UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, ~~2018~~2019.

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to .

Commission file number: 001-38152

USCF Funds Trust

(Exact name of registrant as specified in its charter)

Delaware		38-7159729
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1850 Mt. Diablo Boulevard, Suite 640

Walnut Creek, California 94596

(Address of principal executive offices) (Zip code)

(510) 522-9600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

United States 3x Oil Fund		NYSE Arca Equities, Inc.
Shares of United States 3x Oil Fund		NYSE Arca Equities, Inc.
United States 3x Short Oil Fund		NYSE Arca Equities, Inc.
Shares of United States 3x Short Oil Fund		NYSE Arca Equities, Inc.
(Title of each series)		(Name of exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes x No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨ Yes x No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ¨ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	x	Smaller reporting company	¨

		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

~~The~~Securities ~~aggregate~~registered ~~market~~pursuant ~~value~~to Section 12(b) of ~~the shares~~ ~~of each series of~~ the ~~registrant held by non-affiliates as of June 30, 2018 and the number of outstanding shares of each series of the registrant as of March 22, 2019 are included in the table below~~Act:

	Aggregate Market Value of Each Series’ Shares Held by Non-Affiliates as of June 30, 2018			Number of Outstanding Shares as of March 22, 2019
Title of each class:	Trading Symbol(s)		Name of each exchange on which registered:
United States 3x Oil Fund	$	7,822,000			700,040
Shares of United States 3x Oil Fund	USOU		NYSE Arca Equities, Inc.
United States 3x Short Oil Fund		729,000			450,040
Shares of United States 3x Short Oil Fund	USOD		NYSE Arca Equities, Inc.
Total	$	8,551,000			1,150,080

The aggregate market value of the shares of each series of the registrant held by non-affiliates as of June 30, 2019 and the number of outstanding shares of each series of the registrant as of December 31, 2019 are included in the table below:

	Aggregate Market Value of Each Series’ Shares Held by Non-Affiliates as of June 30, 2019		Number of Outstanding Shares as of December 31, 2019
United States 3x Oil Fund*	$	22,848,000		NA
United States 3x Short Oil Fund*		2,827,000		NA
Total*	$	25,675,000		NA

* USOU and USOD ceased trading on the NYSE Arca on December 12, 2019 and the liquidation date for each of the Funds was December 18, 2019 and the proceeds of the liquidation were sent to all remaining shareholders of USOU and USOD, respectively, on or about December 19, 2019.

DOCUMENTS INCORPORATED BY REFERENCE:

None.

USCF FUNDS TRUST

Table of Contents

	Page	~~Page~~
Part I
Item 1. Business.	3	3
Item 1A. Risk Factors.	34	34
Item 1B. Unresolved Staff Comments.	56	55
Item 2. Properties.	56	55
Item 3. Legal Proceedings.	56	55
Item 4. Mine Safety Disclosures.	56	55
Part II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	56	55
Item 6. Selected Financial Data.	57	56
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	58	57
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.	72	79
Item 8. Financial Statements and Supplementary Data.	73	80
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.	104	~~112~~
Item 9A. Controls and Procedures.	104	~~112~~
Item 9B. Other Information.	104	~~112~~
Part III
Item 10. Directors, Executive Officers and Corporate Governance.	105	~~113~~
Item 11. Executive Compensation.	110	~~118~~
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	110	~~118~~
Item 13. Certain Relationships and Related Transactions, and Director Independence.	110	~~118~~
Item 14. Principal Accountant Fees and Services.	111	~~119~~
Part IV
Item 15. Exhibits and Financial Statement Schedules.	112	~~120~~
Exhibit Index.	112	~~120~~
Signatures.	113	~~121~~

Part I

Item 1. Business.

What is the Trust and the Trust Series?

The USCF Funds Trust (the “Trust”) is a Delaware statutory trust formed on March 2, 2016. The Trust is a series trust formed pursuant to the Delaware Statutory ~~Trust~~ Trust Act. United States 3x Oil Fund (“USOU”) and United States 3x Short Oil Fund (“USOD”) are both series of of the Trust. Two other series: REX S&P MLP Fund (“RMLP”), and REX S&P MLP Inverse Fund (“MLPD”, ~~together~~ together with RMLP, the “REX Funds”)) never commenced operations and filed to withdraw from registration on March 30, 2018. USOU and USOD are commodity pools that continuously issue common shares of beneficial interest that may be purchased and sold on NYSE Arca Equities, Inc. stock exchange (“NYSE Arca”). USOU and USOD each referred to as the “Fund” ~~and~~ and collectively referred to herein as the “Funds” or the “Trust Series.” The Trust and the Funds operate ~~pursuant~~ pursuant to the Trust’s Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”), dated as of June 23, 2017. The sole trustee of the Trust is Wilmington Trust Company, National Association, a national banking association, with its principal place of business in the State of Delaware (the “Trustee”). The Trust and the Funds are managed and operated by the United States Commodity Funds, LLC (“USCF” or the “Sponsor”). USCF is a limited liability company formed in Delaware on May 10, 2005, that is registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”).

The Trust and Trust Series maintain ~~their~~ their main business offices at 1850 Mt. Diablo Boulevard, Suite 640, Walnut Creek, California 94596.

~~Investment~~On ~~Objective~~November 20, 2019, the Board of Directors of USCF authorized and approved the closing and liquidation for each of USOU and USOD together with a plan of liquidation for each of USOU and USOD. The USCF Funds Trust, including each of its series USOU and USOD filed a current report on Form 8-K dated November 20, 2019 with the U.S. Securities and Exchange Commission (“SEC”) that included, as an exhibit, the press release, and the applicable plan of liquidation. In addition, each of USOU and USOD filed a prospectus supplement with the SEC dated November 19, 2019.

~~United~~The ~~States~~liquidation 3xdate ~~Oil~~for ~~Fund~~each of USOU and USOD was December 18, 2019 and the proceeds of the liquidation were sent to all remaining shareholders of USOU and USOD, respectively, on or about December 19, 2019. Each of USOU and USOD also filed a post-effective amendment to the registration statement with the SEC to terminate the offering of registered and unsold shares of USOU and USOD, respectively, and the NYSE Arca filed Forms 25 to effect the withdrawal of the listings for shares of each of USOU and USOD.

~~The~~Given ~~investment~~the ~~objective~~closing ofand ~~USOU~~liquidation isof ~~for~~USOU ~~the~~and ~~daily~~USOD ~~changes~~as indescribed ~~percentage~~above, ~~terms~~all of ~~its~~the ~~shares’~~forward-looking ~~per~~statements, ~~share~~strategy, ~~net~~trading, ~~asset~~risk ~~value~~factors, ~~(“NAV”)~~marketing, tooperational ~~reflect three times~~and ~~(3x)~~other ~~the~~information ~~daily~~set ~~change~~forth in ~~percentage~~this ~~terms~~Annual ofReport ~~the~~on ~~price of a specified short~~Form 10-~~term~~K ~~futures contract on light, sweet crude oil~~ (the “~~Benchmark~~Annual ~~Oil Futures Contract~~Report”) ~~less USOU’s expenses. To achieve this objective~~, ~~USCF endeavors~~ to ~~have~~ the ~~notional~~ ~~value~~extent ~~of USOU’s aggregate exposure to the Benchmark Oil Futures Contract at the close of each trading day approximately equal to 300% of its NAV. USOU seeks a return~~ that ~~is 300% of the return of the Benchmark Oil Futures Contract for a single day~~such ~~and~~information ~~does~~refers ~~not seek~~ to ~~achieve~~future ~~its~~operations, ~~stated~~is ~~investment~~no ~~objective~~longer ~~over a period of time greater than one day~~effective. ~~The pursuit of daily leveraged investment goals means that the return of~~ USOU ~~for~~and aUSOD ~~period~~have ~~longer~~ceased ~~than~~doing abusiness ~~full~~and ~~trading~~dissolved, ~~day may have no resemblance~~except to ~~300% of~~ the ~~return~~extent ofnecessary ~~the~~to ~~Benchmark~~wind ~~Oil~~down ~~Futures Contract for a period of longer than a full trading day because the aggregate return of~~ USOU isand ~~the product of the series of each trading day’s daily returns~~USOD.

~~USCF~~Investment ~~believes~~Objective that market arbitrage opportunities will cause daily changes in USOU’s share price on NYSE Arca on a percentage basis, to closely track the daily changes in USOU’s per share NAV on a percentage basis. USOU will not seek to achieve its stated investment objective over a period of ~~time~~ ~~greater than one day. During periods of market volatility,~~ the volatility of the Benchmark Oil Futures Contract may affect USOU’s return as much as or more than the return of the Benchmark Oil Futures Contract. Further, the return for investors that invest for periods less than a full trading day or for a period different than a trading day will not be the product of the return of USOU’s stated investment objective and the performance of the Benchmark Oil Futures Contract for the full trading day. Additionally, investors should be aware that USOU’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil. Natural market forces called contango and backwardation can impact the total return on an investment in USOU’s shares relative to a hypothetical direct investment in crude oil and, in the future, it is likely that the relationship between the market price of USOU’s shares and changes in the spot prices of light, sweet crude oil will continue to be so impacted by contango and backwardation. (It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing crude oil, which could be substantial.)Funds

~~USOU’s~~United ~~shares~~States ~~began~~3x ~~trading on July 20, 2017. As of December 31, 2018, USOU held 1,046 NYMEX WTI Crude~~ Oil ~~Futures CL contracts and did not hold ICE WTI Crude Oil Futures contracts.~~Fund

~~United~~The ~~States~~investment objective of USOU was for the daily changes in percentage terms of its shares’ per share net asset value (“NAV”) to reflect three times (3x) ~~Short~~the daily change in percentage terms of the price of a specified short-term futures contract on light, sweet crude oil (the “Benchmark Oil ~~Fund~~Futures Contract”) less USOU’s expenses. To achieve this objective, USCF endeavored to have the notional value of USOU’s aggregate exposure to the Benchmark Oil Futures Contract at the close of each trading day approximately equal to 300% of its NAV. USOU sought a return that is 300% of the return of the Benchmark Oil Futures Contract for a single day and did not seek to achieve its stated investment objective over a period of time greater than one day. The pursuit of daily leveraged investment goals means that the return of USOU for a period longer than a full trading day may have no resemblance to 300% of the return of the Benchmark Oil Futures Contract for a period of longer than a full trading day because the aggregate return of USOU is the product of the series of each trading day’s daily returns.

~~The~~USCF ~~investment~~believes ~~objective~~that ofmarket ~~USOD~~arbitrage ~~is for~~opportunities ~~the~~will cause daily changes in USOU’s share price on NYSE Arca on a percentage ~~terms~~basis, ofto ~~its~~closely ~~shares~~track the daily changes in USOU’s per share ~~net~~NAV ~~asset~~on ~~value~~a ~~(“NAV”)~~percentage tobasis. ~~reflect~~USOU ~~three~~will ~~times the~~not ~~inverse~~seek ~~(-3x)~~to ofachieve ~~the~~its ~~daily~~stated ~~change~~investment inobjective ~~percentage~~over ~~terms~~a period of time ~~the~~greater ~~price~~than ofone aday. ~~specified~~During ~~short-term~~periods ~~futures~~of ~~contract~~market ~~on light~~volatility, ~~sweet crude~~the ~~oil~~volatility (of the “Benchmark Oil Futures Contract”) ~~less~~may ~~USOD~~affect USOU’s ~~expenses.~~return Toas ~~achieve~~much ~~this~~as ~~objective,~~or ~~USCF~~more ~~endeavors to~~than ~~have~~ the ~~notional~~return ~~value~~ of ~~USOD’s aggregate short exposure to~~ the Benchmark Oil Futures Contract. atFurther, the ~~close~~return offor ~~each~~investors that invest for periods less than a full trading day ~~approximately~~or ~~equal~~for toa ~~300%~~period ofdifferent ~~its~~than ~~NAV.~~a ~~USOD~~trading ~~seeks~~day awill ~~return~~not ~~that~~be isthe ~~-300%~~product of the return of USOU’s stated investment objective and the performance of the Benchmark Oil Futures Contract for athe ~~single~~full trading day. ~~and~~Additionally, ~~does~~investors ~~not~~should ~~seek~~be toaware ~~achieve~~that ~~its~~USOU’s ~~stated~~ investment objective ~~over~~is anot ~~period~~for ofits ~~time~~NAV ~~greater~~or ~~than~~market ~~one~~price of shares ~~day.~~to ~~The~~equal, ~~pursuit~~in dollar terms, the spot price of ~~daily~~light, ~~inverse~~sweet ~~leveraged~~crude ~~investment~~oil. ~~goals~~Natural ~~means~~market ~~that~~forces called contango and backwardation can impact the total return ofon ~~USOD~~an ~~for~~investment ain ~~period~~USOU’s ~~longer~~shares ~~than~~relative to a ~~full trading~~hypothetical ~~day~~direct ~~may~~investment ~~have~~in nocrude ~~resemblance~~oil toand, in ~~-300%~~the offuture, it is likely that the ~~return~~relationship ofbetween the ~~Benchmark~~market ~~Oil~~price ~~Futures~~of ~~Contract~~USOU’s ~~for~~shares aand ~~period~~changes ofin ~~longer~~the ~~than~~spot aprices ~~full~~of ~~trading~~light, ~~day~~sweet ~~because~~crude ~~the~~oil ~~aggregate~~will ~~return~~continue ofto ~~USOD~~be so impacted by contango and backwardation. (It is important to note that the ~~product~~disclosure above ofignores the ~~series~~potential ofcosts ~~each~~associated ~~trading~~with ~~day’s~~physically ~~daily~~owning ~~returns~~and storing crude oil, which could be substantial.)

3USOU’s shares began trading on July 20, 2017 and ceased trading on December 12, 2019. As of December 31, 2019, USOU had liquidated all its assets and distributed cash pro rata to all remaining shareholders.

USCF believes that market arbitrage opportunities will cause daily changes in USOD’s share price on NYSE Arca on a percentage basis, to closely track the daily changes in USOD’s per share NAV on a percentage basis. USOD will not seek to achieve its stated investment objective over a period of time greater than one day. During periods of market volatility, the volatility of the Benchmark Oil Futures Contract may affect USOD’s return as much as or more than the return of the Benchmark Oil Futures Contract. Further, the return for investors that invest for periods less than a full trading day or for a period different than a trading day will not be the product of the return of USOD’s stated investment objective and the performance of the Benchmark Oil Futures Contract for the full trading day. Additionally, investors should be aware that USOD’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil or to track the inverse performance thereof. Natural market forces called contango and backwardation can impact the total return on an investment in USOD’s shares relative to a hypothetical direct investment in crude oil and, in the future, it is likely that the relationship between the market price of USOD’s shares and changes in the spot prices of light, sweet crude oil will continue to be so impacted by contango and backwardation. (It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing crude oil, which could be substantial.)3

~~USOD’s~~United ~~shares~~States ~~began~~3x ~~trading~~Short ~~on July 20, 2017. As of December 31, 2018, USOD held 213 NYMEX WTI Crude~~ Oil ~~Futures CL contracts and did not hold ICE WTI Crude Oil Futures contracts.~~Fund

~~Who~~The isinvestment objective of USOD was for the daily changes in percentage terms of its shares’ per share net asset value (“NAV”) to reflect three times the inverse (-3x) of the daily change in percentage terms of the price of a specified short-term futures contract on light, sweet crude oil (the “Benchmark Oil Futures Contract”) less USOD’s expenses. To achieve this objective, USCF? endeavored to have the notional value of USOD’s aggregate short exposure to the Benchmark Oil Futures Contract at the close of each trading day approximately equal to 300% of its NAV. USOD sought a return that is -300% of the return of the Benchmark Oil Futures Contract for a single day and did not seek to achieve its stated investment objective over a period of time greater than one day. The pursuit of daily inverse leveraged investment goals means that the return of USOD for a period longer than a full trading day may have no resemblance to -300% of the return of the Benchmark Oil Futures Contract for a period of longer than a full trading day because the aggregate return of USOD is the product of the series of each trading day’s daily returns.

