Market Volatility Risk. The Fund is designed to provide an inverse multiple of the return of a benchmark for a single day. The Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is likely to differ from -200% of the Index’s, before fees and expenses. Compounding has a significant impact on funds that are inverse leveraged and that rebalance daily. The impact of compounding becomes more pronounced as volatility and holding periods increase and will impact each shareholder differently depending on the period of time an investment in the Fund is held and the volatility of the Index during the shareholder’s holding period of an investment in the Fund. The chart below provides examples of how Index volatility could affect the Fund’s performance. Fund performance for periods greater than one single day can be estimated given any set of assumptions for the following factors: a) Index volatility; b) Index’s performance; c) period of time; d) financing rates associated with leveraged exposure; and e) other Fund expenses. The chart below illustrates the impact of two principal factors – Index volatility and performance – on Fund performance. The chart shows estimated Fund returns for a number of combinations of Index volatility and performance over a one-year period. Performance shown in the chart assumes that (i) there were no Fund expenses; and (ii) borrowing rates (needed to obtain a leveraged short exposure) of 0%. If Fund expenses and/or actual borrowing/lending rates were reflected, the estimated returns would be lower than those shown. Particularly during periods when the Index experiences higher volatility, compounding will cause results for periods longer than a trading day to vary from -200% of the performance of the Index. As shown in the chart below, the Fund would be expected to lose 17.10% if the Index provided no return over a one-year period during which the Index experienced annualized volatility of 25%. At higher ranges of volatility, there is a chance of a significant loss of value in the Fund, even if the Index return is flat. For instance, if the Index’s annualized volatility is 100%, the Fund would be expected to lose 95% of its value, even if the Index return for the year was 0%. Areas shaded red (or dark gray) represent those scenarios where the Fund can be expected to return less than -200% of the performance of the Index and those shaded green (or light gray) represent those scenarios where the Fund can be expected to return more than -200% of the performance of the Index. The Fund’s actual returns may be significantly better or worse than the returns shown below as a result of any of the factors discussed above or in “Daily Correlation/Tracking Risk” below. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 98%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 6pt">One year performance of the Index</td> <td style="padding-bottom: 6pt">-200% of one year performance of the Index</td> <td colspan="5" style="padding-bottom: 6pt; text-align: center">Volatility Rate (Annualized)</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 35%; padding-bottom: 6pt">Return</td> <td style="white-space: nowrap; width: 15%; padding-bottom: 6pt">Return</td> <td style="white-space: nowrap; width: 10%; padding-bottom: 6pt; text-align: right">10%</td> <td style="white-space: nowrap; width: 10%; padding-bottom: 6pt; text-align: right">25%</td> <td style="white-space: nowrap; width: 10%; padding-bottom: 6pt; text-align: center">50%</td> <td style="white-space: nowrap; width: 10%; padding-bottom: 6pt; text-align: center">75%</td> <td style="white-space: nowrap; width: 10%; padding-bottom: 6pt; text-align: center">100%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">-60%</td> <td style="white-space: nowrap; padding-bottom: 6pt">120%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">506.50%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">418.10%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">195.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-6.80%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-68.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">-50%</td> <td style="white-space: nowrap; padding-bottom: 6pt">100%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">288.20%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">231.60%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">88.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-26.00%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-80.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">-40%</td> <td style="white-space: nowrap; padding-bottom: 6pt">80%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">166.90%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">130.30%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">31.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-45.60%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-86.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">-30%</td> <td style="white-space: nowrap; padding-bottom: 6pt">60%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">98.10%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">69.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-3.60%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-62.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-89.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">-20%</td> <td style="white-space: nowrap; padding-bottom: 6pt">40%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">51.60%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">29.50%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-26.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-71.10%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-92.20%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">-10%</td> <td style="white-space: nowrap; padding-bottom: 6pt">20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">19.80%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">2.30%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-41.70%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-77.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-93.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">0%</td> <td style="white-space: nowrap; padding-bottom: 6pt">0%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-3.00%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-17.10%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-52.80%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-81.50%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-95.00%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">10%</td> <td style="white-space: nowrap; padding-bottom: 6pt">-20%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-19.80%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-31.50%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-61.00%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-84.70%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-95.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">20%</td> <td style="white-space: nowrap; padding-bottom: 6pt">-40%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-32.60%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-42.40%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-67.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-87.20%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-96.50%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">30%</td> <td style="white-space: nowrap; padding-bottom: 6pt">-60%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-42.60%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-50.90%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-72.00%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-89.10%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-97.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">40%</td> <td style="white-space: nowrap; padding-bottom: 6pt">-80%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-50.50%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-57.70%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-75.90%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-90.60%</td> <td style="white-space: nowrap; background-color: #C00000; padding-bottom: 6pt; text-align: right">-97.50%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">50%</td> <td style="white-space: nowrap; padding-bottom: 6pt">-100%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-56.90%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-63.20%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-79.00%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-91.80%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-97.80%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 6pt">60%</td> <td style="white-space: nowrap; padding-bottom: 6pt">-120%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-62.10%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-67.60%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-81.50%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-92.80%</td> <td style="white-space: nowrap; background-color: #92D050; padding-bottom: 6pt; text-align: right">-98.10%</td></tr> </table> Historical volatility and performance for the Index are not likely indicative of future volatility and performance. Since market volatility has negative implications for the Fund, which rebalances its derivatives daily, investors should be sure to monitor and manage their investments in the Fund particularly in volatile markets. Daily Correlation/Tracking Risk. There is no guarantee that the Fund will achieve a high degree of leveraged correlation to the Index and therefore achieve its daily leveraged investment objective. To achieve a high degree of leveraged correlation with the Index, the Fund seeks to rebalance its portfolio daily to keep exposure consistent with its daily leveraged investment objective. The possibility of the Fund being materially over- or under-exposed to the Index increases on days when the Index is volatile near the close of the trading day. Additionally, if constituent securities of the Index exhibit unexpected or heightened correlations, the Fund’s ability to achieve its daily investment objective may be adversely impacted as overlapping exposures may reduce potential diversification benefits and amplify the effects of market movements. Market disruptions, regulatory restrictions and extreme volatility will also adversely affect the Fund’s ability to adjust exposure to the required levels. If there is a significant intra-day market event and/or the Index experiences a significant increase or decline, the Fund may not meet its investment objective, be able to rebalance its portfolio appropriately, or may experience significant premiums or discounts, or widened bid-ask spreads. The Fund may have difficulty achieving its daily leveraged investment objective due to fees, expenses, transaction costs and financing costs related to the use of derivatives, income items, valuation methodology, accounting standards and disruptions or illiquidity in the markets for the securities or derivatives held by the Fund. The Fund may also be impacted by large movements of assets into and out of the Fund, potentially resulting in the Fund being over- or under-exposed to the Index. The Fund may take or refrain from taking positions to improve the tax efficiency or to comply with various regulatory restrictions, either of which may negatively impact the Fund’s leveraged correlation to the Index. Finally, during periods of high volatility, compounding effects and correlation shifts between securities comprising the Index may cause the Fund’s returns to deviate materially from two times inverse (-2X) correlation to the daily performance of the Index. Short Sale Exposure Risk. The Fund will seek inverse or “short” exposure through financial instruments, which would cause the Fund to be exposed to certain risks associated with selling short. These risks include, under certain market conditions, an increase in the volatility and decrease in the liquidity