1. The Bitcoin Strategy ProFund (the “Fund”) seeks capital appreciation. There can be no assurance that theFund will achieve its investment objective. The Fund does not hold bitcoin. The Fund is not intended to trackthe performance of the spot price of bitcoin and over time may perform differently than the spot price ofbitcoin.
The Fund invests in bitcoin futures contracts. The Fund does not invest directly in or hold bitcoin. The price of bitcoin futures should be expected to differ from the current or “spot” price of bitcoin. Consequently, the performance of the Fund should be expected to differ from the performance of the spot price of bitcoin. The market for bitcoin futures may be less developed, and potentially less liquid and more volatile, than more established futures markets. Bitcoin futures are subject to margin requirements, collateral requirements and daily limits that may prevent the Fund from achieving its objective.
Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin is subject to rapid price swings, including as a result of actions and statements by influencers and the media.
If the Fund’s ability to obtain exposure to bitcoin-related investments consistent with its investment objective is disrupted for any reason, including as a result of a lack of liquidity, volatility or a disruption to the bitcoin futures market, or as a result of margin requirements or position limits applicable to the Fund, the Fund may not be able to achieve its investment objective and may experience significant losses. ProFunds may, in its sole discretion and without prior notice, limit or reject purchases or close the Fund to new investment. ProFunds may re-open the Fund in its sole discretion and without prior notice.
“Spot”price refers to the price of physical bitcoin that can be purchased for immediate delivery.
Supply and demand for bitcoin futures contracts – The price for bitcoin futures contracts is based on a number of factors, including the supply of and the demand for bitcoin futures contracts. Market conditions and expectations, position limits, collateral requirements, and other factors each can impact the supply of and demand for bitcoin futures contracts. Recently, increased demand paired with supply constraints and other factors have caused bitcoin futures to trade at a significant premium to the “spot” price of bitcoin. Additional demand, including demand resulting from the purchase, or anticipated purchase, of futures contracts by the Fund or other entities may increase that premium, perhaps significantly. It is not possible to predict whether or how long such conditions will continue. To the extent the Fund purchases futures contracts at a premium and the premium declines, the value of an investment in the Fund also should be expected to decline.
CF BENCHMARKS LTD INDEX DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR CERTAIN PROFUNDS PRODUCTS. CF BENCHMARKS LTD, ITS LICENSORS AND AGENTS HAVE NO OTHER CONNECTION TO PROFUNDS PRODUCTS AND SERVICES AND DO NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY PROFUNDS PRODUCTS OR SERVICES. CF BENCHMARKS ITS LICENSORS AND AGENTS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE PROFUNDS PRODUCTS AND SERVICES. CF BENCHMARKS ITS LICENSORS AND AGENTS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX LICENSED TO PROFUNDS AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.
Many ProFunds seekdaily investment results that correspond, before fees and expenses, toa multiple(e.g., 2x, -2x )ofthe daily performance of its underlying benchmark (the “Daily Target”).Whilethese Funds havea daily investment objective, you may hold Fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance. For any holding period other than a day, your return may be higher or lower than the Daily Target. These differences may be significant. Smaller index gains/losses and higher index volatility contribute to returns worse than the Daily Target. Larger index gains/losses and lower index volatility contribute to returns better than the Daily Target. The more extreme these factors are, the more they occur together, and the longer your holding period while these factors apply, the more your return will tend to deviate. Investors should consider periodically monitoring their geared fund investments in light of their goals and risk tolerance.
ProFunds are not suitable for all investors because of the sophisticated techniques the funds employ. Investing involves risk, including the possible loss of principal. ProFunds entail certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. For more on correlation, leverage and other risks, please read the prospectus. There is no guarantee any ProFund will achieve its investment objective.
All ProFunds are subject to active investor risk. There are no restrictions on the size and frequency of trades and no transaction fees. The frequent exchanges our policies permit can decrease performance, increase expenses and cause investors to incur tax consequences. Other brokerage or service fees may apply.
Carefully consider the investment objectives, risks, charges and expenses of ProFunds before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.
ProFunds are distributed by ProFunds Distributors, Inc.