USCF isbelieves athat ~~single~~market ~~member~~arbitrage ~~limited liability~~opportunities ~~company~~will ~~that~~cause ~~was~~daily ~~formed~~changes in ~~the~~USOD’s ~~state~~share ofprice ~~Delaware~~ on ~~May~~NYSE ~~10,~~Arca ~~2005.~~on ~~USCF~~a ~~maintains~~percentage ~~its~~basis, ~~main~~to ~~business~~closely ~~office~~track atthe ~~1850~~daily ~~Mt.~~changes ~~Diablo Boulevard,~~in ~~Suite~~USOD’s ~~640,~~per ~~Walnut~~share ~~Creek,~~NAV ~~California~~on ~~94596. USCF is~~ a ~~wholly-owned~~percentage ~~subsidiary of Wainwright Holdings, Inc~~basis., aUSOD ~~Delaware~~will ~~corporation (“Wainwright”)~~not ~~which~~seek isto aachieve ~~wholly~~its ~~owned~~stated ~~subsidiary~~investment ofobjective ~~Concierge~~over ~~Technologies,~~a ~~Inc.~~period ~~(publicly traded under the ticker~~of ~~CNCG)~~time ~~(“Concierge”).~~greater ~~Mr.~~than ~~Nicholas~~one Dday. ~~Gerber~~During ~~(discussed~~periods ~~below),~~of ~~along~~market ~~with certain other family members and certain other shareholders~~volatility, ~~owns~~ the ~~majority~~volatility of the ~~shares~~Benchmark ofOil ~~Concierge.~~Futures ~~Wainwright~~Contract ismay affect aUSOD’s ~~holding~~return ~~company that currently holds both USCF,~~ as ~~well~~much as ~~USCF~~or ~~Advisers~~more ~~LLC,~~than ~~an investment adviser registered under~~ the ~~Investment~~return ~~Advisers Act~~ of ~~1940, as amended. USCF Advisers LLC serves as~~ the ~~investment~~Benchmark ~~adviser~~Oil ~~for~~Futures ~~the~~Contract. ~~USCF SummerHaven SHPEN Index Fund (“BUYN”)~~Further, the ~~USCF~~return ~~SummerHaven~~for ~~SHPEI~~investors ~~Index~~that ~~Fund~~invest ~~(“BUY”)~~for ~~and~~periods ~~USCF~~less ~~SummerHaven~~than ~~Dynamic~~a ~~Commodity~~full ~~Index~~trading ~~Total~~day ~~ReturnSM~~or ~~(“SDCI”),~~for ~~each~~ a ~~series~~period ofdifferent ~~the~~than ~~USCF~~a ~~ETF~~trading ~~Trust,~~day aswill ~~well~~not asbe the ~~USCF~~product ~~Commodity Strategy Fund, a series~~ of the return ~~USCF~~of ~~Mutual~~USOD’s ~~Funds~~stated ~~Trust.~~investment ~~USCF~~objective ~~ETF Trust~~ and ~~USCF~~the ~~Mutual~~performance ~~Funds~~of ~~Trust are registered under~~ the ~~Investment~~Benchmark ~~Company~~Oil ~~Act~~Futures ofContract ~~1940,~~for ~~as amended (~~the ~~“1940~~full ~~Act”).~~trading ~~USCF~~day. ~~Advisers~~Additionally, ~~LLC~~investors ~~was~~should ~~also~~be ~~the~~aware ~~investment~~that ~~adviser~~USOD’s ~~for~~investment ~~the~~objective ~~Stock~~is ~~Split~~not ~~Index~~for ~~Fund~~its ~~(“TOFR”)~~NAV ~~and~~or ~~the~~market ~~USCF~~price ~~Restaurant~~of ~~Leaders~~shares ~~Fund~~to ~~(“MENU”)~~equal, ~~each~~in adollar ~~series~~terms, of the ~~USCF~~spot ~~ETF~~price ~~Trust~~of light, ~~until~~sweet ~~October~~crude ~~2017~~oil ~~when~~or ~~both~~to ~~funds~~track ~~liquidated~~the ~~all~~inverse ofperformance ~~their~~thereof. ~~assets~~Natural market ~~and~~forces ~~distributed~~called ~~cash~~contango ~~pro~~and ~~rata~~backwardation tocan ~~all~~impact ~~remaining~~the ~~shareholders.~~total ~~The~~return ~~Board~~on ofan ~~Trustees~~investment ~~for~~in ~~the~~USOD’s ~~USCF~~shares ~~ETF~~relative ~~Trust~~to ~~and~~a ~~USCF~~hypothetical direct ~~Mutual~~investment ~~Funds Trust~~in ~~consist~~crude ofoil ~~different~~and, ~~independent~~in ~~trustees~~the ~~than~~future, ~~those~~it ~~independent~~is ~~directors~~likely ~~who~~that ~~serve~~the onrelationship between the ~~Board~~market price of ~~Directors~~USOD’s shares ofand ~~USCF.~~changes ~~USCF is~~in athe ~~member~~spot prices of ~~the~~light, ~~National~~sweet ~~Futures~~crude ~~Association~~oil ~~(the~~will ~~“NFA”)~~continue ~~and~~to ~~registered~~be asso aimpacted ~~commodity~~by ~~pool~~contango ~~operator~~and ~~(“CPO”)~~backwardation. ~~with~~(It ~~the~~is ~~Commodity~~important ~~Futures~~to ~~Trading~~note ~~Commission~~that (the ~~“CFTC”)~~disclosure onabove ~~December~~ignores 1,the ~~2005~~potential ~~and~~costs asassociated awith ~~swaps~~physically ~~firm~~owning onand ~~August~~storing 8crude oil, ~~2013~~which could be substantial.)

~~USCF~~USOD’s ~~serves~~shares asbegan ~~general~~trading ~~partner~~on ~~of the United States Oil Fund~~July 20, ~~LP (“USO”), the United States Natural Gas Fund, LP (“UNG”), the United States 12 Month~~ ~~Oil~~2017 ~~Fund,~~and LPceased ~~(“USL”),~~trading ~~the~~on ~~United States Gasoline Fund, LP (“UGA”), the United States Diesel-Heating Oil Fund, LP (“UHN”), the United States Short Oil Fund, LP (“DNO”), the United States~~ December 12 ~~Month Natural Gas Fund~~, ~~LP (“UNL”), and the United States Brent Oil Fund, LP (“BNO”)~~2019. ~~USCF~~As ~~is also the sponsor~~ of ~~the United States Commodity Index Fund (“USCI”)~~December 31, ~~the United States Copper Index Fund (“CPER”)~~2019, ~~the~~USOD ~~United~~had ~~States~~liquidated ~~Agriculture Index~~all ~~Fund~~its ~~(“USAG”),~~assets and ~~the USCF Canadian Crude Oil Index Fund (“UCCO”) each a series of the United States~~distributed ~~Commodity~~cash ~~Index~~pro ~~Funds~~rata ~~Trust. UCCO was in registration and had not commenced operations. UCCO filed~~ to ~~withdraw~~all ~~from~~remaining ~~registration on December 19, 2018~~shareholders.

OnWho August 7, 2018, the Board of Directors of USCF authorized and approved the closing and liquidation for each of USAG, DNO and UHN together with a plan of liquidation for each of USAG, DNO and UHN. Each of the United States Commodity Index Funds Trust (“USCIFT”), of which USAG is a series, DNO and UHN filed a current report on Form 8-K dated August 8, 2018 with the Securities and Exchange Commission’s (the “SEC”) that included, as an exhibit, the press release, the applicable plan of liquidation, and, in the case of DNO and UHN, a copy of the notice of required withdrawal from the limited partnership sent to shareholders. In addition, each of USAG, DNO and UHN filed a prospectus supplement with the SEC dated August 8, 2018.USCF?

4USCF is a single member limited liability company that was formed in the state of Delaware on May 10, 2005. USCF maintains its main business office at 1850 Mt. Diablo Boulevard, Suite 640, Walnut Creek, California 94596. USCF is a wholly-owned subsidiary of Wainwright Holdings, Inc., a Delaware corporation (“Wainwright”) which is a wholly owned subsidiary of Concierge Technologies, Inc. (publicly traded under the ticker CNCG) (“Concierge”). Mr. Nicholas D. Gerber (discussed below), along with certain family members and certain other shareholders, owns the majority of the shares of Concierge. Wainwright is a holding company that currently holds both USCF, as well as USCF Advisers LLC, an investment adviser registered under the Investment Advisers Act of 1940, as amended. USCF Advisers LLC serves as the investment adviser for the USCF SummerHaven SHPEN Index Fund (“BUYN”), the USCF SummerHaven SHPEI Index Fund (“BUY”) and USCF SummerHaven Dynamic Commodity Index Total ReturnSM (“SDCI”), each a series of the USCF ETF Trust. USCF Advisers LLC also served as the investment adviser to the USCF Commodity Strategy Fund, a series of the USCF Mutual Funds Trust, which liquidated all of its assets and distributed cash pro rata to all remaining shareholders in March 2019. USCF ETF Trust and USCF Mutual Funds Trust are registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Board of Trustees for the USCF ETF Trust and USCF Mutual Funds Trust consist of different independent trustees than those independent directors who serve on the Board of Directors of USCF. USCF is a member of the National Futures Association (the “NFA”) and registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission (the “CFTC”) on December 1, 2005 and as a swaps firm on August 8, 2013.

~~The~~USCF ~~liquidation~~serves ~~date~~as ~~for~~general ~~each~~partner of ~~USAG,~~the United ~~DNO~~States ~~and~~Oil ~~UHN~~Fund, ~~was~~LP ~~September~~(“USO”), 12the United States Natural Gas Fund, ~~2018~~LP ~~and~~(“UNG”), the ~~proceeds~~United ofStates ~~the~~12 ~~liquidation~~Month Oil ~~were~~Fund, ~~sent~~LP to(“USL”), ~~all~~the ~~remaining~~United ~~shareholders~~States ofGasoline ~~USAG~~Fund, ~~DNO~~LP ~~and UHN~~(“UGA”), ~~respectively,~~the onUnited orStates ~~about~~12 ~~September~~Month 13Natural Gas Fund, ~~2018~~LP (“UNL”), ~~with~~and athe ~~subsequent~~United ~~distribution~~States ofBrent ~~additional~~Oil ~~liquidation~~Fund, ~~proceeds~~LP ~~sent~~(“BNO”). toUSCF ~~UHN shareholders~~previously onserved oras ~~about~~the ~~September~~general partner ~~18,~~for ~~2018.~~the ~~Each~~United ofStates ~~USAG~~Short Oil Fund, LP (“DNO”) and ~~UHN~~the ~~also~~United ~~filed~~States ~~a post~~Diesel-~~effective~~Heating ~~amendment~~Oil toFund, ~~the~~LP ~~registration~~(“UHN”), ~~statement~~both ~~with~~of ~~the~~which ~~SEC~~were toliquidated ~~terminate~~in 2018. USCF is also the ~~offering~~sponsor of ~~registered~~the ~~and~~United ~~unsold~~States ~~shares~~Commodity ofIndex ~~USAG~~Fund (“USCI”), the ~~DNO~~United ~~and~~States ~~UHN,~~Copper ~~respectively~~Index Fund (“CPER”), and the ~~NYSE Arca~~USCF ~~filed~~Crescent ~~Forms~~Crypto 25Index toFund ~~effect~~(“XBET”), ~~the~~each ~~withdrawal~~a series of the ~~listings~~United States Commodity Index Funds Trust. (“USCIFT”). XBET is currently in registration and has not commenced operations. USCF previously served as the sponsor for ~~shares~~the ofUnited ~~each~~States ofAgriculture Index Fund (“USAG”), which ~~DNO~~was ~~and~~liquidated ~~UHN~~in 2018.

~~All~~On ~~funds~~October 3, ~~listed~~2019, ~~previously~~after the close of trading on the NYSE Arca, ~~other~~USOD ~~than~~effected a 1-for-2 reverse share split and post-split shares of USOD began trading on October 4, ~~DNO~~2019. As a result of the reverse share split, ~~UHN~~every two pre-split shares of USOD were automatically exchanged for one post-split share. Immediately prior to the reverse split, there were 1,650,040 shares of USOD issued and ~~USAG~~outstanding, ~~are~~representing ~~referred~~a per share NAV of $4.33. Immediately after the reverse share split, the number of issued and outstanding shares of USOD decreased to ~~collectively~~825,040, not ~~herein~~accounting asfor fractional shares, and the ~~“Related~~per ~~Public~~share ~~Funds~~NAV increased to $8.66. In connection with the reverse share split, the CUSIP number for USOD’s shares changed to 91733T505. USOD’s ticker symbol, “USOD,” remains the same.

The Related Public Funds are subject to reporting requirements under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For more information about each of the Related Public Funds, investors in USOU or USOD may call 1-800-920-0259 or visit www.uscfinvestments.com or the SEC’s website at www.sec.gov.4

~~USCF~~As isnoted ~~required~~above, toon ~~evaluate~~November 20, 2019, the ~~credit risk~~Board of ~~each~~Directors ~~Trust~~of ~~Series~~USCF toauthorized and approved the ~~futures~~closing ~~commission~~and ~~merchant~~liquidation ~~(“FCM”),~~for ~~oversee~~each ~~the~~of ~~purchase~~USOU and ~~sale~~USOD oftogether ~~each~~with ~~Trust~~a ~~Series’~~plan ~~shares~~of byliquidation ~~certain~~for ~~authorized~~each ~~purchasers~~of ~~(“Authorized~~USOU ~~Participants”),~~and ~~review~~USOD. ~~daily~~The ~~positions~~USCF ~~and~~Funds ~~margin~~Trust, ~~requirements of~~including each ~~Trust~~of ~~Series~~its series USOU and ~~manage~~USOD ~~each~~filed ~~Trust~~a ~~Series’~~current ~~investments.~~report on ~~USCF~~Form 8-K ~~also~~dated ~~pays~~November 20, 2019 with the ~~fees~~U.S. ofSecurities ~~ALPS~~and ~~Distributors,~~Exchange ~~Inc.~~Commission (“~~ALPS Distributors~~SEC”), ~~which~~that ~~serves~~ included, as ~~the~~an ~~marketing~~exhibit, ~~agent for each Trust Series (~~the ~~“Marketing~~press ~~Agent”),~~release and ~~Brown Brothers~~the ~~Harriman~~applicable &plan ~~Co.~~of ~~(“BBH&Co~~liquidation.”) In addition, ~~which~~each ~~serves~~of asUSOU ~~the~~and ~~administrator~~USOD ~~(the~~filed ~~“Administrator”)~~a ~~and~~prospectus ~~the~~supplement ~~custodian~~with (the ~~“Custodian”)~~SEC ~~for~~dated ~~each~~November 19, ~~Trust Series~~2019.

~~There~~The ~~are~~liquidation nodate ~~executive~~for ~~officers~~each orof ~~employees~~USOU and USOD was December 18, 2019 and the proceeds of the ~~Trust~~liquidation were sent to all remaining shareholders of USOU and USOD, respectively, on or ~~any~~about ~~series~~December 19, ~~thereof~~2019. ~~Pursuant~~Each of USOU and USOD also filed a post-effective amendment to the ~~terms~~registration ofstatement with the ~~Trust~~SEC ~~Agreement,~~to terminate the ~~affairs~~offering of ~~the~~registered ~~Trust~~and unsold shares of USOU and ~~each~~USOD, ~~series~~respectively, ~~thereof~~and the NYSE Arca filed Forms ~~are~~25 ~~managed~~to byeffect ~~USCF~~the withdrawal of the listings for shares of each of USOU and USOD.

~~The~~USO, ~~business~~UNG, ~~and~~UGA, ~~affairs of USCF are managed by a board of directors (the “Board”)~~UNL, ~~which is comprised of four management directors (the “Management Directors”)~~USL, ~~each~~ ~~of whom are also executive officers or employees of USCF~~BNO, ~~and~~USCI ~~three independent directors who meet the independent director requirements established by the NYSE Arca Equities Rules~~ and ~~the Sarbanes-Oxley Act of 2002. The Management Directors have the~~ ~~authority~~CPER toare ~~manage~~referred ~~USCF pursuant~~ to ~~the~~collectively ~~terms~~herein ~~of the Sixth Amended and Restated Limited Liability Company Agreement of USCF, dated~~ as ~~of May 15, 2015 (as amended from time to time,~~ the “~~LLC~~Related ~~Agreement”).~~Public ~~Through its Management Directors, USCF manages the day-to-day operations of each Trust Series~~Funds. The Board has an audit committee which is made up of the three independent directors (Gordon L. Ellis, Malcolm R. Fobes III and Peter M. Robinson). For additional information relating to the audit committee, please see “Item 10. Directors, Executive Officers and Corporate Governance – Audit Committee” ~~in this annual report on Form 10-K.~~

~~How~~The ~~Does~~Related ~~Each~~Public ~~Trust~~Funds ~~Series~~are ~~Operate?~~subject to reporting requirements under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For more information about each of the Related Public Funds, investors in USOU or USOD may call 1-800-920-0259 or visit www.uscfinvestments.com or the SEC’s website at www.sec.gov.

AnUSCF ~~investment~~was inrequired ~~the shares provides a means for diversifying an investor’s portfolio or hedging exposure~~ to ~~changes~~evaluate ~~in oil prices. An investment in~~ the ~~shares~~credit ~~allows~~risk ~~both~~of ~~retail and institutional investors to easily gain this exposure to the crude oil market in a transparent, cost-effective manner. However,~~ each Trust Series to isthe ~~not~~futures ~~appropriate~~commission ~~for~~merchant ~~all investors and presents many different risks than other types of funds~~(“FCM”), ~~including~~ ~~risks~~oversee ~~associated with~~ the ~~use~~purchase ~~of leverage. Each Trust Series is intended to be a daily trading tool for sophisticated investors to manage daily trading risks. Each Trust Series uses leverage~~ and ~~should~~sale ~~produce returns for a single day that are more volatile than that~~ of ~~the Benchmark Oil Futures Contract. Additionally,~~ each Trust Series’ isshares ~~designed~~by tocertain ~~achieve~~authorized ~~its~~purchasers ~~stated~~(“Authorized ~~investment objective on a daily basis~~Participants”), ~~but~~review ~~its performance over different periods of time can differ significantly from its stated~~ daily ~~objective. Each~~positions ~~Trust Series is riskier than securities that have intermediate or long-term investment objectives,~~ and ~~may not be suitable~~margin ~~for~~requirements ~~investors who plan to hold shares~~ of each Trust Series ~~for a period other than one day. The return of a Trust Series for a period longer than a single day is the result of its return for each day compounded over the period~~ and ~~usually~~manage ~~will differ from the -300% of the performance of the Benchmark Oil Futures Contract for the same period. Daily compounding of~~ each Trust Series ~~investment~~’ ~~returns~~investments. ~~can~~USCF ~~dramatically~~also ~~and~~paid ~~adversely~~the ~~affect~~fees ~~its longer-term performance during periods~~ of ~~high~~ALPS ~~volatility~~Distributors, Inc. ~~Volatility~~ ~~may~~(“ALPS beDistributors”), atwhich ~~least~~serves as ~~important~~the tomarketing ~~each~~agent ~~Trust Series return~~ for ~~a period as the return of the Benchmark Oil Futures Contract. Accordingly,~~ each Trust Series ~~should be purchased only by knowledgeable investors who understand~~ (the ~~potential~~“Marketing ~~consequences of seeking daily~~Agent”), ~~compounding~~and ~~leveraged~~Brown ~~short~~Brothers ~~investment~~Harriman & ~~results~~Co. ~~Investors should actively and frequently monitor their investments in each Trust Series~~(“BBH&Co.”), ~~even~~which ~~intra-day.~~serves Itas isthe ~~possible~~administrator ~~that you will suffer significant losses in each Trust Series even if~~ (the ~~long-term performance~~“Administrator”) ofand the ~~Benchmark~~custodian ~~Oil Futures Contract is negative. For a more in-depth discussion of~~ (the ~~risks~~“Custodian”) ~~associated~~for ~~with investing in~~ each Trust Series~~, see “Item 1A~~. ~~Risk Factors” in this annual report on Form 10-K~~

~~The~~There ~~daily~~are ~~holdings~~no executive officers or employees of ~~each~~the Trust ~~Series are~~or ~~available~~any onseries thereof. Pursuant to the ~~USCF~~terms ~~website~~of atthe ~~www~~Trust Agreement, the affairs of the Trust and each series thereof are managed by USCF.~~uscfinvestments.com.~~

5The business and affairs of USCF are managed by a board of directors (the “Board”), which is comprised of four management directors (the “Management Directors”), each of whom are also executive officers or employees of USCF, and three independent directors who meet the independent director requirements established by the NYSE Arca Equities Rules and the Sarbanes-Oxley Act of 2002. The Management Directors have the authority to manage USCF pursuant to the terms of the Sixth Amended and Restated Limited Liability Company Agreement of USCF, dated as of May 15, 2015 (as amended from time to time, the “LLC Agreement”). Through its Management Directors, USCF manages the day-to-day operations of each Trust Series. The Board has an audit committee which is made up of the three independent directors (Gordon L. Ellis, Malcolm R. Fobes III and Peter M. Robinson). For additional information relating to the audit committee, please see “Item 10. Directors, Executive Officers and Corporate Governance – Audit Committee” in this annual report on Form 10-K.