of the instruments underlying the short position, which may lower the Fund’s return, result in a loss, have the effect of limiting the Fund’s ability to obtain inverse exposure through financial instruments, or require the Fund to seek inverse exposure through alternative investment strategies that may be less desirable or more costly to implement. To the extent that, at any particular point in time, the instruments underlying the short position may be thinly traded or have a limited market, including due to regulatory action, the Fund may be unable to meet its investment objective due to a lack of available securities or counterparties. During such periods, the Fund’s ability to issue additional Shares may be adversely affected. Obtaining inverse exposure through these instruments may be considered an aggressive investment technique. Any income or payments by any assets underlying the Fund’s short positions, if any, would negatively impact the Fund. The Fund could lose an amount greater than its net assets in the event the Index increases more than 50%. Aggressive Investment Technique Risk. The Fund uses investment techniques considered to be aggressive, including the use of inverse leverage and derivatives such as swaps and options to achieve 2x inverse or “short” exposure. Because these investment techniques often involve a small investment relative to the amount of investment exposure assumed, they may result in losses exceeding the amounts invested. Concentration Risk. Due to the Fund’s investment strategy, the Fund’s investment exposure is concentrated in companies in the space industry and in industries that develop, deploy, or operate space-related technologies and services. As a result, the value of Shares may rise and fall more than the value of shares of funds that invest in securities of, or have exposure to, companies in a broader range of industries. Space Company Investing Risk. Space-related businesses often rely on advanced, emerging, or unproven technologies and may be adversely affected by rapid technological change, engineering challenges, design flaws, the inability to achieve expected performance, or competitors’ development of superior or lower-cost technologies. The space industry is subject to extensive domestic and international regulation (including licensing requirements, export controls, national security restrictions, environmental regulation, and orbital debris mitigation standards), and changes in laws, regulations, or regulatory interpretations may increase compliance costs, delay operations, restrict market access, or limit the deployment or operation of space-based systems. Many space-focused companies depend on governmental or quasi-governmental customers and contracts, and reductions in government budgets, policy changes, contract terminations, delays, or failures to renew contracts could materially and adversely affect revenues and financial performance. Space-based operations are exposed to risks arising from orbital debris, collisions, congestion in Earth’s orbits, and space weather (including solar activity), any of which may damage satellites or spacecraft and result in service disruptions, data loss, reduced operational lifespans, or complete mission failure. The space economy is evolving, and many companies may have limited operating histories, depend on a narrow set of products or services, or rely on a small number of customers or missions for a substantial portion of revenues; delays in commercialization or failure to achieve anticipated adoption of space-based services may adversely affect profitability and valuations. The space industry is highly competitive and characterized by rapid innovation; increased competition may lead to pricing pressure, reduced market share, or higher research and development costs. Many space-focused companies rely on governmental or quasi-governmental customers and contracts, and adverse changes in government policy or budgets could materially affect revenues. The Fund may have exposure to foreign issuers (including through ADRs), which can involve political instability, geopolitical tensions, trade restrictions, sanctions, differing regulatory regimes, and currency fluctuations that may disrupt supply chains, restrict access to launch facilities or markets, or impair cross-border collaboration. Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, leverage, imperfect daily correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. The use of derivatives may result in larger losses or smaller gains than directly investing in securities. When the Fund uses derivatives, there may be imperfect correlation between the value of the Index or its constituents and the derivative, which may prevent the Fund from achieving its investment objective. Because derivatives often require only a limited initial investment, the use of derivatives may expose the Fund to losses in excess of those amounts initially invested. The Fund will be subject to regulatory constraints relating to level of value at risk that the Fund may incur through its derivative portfolio. To the extent the Fund exceeds these regulatory thresholds over an extended period, the Fund may determine that it is necessary to make adjustments to the Fund’s investment strategy, including the desired daily leveraged performance for the Fund. In addition, the Fund’s investments in derivatives are subject to the following risks: Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Whether the Fund will be successful in using swap agreements to achieve its investment goal depends on the ability of the Adviser to structure such swap agreements in accordance with the Fund’s investment objective and to identify counterparties for those swap agreements. If the Adviser is unable to enter into swap agreements that provide leveraged exposure to the Index, the Fund may not meet its stated investment objective. Additionally, any financing, borrowing or other costs associated with using swap transactions may also have the effect of lowering the Fund’s return. The swap agreements in which the Fund invests are generally traded in the over-the-counter market, which generally has less transparency than exchange-traded derivatives instruments. In a standard swap transaction, two parties agree to exchange the return (or differentials in rates of return) earned or realized on particular predetermined reference assets or underlying securities or instruments. The gross return to be exchanged or swapped between the parties is calculated based on a notional amount or the return on or change in value of a particular dollar amount invested in a basket of securities. If the Index has a dramatic move that causes a material decline in the Fund’s net assets, the terms of a swap agreement between the Fund and its counterparty may permit the counterparty to immediately close out the swap transaction with the Fund. In that event, the Fund may be unable to enter into another swap agreement or invest in other derivatives to achieve exposure consistent with the Fund’s investment objective. This may prevent the Fund from achieving its leveraged investment objective, even if the Index later reverses all or a portion of its movement. Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events. The value of the options contracts in which the Fund invests is substantially influenced by the value of the Index or its constituent securities. The Fund may experience substantial downside from specific option positions and certain option positions held by the Fund may expire worthless. The options held by the Fund are exercisable at the strike price on their expiration date. As an option approaches its expiration date, its value typically increasingly moves with the value of the underlying instrument. However, prior to such date, the value of an option generally does not increase or decrease at the same rate as the underlying instrument. There may at times be an imperfect correlation between the movement in values of options contracts and the underlying instrument, and there may at times not be a liquid secondary market for certain options contracts. The value of the options held by the Fund will be determined based on market quotations or other recognized pricing methods. Additionally, as the options contracts it holds are exercised or expire it will enter into new options contracts, a practice referred to as “rolling.” If the expiring options contracts do not generate proceeds enough to cover the cost of entering into new options contracts, the Fund may experience losses. The use of options to generate leverage introduces additional risks, including significant potential losses if the market moves unfavorably. The leverage inherent in options can amplify both gains and losses, leading to increased volatility and potential for substantial losses, particularly in periods of market uncertainty or low liquidity. Additionally, the Fund may incur losses if the value of the Index moves against its positions, potentially resulting in a complete loss of the premium paid. Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in derivatives which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund and the Fund may be unable to recover its investment from such counterparty or may obtain a limited and/or delayed recovery. Counterparties may seek to hedge their exposure to individual clients (such as the Fund) by establishing offsetting exposures with other clients, however, there is no guarantee that counterparties will do so under all circumstances. Should a counterparty (e.g., a swap counterparty) terminate its relationship with the Fund, the Fund will seek to utilize other counterparties to seek to maintain its exposures. In addition, the Fund may use options contracts to seek to generate the leverage necessary to implement its strategy. The use of options contracts introduces distinct risks, including heightened volatility, particularly intraday. While options may provide an ancillary benefit of mitigating some losses under specific scenarios, such as severe market downturns, their inherent leverage and rapid price fluctuations can amplify the Fund’s performance volatility and lead to greater risks of substantial losses. Refer to “Derivatives Risk – Options Contracts” for additional information on the risks of investing in options. In addition, the Fund may enter into swap agreements with a limited number of counterparties, which may increase the Fund’s exposure to counterparty credit risk. Further, there is a risk that no suitable counterparties will be willing to enter into, or continue to enter into, transactions with the Fund and, as a result, the Fund may not be able to achieve its investment objective. Intra-Day Investment Risk. The Fund seeks investment results from the close of the market on a given trading day until the close of the market on the subsequent trading day. The exact exposure of an investment in the Fund intraday in the secondary market is a function of the difference between the value of the Index at the market close on the first trading day and the value of the Index at the time of purchase. If the value of the Index declines, the Fund’s net assets will rise by approximately twice the amount as the Fund’s exposure. Conversely, if the Index increases, the Fund’s net assets will decline by approximately two times the amount as the Fund’s exposure. Thus, an investor that purchases Shares intra-day may experience performance that is greater than, or less than, the Fund’s stated leveraged inverse performance of the Index. Therefore, an investor that holds the Fund for less than a full day is unlikely to achieve the Fund’s stated daily performance target. If there is a significant intra-day market event and/or the value of the Index experiences a significant increase or decrease, the Fund may not meet its investment objective or rebalance its portfolio appropriately. Foreign Securities Risk. Investments in securities or other instruments of non-U.S. issuers involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies. Financial markets in foreign countries often are not as developed, efficient, or liquid as financial markets in the United States, and therefore, the prices of non-U.S. securities and instruments can be more volatile. In addition, the Fund will be subject to risks associated with adverse political and economic developments in foreign countries, which may include the imposition of economic sanctions. Generally, there is less readily available and reliable information about non-U.S. issuers due to less rigorous disclosure or accounting standards and regulatory practices. ADR Risk. ADRs listed on U.S. exchanges are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing the underlying foreign securities directly in their national markets and currencies. ADRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks, because their values depend on the performance of the non-dollar denominated underlying foreign securities. Moreover, ADRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading. Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default), extension risk (an issuer may exercise its right to repay principal on a fixed rate obligation held by the Fund later than expected), and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by the Fund, possibly causing the Fund’s Share price and total return to be reduced and fluctuate more than other types of investments. Rebalancing Risk. If for any reason the Fund is unable to rebalance all or a portion of its portfolio, or if all or a portion of the portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with the Fund’s investment objective. In these instances, the Fund may have investment exposure to the Index that is significantly greater or less than its stated investment objective. As a result, the Fund may be exposed to leverage risk because it had not been properly rebalanced and may not achieve its investment objective. Leverage Risk. The Fund seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2X) of the daily performance of the Index. Because the Fund uses leverage to obtain investment exposure in excess of its net assets, the Fund may lose more money in adverse market conditions than a fund that does not use leverage. An increase in the Index’s daily performance will be magnified, meaning that the Fund’s NAV would generally be expected to decrease by approximately 2% for every 1% daily increase in the Index level (i.e., the published calculated value of the Index reflecting the weighted value of the prices of the Index’s constituent securities), excluding the effects of fees and expenses, financing costs, transaction costs, and other operating expenses, which would further reduce returns. If the Index level were to increase by 50% or more in a single day, the Fund could experience a complete loss of its value. ETF Risks. <p id="xdx_A83_eoef--RiskTextBlock_hoef--RiskAxis__custom--AuthorizedParticipantsMarketMakersAndLiquidityProvidersConcentrationRiskMember_z7QgenaUuqDg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk. The Fund has a limited number of financial institutions that are authorized to purchase and redeem Shares directly from the Fund (known as “Authorized Participants” or “APs”). In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Shares may trade at a material discount to NAV and possibly face delisting: (i) APs exit the business or otherwise become unable to process creation and/or redemption orders and no other APs step forward to perform these services; or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions. Cash Redemption Risk. The Fund’s investment strategy may require it to redeem Shares for cash or to otherwise include cash as part of its redemption proceeds. For example, the Fund may not be able to redeem in-kind certain securities held by the Fund (e.g., derivative instruments). In such a case, the Fund may be required to sell or unwind portfolio investments to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used. By paying out higher annual capital gain distributions, investors may be subjected to increased capital gains taxes. The costs associated with cash redemptions may include brokerage costs that the Fund may not have incurred if it had made the redemptions in-kind. These costs could be imposed on the Fund, decreasing its NAV, to the extent these costs are not offset by a transaction fee payable by an authorized participant. Costs of Buying or Selling Shares. Buying or selling Shares involves certain costs, including brokerage commissions, other charges imposed by brokers, and bid-ask spreads. The bid-ask spread represents the difference between the price at which an investor is willing to buy Shares and the price at which an investor is willing to sell Shares. The spread varies over time based on the Shares’ trading volume and market liquidity. The spread is generally lower if Shares have more trading volume and market liquidity and higher if Shares have little trading volume and market liquidity. Due to the costs of buying or selling Shares, frequent trading of Shares may reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments. <p id="xdx_A89_eoef--RiskTextBlock_hoef--RiskAxis__custom--SharesMayTradeAtPricesOtherThanNavMember_zLwf7Yr6a569" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Shares May Trade at Prices Other Than NAV. As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility. This risk is heightened in times of market volatility, periods of steep market declines, and periods when there is limited trading activity for Shares in the secondary market, in which case such premiums or discounts may be significant. Trading. Although Shares are listed on a national securities exchange, such as The Nasdaq Stock Market, LLC (the “Exchange”), and may be traded on U.S. exchanges other than the Exchange, there can be no assurance that Shares will trade with any volume, or at all, on any stock exchange. In stressed market conditions, the liquidity of Shares may begin to mirror the liquidity of the Fund’s underlying portfolio holdings, which can be significantly less liquid than Shares. This adverse effect on liquidity for the Fund’s shares may lead to wider bid-ask spreads and differences between the market price of the Fund’s shares and the underlying value of the shares. Liquidity Risk. In certain circumstances, such as the disruption of the orderly markets for the financial instruments in which the Fund invests, the Fund might not be able to acquire or dispose of certain holdings quickly or at prices that represent true market value in the judgment of the Adviser. Markets for the financial instruments in which the Fund invests may be disrupted by a number of events, including but not limited to economic crises, health crises, natural disasters, excessive volatility, new legislation, or regulatory changes inside or outside of the U.S. These situations may have an impact on the liquidity of the Fund’s own shares. Economic and Market Risk. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to securities in the general financial markets, a particular financial market, or other asset classes, due to a number of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, financial system instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Fund’s investments may be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or events, country instability, and infectious disease epidemics or pandemics. The imposition by the U.S. of tariffs on goods imported from foreign countries and reciprocal tariffs levied on U.S. goods by those countries also may lead to volatility and instability in domestic and foreign markets. High Portfolio Turnover Risk. Daily rebalancing of the Fund’s holdings pursuant to its daily investment objective causes a much greater number of portfolio transactions when compared to most ETFs. Additionally, active market trading of the Fund’s Shares on exchanges (such as the Exchange), could cause more frequent creation and redemption activities, which could increase the number of portfolio transactions. Frequent and active trading may lead to higher transaction costs because of increased broker commissions resulting from such transactions. In addition, there is the possibility of significantly increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them). The Fund calculates portfolio turnover without including the short-term cash instruments or derivative transactions that comprise the majority of the Fund’s trading. As such, if the Fund’s extensive use of derivative instruments were reflected, the calculated portfolio turnover rate would be significantly higher. Tracking Error Risk. Tracking error is the divergence of the Fund’s performance from that of its investment objective which aims to replicate -2X the daily percentage change in the performance of the Index. Tracking error may occur for a number of reasons. Tracking error may occur because of transaction costs, the Fund’s holding of cash, differences in accrual of dividends, being under- or overexposed to the Index or the need to meet new or existing regulatory requirements. Tracking error risk may be heightened during times of market volatility or other unusual market conditions such as market disruptions. The Fund may be required to deviate from its investment objectives, and therefore experience tracking error, as a result of market restrictions or other legal reasons, including regulatory limits or other restrictions on securities that may be purchased by the Adviser and its affiliates. Liquidity Risk. Some securities held by the Fund may be difficult to sell or be illiquid, particularly during times of market turmoil. Markets for securities or financial instruments could be disrupted by a number of events, including, but not limited to, an economic crisis, natural disasters, epidemics/pandemics, new legislation or regulatory changes inside or outside the United States. Illiquid securities may be difficult to value, especially in changing or volatile markets. If the Fund is forced to sell an illiquid security at an unfavorable time or price, the Fund may be adversely impacted. Certain market conditions or restrictions may prevent the Fund from limiting losses, realizing gains or achieving an inverse correlation with the Index. There is no assurance that a security that is deemed liquid when purchased will continue to be liquid. Market illiquidity may cause losses for the Fund. Market Capitalization Risk. Large-Capitalization Investing. The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes. Small- and Mid-Capitalization Company Risk. Small- and mid-capitalization companies are more susceptible to adverse business or economic events compared to larger, more established companies. These companies often have limited financial resources and operational capabilities, making them more vulnerable to market volatility and economic downturns. Securities of small- and mid-cap companies typically trade in lower volumes and may experience greater price fluctuations, posing additional challenges for investors seeking stable returns. Additionally, these companies may face difficulties accessing capital and competing with larger competitors, further increasing their investment risk. Emerging Markets Securities Risk. Emerging markets present unique investment opportunities but also carry heightened risks compared to more developed markets. These risks include greater market volatility, lower trading volume, political and economic instability, and uncertainties regarding the existence of robust trading markets. Securities in emerging markets may experience more significant price fluctuations due to factors such as regulatory differences, limited market liquidity, and potential market manipulation. Investments in emerging markets also entail risks related to limited access to capital, foreign investment restrictions, and less stringent investor protections. Additionally, emerging market issuers may have limited accountability and transparency, posing challenges for investors in evaluating their performance and financial stability. Money Market Instrument Risk. The Fund may use a variety of money market instruments for cash management purposes, including money market funds, depositary accounts and repurchase agreements. Repurchase agreements are contracts in which a seller of securities agrees to buy the securities back at a specified time and price. Repurchase agreements may be subject to market and credit risk related to the collateral securing the repurchase agreement. Money market instruments may lose money. New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio. Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and the Fund’s investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. U.S. Government and U.S. Agency Obligations Risk. The Fund may invest in securities issued by the U.S. government or its agencies or instrumentalities. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, such as the U.S. Treasury. Payment of principal and interest on U.S. Government obligations may be backed by the full faith and credit of the United States or may be backed solely by the issuing or guaranteeing agency or instrumentality itself. In the latter case, the investor must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment, which agency or instrumentality may be privately owned. There can be no assurance that the U.S. Government would provide financial support to its agencies or instrumentalities (including government-sponsored enterprises) where it is not obligated to do so. Tax Risk. The Fund intends to elect and to qualify each year to be treated as a RIC under Subchapter M of the Code. As a RIC, the Fund will not be subject to U.S. federal income tax on the portion of its net investment income and net capital gain that it distributes to Shareholders, provided that it satisfies certain requirements of the Code. If the Fund does not qualify as a RIC for any taxable year and certain relief provisions are not available, the Fund’s taxable income will be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. To comply with the asset diversification test applicable to a RIC, the Fund will attempt to ensure that the value of swap contracts and options on shares of a single issuer does not exceed 25% of the Fund’s value at the close of any quarter. If the value of swap contracts and options on shares of a single issuer were to exceed 25% of the Fund’s total assets at the end of a tax quarter, the Fund, generally, has a grace period to cure such lack of compliance. If the Fund fails to timely cure, it may no longer be eligible to be treated as a RIC. Performance Performance information for the Fund is not included because the Fund has not completed a full calendar year of operations as of the date of this Prospectus. When such information is included, this section will provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance history from year to year and showing how the Fund’s average annual total returns compare with those of a broad measure of market performance. Although past performance of the Fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risks of investing in the Fund. Updated performance information will be available on the Fund’s website at www.defianceetfs.com. Performance information for the Fund is not included because the Fund has not completed a full calendar year of operations as of the date of this Prospectus. When such information is included, this section will provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance history from year to year and showing how the Fund’s average annual total returns compare with those of a broad measure of market performance. Although past performance of the Fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risks of investing in the Fund. www.defianceetfs.com DEFIANCE 2X DAILY TARGET SHORT TAIWAN ETF - FUND SUMMARY Investment Objective The Fund seeks daily inverse investment results, before fees and expenses, of -2 times (-200%) the daily percentage change in the share price of an exchange traded product (the Reference Asset) seeking to replicate the performance of the Taiwanese large- and mid-capitalization equity market segments. The Fund does not seek to achieve its stated investment objective for a period other than a single trading day. Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund (“Shares”). You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below. <div id="xdx_A85_eoef--AnnualFundOperatingExpensesTableTextBlock_zeisk4JeCT2g"></div> <table cellpadding="0" cellspacing="0" id="xdx_A5A_dU_z1gYFA5bmgib" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Annual Fund Operating Expenses"> <tr style="vertical-align: bottom"> <td id="xdx_987_eoef--OperatingExpensesCaption_c20260709__20260709__dei--LegalEntityAxis__custom--S000105658Member_zc6iiRBjtXj5" style="border-top: black 1pt solid; width: 85%; padding-left: 0.1in; text-align: justify">Annual Fund Operating Expenses(1) (expenses that you pay each year as a percentage of the value of your investment)</td> <td id="xdx_497_20260709__20260709__oef--ClassAxis__custom--C000276442Member_z5wUCnsGx26a" style="border-top: black 1pt solid; width: 15%">1 </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.1in; text-align: justify"> </td> <td style="text-align: center"> </td></tr> <tr id="xdx_405_eoef--ManagementFeesOverAssets_dpn_zLxfkPtPwLJ1" style="vertical-align: bottom"> <td style="padding-left: 0.2in; text-align: justify">Management Fees </td> <td style="text-align: center">1.29%</td></tr> <tr id="xdx_40D_eoef--DistributionAndService12b1FeesOverAssets_dpn_zBo72ktD3lHi" style="vertical-align: bottom"> <td style="padding-left: 0.2in; text-align: justify">Distribution and/or Service (12b-1) Fees </td> <td style="text-align: center">0.00%</td></tr> <tr id="xdx_403_eoef--OtherExpensesOverAssets_dpn_zoAFR1BJFYsh" style="vertical-align: bottom"> <td style="padding-left: 0.2in; text-align: justify">Other Expenses(2)</td> <td style="border-bottom: black 1pt solid; text-align: center">0.02%</td></tr> <tr id="xdx_404_eoef--ExpensesOverAssets_dpn_zya9lOo4RXaa" style="vertical-align: bottom"> <td style="padding-left: 0.1in; text-align: justify">Total Annual Fund Operating Expenses(3)</td> <td style="border-bottom: black 2.25pt double; text-align: center">1.31%</td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 1px"> </td> <td style="width: 30px">(1) </td> <td style="text-align: justify">The Fund’s adviser will pay, or require a sub-adviser to pay, all of the Fund’s expenses, except for the following: advisory and sub-advisory fees, interest charges on any borrowings made for investment purposes, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”), litigation expenses, and other non-routine or extraordinary expenses.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 1px"> </td> <td style="width: 30px">(2) </td> <td style="text-align: justify">Based on estimated amounts for the current fiscal year.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 1px"> </td> <td style="width: 30px">(3) </td> <td style="text-align: justify">The cost of investing in swaps, including the embedded cost of the swap and the operating expenses of the referenced assets, is an indirect expense that is not included in the above fee table and is not reflected in the expense example.</td></tr> </table> Annual Fund Operating Expenses(1) (expenses that you pay each year as a percentage of the value of your investment) 0.0129 0.0000 0.0002 0.0131 Based on estimated amounts for the current fiscal year. Expense Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then hold or redeem all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example does not take into account brokerage commissions that you may pay on your purchases and sales of Shares. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <div id="xdx_A89_eoef--ExpenseExampleWithRedemptionTableTextBlock_zhhtd04QSa2j"></div> <table cellpadding="0" cellspacing="0" id="xdx_A50_dU_zJ92iyZUTL9b" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 40%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - Expense Example"> <tr style="vertical-align: bottom"> <td id="xdx_48C_eoef--ExpenseExampleYear01_zezavkKcqpBa" style="border-top: black 1pt solid; width: 50%; text-align: center">1 Year</td> <td id="xdx_48C_eoef--ExpenseExampleYear03_zKB3WMoOuJad" style="border-top: black 1pt solid; width: 50%; text-align: center">3 Years</td></tr> <tr id="xdx_413_20260709__20260709__oef--ClassAxis__custom--C000276442Member_z1d51jYHSRud" style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">$133</td> <td style="border-bottom: black 1pt solid; text-align: center">$415</td></tr> </table> 133 415 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the Example, affect the Fund’s performance. Because the Fund is newly organized, portfolio turnover information is not yet available. Principal Investment Strategies The Fund is an actively managed exchange traded fund (“ETF”) that attempts to achieve 2 times the inverse (-200%) of the daily percentage change in the price of the Reference Asset by employing derivatives, namely swap agreements and/or listed options contracts. The Fund aims to generate 2 times the inverse of the daily performance of the Reference Asset for a single day, and not for any other period. A “single day” is defined as being calculated “from the close of regular trading on one trading day to the close on the next trading day.” If the Fund encounters limitations in implementing its strategies, whether due to market conditions, derivative availability, counterparty issues, or other factors, the Fund may not achieve investment results, before fees and expenses, that correspond to 2 times the inverse (-2x) the daily performance of the Reference Asset, and may return substantially less during such periods. During such periods, the Fund’s actual leverage levels may differ substantially from its intended target, both intraday and at the close of trading, potentially resulting in significantly lower returns. The Fund may enter into swap agreements as a substitute for directly shorting the Reference Asset. The Fund will enter into one or more swap agreements with major financial institutions for a specified period ranging from one day to more than one year whereby the Fund and the financial institution will agree to exchange the return (or differentials in rates of return) earned or realized on the Reference Asset. The gross return (meaning the return before deducting any fees or expenses) to be exchanged or “swapped” between the parties is calculated with respect to a “notional amount,” (meaning the face amount of the instrument) e.g., the return on or change in value of a particular dollar amount representing the Reference Asset. At the end of each day, the Fund’s swaps are valued using market valuations and the Fund’s investment adviser rebalances the Fund’s holdings in an attempt to maintain short exposure for the Fund equal to -200% of the Reference Asset. The Fund may also utilize listed options to seek to achieve leveraged -2X exposure to the Reference Asset. The Fund will primarily employ short-dated (a month or less) in-the-money call options (options with strike prices below the current market price of the Reference Asset, offering immediate intrinsic value). Additionally, the Fund may use other option strategies to produce similar exposure to the Reference Asset, like buying calls and selling puts with identical strike prices. These options allow the Fund to adjust its leverage strategy in response to market conditions, liquidity constraints, or other factors that may affect the availability or pricing of swap agreements. The use of listed options provides additional flexibility in pursuing the Fund’s daily investment objective. In situations where swap availability is constrained, the Fund may rely more heavily on options contracts. Additionally, the Fund may use options in response to changing market dynamics. However, the use of option contracts is typically less efficient than swaps and may increase the likelihood that the Fund is unable to achieve its daily -2X objective. For examples of a hypothetical investment in the Fund, see “Additional Information About the Fund – Principal Investment Strategies” below. Fund performance for periods greater than one single day is primarily (but not solely) a function of the following factors: a) the Reference Asset volatility; b) the Reference Asset performance; c) period of time; d) financing rates associated with inverse exposure; and e) other Fund expenses. The Fund may invest in (1) U.S. Government securities, such as bills, notes and bonds issued by the U.S. Treasury; (2) money market funds; (3) short term bond ETFs; and/or (4) corporate debt securities, such as commercial paper and other short-term unsecured promissory notes issued by businesses that are rated investment grade or of comparable quality as determined by the investment adviser as collateral for the Fund’s derivative positions. The Fund has adopted a policy to have at least 80% of its net assets, plus borrowings for investment purposes, in financial instruments with economic characteristics that should provide 2 times the inverse exposure to the daily performance of its Reference Asset seeking to replicate the performance of the Taiwanese large- and mid-capitalization equity market segments. For purposes of the 80% policy, derivatives will be valued at notional value. The Fund is expected to allocate between 40% and 75% of its assets as collateral for swap agreements or as premiums for purchased options contracts. The Fund is classified as “non-diversified” under the 1940 Act. Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from -200% of the return of the Reference Asset over the same period. The Fund will lose money if the Reference Asset’s performance is flat over time, and as a result of daily rebalancing, the Reference Asset volatility and the effects of compounding, the Fund may lose money over time while the Reference Asset’s performance decreases over a period longer than a single day. As a consequence, investors should not plan to hold shares of the Fund unmonitored for periods longer than a single trading day. Information about the Reference Asset This prospectus relates only to the Fund Shares offered hereby and is not a prospectus for the shares issued by its Reference Asset. The Franklin FTSE Taiwan ETF (NYSE Arca: FLTW), the Fund’s Reference Asset, is an exchange traded product that generally seeks to replicate the performance of the Taiwanese large- and mid-capitalization equity market segments, by passively tracking the investment results of securities indexes designed to measure the performance of the Taiwanese large- and mid-capitalization market segments. This Prospectus will be updated in the event the Adviser determines a different exchange traded product seeking to replicate the performance of the Taiwanese large- and mid-capitalization equity market segments is more appropriate to be utilized as the Reference Asset for purposes of achieving the Fund’s daily inverse investment objective. The Fund intends to manage its assets so that it may invest in swaps and options providing exposure to the Reference Asset without limit to the extent that the Fund believes that there is sufficient market interest and publicly available information for such Reference Asset. You can find FLTW’s prospectus and other information about FLTW including its most recent reports to shareholders, online by reference to Investment Company Act File Nos. 811-23124 through the SEC’s website at www.sec.gov. This document relates only to the securities offered hereby and does not relate to the shares of the Reference Asset. The Fund has derived all disclosures contained in this document regarding the Reference Asset from publicly available documents. None of the Fund, Tidal Trust II (the “Trust”), or the Tidal Investments LLC (the “Adviser”), or their respective affiliates, has participated in the preparation of such publicly available offering documents or made any due diligence inquiry regarding such documents with respect to the Reference Asset. None of the Fund, the Trust, or the Adviser, or their respective affiliates, makes any representation that such publicly available documents or any other publicly available information regarding the Reference Asset is accurate or complete. Furthermore, the Fund cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of the Reference Asset being utilized by the Fund (and therefore the share price of the Fund at the time we price the securities) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning the Reference Asset could affect the value received with respect to the securities and therefore the value of the securities. None of the Fund, the Trust, the Adviser, or their respective affiliates makes any representation to you as to the performance of the Reference Asset. NONE OF THE FUND, THE TRUST, OR THE ADVISER IS AFFILIATED, CONNECTED, OR ASSOCIATED WITH ANY REFERENCE ASSET OR WITH ANY MANAGER OR SPONSOR OF THE REFERENCE ASSET. THE FUND WAS NOT DEVELOPED OR CREATED BY, AND IS NOT SPONSORED, ENDORSED, OR APPROVED BY, THE REFERENCE ASSET OR ANY MANAGER OR SPONSOR OF THE REFERENCE ASSET. (COLLECTIVELY, “REFERENCE ASSET ENTITIES”). Moreover, none of the Reference Asset Entities has participated in the development of the Fund’s investment strategy. None of the Reference Asset Entities select or approve the Fund’s portfolio holdings, nor do they participate in the construction, design, or implementation of the Fund. None of the Reference Asset Entities provide any assurances, guarantees, or representations regarding the Fund or its performance. Nothing herein shall be construed as an offer of any security by the Reference Asset Entities. None of the Fund, the Trust, the Adviser, or their respective affiliates claim any ownership interest in any trademarks owned by the Reference Asset Entities or their affiliates. All rights in the trademarks are reserved by their respective owners. Due to the Fund’s investment strategy, the Fund’s investment exposure is concentrated (i.e., holds 25% or more of its total assets) in the same industry or group of industries in which its Reference Asset concentrates. In turn, the Reference Asset will concentrate its investments in a particular industry or group of industries to approximately the same extent that its respective index is concentrated. As of April 30, 2026, the index tracked by the Reference Asset was significantly comprised of companies engaged in the technology, industrials and financial services industry sectors. The Fund has adopted a policy to have at least 80% of its net assets, plus borrowings for investment purposes, in financial instruments with economic characteristics that should provide 2 times the inverse exposure to the daily performance of its Reference Asset seeking to replicate the performance of the Taiwanese large- and mid-capitalization equity market segments. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund. Reference Asset Price Appreciation Risk. As part of the Fund’s inverse investment strategy, the Fund purchases and sells swap contracts and options contracts that are based on the share price of the Reference Asset. This strategy subjects the Fund to certain of the same risks as if it shorted shares of the Reference Asset , even though it does not. By virtue of the Fund’s indirect -2X exposure to changes in the share price of the Reference Asset, the Fund is subject to the risk that the Reference Asset’s share price increases. If the share price of the Reference Asset increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks: <div id="xdx_A8E_eoef--RiskTextBlock_hoef--RiskAxis__custom--IndirectInvestmentInReferenceAssetRiskMember_z0llgLlyLH71"></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 60px"> </td> <td style="width: 60px">●</td> <td style="text-align: justify">Indirect Investment in Reference Asset Risk. The Reference Asset and the Reference Asset Entities are not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates and are not involved with this offering in any way and have no obligation to consider your Shares in taking any actions that might affect the value of Shares. Investors in the Fund will not have voting rights and will not be able to influence the management of the Reference Asset, but will be exposed to the performance of the Reference Asset. Investors in the Fund will not have rights to receive dividends or other distributions or any other rights with respect to the Reference Asset, but will be adversely impacted by increases in the share price of the Reference Asset.</td></tr> </table> <div id="xdx_A8C_eoef--RiskTextBlock_hoef--RiskAxis__custom--ReferenceAssetGoodPerformanceRiskMember_z2xlFXw7tmP3"></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 60px"> </td> <td style="width: 60px">●</td> <td style="text-align: justify">Reference Asset Good Performance Risk. The Reference Asset may meet or exceed its publicly announced expectations or operational milestones, which could result in a significant increase in the market price of its shares. The Reference Asset tracks an index designed to measure the performance of Taiwanese large- and mid-capitalization stocks. Positive developments contributing to the share price appreciation of Taiwanese large- and mid-capitalization stocks could cause the value of the index, and in turn, Reference Asset shares, to increase, which could cause the Fund to experience significant losses on its short position. Similarly, positive developments within the financial services, technology, industrials or other sectors or industries in which the Reference Asset’s investments may be concentrated could cause the value of Reference Asset shares to increase, which could cause the Fund to experience significant losses given its inverse exposure to the Reference Asset.</td></tr> </table> Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security, may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole. Additionally, the Fund will seek to employ its investment strategy as it relates to the underlying issuer regardless of whether the company has strong earnings reports, or provides positive future guidance, dividend increases, share buybacks, or engages in strategic acquisitions and product launches. Additionally, the Fund will seek to employ its investment strategy as it relates to the underlying issuer regardless of whether there are favorable industry trends, regulatory approvals, analyst upgrades, strategic partnerships, debt reduction, or improved economic conditions. Compounding and Market Volatility Risk. The Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is likely to differ from -200% of the Reference Asset’s performance, before fees and expenses. Compounding has a significant impact on funds that are inverse leveraged and that rebalance daily. The impact of compounding becomes more pronounced as volatility and holding periods increase and will impact each shareholder differently depending on the period of time an investment in the Fund is held and the volatility of the Reference Asset during the shareholder’s holding period of an investment in the Fund. The chart below provides examples of how Reference Asset volatility could affect the Fund’s performance. Fund performance for periods greater than one single day can be estimated given any set of assumptions for the following factors: a) Reference Asset volatility; b) Reference Asset’s performance; c) period of time; d) financing rates associated with leveraged exposure; e) other Fund expenses; and f) the Reference Asset’s dividends. The chart below illustrates the impact of two principal factors – Reference Asset volatility and performance – on Fund performance. The chart shows estimated Fund returns for a number of combinations of Reference Asset volatility and performance over a one-year period. Performance shown in the chart assumes that (i) there were no Fund expenses; and (ii) borrowing rates (needed to obtain a leveraged short exposure) of 0%. If Fund expenses and/or actual borrowing/lending rates were reflected, the estimated returns would be lower than those shown. Particularly during periods where the Reference Asset experiences higher volatility, compounding will cause results for periods longer than a trading day to vary from -200% of the performance of the Reference Asset. As shown in the chart below, the Fund would be expected to lose 17.10% if the Reference Asset provided no return over a one-year period during which the Reference Asset experienced annualized volatility of 25%. At higher ranges of volatility, there is a chance of a significant loss of value in the Fund, even if the Reference Asset return is flat. For instance, if the Reference Asset’s annualized volatility is 100%, the Inverse Fund would be expected to lose 95% of its value, even if the cumulative Reference Asset’s return for the year was 0%. Areas shaded red (or dark gray) represent those scenarios where the Inverse Fund can be expected to return less than -200% of the performance of the Reference Asset and those shaded green (or light gray) represent those scenarios where the Fund can be expected to return more than -200% of the performance of the Reference Asset. The Inverse Fund’s actual returns may be significantly better or worse than the returns shown below as a result of any of the factors discussed above or in “Tracking Error Risk” below. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>One year performance of the Reference Asset</td> <td>-200% of one year performance of the Reference Asset</td> <td colspan="5" style="text-align: center">Volatility Rate (Annualized)</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 35%">Return</td> <td style="white-space: nowrap; width: 15%">Return</td> <td style="white-space: nowrap; width: 10%; text-align: right">10%</td> <td style="white-space: nowrap; width: 10%; text-align: right">25%</td> <td style="white-space: nowrap; width: 10%; text-align: center">50%</td> <td style="white-space: nowrap; width: 10%; text-align: center">75%</td> <td style="white-space: nowrap; width: 10%; text-align: center">100%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">-60%</td> <td style="white-space: nowrap">120%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">506.50%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">418.10%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">195.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-6.80%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-68.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">-50%</td> <td style="white-space: nowrap">100%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">288.20%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">231.60%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">88.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-26.00%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-80.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">-40%</td> <td style="white-space: nowrap">80%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">166.90%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">130.30%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">31.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-45.60%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-86.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">-30%</td> <td style="white-space: nowrap">60%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">98.10%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">69.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-3.60%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-62.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-89.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">-20%</td> <td style="white-space: nowrap">40%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">51.60%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">29.50%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-26.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-71.10%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-92.20%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">-10%</td> <td style="white-space: nowrap">20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">19.80%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">2.30%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-41.70%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-77.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-93.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">0%</td> <td style="white-space: nowrap">0%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-3.00%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-17.10%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-52.80%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-81.50%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-95.00%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">10%</td> <td style="white-space: nowrap">-20%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-19.80%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-31.50%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-61.00%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-84.70%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-95.90%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">20%</td> <td style="white-space: nowrap">-40%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-32.60%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-42.40%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-67.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-87.20%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-96.50%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">30%</td> <td style="white-space: nowrap">-60%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-42.60%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-50.90%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-72.00%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-89.10%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-97.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">40%</td> <td style="white-space: nowrap">-80%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-50.50%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-57.70%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-75.90%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-90.60%</td> <td style="white-space: nowrap; background-color: #C00000; text-align: right">-97.50%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">50%</td> <td style="white-space: nowrap">-100%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-56.90%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-63.20%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-79.00%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-91.80%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-97.80%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">60%</td> <td style="white-space: nowrap">-120%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-62.10%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-67.60%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-81.50%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-92.80%</td> <td style="white-space: nowrap; background-color: #92D050; text-align: right">-98.10%</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; background-color: #92D050; text-align: right"> </td> <td style="white-space: nowrap; background-color: #92D050; text-align: right"> </td> <td style="white-space: nowrap; background-color: #92D050; text-align: right"> </td> <td style="white-space: nowrap; background-color: #92D050; text-align: right"> </td> <td style="white-space: nowrap; background-color: #92D050; text-align: right"> </td></tr> </table> Since market volatility has negative implications for the Fund which rebalances its derivatives daily, investors should be sure to monitor and manage their investments in the Fund particularly in volatile markets. Historical volatility and performance for the Reference Asset are not likely indicative of future volatility and performance. Daily Correlation/Tracking Risk. There is no guarantee that the Fund will achieve a high degree of inverse correlation to the Reference Asset and therefore achieve its daily inverse investment objective. To achieve a high degree of 2 times inverse correlation with the Reference Asset, the Fund seeks to rebalance its portfolio daily to keep exposure consistent with its daily inverse investment objective. The possibility of the Fund being materially over-exposed (meaning providing more than -200% exposure to the Reference Asset – i.e., -201% or greater) or under-exposed (meaning providing less than -200% exposure to the Reference Asset – i.e., -199% or less) to the Reference Asset increases on days when the Reference Asset is volatile near the close of the trading day. Market disruptions, regulatory restrictions and extreme volatility will also adversely affect the Fund’s ability to adjust exposure to the required levels. If there is a significant intra-day market event and/or the Reference Asset experiences a significant increase or decline, the Fund may not meet its investment objective, be able to rebalance its portfolio appropriately, or may experience significant premiums or discounts, or widened bid-ask spreads. The Fund may have difficulty achieving its daily 2 times inverse investment objective due to fees, expenses, transaction costs, financing costs related to the use of derivatives, investments in ETFs, directly or indirectly, income items, valuation methodology, accounting standards and disruptions or illiquidity in the markets for the securities or derivatives held by the Fund. The Fund may be subject to large movements of assets into and out of the Fund, potentially resulting in the Fund being over- or under-exposed to the Reference Asset. The Fund may take or refrain from taking positions to improve the tax efficiency or to comply with various regulatory restrictions, either of which may negatively impact the Fund’s 2 times inverse correlation to the Reference Asset. Short Sale Exposure Risk. The Fund will seek inverse or “short” exposure through financial instruments, which would cause the Fund to be exposed to certain risks associated with selling short. These risks include, under certain market conditions, an increase in the volatility and decrease in the liquidity of the instruments underlying the short position, which may lower the Fund’s return, result in a loss, have the effect of limiting the Fund’s ability to obtain inverse exposure through financial instruments, or require the Fund to seek inverse exposure through alternative investment strategies that may be less desirable or more costly to implement. To the extent that, at any particular point in time, the instruments underlying the short position may be thinly traded or have a limited market, including due to regulatory action, the Fund may be unable to meet its investment objective due to a lack of available securities or counterparties. During such periods, the Fund’s ability to issue additional Shares may be adversely affected. Obtaining inverse exposure through these instruments may be considered an aggressive investment technique. Any income, dividends or payments by any assets underlying the Fund’s short positions, if any, would negatively impact the Fund. The Fund could lose an amount greater than its net assets in the event the Reference Asset increases more than 50%. Concentration Risk. Due to the Fund’s investment strategy, the Fund will have economic exposure that is concentrated to approximately the same extent that its Reference Asset concentrates in a particular industry or group of related industries. As a result, the value of Shares may rise and fall more than the value of shares of funds that invest in securities of, or have exposure to, companies in a broader range of industries. Aggressive Investment Technique Risk. The Fund uses investment techniques considered to be aggressive, including the use of inverse leverage and derivatives such as swaps and options to achieve 2x inverse or “short” exposure. Because these investment techniques often involve a small investment relative to the amount of investment exposure assumed, they may result in losses exceeding the amounts invested. Leverage Risk. The Fund utilizes leverage in its investment program. The use of leverage allows the Fund to make additional investments, thereby increasing its exposure to assets, such that its total assets may be greater than its capital. However, leverage also magnifies the volatility of changes in the value of the Fund’s portfolio. The effect of the use of leverage by the Fund in a market that moves adversely to its investments could result in substantial losses to the Fund, which would be greater than if the Fund were not leveraged. Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, leverage, imperfect daily correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. The use of derivatives may result in larger losses or smaller gains than directly investing in securities. When the Fund uses derivatives, there may be imperfect correlation between the value of the Reference Asset and the derivative, which may prevent the Fund from achieving its investment objective. Because derivatives often require only a limited initial investment, the use of derivatives may expose the Fund to losses in excess of those amounts initially invested. The Fund will be subject to regulatory constraints relating to level of value at risk that the Fund may incur through its derivative portfolio. If the Fund exceeds these regulatory thresholds, it may adjust its portfolio. These adjustments may cause the Fund to fail to achieve investment results, before fees and expenses, that correspond to -200% of the daily performance of the Reference Asset and may result in substantially lower returns during these periods. To the extent the Fund exceeds these regulatory thresholds over an extended period, the Fund may determine that it is necessary to make adjustments to the Fund’s investment strategy, including the desired daily inverse performance for the Fund. In addition, the Fund’s investments in derivatives are subject to the following risks: Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Whether the Fund will be successful in using swap agreements to achieve its investment goal depends on the ability of the Adviser to structure such swap agreements in accordance with the Fund’s investment objective and to identify counterparties for those swap agreements. If the Adviser, is unable to enter into swap agreements that provide inverse exposure to the Reference Asset, the Fund may not meet its stated investment objective. Additionally, any financing, borrowing or other costs associated with using swap transactions may also have the effect of lowering the Fund’s return. The swap agreements in which the Fund invests are generally traded in the over-the-counter market, which generally has less transparency than exchange-traded derivatives instruments. In a standard swap transaction, two parties agree to exchange the return (or differentials in rates of return) earned or realized on particular predetermined reference assets or underlying securities or instruments. The gross return to be exchanged or swapped between the parties is calculated based on a notional amount or the return on or change in value of a particular dollar amount invested in a basket of securities. If the Reference Asset has a dramatic move that causes a material decline in the Fund’s net assets, the terms of a swap agreement between the Fund and its counterparty may permit the counterparty to immediately close out the swap transaction with the Fund. In that event, the Fund may be unable to enter into another swap agreement or invest in other derivatives to achieve exposure consistent with the Fund’s investment objective. This may prevent the Fund from achieving its inverse investment objective, even if the Reference Asset later reverses all or a portion of its movement. Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events. The value of the options contracts in which the Fund invests are substantially influenced by the value of the Reference Asset. The Fund may experience substantial downside from specific option positions and certain option positions held by the Fund may expire worthless. The options held by the Fund are exercisable at the strike price on their expiration date. As an option approaches its expiration date, its value typically increasingly moves with the value of the underlying instrument. However, prior to such date, the value of an option generally does not increase or decrease at the same rate as the underlying instrument. There may at times be an imperfect correlation between the movement in values options contracts and the underlying instrument, and there may at times not be a liquid secondary market for certain options contracts. The value of the options held by the Fund will be determined based on market quotations or other recognized pricing methods. Additionally, as the Fund intends to continuously maintain indirect exposure to the Reference Asset through the use of options contracts, as the options contracts it holds are exercised or expire it will enter into new options contracts, a practice referred to as “rolling.” If the expiring options contracts do not generate proceeds enough to cover the cost of entering into new options contracts, the Fund may experience losses. The use of options to generate leverage introduces additional risks, including significant potential losses if the market moves unfavorably. The leverage inherent in options can amplify both gains and losses, leading to increased volatility and potential for substantial losses, particularly in periods of market uncertainty or low liquidity. Additionally, the Fund may incur losses if the value of the Reference Asset moves against its positions, potentially resulting in a complete loss of the premium paid. Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in derivatives which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund and the Fund may be unable to recover its investment from such counterparty or may obtain a limited and/or delayed recovery. Counterparties may seek to hedge their exposure to individual clients (such as the Fund) by establishing offsetting exposures with other clients, however, there is no guarantee that counterparties will do so under all circumstances. Should a counterparty (e.g., a swap counterparty) terminate its relationship with the Fund, the Fund will seek to utilize other counterparties to seek to maintain its exposures. In addition, the Fund may use options contracts to seek to generate the leverage necessary to implement its strategy. The use of options contracts introduces distinct risks, including heightened volatility, particularly intraday. While options may provide an ancillary benefit of mitigating some losses under specific scenarios, such as severe market downturns, their inherent leverage and rapid price fluctuations can amplify the Fund’s performance volatility and lead to greater risks of substantial losses. Refer to “Derivatives Risk – Options Contracts” for additional information on the risks of investing in options. In addition, the Fund may enter into swap agreements with a limited number of counterparties, which may increase the Fund’s exposure to counterparty credit risk. Further, there is a risk that no suitable counterparties will be willing to enter into, or continue to enter into, transactions with the Fund and, as a result, the Fund may not be able to achieve its investment objective. Intra-Day Investment Risk. The Fund seeks investment results from the close of the market on a given trading day until the close of the market on the subsequent trading day. The exact exposure of an investment in the Fund intraday in the secondary market is a function of the difference between the value of the Reference Asset at the market close on the first trading day and the value of the Reference Asset at the time of purchase. If the Reference Asset declines in value, the Fund’s net assets will rise by the same amount as the Fund’s exposure. Conversely, if the Reference Asset gains in value, the Fund’s net assets will decline by the same amount as the Fund’s exposure. Thus, an investor that purchases Shares intra-day may experience performance that is greater than, or less than, the Fund’s stated inverse performance of the Reference Asset. If there is a significant intra-day market event and/or the securities of the Reference Asset experience a significant increase or decrease, the Fund may not meet its investment objective or rebalance its portfolio appropriately. Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default), extension risk (an issuer may exercise its right to repay principal on a fixed rate obligation held by the Fund later than expected), and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by the Fund, possibly causing the Fund’s Share price and total return to be reduced and fluctuate more than other types of investments. Rebalancing Risk. If for any reason the Fund is unable to rebalance all or a portion of its portfolio, or if all or a portion of the portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with the Fund’s investment objective. In these instances, the Fund may have investment exposure to the Reference Asset that is significantly greater or less than its stated investment objective. As a result, the Fund may be exposed to leverage risk because it had not been properly rebalanced and may not achieve its investment objective. Economic and Market Risk. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to securities in the general financial markets, a particular financial market, or other asset classes, due to a number of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, financial system instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Fund’s investments may be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or events, country instability, and infectious disease epidemics or pandemics. The imposition by the U.S. of tariffs on goods imported from foreign countries and reciprocal tariffs levied on U.S. goods by those countries also may lead to volatility and instability in domestic and foreign markets. Geopolitical Risk. The companies represented in an index tracked by the Reference Asset are generally subject to substantial geopolitical risks due to the complex and often tense relationship between Taiwan and China, including the potential for military conflict and supply chain disruptions. Due to the Fund’s inverse exposure strategy, if the performance of Taiwanese large- and mid-capitalization companies is harmed by an escalation in cross-strait tensions or military conflict, this could lead to potential positive Fund performance, whereas an easing of such tensions or reduced potential for conflict could positively impact Taiwanese large- and mid-capitalization company market values, which in turn could negatively impact Fund performance (given its inverse exposure to the sector). ETF Risks <p id="xdx_A87_eoef--RiskTextBlock_hoef--RiskAxis__custom--AuthorizedParticipantsMarketMakersAndLiquidityProvidersConcentrationRiskMember_zukbgEA3dkWg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk. The Fund has a limited number of financial institutions that are authorized to purchase and redeem Shares directly from the Fund (known as “Authorized Participants” or “APs”). In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Shares may trade at a material discount to NAV and possibly face delisting: (i) APs exit the business or otherwise become unable to process creation and/or redemption orders and no other APs step forward to perform these services; or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions. Cash Redemption Risk. The Fund’s investment strategy may require it to redeem Shares for cash or to otherwise include cash as part of its redemption proceeds. For example, the Fund may not be able to redeem in-kind certain securities held by the Fund (e.g., derivative instruments). In such a case, the Fund may be required to sell or unwind portfolio investments