How ~~USOU~~Does ~~Seeks~~Each toTrust Achieve Its Investment Objective. The Fund seeks, on a daily basis, to provide investment results that correspond (before fees and expenses) to three times (3x) the performance of the Benchmark Oil Futures Contract. The Fund does not seek to achieve its stated objective over a period greater than a single day. Because the Fund seeks investment results for a single day only (as measured from the time the Fund calculates its NAV to the time of the Fund’s next NAV calculation) and on a leveraged basis, the Fund is different from most exchange-traded funds.Series Operate?

AsAn ofinvestment in the ~~NAV~~shares ~~calculation~~provided ~~time~~a means ~~each~~for ~~trading day,~~diversifying ~~the~~an ~~Fund~~investor’s ~~will~~portfolio ~~seek~~or hedging exposure to ~~position~~changes ~~its~~in ~~portfolio~~oil soprices. ~~that~~An ~~its~~investment in the shares allowed both retail and institutional investors to easily gain this exposure to the ~~Benchmark~~crude ~~Oil~~oil ~~Futures~~market ~~Contract~~in isa ~~consistent~~transparent, ~~with~~cost-effective ~~its~~manner. ~~investment~~However, ~~objective.~~each ~~The~~Trust ~~impact~~Series was ofnot aappropriate ~~Benchmark~~for ~~Oil~~all ~~Futures~~investors ~~Contract’s~~and ~~movements~~presents ~~during~~many ~~the~~different ~~day~~risks ~~will~~than ~~affect~~other ~~whether~~types of funds, including risks associated with the ~~Fund’s~~ ~~portfolio~~use ~~needs~~of leverage. Each Trust Series was intended to be ~~rebalanced.~~a ~~For~~daily ~~example,~~trading ~~the~~tool ~~Fund’s~~for sophisticated ~~long~~investors ~~exposure~~to ~~will~~manage ~~need~~daily totrading berisks. ~~increased~~Each onTrust ~~days~~Series used ~~when~~leverage and should produce returns for a single day that are more volatile than that of the Benchmark Oil Futures Contract. ~~rises~~Additionally, ~~and~~each ~~decreased~~Trust Series was designed to achieve its stated investment objective on ~~days~~a ~~the~~daily ~~Benchmark~~basis, ~~Oil~~but ~~Futures~~its ~~Contract~~performance ~~falls~~over different periods of time can differ significantly from its stated daily objective. ~~Daily~~Each ~~rebalancing~~Trust ~~and~~Series was riskier than securities that have intermediate or long-term investment ~~the~~objectives, ~~compounding~~and may not be suitable for investors who plan to hold shares of each ~~day’s~~Trust ~~return~~Series for ~~over~~a ~~time~~period ~~means~~other ~~that~~than ~~the~~one day. The return of ~~the~~a ~~Fund~~Trust Series for a period longer than a single day ~~will be~~was the result of its return for each day’s ~~returns~~ compounded over the period, ~~which~~and usually will ~~very likely~~ differ from ~~three~~the ~~times~~-300% ~~(3x)~~of the ~~return~~ performance of the Benchmark Oil Futures Contract for the same period. Daily ~~The~~compounding ~~Fund~~of each Trust Series investment returns could dramatically and adversely affect its longer-term performance during periods of high volatility. Volatility may ~~lose~~be ~~money~~at ifleast as important to each Trust Series return for a period as the return of the Benchmark Oil Futures Contract’s. ~~performance~~Accordingly, each Trust Series should be purchased only by knowledgeable investors iswho ~~flat~~understand ~~overtime,~~the potential consequences of seeking daily compounding leveraged short investment results. Investors should actively and itfrequently monitor their investments in each Trust Series, even intra-day. It is possible ~~for~~that ayou ~~Fund~~will tosuffer ~~lose~~significant losses ~~money~~in ~~over~~each ~~time~~Trust ~~regardless~~Series even ofif the long-term performance of the Benchmark Oil Futures Contract is negative. As noted above, as aof ~~result~~the filing of ~~daily~~this ~~rebalancing~~annual report on Form 10-K, ~~the~~USOU ~~Benchmark~~and ~~Oil~~USOD ~~Futures~~are ~~Contract’s~~no ~~volatility~~longer issuing shares and ~~compounding~~terminated the offering of registered and unsold shares.

In managing the Fund’s assets, USCF does not use a technical trading system that issues buy and sell orders. USCF instead employs a quantitative methodology whereby each time a Creation Basket is sold, USCF purchases Oil Interests, such as the Benchmark Oil Futures Contract, that have an aggregate market value that approximates three times (3x) the amount of Treasuries and/or cash received upon the issuance of the Creation Basket. As of the NAV calculation time each trading day, the Fund will also seek to position its portfolio so that its exposure to the Benchmark Oil Futures Contract is consistent with its investment objective to provide investment results that correspond (before fees and expenses) to three times (3x) the performance of the Benchmark Oil Futures Contract.5

~~The~~How ~~specific~~USOU ~~Oil~~Seeks ~~Futures Contracts purchased depend on various factors, including a judgment by USCF as~~ to ~~the~~Achieve ~~appropriate~~Its ~~diversification~~Investment Objective. ofThe ~~the~~ Fund’s ~~investments in futures contracts with respect to the month of expiration~~sought, ~~and~~on ~~the~~a ~~prevailing~~daily ~~price volatility of particular contracts. While USCF has made significant investments in NYMEX Oil Futures Contracts~~basis, ~~for various reasons, including the ability~~ to ~~enter~~provide ~~into~~investment ~~the~~results ~~precise amount~~that ofcorrespond ~~exposure~~(before tofees ~~the crude oil market, position limits or other regulatory requirements limiting the Fund’s holdings,~~ and ~~market~~expenses) ~~conditions,~~to ~~it may invest in Oil Futures Contracts traded on other exchanges or invest in Other Oil- Related Investments.~~three Totimes ~~the~~(3x) ~~extent that~~ the ~~Fund~~performance ~~invests~~of ~~in Other Oil-Related Investments, it would prioritize investments in contracts and instruments that are economically equivalent to~~ the Benchmark Oil Futures Contract,. ~~including~~The ~~cleared~~Fund ~~swaps~~did ~~that~~not ~~satisfy~~seek ~~such criteria, and then,~~ to aachieve ~~lesser~~its ~~extent,~~stated itobjective ~~would~~over ~~invest in other types of cleared swaps and other contracts, instruments and non-cleared swaps,~~a ~~such~~period asgreater ~~swaps~~than ina ~~the~~single ~~over-the-counter market (or commonly referred to as the “OTC market”)~~day. IfBecause the Fund issought ~~required by~~investment ~~law~~results orfor ~~regulation, or by one of its regulators, including~~ a ~~futures~~single ~~exchange,~~day toonly ~~reduce~~(as ~~its~~measured ~~position~~from in the ~~Benchmark~~time ~~Oil Futures Contracts to~~ the ~~applicable position limit or to a specified accountability level or if market conditions dictate it would be more~~ ~~appropriate to invest in Other Oil-Related Investments, a substantial portion of the~~ Fund’s ~~assets~~calculates ~~could~~its beNAV ~~invested in accordance with such priority in Other Oil-Related Investments that are intended~~ to ~~replicate~~ the ~~return~~time onof the ~~Benchmark Oil Futures Contract. As the~~ Fund’s ~~assets~~next ~~reach~~NAV ~~higher~~calculation) ~~levels, it is more likely to exceed position limits, accountability levels or other regulatory limits~~ and, ason a ~~result,~~leveraged ~~it is more likely that it will invest in accordance with such priority in Other Oil-Related Investments at such higher levels. In addition~~basis, ~~market conditions that USCF currently anticipates could cause~~ the Fund towas ~~invest in Other Oil-Related~~different ~~Investments~~from ~~include~~most ~~those allowing the Fund to obtain greater liquidity or to execute transactions with more favorable pricing. See “Item 1A. Risk Factors” in this annual report on Form 10~~exchange-Ktraded ~~for a discussion of the potential impact of regulation on the Fund’s ability to invest in OTC transactions and cleared swaps~~funds.

~~USCF~~As ~~may~~of ~~not~~the beNAV ~~able~~calculation totime ~~fully~~each ~~invest~~trading day, the Fund’s ~~assets~~will inseek to position its portfolio so that its exposure to the Benchmark Oil Futures ~~Contracts~~Contract ~~having~~is anconsistent ~~aggregate~~with its ~~notional~~investment ~~amount~~objective. ~~exactly~~The ~~equal~~impact toof ~~three~~a ~~times~~Benchmark ~~(3x)~~Oil Futures Contract’s movements during the day will affect whether the Fund’s ~~NAV~~portfolio needs to be rebalanced. For example, asthe ~~standardized~~Fund’s ~~contracts,~~long exposure will need to be increased on days when the Benchmark Oil Futures ~~Contracts~~Contract ~~are~~rises ~~for~~and adecreased ~~specified~~on ~~amount~~days ofthe aBenchmark ~~particular commodity,~~Oil ~~and~~Futures Contract falls. Daily rebalancing and the ~~Fund~~compounding of each day’s ~~NAV~~return ~~and~~over ~~the~~time ~~proceeds~~means ~~from~~that the ~~sale~~return of athe ~~Creation~~Fund ~~Basket~~for ~~are~~a ~~unlikely~~period tolonger bethan ana ~~exact~~single ~~multiple~~day ofwill be the ~~amounts~~result of ~~those~~each ~~contracts.~~day’s Asreturns acompounded ~~result~~over the period, inwhich ~~such~~will ~~circumstances,~~very ~~the~~likely ~~Fund~~differ ~~may~~from bethree ~~better~~times ~~able~~(3x) tothe ~~achieve~~return of the ~~exact~~Benchmark ~~amount~~Oil ~~of exposure~~Futures toContract ~~changes~~for inthe ~~price~~period. ofThe Fund may lose money if the Benchmark Oil Futures Contract’s ~~through~~performance is ~~the~~flat ~~use~~overtime, ofand ~~Other~~it ~~Oil-Related~~is ~~Investments,~~possible ~~such~~for asa ~~OTC contracts~~Fund ~~that~~to ~~have~~lose ~~better~~money ~~correlation~~over ~~with~~time ~~changes~~regardless inof ~~price~~the performance of the Benchmark Oil Futures Contract, as a result of daily rebalancing, the Benchmark Oil Futures Contract’s volatility and compounding.

~~The~~In managing the Fund’s ~~anticipates~~assets, USCF does not use a technical trading system that toissues ~~the~~buy ~~extent it~~and ~~invests~~sell inorders. ~~Oil~~USCF ~~Futures~~instead ~~Contracts~~employs ~~other~~a ~~than~~quantitative ~~contracts~~methodology onwhereby each ~~light~~time a Creation Basket is sold, ~~sweet~~USCF ~~crude~~purchases ~~oil~~Oil (Interests, such as ~~futures~~the ~~contracts~~Benchmark ~~for~~Oil ~~diesel-heating oil~~Futures Contract, ~~natural~~that ~~gas,~~have ~~and~~an ~~other~~aggregate market ~~petroleum-based~~value ~~fuels~~that approximates three times (3x) ~~and~~the ~~Other~~amount ~~Oil-Related~~of ~~Investments,~~Treasuries itand/or ~~will~~cash ~~enter~~received ~~into~~upon ~~various~~the ~~non-exchange-traded~~issuance of the Creation ~~derivative~~Basket. ~~contracts~~As toof ~~hedge~~the NAV calculation time each trading day, the ~~short-term~~Fund ~~price~~will ~~movements~~also ofseek ~~such~~to position its portfolio so that its exposure to the Benchmark Oil Futures ~~Contracts~~Contract ~~and~~is ~~Other~~consistent ~~Oil-Related~~with ~~Investments~~its ~~against~~investment objective to provide investment results that correspond (before fees and expenses) to three times (3x) the ~~current~~performance of the Benchmark Oil Futures Contract.

6The specific Oil Futures Contracts purchased depend on various factors, including a judgment by USCF as to the appropriate diversification of the Fund’s investments in futures contracts with respect to the month of expiration, and the prevailing price volatility of particular contracts. While USCF has made significant investments in NYMEX Oil Futures Contracts, for various reasons, including the ability to enter into the precise amount of exposure to the crude oil market, position limits or other regulatory requirements limiting the Fund’s holdings, and market conditions, it may invest in Oil Futures Contracts traded on other exchanges or invest in Other Oil- Related Investments. To the extent that the Fund invests in Other Oil-Related Investments, it would prioritize investments in contracts and instruments that are economically equivalent to the Benchmark Oil Futures Contract, including cleared swaps that satisfy such criteria, and then, to a lesser extent, it would invest in other types of cleared swaps and other contracts, instruments and non-cleared swaps, such as swaps in the over-the-counter market (or commonly referred to as the “OTC market”). If the Fund is required by law or regulation, or by one of its regulators, including a futures exchange, to reduce its position in the Benchmark Oil Futures Contracts to the applicable position limit or to a specified accountability level or if market conditions dictate it would be more appropriate to invest in Other Oil-Related Investments, a substantial portion of the Fund’s assets could be invested in accordance with such priority in Other Oil-Related Investments that are intended to replicate the return on the Benchmark Oil Futures Contract. As the Fund’s assets reach higher levels, it is more likely to exceed position limits, accountability levels or other regulatory limits and, as a result, it is more likely that it will invest in accordance with such priority in Other Oil-Related Investments at such higher levels. In addition, market conditions that USCF currently anticipates could cause the Fund to invest in Other Oil-Related Investments include those allowing the Fund to obtain greater liquidity or to execute transactions with more favorable pricing. See “Item 1A. Risk Factors” in this annual report on Form 10-K for a discussion of the potential impact of regulation on the Fund’s ability to invest in OTC transactions and cleared swaps.

USCF ~~does~~may not anticipate letting the Fund’s Oil Futures Contracts expire and taking, or making, delivery of the underlying commodity. Instead, USCF will close existing positions, e.g., when it changes the Benchmark Oil Futures Contracts or Other Oil-Related Investments or it otherwise determines it would be ~~appropriate~~able to dofully soinvest ~~and reinvests~~ the Fund’s ~~proceeds~~assets in ~~new~~Benchmark Oil Futures Contracts orhaving ~~Other Oil-Related~~an ~~Investments.~~aggregate ~~Positions~~notional ~~may~~amount ~~also~~exactly beequal ~~closed out~~ to ~~meet~~three ~~orders~~times ~~for~~(3x) ~~Redemption Baskets and in such case proceeds for such baskets will not be reinvested. The Benchmark Oil Futures Contract is changed from~~ the ~~near month contract to the next~~ ~~month~~Fund’s ~~contract over a four-day period~~NAV. ~~Each~~For ~~month~~example, ~~the~~as ~~Benchmark~~standardized ~~Oil Futures Contract changes starting at the end of the day on the date two weeks prior to expiration of the near month contract for that month. During the first three days of the period~~contracts, the ~~applicable value of the~~ Benchmark Oil Futures ~~Contract~~Contracts isare ~~based~~for on a ~~combination~~specified ofamount ~~the near month contract and the next month contract as follows: (1) day 1 consists~~ of ~~75%~~a ~~of the then near month contract’s price plus 25% of the~~particular ~~price of the next month contract~~commodity, ~~divided~~and ~~by 75% of~~ the ~~near month contract~~Fund’s ~~prior~~NAV ~~day’s~~and ~~price~~the ~~plus~~proceeds ~~25%~~from of the ~~price~~ ofsale ~~the next month contract, (2) day 2 consists~~ of ~~50%~~a ofCreation ~~the~~Basket ~~then~~are ~~near~~unlikely ~~month~~to ~~contract’s~~be ~~price~~an ~~plus~~exact ~~50%~~multiple of ~~the~~ ~~price of~~ the ~~next~~amounts ~~month contract, divided by 50%~~ of ~~the~~those ~~near~~contracts. ~~month~~As ~~contract’s~~a ~~prior~~result, ~~day’s~~in ~~price~~such ~~plus~~circumstances, ~~50% of~~ the ~~price~~ ofFund ~~the~~may ~~next~~be ~~month~~better ~~contract~~able ~~and~~to ~~(3)~~achieve ~~day 3 consists of 25% of~~ the ~~then~~exact ~~near~~amount ~~month contract’s price plus 75%~~ of ~~the~~ ~~price~~exposure ofto ~~the~~changes ~~next~~in ~~month contract, divided by 25% of the near month contract’s prior day’s~~ price ~~plus 75%~~ of the ~~price~~ ~~of the next month contract. On day 4, the~~ Benchmark Oil Futures Contract isthrough the ~~next~~use ~~month contract to expire at that time and that contract remains the Benchmark Oil Futures Contract until the beginning~~ of ~~the~~Other ~~following month’s change in the Benchmark~~ Oil ~~Futures Contract over a four~~-~~day~~Related ~~period. On each day during the four-day period~~Investments, ~~USCF~~such ~~anticipates it~~as ~~will “roll” the Fund’s positions in Oil Interests by closing, or selling, a percentage of the~~OTC ~~Fund’s~~contracts ~~positions~~that inhave ~~Oil~~better ~~Interests~~correlation ~~and~~with ~~reinvesting~~changes ~~the proceeds from closing those positions~~ in ~~new~~price ~~Oil~~of ~~Interests that reflect~~ the ~~change in the~~ Benchmark Oil Futures Contract.

The ~~anticipated~~Fund ~~dates~~anticipates that to the ~~monthly~~extent ~~four~~it invests in Oil Futures Contracts other than contracts on light, sweet crude oil (such as futures contracts for diesel-~~day~~heating oil, ~~roll~~natural ~~period~~gas, and other petroleum-based fuels) and Other Oil-Related Investments, it will ~~commence~~enter ~~are~~into ~~posted~~various onnon-exchange-traded derivative contracts to hedge the ~~Fund’s~~short-term ~~website~~price atmovements ~~www.uscfinvestments.com~~of such Oil Futures Contracts and ~~are~~Other ~~subject~~Oil-Related toInvestments ~~change~~against ~~without~~the ~~notice~~current Benchmark Oil Futures Contract.

By remaining invested as fully as possible in Oil Futures Contracts or Other Oil-Related Investments, USCF believes that the daily changes in percentage terms of the Fund’s NAV will continue to closely track, on a leveraged basis, the daily changes in percentage terms in the price of the Benchmark Oil Futures Contract. USCF believes that certain arbitrage opportunities result in the price of the shares traded on the NYSE Arca closely tracking the NAV of the Fund. Additionally, Oil Futures Contracts traded on the NYMEX have closely tracked the spot price of light, sweet crude oil. Based on these expected interrelationships, USCF believes that the changes in the price of the Fund’s shares as traded on the NYSE Arca will closely track on a daily basis, the changes in the spot price of light, sweet crude oil on a percentage basis.6

~~How~~USCF ~~USOD~~does ~~Seeks~~not anticipate letting the Fund’s Oil Futures Contracts expire and taking, or making, delivery of the underlying commodity. Instead, USCF will close existing positions, e.g., when it changes the Benchmark Oil Futures Contracts or Other Oil-Related Investments or it otherwise determines it would be appropriate to ~~Achieve~~do ~~Its~~so ~~Investment~~and reinvests the proceeds in new Oil Futures Contracts or Other ~~Objective~~Oil-Related Investments. Positions may also be closed out to meet orders for Redemption Baskets and in such case proceeds for such baskets will not be reinvested. The ~~Fund~~Benchmark ~~seeks,~~Oil onFutures Contract is changed from the near month contract to the next month contract over a ~~daily~~four-day ~~basis~~period. Each month, the Benchmark Oil Futures Contract changes starting at the end of the day on the date two weeks prior to ~~provide~~expiration ~~investment~~of ~~results~~the near month contract for that ~~correspond~~month. ~~(before~~During ~~fees~~the first three days of the period, the applicable value of the Benchmark Oil Futures Contract is based on a combination of the near month contract and the ~~expenses~~next month contract as follows: (1) day to1 ~~three~~consists of 75% of the then near month contract’s price plus 25% of ~~times~~the price of the ~~inverse~~next month contract, divided by 75% of the near month contract’s prior day’s price plus 25% of the price of the next month contract, (~~-3x~~2) day 2 consists of 50% of the ~~performance~~then near month contract’s price plus 50% of the price of the next month contract, divided by 50% of the near month contract’s prior day’s price plus 50% of the price of the next month contract and (3) day 3 consists of 25% of the then near month contract’s price plus 75% of the price of the next month contract, divided by 25% of the near month contract’s prior day’s price plus 75% of the price of the next month contract. On day 4, the Benchmark Oil Futures Contract. ~~The~~is ~~Fund~~the ~~does~~next ~~not~~month ~~seek~~contract to expire ~~achieve~~at ~~its~~that ~~stated objective~~time ~~over~~and athat ~~period~~contract ~~greater~~remains ~~than~~the aBenchmark ~~single~~Oil ~~day.~~Futures ~~Because~~Contract until the ~~Fund~~beginning ~~seeks~~of ~~investment~~the ~~results~~following month’s ~~for~~change in the Benchmark Oil Futures Contract over a ~~single~~four-day period. On each day ~~only~~during ~~(as~~the ~~measured~~four-day period, ~~from~~USCF ~~the~~anticipates ~~time~~it will “roll” the Fund’s ~~calculates~~positions ~~its~~in ~~NAV~~Oil toInterests ~~the~~by ~~time~~closing, or selling, a percentage of the Fund’s ~~next~~positions ~~NAV~~in ~~calculation)~~Oil Interests and onreinvesting anthe ~~inverse~~proceeds ~~leveraged~~from ~~basis,~~closing those positions in new Oil Interests that reflect the ~~Fund~~change isin ~~different~~the ~~from~~Benchmark ~~most~~Oil ~~exchange-traded~~Futures ~~funds~~Contract.

AsThe ofanticipated ~~the~~dates ~~NAV calculation time each trading day, the Fund will seek to position its portfolio so~~ that ~~its exposure to~~ the ~~Benchmark Oil Futures Contract is consistent with~~monthly ~~its investment objective. The impact of a Benchmark Oil Futures Contract’s movements during the~~ four-day ~~will~~roll ~~affect~~period ~~whether the Fund’s portfolio needs to be rebalanced. For example, the Fund’s short exposure~~ will ~~need~~commence toare beposted ~~increased~~ on ~~days when~~ the ~~Benchmark Oil Futures Contract falls and decreased on days the Benchmark Oil Futures Contract rises. Daily rebalancing and the compounding of each day’s return over time means that the return of the~~ Fund ~~for a period longer than a single day will be the result of each day~~’s ~~returns~~website ~~compounded~~at ~~over the period, which will very likely differ from three times the inverse (-3x) of the return of the Benchmark Oil Futures Contract for the period~~www.uscfinvestments.com ~~The Fund may lose money if the Benchmark Oil Futures Contract’s performance is flat over time,~~ and itare issubject ~~possible for a Fund~~ to ~~lose money over time regardless of the performance~~change ofwithout ~~the Benchmark Oil Futures Contract, as a result of daily rebalancing, the Benchmark Oil Futures Contract’s volatility and compounding~~notice.

InBy ~~managing~~remaining ~~the~~invested ~~Fund’s~~as ~~assets,~~fully ~~USCF~~as possible ~~does~~in ~~not~~Oil ~~use~~Futures aContracts ~~technical~~or ~~trading~~Other ~~system~~Oil-Related ~~that~~Investments, ~~issues~~USCF ~~buy~~believes ~~and~~that ~~sell~~the ~~orders.~~daily ~~USCF~~changes ~~instead~~in ~~employs~~percentage aterms ~~quantitative~~of ~~methodology~~the ~~whereby~~Fund’s ~~each~~NAV ~~time~~will acontinue ~~Creation~~to ~~Basket~~closely ~~is sold~~track, ~~USCF~~on ~~takes~~a ~~corresponding~~leveraged ~~short~~basis, ~~positions~~the daily changes in ~~Oil~~percentage ~~Interests,~~terms ~~such~~in asthe price of the Benchmark Oil ~~Futures~~ Futures Contract,. ~~that~~USCF ~~have~~believes anthat ~~aggregate~~certain ~~market~~arbitrage ~~value~~opportunities ~~that~~result ~~approximates~~in ~~three~~the ~~times~~price ~~(3x)~~of the ~~amount~~shares oftraded ~~Treasuries~~on ~~and/or~~the ~~cash~~NYSE ~~received~~Arca ~~upon~~closely tracking the ~~issuance~~NAV of the ~~Creation Basket~~Fund. AsAdditionally, ofOil ~~the~~Futures ~~NAV~~Contracts ~~calculation~~traded ~~time~~on ~~each~~the ~~trading~~NYMEX ~~day,~~have closely tracked the ~~Fund~~spot ~~will~~price of ~~also~~light, ~~seek~~sweet tocrude ~~position its~~oil. ~~portfolio~~Based soon ~~that~~these ~~its~~expected ~~exposure~~interrelationships, toUSCF ~~the~~believes ~~Benchmark~~that ~~Oil~~the ~~Futures~~changes ~~Contract~~in isthe ~~consistent~~price ~~with~~of ~~its~~the ~~investment~~Fund’s shares ~~objective~~as totraded ~~provide investment~~on ~~results~~the ~~that~~NYSE ~~correspond~~Arca ~~(before~~will ~~fees~~closely ~~and~~track ~~expenses)~~on toa ~~three~~daily ~~times~~basis, the ~~inverse~~changes ~~(-3x)~~in of the ~~performance~~spot price of ~~the~~light, ~~Benchmark~~sweet crude oil ~~Oil~~on ~~Futures~~a ~~Contract~~percentage basis.

7How USOD Seeks to Achieve Its Investment Objective. The Fund sought, on a daily basis, to provide investment results that correspond (before fees and expenses) to three times the inverse (-3x) of the performance of the Benchmark Oil Futures Contract. The Fund did not seek to achieve its stated objective over a period greater than a single day. Because the Fund sought investment results for a single day only (as measured from the time the Fund calculates its NAV to the time of the Fund’s next NAV calculation) and on an inverse leveraged basis, the Fund was different from most exchange-traded funds.

~~The~~As ~~specific~~of ~~Oil~~the ~~Futures~~NAV ~~Contracts~~calculation ~~sold depend~~time oneach ~~various factors~~trading day, ~~including~~the aFund ~~judgment~~will byseek ~~USCF as~~ to ~~the~~position ~~appropriate~~its ~~diversification~~portfolio ofso ~~the~~that ~~Fund’s~~its ~~investments~~exposure ~~in futures contracts with respect~~ to the ~~month~~Benchmark ofOil ~~expiration,~~Futures ~~and~~Contract ~~the~~is ~~prevailing~~consistent ~~price~~with its ~~volatility~~investment ~~of particular contracts~~objective. ~~While~~The ~~USCF has~~impact ~~made~~of ~~significant~~a ~~investments~~Benchmark ~~in NYMEX~~ Oil Futures ~~Contracts,~~Contract’s ~~for~~movements ~~various~~during ~~reasons, including~~ the ~~ability~~day towill ~~enter~~affect ~~into~~whether the ~~precise~~ ~~amount~~Fund’s ofportfolio ~~exposure~~needs to ~~the~~be ~~crude~~rebalanced. ~~oil~~For ~~market~~example, ~~position limits or other regulatory requirements limiting~~ the Fund’s ~~holdings, and~~short ~~market~~exposure ~~conditions,~~will itneed ~~may~~to ~~invest~~be inincreased ~~Oil Futures Contracts traded~~ on ~~other~~days ~~exchanges or invest in Other Oil- Related Investments.~~when To the ~~extent~~Benchmark ~~that the Fund invests in Other~~ Oil~~-Related~~ ~~Investments,~~Futures itContract ~~would~~falls ~~prioritize investments in contracts~~ and ~~instruments that~~decreased ~~are~~on ~~economically~~days ~~equivalent to~~ the Benchmark Oil Futures Contract, ~~including~~rises. ~~cleared~~Daily ~~swaps~~rebalancing ~~that satisfy such criteria,~~ and ~~then,~~the tocompounding ~~a lesser extent, it would invest in other types~~ of ~~cleared~~each ~~swaps~~day’s ~~and~~return ~~other contracts, instruments and non-cleared swaps, such as swaps in the~~ over~~-the-counter~~ ~~market~~time ~~(or~~means ~~commonly~~that ~~referred to as~~ the ~~“OTC~~return ~~market”).~~of If the Fund isfor ~~required by~~a ~~law~~period orlonger ~~regulation,~~than ~~or by one of its regulators, including~~ a ~~futures~~single ~~exchange,~~day ~~to reduce its position in the Benchmark Oil Futures~~will ~~Contracts~~be to the ~~applicable~~result ~~position~~of ~~limit~~each orday’s toreturns acompounded ~~specified~~over ~~accountability~~the ~~level~~period, orwhich ifwill ~~market~~very ~~conditions~~likely ~~dictate~~differ itfrom ~~would~~three betimes ~~more appropriate~~the ~~to invest in Other Oil~~inverse (-~~Related~~3x) ~~Investments,~~of athe ~~substantial~~return ~~portion~~ of the ~~Fund’s~~Benchmark ~~assets~~Oil ~~could~~Futures beContract ~~invested~~for inthe ~~accordance with~~period. ~~such~~The ~~priority~~Fund inmay ~~Other~~lose ~~Oil-Related~~money ~~Investments~~if ~~that are intended to replicate~~ the ~~return on the~~ Benchmark Oil Futures ~~Contract.~~ ~~As the Fund~~Contract’s ~~assets~~performance ~~reach higher levels, it~~ is ~~more~~flat ~~likely~~over ~~to exceed position limits~~time, ~~accountability levels or other regulatory limits~~ and, ~~as a result,~~ it is ~~more~~possible ~~likely~~for ~~that~~a ~~it will invest in accordance with such priority in Other Oil-Related Investments at such higher levels. In addition, market conditions that USCF currently anticipates could cause the~~ Fund to ~~invest~~lose inmoney ~~Other~~over ~~Oil-Related Investments~~time ~~include~~regardless ~~those~~of ~~allowing~~ the ~~Fund to obtain greater liquidity or to execute transactions with more favorable pricing.~~performance ~~See~~of ~~“Item~~the ~~1A.~~Benchmark ~~Risk~~Oil ~~Factors”~~Futures inContract, ~~this~~as ~~annual report on Form 10-K for~~ a ~~discussion~~result of ~~the~~daily ~~potential~~rebalancing, ~~impact~~the ofBenchmark ~~regulation on~~Oil ~~the~~Futures ~~Fund~~Contract’s ~~ability to invest in OTC transactions~~ volatility and ~~cleared swaps~~compounding.

~~USCF~~In ~~may~~managing ~~not be able to fully invest~~ the Fund’s assets, inUSCF does ~~Benchmark~~not ~~Oil~~use ~~Futures~~a ~~Contracts~~technical ~~having~~trading ansystem ~~aggregate~~that ~~short~~issues ~~notional~~buy ~~amount~~and ~~exactly~~sell ~~equal~~orders. toUSCF ~~three~~instead ~~times~~employs ~~(3x)~~a quantitative methodology whereby ~~the~~each ~~Fund’s~~time ~~NAV.~~a ~~For~~Creation ~~example~~Basket is sold, asUSCF ~~standardized~~takes ~~contracts~~corresponding short positions in Oil Interests, such as the Benchmark Oil Futures Contract, ~~Contracts~~that ~~are~~have ~~for~~an aaggregate ~~specified~~market ~~amount~~value ~~of a~~that ~~particular~~approximates ~~commodity,~~three ~~and~~times (3x) the ~~Fund’s~~amount ~~NAV~~of Treasuries and/or ~~the~~cash ~~proceeds~~received upon ~~from~~ the ~~sale~~issuance of athe Creation Basket. ~~are~~As ~~unlikely to be an exact multiple~~ of the ~~amounts~~NAV ofcalculation ~~those~~time ~~contracts.~~each Astrading ~~a result~~day, ~~in such circumstances,~~ the Fund ~~may~~will bealso ~~better~~seek ~~able~~ to ~~achieve~~position its ~~the~~portfolio ~~exact amount~~so ofthat its exposure to ~~changes in price of~~ the Benchmark Oil Futures Contract ~~through~~is ~~the~~consistent ~~use~~with ofits ~~Other~~investment ~~Oil-Related~~objective ~~Investments,~~to provide ~~such~~investment asresults ~~OTC~~that ~~contracts~~correspond ~~that~~(before ~~have~~fees ~~better~~and ~~correlation~~expenses) ~~with~~to ~~changes~~three intimes ~~price~~the inverse (-3x) of the ~~Benchmark~~performance of the Benchmark Oil Futures Contract.