to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used. By paying out higher annual capital gain distributions, investors may be subjected to increased capital gains taxes. The costs associated with cash redemptions may include brokerage costs that the Fund may not have incurred if it had made the redemptions in-kind. These costs could be imposed on the Fund, decreasing its NAV, to the extent these costs are not offset by a transaction fee payable by an authorized participant. Costs of Buying or Selling Shares. Buying or selling Shares involves certain costs, including brokerage commissions, other charges imposed by brokers, and bid-ask spreads. The bid-ask spread represents the difference between the price at which an investor is willing to buy Shares and the price at which an investor is willing to sell Shares. The spread varies over time based on the Shares’ trading volume and market liquidity. The spread is generally lower if Shares have more trading volume and market liquidity and higher if Shares have little trading volume and market liquidity. Due to the costs of buying or selling Shares, frequent trading of Shares may reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments. <p id="xdx_A8F_eoef--RiskTextBlock_hoef--RiskAxis__custom--SharesMayTradeAtPricesOtherThanNavMember_z5h2jZdH0Hzj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Shares May Trade at Prices Other Than NAV. As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility. This risk is heightened in times of market volatility, periods of steep market declines, and periods when there is limited trading activity for Shares in the secondary market, in which case such premiums or discounts may be significant. Trading. Although Shares are listed on a national securities exchange, such as CBOE BZX Exchange, Inc. (the “Exchange”), and may be traded on U.S. exchanges other than the Exchange, there can be no assurance that Shares will trade with any volume, or at all, on any stock exchange. In stressed market conditions, the liquidity of Shares may begin to mirror the liquidity of the Fund’s underlying portfolio holdings, which can be significantly less liquid than Shares. This adverse effect on liquidity for the Fund’s shares may lead to wider bid-ask spreads and differences between the market price of the Fund’s shares and the underlying value of the shares. Liquidity Risk. In certain circumstances, such as the disruption of the orderly markets for the financial instruments in which the Fund invests, the Fund might not be able to acquire or dispose of certain holdings quickly or at prices that represent true market value in the judgment of the Adviser. Markets for the financial instruments in which the Fund invests may be disrupted by a number of events, including but not limited to economic crises, health crises, natural disasters, excessive volatility, new legislation, or regulatory changes inside or outside of the U.S. These situations may have an impact on the liquidity of the Fund’s own shares. High Portfolio Turnover Risk. Daily rebalancing of the Fund’s holdings pursuant to its daily investment objective causes a much greater number of portfolio transactions when compared to most ETFs. Additionally, active market trading of the Fund’s Shares on such exchanges as the Exchange, could cause more frequent creation and redemption activities, which could increase the number of portfolio transactions. Frequent and active trading may lead to higher transaction costs because of increased broker commissions resulting from such transactions. In addition, there is the possibility of significantly increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them). The Fund calculates portfolio turnover without including the short-term cash instruments or derivative transactions that comprise the majority of the Fund’s trading. As such, if the Fund’s extensive use of derivative instruments were reflected, the calculated portfolio turnover rate would be significantly higher. Tracking Error Risk. Tracking error is the divergence of the Fund’s performance from that of its investment objective which aims to replicate -2X the daily percentage change in the price of the Reference Asset. Tracking error may occur for a number of reasons. Tracking error may occur because of transaction costs, the Fund’s holding of cash, differences in accrual of dividends, being under- or overexposed to the Reference Asset or the need to meet new or existing regulatory requirements. Tracking error risk may be heightened during times of market volatility or other unusual market conditions such as market disruptions. The Fund may be required to deviate from its investment objectives, and therefore experience tracking error, as a result of market restrictions or other legal reasons, including regulatory limits or other restrictions on securities that may be purchased by the Adviser and its affiliates. Liquidity Risk. Some securities held by the Fund may be difficult to sell or be illiquid, particularly during times of market turmoil. Markets for securities or financial instruments could be disrupted by a number of events, including, but not limited to, an economic crisis, natural disasters, epidemics/pandemics, new legislation or regulatory changes inside or outside the United States. Illiquid securities may be difficult to value, especially in changing or volatile markets. If the Fund is forced to sell an illiquid security at an unfavorable time or price, the Fund may be adversely impacted. Certain market conditions or restrictions, such as market rules related to short sales, may prevent the Fund from limiting losses, realizing gains or achieving a high correlation with the Reference Asset. There is no assurance that a security that is deemed liquid when purchased will continue to be liquid. Market illiquidity may cause losses for the Fund. Money Market Instrument Risk. The Fund may use a variety of money market instruments for cash management purposes, including money market funds, depositary accounts and repurchase agreements. Repurchase agreements are contracts in which a seller of securities agrees to buy the securities back at a specified time and price. Repurchase agreements may be subject to market and credit risk related to the collateral securing the repurchase agreement. Money market instruments may lose money. New Fund Risk. The Fund is a recently organized management investment company with a limited operating history. As a result, prospective investors have only a limited track record or history on which to base their investment decisions. Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio. This may increase the Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on the Fund’s performance. Trading Halt Risk. Although the Reference Asset’s shares are listed for trading on an exchange, there can be no assurance that an active trading market for such shares will be available at all times and the Exchange may halt trading of such shares in certain circumstances. A halt in trading in the Reference Asset’s shares is expected, in turn, to result in a halt in the trading in the Fund’s Shares. Trading in the Reference Asset’s and/or Fund’s Shares on the Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in the Reference Asset’s and/or Fund’s Shares inadvisable. In addition, trading in Reference Asset’s and/or Fund’s Shares on an exchange is subject to trading halts caused by extraordinary market volatility pursuant to exchange “circuit breaker” rules.” In the event of a trading halt for an extended period of time, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy. Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and the Fund’s investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. U.S. Government and U.S. Agency Obligations Risk. The Fund may invest in securities issued by the U.S. government or its agencies or instrumentalities. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, such as the U.S. Treasury. Payment of principal and interest on U.S. Government obligations may be backed by the full faith and credit of the United States or may be backed solely by the issuing or guaranteeing agency or instrumentality itself. In the latter case, the investor must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment, which agency or instrumentality may be privately owned. There can be no assurance that the U.S. Government would provide financial support to its agencies or instrumentalities (including government-sponsored enterprises) where it is not obligated to do so. Tax Risk. The Fund intends to elect and to qualify each year to be treated as a RIC under Subchapter M of the Code. As a RIC, the Fund will not be subject to U.S. federal income tax on the portion of its net investment income and net capital gain that it distributes to Shareholders, provided that it satisfies certain requirements of the Code. If the Fund does not qualify as a RIC for any taxable year and certain relief provisions are not available, the Fund’s taxable income will be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. To comply with the asset diversification test applicable to a RIC, the Fund will attempt to ensure that the value of swap contracts and options on shares of a single issuer does not exceed 25% of the Fund’s value at the close of any quarter. If the value of swap contracts and options on shares of a single issuer were to exceed 25% of the Fund’s total assets at the end of a tax quarter, the Fund, generally, has a grace period to cure such lack of compliance. If the Fund fails to timely cure, it may no longer be eligible to be treated as a RIC. Performance Performance information for the Fund is not included because the Fund has not completed a full calendar year of operations as of the date of this Prospectus. When such information is included, this section will provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance history from year to year and showing how the Fund’s average annual total returns compare with those of a broad measure of market performance. Although past performance of the Fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risks of investing in the Fund. Updated performance information will be available on the Fund’s website at www.defianceetfs.com. Performance information for the Fund is not included because the Fund has not completed a full calendar year of operations as of the date of this Prospectus. When such information is included, this section will provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance history from year to year and showing how the Fund’s average annual total returns compare with those of a broad measure of market performance. Although past performance of the Fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risks of investing in the Fund. www.defianceetfs.com The Fund’s investment adviser, Tidal Investments LLC (the “Adviser”), a Tidal Financial Group company, will pay all expenses incurred by the Fund (except for advisory fees ) excluding interest charges on any borrowings made for investment purposes, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”), and litigation expenses and other non-routine or extraordinary expenses. Based on estimated amounts for the current fiscal year. The cost of investing in swaps, including the embedded cost of the swap and the operating expenses of the referenced assets, is an indirect expense that is not included in the above fee table and is not reflected in the expense example. The Fund’s adviser will pay, or require a sub-adviser to pay, all of the Fund’s expenses, except for the following: advisory and sub-advisory fees, interest charges on any borrowings made for investment purposes, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”), litigation expenses, and other non-routine or extraordinary expenses. Based on estimated amounts for the current fiscal year. The cost of investing in swaps, including the embedded cost of the swap and the operating expenses of the referenced assets, is an indirect expense that is not included in the above fee table and is not reflected in the expense example.