The Fund anticipates that to the extent it invests in Oil Futures Contracts other than contracts on light, sweet crude oil (such as futures contracts for diesel-heating oil, natural gas, and other petroleum-based fuels) and Other Oil-Related Investments, it will enter into various non-exchange-traded derivative contracts to hedge the short-term price movements of such Oil Futures Contracts and Other Oil-Related Investments against the current Benchmark Oil Futures Contract.7

The specific Oil Futures Contracts sold depend on various factors, including a judgment by USCF ~~does~~as ~~not~~to ~~anticipate~~the ~~letting~~appropriate diversification of the Fund’s investments in futures contracts with respect to the month of expiration, and the prevailing price volatility of particular contracts. While USCF has made significant investments in NYMEX Oil Futures Contracts, ~~expire~~for ~~and~~various ~~taking~~reasons, orincluding ~~making,~~the ~~delivery~~ability to enter into the precise amount of exposure to the ~~underlying~~crude ~~commodity.~~oil ~~Instead~~market, ~~USCF~~position ~~will~~limits ~~close~~or ~~existing~~other ~~positions~~regulatory requirements limiting the Fund’s holdings, ~~e.g.,~~and ~~when~~market conditions, it ~~changes~~may ~~the~~invest ~~Benchmark~~in Oil Futures Contracts traded on other exchanges or invest in Other Oil- Related Investments. To orthe extent that the Fund invests in Other Oil-Related Investments, it ~~otherwise~~would ~~determines~~prioritize investments in contracts and instruments that are economically equivalent to the Benchmark Oil Futures Contract, including cleared swaps that satisfy such criteria, and then, to a lesser extent, it would invest in other types of cleared swaps and other contracts, instruments and non-cleared swaps, such as swaps in the over-the-counter market (or commonly referred to as the “OTC market”). If the Fund is required by law or regulation, or by one of its regulators, including a futures exchange, to reduce its position in the Benchmark Oil Futures Contracts to the applicable position limit or to a specified accountability level or if market conditions dictate it would be more appropriate to doinvest soin ~~and~~Other ~~reinvests~~Oil-Related Investments, a substantial portion of the ~~proceeds~~Fund’s assets could be invested in ~~new~~accordance with such priority in Other Oil-Related Investments that are intended to replicate the return on the Benchmark Oil Futures ~~Contracts~~Contract. As the Fund’s assets reach higher levels, it is more likely to exceed position limits, accountability levels or other regulatory limits and, as a result, it is more likely that it will invest in accordance with such priority in Other Oil-Related Investments at such higher levels. ~~Positions~~In addition, market conditions that USCF currently anticipates could cause the Fund to invest in Other Oil-Related ~~may~~Investments ~~also~~include bethose ~~closed~~allowing ~~out~~the Fund to ~~meet~~obtain ~~orders~~greater ~~for~~liquidity ~~Redemption~~or ~~Baskets~~to ~~and~~execute transactions with more favorable pricing. See “Item 1A. Risk Factors” in ~~such~~this ~~case~~annual ~~proceeds~~report on Form 10-K for ~~such~~a ~~baskets~~discussion ~~will~~of ~~not~~the bepotential ~~reinvested~~impact of regulation on the Fund’s ability to invest in OTC transactions and cleared swaps.

~~The~~USCF ~~Benchmark~~may ~~Oil~~not ~~Futures~~be ~~Contract~~able isto ~~changed from~~fully ~~the~~invest ~~near month contract to~~ the Fund’s ~~next~~assets ~~month~~in ~~contract over a four-day period. Each month, the~~ Benchmark Oil Futures ~~Contract changes~~Contracts ~~starting~~having atan ~~the~~aggregate ~~end~~short ofnotional ~~the~~amount ~~day~~exactly onequal ~~the date two weeks prior~~ to ~~expiration~~three oftimes (3x) the ~~near~~Fund’s ~~month contract for that month~~NAV. ~~During the~~For ~~first~~example, ~~three~~as ~~days~~standardized ~~of the period~~contracts, the ~~applicable value of the~~ Benchmark Oil Futures ~~Contract~~Contracts isare ~~based~~for on a ~~combination~~specified ofamount ~~the near month contract and the next month contract as follows: (1) day 1 consists~~ of ~~75% of the then near month contract’s price~~ ~~plus~~a ~~25%~~particular ~~of the price of the next month contract~~commodity, ~~divided~~and ~~by 75% of~~ the ~~near month contract~~Fund’s ~~prior~~NAV ~~day’s~~and ~~price plus 25% of~~ the ~~price~~proceeds offrom the ~~next~~sale ~~month contract, (2) day 2 consists~~ of ~~50%~~a ofCreation ~~the~~Basket ~~then~~are ~~near~~unlikely ~~month~~to ~~contract’s~~be ~~price~~an ~~plus 50% of~~exact ~~the~~multiple ~~price~~ of the ~~next~~amounts ~~month contract, divided by 50%~~ of ~~the~~those ~~near~~contracts. ~~month~~As ~~contract’s~~a ~~prior~~result, ~~day’s~~in ~~price~~such ~~plus~~circumstances, ~~50% of~~ the ~~price~~ ofFund ~~the~~may ~~next~~be ~~month~~better ~~contract~~able ~~and~~to ~~(3)~~achieve ~~day 3 consists of 25% of~~ the ~~then near month contract’s price plus 75% of the price~~exact ofamount ~~the next month contract, divided by 25%~~ of ~~the~~exposure ~~near~~to ~~month~~changes ~~contract’s~~in ~~prior day’s~~ price ~~plus 75%~~ of the ~~price of the next month contract. On day 4, the~~ Benchmark Oil Futures Contract isthrough the ~~next~~use ~~month contract to expire at that time and that contract remains the Benchmark Oil Futures Contract until the beginning~~ of ~~the~~Other ~~following month’s change in the Benchmark~~ Oil ~~Futures Contract over a four~~-~~day~~Related ~~period. On each day during the four-day period~~Investments, ~~USCF anticipates it will “roll”~~ ~~the~~such ~~Fund’s~~as ~~positions~~OTC incontracts ~~Oil~~that ~~Interests~~have bybetter ~~closing,~~correlation orwith ~~buying,~~changes ain ~~percentage~~price of the ~~Fund’s short positions in Oil Interests and reinvesting the proceeds from closing those positions in new short positions in Oil Interests that reflect the change in the~~ Benchmark Oil Futures Contract.

The ~~anticipated~~Fund ~~dates~~anticipates that to the ~~monthly~~extent ~~four-day~~it ~~roll~~invests ~~period~~in ~~will~~Oil ~~commence~~Futures ~~are~~Contracts ~~posted~~other than contracts on ~~the~~light, ~~Fund’s~~sweet ~~website~~crude atoil ~~www.uscfinvestments.com~~(such as futures contracts for diesel-heating oil, natural gas, and ~~are~~other ~~subject~~petroleum-based fuels) and Other Oil-Related Investments, it will enter into various non-exchange-traded derivative contracts to ~~change~~hedge the short-term price movements of such Oil Futures Contracts and Other Oil-Related Investments against ~~without~~the ~~notice~~current Benchmark Oil Futures Contract.

ByUSCF ~~remaining~~does ~~invested~~not asanticipate ~~fully~~letting asthe ~~possible~~Fund’s in Oil Futures Contracts orexpire ~~Other~~and ~~Oil-Related Investments~~taking, ~~USCF~~or ~~believes~~making, ~~that~~delivery ~~the daily changes in percentage terms~~ of the ~~Fund’s NAV~~underlying ~~will~~commodity. ~~continue to closely track~~Instead, onUSCF anwill ~~inverse~~close ~~leveraged~~existing ~~basis~~positions, e.g., ~~the~~when ~~daily~~it changes ~~in percentage terms in~~ the ~~price of the~~ Benchmark Oil Futures ~~Contract.~~Contracts ~~USCF~~or ~~believes~~Other ~~that~~Oil-Related ~~certain~~Investments ~~arbitrage~~or ~~opportunities~~it ~~result~~otherwise indetermines ~~the~~it would ~~price~~be ofappropriate ~~the~~to ~~shares~~do ~~traded~~so onand ~~the~~reinvests ~~NYSE Arca closely tracking~~ the ~~NAV~~proceeds ofin ~~the~~new ~~Fund. Additionally,~~ Oil Futures Contracts ~~traded~~or onOther ~~the~~Oil-Related ~~NYMEX~~Investments. ~~have closely tracked the spot price~~Positions ofmay ~~light,~~also ~~sweet~~be ~~crude~~closed ~~oil.~~out ~~Based~~to onmeet ~~these~~orders ~~expected~~for ~~interrelationships,~~Redemption ~~USCF~~Baskets ~~believes~~and ~~that the changes~~ in ~~the~~such ~~price~~case ofproceeds ~~the~~for ~~Fund’s shares~~such asbaskets ~~traded on the NYSE Arca~~ will ~~closely~~not ~~track,~~be ~~on a daily leveraged inverse basis, the changes in the spot price of light, sweet crude oil on a percentage basis~~reinvested.

8The Benchmark Oil Futures Contract is changed from the near month contract to the next month contract over a four-day period. Each month, the Benchmark Oil Futures Contract changes starting at the end of the day on the date two weeks prior to expiration of the near month contract for that month. During the first three days of the period, the applicable value of the Benchmark Oil Futures Contract is based on a combination of the near month contract and the next month contract as follows: (1) day 1 consists of 75% of the then near month contract’s price plus 25% of the price of the next month contract, divided by 75% of the near month contract’s prior day’s price plus 25% of the price of the next month contract, (2) day 2 consists of 50% of the then near month contract’s price plus 50% of the price of the next month contract, divided by 50% of the near month contract’s prior day’s price plus 50% of the price of the next month contract and (3) day 3 consists of 25% of the then near month contract’s price plus 75% of the price of the next month contract, divided by 25% of the near month contract’s prior day’s price plus 75% of the price of the next month contract. On day 4, the Benchmark Oil Futures Contract is the next month contract to expire at that time and that contract remains the Benchmark Oil Futures Contract until the beginning of the following month’s change in the Benchmark Oil Futures Contract over a four-day period. On each day during the four-day period, USCF anticipates it will “roll” the Fund’s positions in Oil Interests by closing, or buying, a percentage of the Fund’s short positions in Oil Interests and reinvesting the proceeds from closing those positions in new short positions in Oil Interests that reflect the change in the Benchmark Oil Futures Contract.

The ~~total~~anticipated ~~portfolio~~dates ~~composition of each Trust Series is disclosed on the applicable Trust Series’ website each business day~~ that the ~~NYSE Arca is open for trading.~~monthly ~~For~~four-day aroll ~~list~~period ofwill ~~each~~commence ofare ~~USOU~~posted ~~and~~on ~~USOD~~the ~~current~~Fund’s ~~holdings,~~website ~~please~~at ~~see~~ www.uscfinvestments.com~~. The website disclosure of portfolio holdings for each Trust Series is made daily and includes~~, ~~as applicable, the name~~ and value of each Oil Interest, the specific types of Other Oil-Related Investments and characteristics of such Other Oil-Related Investments, the name and value of each Treasury and cash equivalent, and the amount of cash held in each Trust Series, as applicable. The website is publicly accessible at no charge. The assets used for margin and collateral for each Trust Series are ~~held~~subject ~~in segregated accounts pursuant~~ to ~~the Commodity Exchange~~change ~~Act~~without ~~(the “CEA”) and CFTC regulations~~notice.

~~“Authorized~~By ~~Participants,” institutional~~remaining ~~firms~~invested ~~that~~as ~~can~~fully ~~purchase~~as possible in Oil Futures Contracts or ~~redeem~~Other ~~shares~~Oil-Related Investments, USCF believes that the daily changes in ~~blocks~~percentage terms of 50the Fund’s NAV will continue to closely track,~~000~~ ~~shares~~on ~~called~~an ~~“baskets”~~inverse ~~through~~leveraged ~~each~~basis, ~~Trust~~the daily changes in percentage terms in the price of the Benchmark ~~Series~~Oil ~~marketing~~Futures ~~agent,~~Contract. ~~may~~USCF ~~purchase~~believes orthat ~~redeem~~certain ~~baskets~~arbitrage ~~only~~opportunities result in ~~blocks~~the price of ~~50,000~~the shares attraded aon ~~price~~the ~~equal~~NYSE toArca closely tracking the NAV of the ~~shares~~Fund. Additionally, Oil Futures Contracts traded on the NYMEX have closely tracked the spot price ~~calculated~~of ~~shortly~~light, ~~after~~sweet crude oil. Based on these expected interrelationships, USCF believes that the ~~close~~changes in the price of the ~~core~~Fund’s shares ~~trading~~as ~~session~~traded on the NYSE Arca will closely track, on a daily leveraged inverse basis, the ~~day~~changes in the ~~order~~spot isprice ~~placed~~of light, sweet crude oil on a percentage basis.

Each Trust Series receives or pays the proceeds from shares sold or redeemed within two business days after the trade date of the purchase or redemption. The amounts due from Authorized Participants are reflected in the statements of financial condition for each Trust Series as receivable for shares sold, and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed.8

~~Authorized~~The ~~Participants~~total ~~pay~~portfolio acomposition ~~transaction~~of each ~~fee~~Trust ~~equal~~Series is todisclosed ~~0.04%~~on ofthe ~~total~~applicable ~~NAV~~Trust Series’ website each business day that the NYSE Arca is open for trading. For a list of ~~baskets~~each toof USOU and USOD current holdings, please see www.uscfinvestments.com. The website disclosure of portfolio holdings for each ~~order~~Trust ~~placed~~Series is tomade ~~create~~daily orand ~~redeem~~includes, ~~one~~as orapplicable, ~~more~~the ~~baskets.~~name ~~The~~and value of each Oil Interest, the specific types ~~transaction~~of ~~fee~~Other ~~may~~Oil-Related beInvestments ~~waived~~and characteristics of such Other Oil-Related Investments, ~~reduced~~the name and value of each Treasury and cash equivalent, ~~increased~~and orthe ~~otherwise~~amount ~~changed~~of bycash ~~USCF~~held in each Trust Series, as applicable. The website is publicly accessible at no charge. The assets used for margin and collateral for each Trust Series are held in segregated accounts pursuant to the Commodity Exchange Act (the “CEA”) and CFTC regulations.

~~Most~~“Authorized ~~investors~~Participants,” institutional ~~will~~firms ~~buy~~that ~~and~~can ~~sell~~purchase or redeem shares of ~~each~~in ~~Trust~~blocks ~~Series~~of in50,000 ~~secondary~~shares ~~market~~called ~~transactions~~“baskets” through ~~brokers.~~each ~~Shares~~Trust Series marketing ~~will~~agent, ~~trade~~may onpurchase ~~NYSE~~or ~~Arca~~redeem ~~under~~baskets ~~the~~only ~~ticker~~in ~~symbols “USOU”~~blocks ~~and~~of ~~“USOD.”~~50,000 ~~Shares~~shares ~~are~~at ~~bought~~a ~~and~~price ~~sold~~equal ~~throughout~~to the ~~trading~~NAV ~~day~~of ~~like other publicly traded securities.~~the ~~When buying or selling~~ shares ~~through~~calculated ashortly ~~broker,~~after ~~most~~the ~~investors~~close ~~will~~of ~~incur~~the ~~customary~~core ~~brokerage~~trading ~~commissions~~session ~~and~~on ~~charges.~~the ~~Investors are~~NYSE ~~encouraged~~Arca toon ~~review~~ the ~~terms~~day ofthe ~~their~~order ~~brokerage~~is ~~account for details on applicable charges~~placed.

~~What~~Each isTrust Series receives or pays the ~~Investment~~proceeds ~~Strategy~~from shares sold or redeemed within two business days after the trade date of ~~each~~the purchase or redemption. The amounts due from Authorized Participants are reflected in the statements of financial condition for each Trust Series? as receivable for shares sold, and amounts payable to Authorized Participants upon redemption are reflected as payable for shares redeemed.

~~United~~Authorized ~~States~~Participants 3xpay ~~Oil~~a ~~Fund~~transaction fee equal to 0.04% of total NAV of baskets to USOU and USOD for each order placed to create or redeem one or more baskets. The transaction fee may be waived, reduced, increased or otherwise changed by USCF.

~~USOU~~Most investors will ~~seek~~buy toand ~~achieve~~sell ~~its investment~~shares ~~objective~~of byeach ~~primarily~~Trust ~~investing~~ Series in ~~futures~~secondary ~~contracts~~market ~~for~~transactions ~~light,~~through ~~sweet~~brokers. ~~crude~~Shares ~~oil~~will ~~that~~trade ~~are~~on ~~traded~~NYSE onArca under the ~~NYMEX,~~ticker ~~ICE~~symbols ~~Futures~~“USOU” orand ~~other U~~“USOD.S.” Shares are bought and ~~foreign~~sold ~~exchanges~~throughout ~~(collectively~~the trading day like other publicly traded securities. When buying or selling shares through a broker, ~~“Oil~~most ~~Futures~~investors ~~Contracts”)~~will incur customary brokerage commissions and charges. Investors are encouraged to review the terms of their brokerage account for details on applicable charges.

~~USOU~~What ~~will,~~is tothe aInvestment ~~lesser~~Strategy ~~extent~~of ~~and in view~~each ofTrust ~~regulatory requirements and/or market conditions:~~Series?

~~(i)~~United ~~next~~States ~~invest~~3x ~~in (a) cleared swap transactions based on the Benchmark~~ Oil ~~Futures Contract, (b) non-exchange traded (“over-the-counter” or “OTC”), negotiated swap contracts that are based on the Benchmark Oil Futures Contract, and (c) forward contracts for oil;~~Fund

~~(ii)~~USOU ~~followed~~will seek to achieve its investment objective by ~~investments~~primarily investing in futures contracts for ~~other~~light, ~~types~~sweet of crude oil, ~~diesel-heating~~that ~~oil, gasoline, natural gas, and other petroleum-based fuels, each of which~~ are traded on the NYMEX, ICE Futures or other U.S. and foreign exchanges as(collectively, ~~well~~“Oil asFutures ~~cleared swap transactions and OTC swap contracts valued based on the foregoing; and~~Contracts”).

~~(iii)~~USOU ~~finally~~will, ~~invest~~to ina ~~exchange-traded~~lesser ~~cash~~extent ~~settled~~and ~~options~~in onview of ~~Oil~~regulatory ~~Futures~~requirements ~~Contracts.~~and/or market conditions:

~~All~~(i) ~~such~~next ~~other~~invest ~~investments~~in ~~are~~(a) ~~referred to~~cleared asswap ~~“Other~~transactions based on the Benchmark Oil Futures Contract, (b) non-~~Related~~exchange ~~Investments~~traded (“over-the-counter” ~~and~~or “OTC”), ~~together~~negotiated ~~with~~swap contracts that are based on the Benchmark Oil Futures ~~Contracts~~Contract, ~~are~~and ~~“Oil~~(c) ~~Interests.”~~forward contracts for oil;

~~For~~(ii) ~~USOU~~followed toby ~~maintain~~investments ain ~~consistent~~futures ~~300% return~~contracts ~~versus~~for ~~the~~other ~~Benchmark~~types ~~Oil~~of ~~Futures~~crude ~~Contract~~oil, ~~the~~diesel-heating ~~Fund’s~~oil, ~~holdings~~gasoline, ~~must~~natural begas, ~~rebalanced~~and onother apetroleum-based ~~daily~~fuels, ~~basis~~each ~~by buying additional Oil Interests or selling Oil Interests that it holds. Such rebalancing will occur generally before or at the close~~ of ~~trading~~which ~~of the~~are ~~shares~~traded on the ~~Exchange~~NYMEX, atICE Futures or asother ~~near~~U.S. ~~as possible to that day’s settlement price,~~ and ~~will~~foreign beexchanges ~~disclosed~~as onwell ~~the Fund’s website~~ as ~~pending~~cleared ~~trades~~swap ~~before~~transactions ~~the opening of trading on the Exchange the next business day~~ and ~~will~~OTC beswap ~~taken~~contracts ~~into~~valued ~~account~~based ~~in USOU’s intra-day Indicative Fund Value and reflected in USOU’s end of day NAV~~ on ~~that~~the ~~business~~foregoing; ~~day.~~and

~~USOU~~(iii) ~~anticipates that~~finally, toinvest ~~the extent it invests~~ in ~~Oil Futures Contracts other than the Benchmark Oil Futures Contract or Other Oil~~exchange-~~Related~~traded ~~Investments,~~cash itsettled ~~will invest in futures, cleared and non-cleared swaps, and call and put~~ options to hedge the short-term price movements of such Oil Futures Contracts and Other Oil-Related Investments against the price movements of the current Benchmark Oil Futures Contract. For example, if USOU invested in diesel-heating oil futures contracts, it may also enter into a swap or forward contract that is valued based on ~~the difference between the diesel-heating oil futures contract and the Benchmark~~ Oil Futures Contract so that the investment in the diesel-heating oil futures contracts together with such swap would provide a return that more closely matches the movements in the price of the Benchmark Oil Futures ContractContracts.

~~USCF~~All ~~currently anticipates that regulatory requirements~~ such ~~as accountability levels set by exchanges or position limits set by exchanges or by~~ other ~~regulators,~~investments ~~such~~are asreferred ~~the CFTC, and market conditions including those allowing the Fund~~ to ~~obtain~~as ~~greater~~“Other ~~liquidity~~Oil-Related orInvestments” toand, ~~execute~~together ~~transactions~~ with ~~more favorable~~Oil ~~pricing~~Futures Contracts, ~~could~~are ~~cause the Fund to invest in Other~~ “Oil~~-Related~~ ~~Investments~~Interests.”

9For USOU to maintain a consistent 300% return versus the Benchmark Oil Futures Contract, the Fund’s holdings must be rebalanced on a daily basis by buying additional Oil Interests or selling Oil Interests that it holds. Such rebalancing will occur generally before or at the close of trading of the shares on the Exchange, at or as near as possible to that day’s settlement price, and will be disclosed on the Fund’s website as pending trades before the opening of trading on the Exchange the next business day and will be taken into account in USOU’s intra-day Indicative Fund Value and reflected in USOU’s end of day NAV on that business day.

USOU ~~will~~anticipates ~~support~~that, ~~its~~to ~~investments~~the byextent ~~holding~~it ~~the~~invests ~~amounts~~in ofOil ~~its~~Futures ~~margin,~~Contracts ~~collateral~~other ~~and~~than ~~other~~the ~~requirements~~Benchmark ~~relating~~Oil toFutures ~~these~~Contract ~~obligations~~or inOther ~~short~~Oil-~~term~~Related ~~obligations~~Investments, ofit ~~the~~will ~~United~~invest ~~States~~in offutures, ~~two~~cleared ~~years~~and ornon-cleared ~~less (“Treasuries”)~~swaps, ~~cash~~and call and ~~cash~~put ~~equivalents.~~options ~~Cash~~to ~~equivalents~~hedge ~~are~~the short-term ~~instruments with~~price ~~maturities~~movements of ~~less~~such ~~than~~Oil ~~three~~Futures Contracts ~~months~~ and ~~shall~~Other ~~include~~Oil-Related ~~the~~Investments ~~following:~~against ~~(i)~~the ~~certificates~~price movements of ~~deposit~~the ~~issued~~current ~~against~~Benchmark ~~funds~~Oil ~~deposited in~~Futures aContract. ~~bank~~For orexample, if ~~savings~~USOU ~~and~~invested ~~loan~~in ~~association;~~diesel-heating ~~(ii)~~oil ~~bankers’~~futures ~~acceptances~~contracts, ~~which~~it ~~are~~may ~~short-term~~also ~~credit~~enter ~~instruments~~into ~~used~~a toswap ~~finance commercial~~or ~~transactions;~~forward ~~(iii)~~contract ~~repurchase~~that ~~agreements~~is ~~and~~valued ~~reverse~~based on ~~repurchase~~the ~~agreements;~~difference ~~(iv)~~between ~~bank~~the ~~time~~diesel-heating ~~deposits,~~oil ~~which~~futures ~~are~~contract ~~monies kept~~and onthe ~~deposit~~Benchmark ~~with~~Oil ~~banks~~Futures orContract ~~savings~~so ~~and~~that ~~loan~~the ~~associations~~investment in ~~for~~the adiesel-heating ~~stated~~oil ~~period~~futures ofcontracts ~~time~~together atwith asuch ~~fixed~~swap ~~rate~~would ofprovide ~~interest;~~a ~~(v)~~return ~~commercial paper,~~that ~~which~~more ~~are~~closely ~~short-term~~matches ~~unsecured~~the ~~promissory~~movements in ~~notes;~~the ~~and~~price ~~(vi)~~of ~~money~~the ~~market~~Benchmark ~~funds~~Oil Futures Contract.

~~USOU~~USCF ~~may~~currently ~~invest~~anticipates inthat ~~money~~regulatory requirements ~~market~~such ~~funds,~~ as ~~well~~accountability aslevels ~~Treasuries~~set ~~with~~by aexchanges ~~maturity~~or ~~date~~position oflimits ~~two~~set ~~years~~by exchanges or ~~less~~by other regulators, such as the anCFTC, ~~investment~~and ~~for~~market ~~assets~~conditions ~~not~~including ~~used~~those ~~for~~allowing ~~margin~~the orFund ~~collateral in~~to ~~the~~obtain ~~Oil~~greater ~~Interests.~~liquidity ~~The~~or ~~majority~~to ofexecute ~~the~~transactions ~~Fund’s~~with ~~assets~~more favorable ~~will~~pricing, becould ~~held~~cause inthe ~~Treasuries,~~Fund ~~cash~~to ~~and/or~~invest ~~cash~~in ~~equivalents~~Other ~~with~~Oil-Related ~~the Custodian~~Investments.

USOU will seek to invest in a combination of Oil Interests such that the daily changes in its NAV, measured in percentage terms, less USOU’s expenses, will track three times (3x) the daily changes in the price of the Benchmark Oil Futures Contract, also measured in percentage terms. As a specific benchmark, USCF will endeavor to place USOU’s trades in Oil Interests and otherwise manage USOU’s investments so that the difference between “A” and “B” will be plus/minus 0.30 percent (0.30%) of “B”, where:9

·USOU Awill issupport its investments by holding the ~~average~~amounts ~~daily~~of ~~percentage~~its ~~change~~margin, collateral and other requirements relating to these obligations in ~~USOU’s~~short-term ~~per~~obligations ~~share~~of ~~NAV~~the ~~for~~United States ~~any~~of ~~period~~two years or less (“Treasuries”), cash and cash equivalents. Cash equivalents are short-term instruments with maturities of ~~thirty~~less than three months and shall include the following: (30i) certificates ~~successive~~of ~~valuation~~deposit ~~days~~issued against funds deposited in a bank or savings and loan association; (ii) bankers’ acceptances, ~~i.e.~~which are short-term credit instruments used to finance commercial transactions; (iii) repurchase agreements and reverse repurchase agreements; (iv) bank time deposits, ~~any~~which ~~NYSE~~are ~~Arca~~monies ~~trading~~kept ~~day~~on asdeposit with banks or savings and loan associations for a stated period of ~~which~~time ~~USOU~~at ~~calculates~~a ~~its~~fixed ~~per~~rate of ~~share~~interest; ~~NAV~~(v) commercial paper, ~~less~~which ~~USOU’s~~are ~~expenses~~short-term unsecured promissory notes; and (vi) money market funds.

·USOU Bmay isinvest ~~three~~in ~~times~~money ~~the~~market ~~average~~funds, as ~~daily~~well ~~percentage~~as ~~change~~Treasuries with a maturity date of two years or less, as an investment for assets not used for margin or collateral in the ~~price~~Oil Interests. The majority of the ~~Benchmark~~Fund’s ~~Oil~~assets ~~Futures~~will ~~Contract~~be ~~over~~held ~~the~~in ~~same~~Treasuries, ~~period~~cash and/or cash equivalents with the Custodian.

~~The design of~~ USOU’s ~~Benchmark~~will ~~Oil Futures~~seek ~~Contract is such that every month it begins by using the near month contract~~ to ~~expire~~invest ~~until~~in ~~the~~a ~~near month contract is~~combination ~~within two weeks~~ of ~~expiration,~~Oil ~~when,~~Interests ~~over~~such athat ~~four day period, it transitions to~~ the ~~next~~daily ~~month~~changes ~~contract~~in ~~to expire as~~ its ~~benchmark contract~~NAV, ~~and~~measured ~~keeps~~in ~~that~~percentage ~~contract~~terms, asless ~~its~~USOU’s ~~benchmark~~expenses, ~~until~~will ittrack ~~becomes the near month contract and close to expiration. In the event~~three oftimes ~~a crude oil futures market where near month contracts trade at a higher price than next month to expire contracts~~ (~~“backwardation”~~3x)~~, then,~~ ~~absent~~ the ~~impact~~daily ofchanges ~~the overall movement~~ in ~~crude oil prices,~~ the ~~value~~price of the ~~benchmark~~Benchmark ~~contract~~Oil ~~would~~Futures ~~tend~~Contract, toalso ~~rise~~measured ~~as it~~in ~~approaches~~percentage ~~expiration~~terms. ~~Conversely,~~As ina ~~the~~specific benchmark, ~~event~~USCF ofwill aendeavor ~~crude~~to ~~oil~~place ~~futures~~USOU’s ~~market~~trades ~~where~~in ~~near~~Oil ~~month~~Interests ~~contracts~~and ~~trade~~otherwise atmanage aUSOU’s ~~lower~~investments ~~price~~so that ~~than~~the ~~next~~difference ~~month~~between ~~contracts (~~“~~contango~~A”), ~~then,~~and ~~absent~~“B” ~~the~~will ~~impact~~be ofplus/minus ~~the~~0.30 ~~overall~~percent ~~movement~~(0.30%) inof ~~crude oil prices~~“B”, ~~the value of the benchmark contract would tend to decline as it approaches expiration.~~where:

USCF believes that market arbitrage opportunities will cause daily changes in USOU’s share price on NYSE Arca on a percentage basis, to closely track the daily changes in USOU’s per share NAV on a percentage basis. USOU will not seek to achieve its stated investment objective over a period of time greater than one day. The pursuit of daily leveraged investment goals means that the return of USOU for a period longer than a full trading day may have no resemblance to 300% of the return of the Benchmark Oil Futures Contract for a period of longer than a full trading day because the aggregate return of USOU is the product of the series of each trading day’s daily returns. During periods of market volatility, the volatility of the Benchmark Oil Futures Contract may affect USOU’s return as much as or more than the return of the Benchmark Oil Futures Contract. Further, the return for investors that invest for periods less than a full trading day or for a period different than a trading day will not be the product of the return of USOU’s stated investment objective and the performance of the Benchmark Oil Futures Contract for the full trading day. Additionally, investors should be aware that USOU’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil. Natural market forces called contango and backwardation can impact the total return on an investment in USOU’s shares relative to a hypothetical direct investment in crude oil and, in the future, it is likely that the relationship between the market price of USOU’s shares and changes in the spot prices of light, sweet crude oil will continue to be so impacted by contango and backwardation. (It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing crude oil, which could be substantial.) For a more in-depth discussion of the impact of contango and backwardation, see “Item 1A. Risk Factors” in this annual report on Form 10-K.

	·	A is the average daily percentage change in USOU’s per share NAV for any period of thirty (30) successive valuation days, i.e., any NYSE Arca trading day as of which USOU calculates its per share NAV, less USOU’s expenses; and
	·	B is three times the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period.

~~United~~The ~~States~~design 3xof ~~Short~~USOU’s Benchmark Oil Futures ~~Fund~~Contract is such that every month it begins by using the near month contract to expire until the near month contract is within two weeks of expiration, when, over a four day period, it transitions to the next month contract to expire as its benchmark contract and keeps that contract as its benchmark until it becomes the near month contract and close to expiration. In the event of a crude oil futures market where near month contracts trade at a higher price than next month to expire contracts (“backwardation”), then, absent the impact of the overall movement in crude oil prices, the value of the benchmark contract would tend to rise as it approaches expiration. Conversely, in the event of a crude oil futures market where near month contracts trade at a lower price than next month contracts (“contango”), then, absent the impact of the overall movement in crude oil prices, the value of the benchmark contract would tend to decline as it approaches expiration.

~~USOD~~USCF believes that market arbitrage opportunities will cause daily changes in USOU’s share price on NYSE Arca on a percentage basis, to closely track the daily changes in USOU’s per share NAV on a percentage basis. USOU will not seek to achieve its stated investment objective over a period of time greater than one day. The pursuit of daily leveraged investment goals means that the return of USOU for a period longer than a full trading day may have no resemblance to 300% of the return of the Benchmark Oil Futures Contract for a period of longer than a full trading day because the aggregate return of USOU is the product of the series of each trading day’s daily returns. During periods of market volatility, the volatility of the Benchmark Oil Futures Contract may affect USOU’s return as much as or more than the return of the Benchmark Oil Futures Contract. Further, the return for investors that invest for periods less than a full trading day or for a period different than a trading day will not be the product of the return of USOU’s stated investment objective byand ~~primarily~~the ~~investing~~performance inof ~~short~~the ~~positions~~Benchmark inOil ~~futures~~Futures ~~contracts~~Contract for the full trading day. Additionally, investors should be aware that USOU’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil. ~~that~~Natural ~~are~~market ~~traded~~forces called contango and backwardation can impact the total return on an investment in USOU’s shares relative to a hypothetical direct investment in crude oil and, in the ~~NYMEX~~future, it is likely ~~ICE~~that ~~Futures~~the orrelationship ~~other~~between ~~U.S.~~the market price of USOU’s shares and ~~foreign~~changes ~~exchanges~~in the spot prices of light, sweet crude oil will continue to be so impacted by contango and backwardation. (~~collectively~~It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing crude oil, which could be substantial.) For a more in-depth discussion of the impact of contango and backwardation, see “~~Oil~~Item ~~Futures~~1A. ~~Contracts~~Risk Factors”) in this annual report on Form 10-K.

~~USOD~~United ~~will,~~States to3x aShort ~~lesser~~Oil ~~extent and in view of regulatory requirements and/or market conditions:~~Fund

~~(i)~~USOD ~~next~~will ~~invest~~seek into ~~(a)~~achieve ~~cleared~~its ~~swap~~investment objective ~~transactions~~by ~~based~~primarily oninvesting in short positions in ~~the~~futures ~~Benchmark~~contracts ~~Oil~~for ~~Futures Contract~~light, ~~(b)~~sweet ~~non-exchange~~crude ~~traded~~oil ~~(“over-the-counter” or “OTC”), negotiated swap contracts~~ that are ~~based~~traded on ~~short positions in~~ the ~~Benchmark~~NYMEX, ICE Futures ~~Oil~~or ~~Futures~~other ~~Contract,~~U.S. and ~~(c)~~foreign ~~forward~~exchanges ~~contracts~~(collectively, ~~for~~“Oil ~~oil;~~Futures Contracts”).

~~(ii)~~USOD ~~followed by investments in short positions in futures contracts for other types of crude oil~~will, ~~diesel-heating~~to ~~oil,~~a ~~gasoline,~~lesser ~~natural~~extent ~~gas,~~ and ~~other~~in ~~petroleum-based fuels, each~~ view of ~~which~~regulatory ~~are~~requirements ~~traded on the NYMEX, ICE Futures~~ and/or ~~other~~market ~~U.S. and foreign exchanges as well as cleared swap transactions and OTC swap contracts valued based on the foregoing; and~~conditions:

(~~iii~~i) ~~finally,~~next invest in ~~exchange~~(a) cleared swap transactions based on short positions in the Benchmark Oil Futures Contract, (b) non-exchange traded ~~cash~~(“over-the-counter” ~~settled~~or ~~options~~“OTC”), negotiated swap contracts that are based on short positions in the Benchmark Oil Futures ~~Contracts.~~Contract, and (c) forward contracts for oil;

~~All~~(ii) ~~such~~followed ~~other~~by investments ~~are~~in ~~referred to~~short aspositions ~~“Other~~in ~~Oil~~futures contracts for other types of crude oil, diesel-~~Related~~heating ~~Investments”~~oil, ~~and~~gasoline, ~~together~~natural ~~with~~gas, ~~Oil~~and ~~Futures~~other ~~Contracts~~petroleum-based fuels, each of which are ~~“Oil~~traded ~~Interests~~on the NYMEX, ICE Futures or other U.”S. and foreign exchanges as well as cleared swap transactions and OTC swap contracts valued based on the foregoing; and

10(iii) finally, invest in exchange-traded cash settled options on Oil Futures Contracts.

~~For~~All ~~USOD~~such toother ~~maintain~~investments aare ~~consistent 300%~~referred ~~return~~to ~~versus~~as ~~short~~“Other ~~positions in the Benchmark~~ Oil-Related ~~Futures~~Investments” ~~Contract~~and, ~~USOD’s~~together ~~holdings~~with ~~must be rebalanced on a daily basis by selling additional~~ Oil ~~Interests~~Futures orContracts, ~~buying~~are “Oil Interests ~~for which it holds short positions~~. Such rebalancing will occur generally before or at the close of trading of the shares on the Exchange, at or as near as possible to that day’s settlement price, and will be disclosed on USOD’s website as pending trades before the opening of trading on the Exchange the next business day and will be taken into account in USOD’s intra-day Indicative Fund Value and reflected in USOD’s end of day NAV on that business day.”

USOD anticipates that, to the extent it invests in Oil Futures Contracts other than the Benchmark Oil Futures Contract or Other Oil-Related Investments, it will invest in futures, cleared and non-cleared swaps, and call and put options to hedge the short-term price movements of such Oil Futures Contracts and Other Oil-Related Investments against the price movements of the current Benchmark Oil Futures Contract. For example, if USOD invested in diesel-heating oil futures contracts, it may also enter into a swap or forward contract that is valued based on the difference between the short positions in the diesel-heating oil futures contract and short positions in the Benchmark Oil Futures Contract so that the investment in the diesel-heating oil futures contracts together with such swap would provide a return that more closely matches the movements in the price of the Benchmark Oil Futures Contract.10

~~USCF~~For ~~currently~~USOD ~~anticipates~~to ~~that~~maintain ~~regulatory~~a consistent 300% ~~requirements~~return ~~such~~versus asshort ~~accountability~~positions ~~levels~~in ~~set~~the byBenchmark ~~exchanges~~Oil orFutures ~~position~~Contract, ~~limits~~USOD’s ~~set~~holdings must be rebalanced on a daily basis by ~~exchanges~~selling additional Oil Interests or bybuying ~~other~~Oil ~~regulators,~~Interests ~~such~~for aswhich it holds short positions. Such rebalancing will occur generally ~~the~~before ~~CFTC,~~or ~~and~~at ~~market~~the ~~conditions~~close ~~including~~of ~~those~~trading ~~allowing~~of ~~USOD~~the toshares ~~obtain~~on ~~greater~~the ~~liquidity~~Exchange, at or as near as possible to ~~execute~~that ~~transactions~~day’s ~~with~~settlement ~~more~~price, ~~favorable~~and ~~pricing,~~will ~~could~~be ~~cause~~disclosed on USOD’s towebsite ~~invest~~as pending trades before the opening of trading on the Exchange the next business day and will be taken into account in ~~Other~~USOD’s ~~Oil~~intra-~~Related~~day ~~Investments~~Indicative Fund Value and reflected in USOD’s end of day NAV on that business day.

USOD ~~will~~anticipates ~~support~~that, ~~its~~to ~~investments~~the byextent ~~holding~~it ~~the~~invests ~~amounts~~in ofOil ~~its~~Futures ~~margin,~~Contracts ~~collateral~~other ~~and~~than ~~other~~the ~~requirements~~Benchmark ~~relating~~Oil toFutures ~~these~~Contract ~~obligations~~or inOther ~~short~~Oil-~~term~~Related ~~obligations~~Investments, ofit ~~the~~will ~~United~~invest ~~States~~in offutures, ~~two~~cleared ~~years~~and ornon-cleared ~~less (“Treasuries”)~~swaps, ~~cash~~and call and ~~cash~~put ~~equivalents.~~options ~~Cash~~to ~~equivalents~~hedge ~~are~~the short-term ~~instruments with~~price ~~maturities~~movements of ~~less~~such ~~than~~Oil ~~three~~Futures Contracts ~~months~~ and ~~shall~~Other ~~include~~Oil-Related ~~the~~Investments ~~following:~~against ~~(i)~~the ~~certificates~~price movements of ~~deposit~~the ~~issued~~current ~~against~~Benchmark ~~funds~~Oil ~~deposited~~Futures Contract. For example, if USOD invested in adiesel-heating ~~bank~~oil orfutures ~~savings~~contracts, ~~and~~it ~~loan~~may ~~association;~~also ~~(ii)~~enter ~~bankers’~~into ~~acceptances,~~a ~~which~~swap ~~are~~or ~~short-term~~forward ~~credit~~contract ~~instruments~~that ~~used~~is tovalued ~~finance~~based ~~commercial~~on ~~transactions;~~the ~~(iii)~~difference ~~repurchase~~between ~~agreements~~the ~~and~~short ~~reverse~~positions ~~repurchase~~in ~~agreements;~~the ~~(iv)~~diesel-heating ~~bank~~oil ~~time~~futures ~~deposits,~~contract ~~which~~and ~~are~~short ~~monies kept~~positions onin ~~deposit~~the ~~with~~Benchmark ~~banks~~Oil Futures orContract ~~savings~~so ~~and~~that ~~loan~~the ~~associations~~investment ~~for~~in athe ~~stated~~diesel-heating ~~period~~oil offutures ~~time~~contracts attogether awith ~~fixed~~such ~~rate~~swap ofwould ~~interest;~~provide ~~(v)~~a ~~commercial~~return ~~paper,~~that ~~which~~more ~~are~~closely ~~short-term~~matches ~~unsecured~~the ~~promissory~~movements ~~notes;~~in ~~and~~the ~~(vi)~~price ~~money~~of ~~market~~the ~~funds~~Benchmark Oil Futures Contract.

~~USOD~~USCF ~~may~~currently ~~invest~~anticipates inthat ~~money~~regulatory requirements ~~market~~such ~~funds,~~ as ~~well~~accountability aslevels ~~Treasuries~~set ~~with~~by aexchanges ~~maturity~~or ~~date~~position oflimits ~~two~~set ~~years~~by exchanges or ~~less,~~by asother anregulators, ~~investment~~such ~~for~~as the ~~assets~~CFTC, ~~not~~and ~~used~~market ~~for~~conditions ~~margin~~including orthose ~~collateral in~~allowing ~~the~~USOD ~~Oil~~to ~~Interests.~~obtain ~~The~~greater ~~majority~~liquidity ofor ~~USOD’s~~to ~~assets~~execute ~~will~~transactions bewith ~~held~~more favorable ~~in Treasuries~~pricing, ~~cash~~could ~~and/or~~cause ~~cash~~USOD ~~equivalents~~to ~~with~~invest ~~the~~in ~~Custodian~~Other Oil-Related Investments.

USOD will ~~seek~~support its investments by holding the amounts of its margin, collateral and other requirements relating to ~~invest~~these obligations in ashort-term ~~combination~~obligations of the United States of ~~Oil~~two ~~Interests~~years ~~such~~or ~~that~~less ~~the~~(“Treasuries”), ~~daily~~cash ~~changes~~and incash ~~its~~equivalents. ~~NAV,~~Cash ~~measured~~equivalents inare ~~percentage~~short-term ~~terms,~~instruments with maturities of less ~~USOD’s~~than ~~expenses,~~three ~~will~~months ~~track~~and ~~three times~~shall include the ~~inverse~~following: (~~-3x~~i) certificates of ~~the~~deposit ~~daily~~issued ~~changes~~against funds deposited in ~~the~~a ~~price~~bank ofor ~~the~~savings ~~Benchmark~~and ~~Oil~~loan ~~Futures~~association; ~~Contract~~(ii) bankers’ acceptances, ~~also~~which ~~measured~~are inshort-term ~~percentage~~credit ~~terms.~~instruments Asused ato ~~specific~~finance ~~benchmark~~commercial transactions; (iii) repurchase agreements and reverse repurchase agreements; (iv) bank time deposits, ~~USCF~~which ~~will~~are ~~endeavor~~monies tokept ~~place~~on ~~USOD’s~~deposit ~~trades~~with inbanks ~~Oil~~or ~~Interests~~savings and ~~otherwise~~loan ~~manage~~associations ~~USOD’s~~for ~~investments so~~a ~~that~~stated ~~the~~period ~~difference~~of ~~between~~time ~~“A”~~at ~~and~~a ~~“B”~~fixed ~~will~~rate of beinterest; ~~plus/minus~~(v) commercial ~~0.30~~paper, ~~percent~~which are short-term unsecured promissory notes; and (~~0.30%~~vi) money ofmarket ~~“B”, where:~~funds.

·USOD Amay isinvest ~~the~~in ~~average~~money ~~daily~~market ~~percentage~~funds, as ~~change~~well inas ~~USOD’s~~Treasuries ~~per~~with ~~share~~a ~~NAV~~maturity ~~for~~date ~~any period~~ of ~~thirty~~two ~~(30)~~years ~~successive~~or ~~valuation days~~less, ~~i.e.,~~as ~~any~~an ~~NYSE~~investment ~~Arca~~for ~~trading~~assets ~~day~~not asused offor ~~which~~margin ~~USOD~~or ~~calculates~~collateral in ~~its~~the ~~per~~Oil ~~share~~Interests. ~~NAV,~~The ~~less~~majority of USOD’s ~~expenses;~~assets will be held in Treasuries, cash and/or cash equivalents with the Custodian.

·USOD Bwill isseek ~~three~~to invest in a combination of Oil Interests such that the daily changes in its NAV, measured in percentage terms, less USOD’s expenses, will track three times the inverse (-3x) of the ~~average~~ daily ~~percentage~~changes ~~change~~ in the price of the Benchmark Oil Futures Contract, ~~over~~also measured in percentage terms. As a specific benchmark, USCF will endeavor to place USOD’s trades in Oil Interests and otherwise manage USOD’s investments so that the ~~same~~difference ~~period~~between “A” and “B” will be plus/minus 0.30 percent (0.30%) of “B”, where:

The design of USOD’s Benchmark Oil Futures Contract is such that every month it begins by using the near month contract to expire until the near month contract is within two weeks of expiration, when, over a four day period, it transitions to the next month contract to expire as its benchmark contract and keeps that contract as its benchmark until it becomes the near month contract and close to expiration. In the event of a crude oil futures market where near month contracts trade at a higher price than next month to expire contracts (“backwardation”), then, absent the impact of the overall movement in crude oil prices, the value of the benchmark contract would tend to rise as it approaches expiration. Conversely, in the event of a crude oil futures market where near month contracts trade at a lower price than next month contracts (“contango”), then, absent the impact of the overall movement in crude oil prices, the value of the benchmark contract would tend to decline as it approaches expiration.

	·	A is the average daily percentage change in USOD’s per share NAV for any period of thirty (30) successive valuation days, i.e., any NYSE Arca trading day as of which USOD calculates its per share NAV, less USOD’s expenses; and
	·	B is three times the inverse of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period.

~~USCF~~The ~~believes~~design ~~that~~of ~~market arbitrage opportunities will cause daily changes in~~ USOD’s ~~share~~Benchmark ~~price~~Oil Futures onContract ~~NYSE~~is ~~Arca~~such onthat aevery ~~percentage~~month ~~basis,~~it tobegins ~~closely~~by ~~track~~using the ~~daily~~near ~~changes~~month ~~in USOD’s~~contract ~~per share NAV on a percentage basis. USOD will not seek~~ to ~~achieve~~expire ~~its~~until ~~stated~~the ~~investment~~near ~~objective~~month ~~over~~contract ~~a period of~~is ~~time~~within ~~greater~~two ~~than~~weeks ~~one day. The pursuit~~ of ~~daily~~expiration, ~~inverse~~when, ~~leveraged~~over ~~investment goals means that the return of USOD for~~ a ~~period longer~~four ~~than a full trading~~ day ~~may~~period, ~~have~~it notransitions ~~resemblance~~ to ~~-300% of~~ the ~~return~~next ofmonth ~~the~~contract ~~Benchmark~~to ~~Oil~~expire ~~Futures~~as ~~Contract~~its ~~for a period~~benchmark ofcontract ~~longer~~and ~~than~~keeps athat ~~full~~contract ~~trading~~as ~~day~~its ~~because~~benchmark ~~the~~until ~~aggregate~~it ~~return~~becomes ~~of USOD is~~ the ~~product~~near ofmonth ~~the~~contract ~~series~~and ofclose ~~each~~to ~~trading day’s daily returns~~expiration. ~~During~~In ~~periods of market volatility,~~ the ~~volatility of the Benchmark Oil Futures Contract may affect USOD’s~~event ~~return as much as or more than the return~~ of ~~the~~a ~~Benchmark~~crude ~~Oil~~oil ~~Futures~~futures ~~Contract.~~market ~~Further,~~where ~~the~~near ~~return~~month ~~for~~contracts ~~investors~~trade ~~that~~at ~~invest for periods less than~~ a ~~full~~higher ~~trading~~price ~~day or for a period different~~ than anext ~~trading~~month ~~day~~to ~~will~~expire ~~not~~contracts be(“backwardation”), then, absent the ~~product~~impact of the ~~return~~overall ~~of USOD’s~~movement ~~stated~~in ~~investment~~crude ~~objective~~oil ~~and~~prices, the ~~performance~~value of the ~~Benchmark~~benchmark ~~Oil~~contract ~~Futures~~would ~~Contract~~tend ~~for~~to ~~the~~rise ~~full~~as it ~~trading~~approaches ~~day~~expiration. ~~Additionally~~Conversely, ~~investors~~ ~~should be aware that USOD’s investment objective is not for its NAV or market price of shares to equal,~~ in ~~dollar terms,~~ the ~~spot~~event ~~price~~ of ~~light,~~a ~~sweet~~ crude oil orfutures ~~to track the inverse performance thereof. Natural~~ market ~~forces~~where ~~called~~near ~~contango and~~month ~~backwardation~~contracts ~~can~~trade ~~impact~~at ~~the total return on an investment in USOD’s shares relative to~~ a ~~hypothetical~~lower ~~direct investment~~price inthan ~~crude~~next ~~oil~~month ~~and~~contracts (“contango”), ~~in the future~~then, itabsent ~~is likely that~~ the ~~relationship~~impact ~~between~~of the ~~market~~overall ~~price~~movement ~~of USOD’s shares and changes~~ in ~~the~~crude ~~spot~~oil prices ~~of light~~, ~~sweet crude oil will continue to be so impacted by contango and backwardation. (It is important to note that~~ the ~~disclosure above ignores the potential costs associated with physically owning and storing crude oil, which could~~value ~~be substantial.) For a more in-depth discussion~~ of the ~~impact~~benchmark ofcontract ~~contango~~would ~~and~~tend ~~backwardation,~~to ~~see~~decline ~~“Item~~as ~~1A.~~it ~~Risk~~approaches ~~Factors” in this annual report on Form 10-K~~expiration.

11USCF believes that market arbitrage opportunities will cause daily changes in USOD’s share price on NYSE Arca on a percentage basis, to closely track the daily changes in USOD’s per share NAV on a percentage basis. USOD will not seek to achieve its stated investment objective over a period of time greater than one day. The pursuit of daily inverse leveraged investment goals means that the return of USOD for a period longer than a full trading day may have no resemblance to -300% of the return of the Benchmark Oil Futures Contract for a period of longer than a full trading day because the aggregate return of USOD is the product of the series of each trading day’s daily returns. During periods of market volatility, the volatility of the Benchmark Oil Futures Contract may affect USOD’s return as much as or more than the return of the Benchmark Oil Futures Contract. Further, the return for investors that invest for periods less than a full trading day or for a period different than a trading day will not be the product of the return of USOD’s stated investment objective and the performance of the Benchmark Oil Futures Contract for the full trading day. Additionally, investors should be aware that USOD’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil or to track the inverse performance thereof. Natural market forces called contango and backwardation can impact the total return on an investment in USOD’s shares relative to a hypothetical direct investment in crude oil and, in the future, it is likely that the relationship between the market price of USOD’s shares and changes in the spot prices of light, sweet crude oil will continue to be so impacted by contango and backwardation. (It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing crude oil, which could be substantial.) For a more in-depth discussion of the impact of contango and backwardation, see “Item 1A. Risk Factors” in this annual report on Form 10-K.

~~What Is the “Benchmark Oil Futures Contract”?~~11

~~The~~What ~~Benchmark~~Is ~~Oil Futures Contract is~~ the ~~futures~~ ~~contract on light, sweet crude oil as traded on the New York Mercantile Exchange (the~~ “~~NYMEX”),~~Benchmark ~~traded under the trading symbol “CL” (for WTI Crude~~ Oil ~~futures), that is the near month contract to expire, except when the near~~Futures ~~month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire.~~Contract”?

~~What~~The Benchmark Oil Futures Contract is the futures contract on light, sweet crude oil as traded on the New York Mercantile Exchange (the “NYMEX”), traded under the trading symbol “CL” (for WTI Crude Oil ~~Market?~~futures), that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire.

~~USOU~~What and USOD may purchase Oil Futures Contracts traded on the NYMEX that are based on light, sweet crude oil. It may also purchase contracts on the ICE Futures or other U.S. and foreign exchanges. The NYMEX contracts provide for delivery of several grades of domestic and internationally traded foreign crudes, and, among other things, serves the diverse needs of the physical market. In Europe, Brent crude oil is the ~~standard~~Crude ~~for futures~~Oil contracts and is primarily traded on the ICE Futures. Brent crude oil is the price reference for two-thirds of the world’s traded oil. The ICE Brent Futures is a deliverable contract with an option to cash settle which trades in units of 1,000 barrels (42,000 U.S. gallons). The ICE Futures also offers a West Texas Intermediate (“WTI”) crude oil futures contract which trades in units of 1,000 barrels. The WTI crude oil futures contract is cash settled against the prevailing market price for U.S. light sweet crude oil.Market?

~~Light,~~USOU ~~Sweet~~and ~~Crude~~USOD may purchase Oil. ~~Light~~Futures Contracts traded on the NYMEX that are based on light, sweet ~~crudes~~ ~~are~~crude ~~preferred~~oil. byIt ~~refiners~~may ~~because~~also ofpurchase ~~their~~contracts ~~low~~on ~~sulfur~~the ~~content~~ICE Futures or other U.S. and ~~relatively~~foreign ~~high~~exchanges. ~~yields~~The NYMEX contracts provide for delivery of ~~high-value~~several ~~products~~grades ~~such~~of asdomestic and internationally traded foreign ~~gasoline~~crudes, ~~diesel~~and, ~~fuel~~among other things, ~~diesel~~serves the diverse needs of the physical market. In Europe, Brent crude oil is the standard for futures contracts and is primarily traded on the ICE Futures. Brent crude oil is the price reference for two-~~heating~~thirds of the world’s traded oil. The ICE Brent Futures is a deliverable contract with an option to cash settle which trades in units of 1,000 ~~and~~barrels (42,000 ~~jet~~U.S. ~~fuel~~gallons). The ~~price~~ICE Futures also offers a West Texas Intermediate (“WTI”) crude oil futures contract which trades in units of ~~light~~1,000 ~~sweet~~barrels. The WTI crude oil ~~has~~futures ~~historically~~contract ~~exhibited~~is ~~periods~~cash settled against the prevailing market price for U.S. oflight ~~significant~~sweet ~~volatility~~crude oil.

~~Demand~~Light, ~~for~~Sweet ~~petroleum~~Crude ~~products~~Oil. ~~by consumers~~Light, sweet ascrudes ~~well~~are aspreferred ~~agricultural,~~by ~~manufacturing~~refiners ~~and~~because ~~transportation~~of ~~industries,~~their ~~determines~~low ~~demand~~sulfur ~~for~~content ~~crude~~and ~~oil~~relatively byhigh ~~refiners.~~yields ~~Since the precursors~~ of ~~product~~high-value ~~demand~~products ~~are~~such ~~linked~~as gasoline, todiesel ~~economic activity~~fuel, ~~crude~~diesel-heating oil, ~~demand~~and ~~will~~jet ~~tend~~fuel. toThe ~~reflect~~price ~~economic~~of ~~conditions. However~~light, ~~other~~sweet ~~factors such~~crude asoil ~~weather~~has ~~also~~historically ~~influence~~exhibited ~~product~~periods of ~~and~~significant ~~crude oil demand~~volatility.

~~Crude~~Demand ~~oil~~for ~~supply~~petroleum isproducts ~~determined~~ by ~~both~~consumers, ~~economic~~as ~~and~~well ~~political~~as ~~factors. Oil prices (along with drilling costs~~agricultural, ~~availability~~manufacturing ~~of attractive prospects for drilling, taxes~~ and ~~technology,~~transportation ~~among other factors) determine exploration and development spending~~industries, ~~which~~determines ~~influence~~demand ~~output~~for ~~capacity~~crude ~~with~~oil aby ~~lag~~refiners. In ~~the~~Since ~~short run, production decisions by~~ the ~~Organization~~ precursors of ~~Petroleum~~product ~~Exporting~~demand ~~Countries~~are ~~(“OPEC”)~~linked ~~also~~to ~~affect~~economic ~~supply and~~activity, ~~prices.~~crude ~~Oil~~oil ~~export~~demand ~~embargoes~~will ~~and~~tend ~~the~~to ~~current~~reflect ~~conflicts~~economic inconditions. ~~the~~However, ~~Middle East represent~~ other ~~routes through which political developments~~factors ~~move~~such ~~the~~as ~~market.~~weather Italso isinfluence ~~not~~product ~~possible~~and tocrude ~~predict~~oil ~~the aggregate effect of all or any combination of these factors~~demand.

~~What~~Crude ~~are~~oil supply is determined by both economic and political factors. Oil ~~Futures~~prices ~~Contracts?~~(along with drilling costs, availability of attractive prospects for drilling, taxes and technology, among other factors) determine exploration and development spending, which influence output capacity with a lag. In the short run, production decisions by the Organization of Petroleum Exporting Countries (“OPEC”) also affect supply and prices. Oil export embargoes and the current conflicts in the Middle East represent other routes through which political developments move the market. It is not possible to predict the aggregate effect of all or any combination of these factors.

~~Futures~~What ~~contracts~~ are ~~agreements between two parties. One party agrees to buy a commodity such as crude oil from the other party at a later date at a price and quantity agreed upon when the contract is made.~~ Oil Futures Contracts are traded on futures exchanges, including the NYMEX. For example, the Benchmark Oil Futures Contract is traded on the NYMEX in units of 1,000 barrels. Oil Futures Contracts traded on the NYMEX are priced by floor brokers and other exchange members both through an “open outcry” of offers to purchase or sell the contracts and through an electronic, screen-based system that determines the price by matching electronically offers to purchase and sell. Additional risks of investing in Oil Futures Contracts are included in “Item 1A. Risk Factors” in this annual report on Form 10-K.?

~~Accountability~~Futures ~~Levels,~~contracts ~~Position~~are ~~Limits~~agreements between ~~and~~two ~~Price~~parties. ~~Fluctuation~~One ~~Limits.~~party ~~Designated~~agrees ~~contract~~to ~~markets~~buy ~~(“DCMs”),~~a commodity such as ~~the~~crude ~~NYMEX~~oil ~~and~~from ~~ICE Futures, have established accountability levels and position limits on~~ the ~~maximum~~other ~~net~~party ~~long~~at ora ~~net~~later ~~short~~date ~~futures~~at ~~contracts~~a inprice ~~commodity~~and ~~interests that any~~quantity ~~person~~agreed orupon ~~group~~when ofthe ~~persons~~contract ~~under common trading control (other than as a hedge, which~~ is ~~not~~made. ~~currently~~Oil ~~applicable~~Futures toContracts ~~the~~are ~~Trust Series’~~traded ~~investments)~~on ~~may~~futures ~~hold~~exchanges, ~~own~~including orthe ~~control~~NYMEX. ~~These~~For ~~levels~~example, the ~~and~~Benchmark ~~position~~Oil ~~limits~~Futures ~~apply~~Contract tois ~~the~~traded ~~futures~~on ~~contracts that each of~~ the ~~Trust~~NYMEX ~~Series invests~~ in tounits ~~meet~~of ~~its~~1,000 ~~respective investment objective~~barrels. InOil ~~addition~~Futures toContracts ~~accountability~~traded ~~levels~~on ~~and position limits,~~ the NYMEX are ~~and~~priced ~~ICE~~by ~~Futures~~floor ~~also~~brokers ~~set~~and ~~daily~~other ~~price~~exchange ~~fluctuation~~members ~~limits~~both onthrough ~~futures~~an ~~contracts.~~“open ~~The~~outcry” ~~daily~~of ~~price~~offers ~~fluctuation~~to ~~limit~~purchase ~~establishes~~or sell the ~~maximum~~contracts ~~amount~~and ~~that~~through ~~the~~an ~~price~~electronic, ofscreen-based asystem ~~futures~~that ~~contract~~determines ~~may~~the ~~vary~~price ~~either~~by upmatching orelectronically ~~down~~offers ~~from~~to ~~the~~purchase and ~~previous day’s settlement price~~sell. ~~Once~~ ~~the~~Additional ~~daily~~risks ~~price~~of ~~fluctuation~~investing ~~limit has been reached~~ in aOil ~~particular~~Futures ~~futures~~Contracts ~~contract,~~are noincluded ~~trades~~in ~~may~~“Item be1A. ~~made~~Risk atFactors” ain this ~~price~~annual ~~beyond that~~report ~~limit~~on Form 10-K.

12Accountability Levels, Position Limits and Price Fluctuation Limits. Designated contract markets (“DCMs”), such as the NYMEX and ICE Futures, have established accountability levels and position limits on the maximum net long or net short futures contracts in commodity interests that any person or group of persons under common trading control (other than as a hedge, which is not currently applicable to the Trust Series’ investments) may hold, own or control. These levels and position limits apply to the futures contracts that each of the Trust Series invests in to meet its respective investment objective. In addition to accountability levels and position limits, the NYMEX and ICE Futures also set daily price fluctuation limits on futures contracts. The daily price fluctuation limit establishes the maximum amount that the price of a futures contract may vary either up or down from the previous day’s settlement price. Once the daily price fluctuation limit has been reached in a particular futures contract, no trades may be made at a price beyond that limit.

The accountability levels for the Benchmark Oil Futures Contract and other Oil Futures Contracts traded on U.S.-based futures exchanges, such as the NYMEX, are not a fixed ceiling, but rather a threshold above which the NYMEX may exercise greater scrutiny and control over an investor’s positions. The current accountability level for investments for any one month in the Benchmark Oil Futures Contract is 10,000 contracts. In addition, the NYMEX imposes an accountability level for all months of 20,000 net futures contracts for light, sweet crude oil. In addition, the ICE Futures maintains the same accountability levels, position limits and monitoring authority for its light, sweet crude oil contracts as the NYMEX. If the Trust Series and the Related Public Funds exceed these accountability levels for investments in the futures contracts for light, sweet crude oil, the NYMEX and ICE Futures will monitor such exposure and may ask for further information on their activities including the total size of all positions, investment and trading strategy, and the extent of liquidity resources of the Trust Series and the Related Public Funds. If deemed necessary by the NYMEX and/or ICE Futures, each of the Trust Series could be ordered to reduce its Crude Oil Futures CL contracts to below the 10,000 single month and/or 20,000 all month accountability level. As of December 31, 2018, USOU and USOD held 1,046 and 213 NYMEX WTI Crude Oil Futures CL contracts, respectively, and did not hold ICE WTI Crude Oil Futures contracts. USOU and USOD did not exceed accountability levels of the NYMEX or ICE Futures during the year ended December 31, 2018, however, the aggregated total of certain of the Related Public Funds did exceed the accountability levels. No action was taken by NYMEX and USOU and USOD did not reduce the number of Oil Futures Contracts held as a result.12

~~Position~~The ~~limits~~accountability ~~differ~~levels ~~from~~for ~~accountability~~the Benchmark ~~levels~~Oil inFutures ~~that~~Contract ~~they~~and ~~represent~~other ~~fixed~~Oil ~~limits~~Futures Contracts traded on U.S.-based futures exchanges, such as the ~~maximum~~NYMEX, ~~number~~are ofnot ~~futures~~a ~~contracts~~fixed ceiling, ~~that~~but ~~any~~rather ~~person~~a threshold above which the NYMEX may ~~hold~~exercise greater scrutiny and ~~cannot~~control ~~allow~~over an investor’s positions. ~~such~~The ~~limits~~current toaccountability belevel ~~exceeded~~for ~~without~~investments ~~express~~for ~~CFTC~~any ~~authority~~one tomonth doin sothe Benchmark Oil Futures Contract is 10,000 contracts. In addition, the NYMEX imposes an accountability level for all months of 20,000 net futures contracts for light, sweet crude oil. In addition, tothe ICE Futures maintains the same accountability levels, ~~and~~ position limits ~~that~~and monitoring authority for its light, ~~may~~sweet ~~apply~~crude atoil ~~any~~contracts ~~time~~as the NYMEX. If the Trust Series and the Related Public Funds exceed these accountability levels for investments in the futures contracts for light, sweet crude oil, the NYMEX and ICE Futures ~~impose~~will ~~position~~monitor ~~limits~~such exposure and may ask for further information on ~~contracts~~their ~~held~~activities inincluding the ~~last~~total ~~few~~size ~~days~~ of ~~trading~~all inpositions, ~~the near~~investment ~~month~~and ~~contract~~trading tostrategy, and ~~expire.~~the Itextent isof ~~unlikely~~liquidity ~~that~~resources of the Trust Series and ~~will~~the ~~run~~Related upPublic ~~against~~Funds. ~~such~~If ~~position~~deemed ~~limits~~necessary ~~because~~by the NYMEX and/or ICE Futures, each of the Trust Series’ could ~~investment~~be ~~strategy~~ordered is to ~~close~~reduce ~~out~~ its ~~positions~~Crude ~~and~~Oil ~~“roll”~~Futures ~~from~~CL contracts to below the ~~near~~10,000 single month ~~contract~~and/or to20,000 ~~expire~~all month accountability level. As noted above, USOU and USOD ceased trading on the NYSE Arca on December 12, to2019 and the ~~next~~Funds’ ~~month~~liquidation ~~contract~~date ~~during~~was aDecember 18, ~~four-day~~2019. ~~period~~Therefore, ~~beginning~~as ~~two~~of ~~weeks~~December 31, ~~from~~2019, ~~expiration~~USOU and USOD did not hold NYMEX WTI Crude Oil Futures CL contracts, and did not hold ICE WTI Crude Oil Futures contracts. USOU and USOD did not exceed accountability levels of the ~~contract.~~NYMEX ~~For~~or ICE Futures during the year ended December 31, ~~2018~~2019, however, the ~~Trust~~aggregated total ~~Series~~of ~~did~~certain ~~not~~of ~~exceed~~the ~~any~~Related ~~position~~Public ~~limits~~Funds ~~imposed~~did byexceed the ~~NYMEX~~accountability ~~and~~levels. ~~ICE~~No ~~Futures~~action was taken by NYMEX.

~~The~~Position ~~CFTC~~limits ~~has~~differ ~~proposed~~from ~~to adopt limits on~~accountability ~~speculative~~levels ~~positions~~ in ~~25 physical commodity futures and option contracts as well as swaps~~ that ~~are~~they ~~economically~~represent ~~equivalent~~fixed ~~to such~~limits ~~contracts~~on in the ~~agriculture,~~maximum ~~energy~~number ~~and~~of ~~metals~~futures ~~markets (the “Position Limit Rules”). The Position Limit Rules would, among other things: identify which~~ contracts ~~are subject to speculative position limits; set thresholds~~ that ~~restrict~~any ~~the size of speculative positions that a~~ person may hold ~~in the spot month, other individual months,~~ and ~~all~~cannot ~~months combined; create~~allow ansuch ~~exemption~~limits ~~for~~to ~~positions~~be ~~that~~exceeded ~~constitute~~without ~~bona~~express ~~fide~~CFTC ~~hedging~~authority ~~transactions;~~to ~~impose~~do ~~responsibilities~~so. onIn ~~DCMs~~addition ~~and swap execution facilities (“SEFs”)~~ to ~~establish position limits or, in some cases, position~~ accountability ~~rules;~~levels and ~~apply~~position tolimits ~~both futures and~~that ~~swaps~~may ~~across~~apply ~~four~~at ~~relevant~~any ~~venues: OTC~~time, ~~DCMs,~~the ~~SEFs~~NYMEX asand ~~well~~ICE asFutures ~~certain~~impose ~~non-U.S.~~position ~~located~~limits ~~platforms.~~on ~~The~~contracts ~~CFTC’s~~held ~~first~~in ~~attempt at finalizing~~ the ~~Position~~last ~~Limit~~few ~~Rules,~~days inof ~~2011,~~trading ~~was successfully challenged by market participants~~ in ~~2012 and, since then,~~ the ~~CFTC~~near ~~has~~month ~~re-proposed~~contract ~~them~~to ~~and~~expire. ~~solicited~~It ~~comments~~is ~~from~~unlikely ~~market~~that ~~participants~~the ~~multiple~~Trust ~~times.~~Series will Atrun ~~this~~up ~~time,~~against itsuch isposition ~~unclear~~limits ~~how~~because ~~the Position~~each ~~Limit~~of ~~Rules~~the ~~may affect a~~ Trust Series,’ ~~but~~investment ~~the~~strategy ~~effect~~is ~~may~~to beclose ~~substantial~~out ~~and~~its ~~adverse.~~positions Byand ~~way~~“roll” offrom ~~example,~~ the ~~Position~~near ~~Limit~~month ~~Rules~~contract ~~may~~to ~~negatively~~expire ~~impact~~to the ~~ability~~next ~~of a~~month ~~Trust~~contract ~~Series~~during toa ~~meet~~four-day ~~its~~period ~~investment~~beginning ~~objectives~~two ~~through~~weeks ~~limits~~from ~~that~~expiration ~~may~~of ~~inhibit~~the ~~USCF’s ability~~contract. toFor ~~sell~~the ~~additional~~year ended ~~Creation~~December 31, ~~Baskets~~2019, ofthe a Trust Series. did ~~See~~not ~~"The~~exceed ~~Commodity~~any ~~Interest~~position ~~Markets-Commodities~~limits ~~Regulation" in~~imposed ~~this~~by ~~annual~~the ~~report~~NYMEX onand ~~Form~~ICE ~~10-K for additional information~~Futures.

~~Until~~The ~~such~~CFTC ~~time~~has asproposed ~~the~~to ~~Position~~adopt ~~Limit~~limits ~~Rules~~on ~~are~~speculative ~~adopted,~~positions ~~the~~in ~~regulatory~~25 ~~architecture~~physical incommodity ~~effect~~futures ~~prior~~and option contracts as well as swaps that are economically equivalent to such contracts in the ~~adoption~~agriculture, ofenergy and metals markets (the “Position Limit Rules”). ~~will~~The ~~govern~~Position ~~transactions~~Limit inRules would, ~~commodities~~among ~~and~~other ~~related~~things: ~~derivatives.~~identify ~~Under~~which contracts are subject to speculative position limits; set thresholds that ~~system,~~restrict the ~~CFTC~~size of ~~enforces~~speculative ~~federal~~positions ~~limits~~that ona ~~speculation~~person may hold in ~~nine agricultural products~~the ~~(e.g.,~~spot ~~corn~~month, ~~wheat~~other ~~and~~individual ~~soy)~~months, ~~while~~and ~~futures~~all ~~exchanges~~months ~~establish~~combined; create an exemption for positions that constitute bona fide hedging transactions; impose responsibilities on DCMs and ~~enforce~~swap execution facilities (“SEFs”) to establish position limits ~~and~~or, in some cases, position accountability ~~levels~~rules; ~~for other~~and ~~agricultural~~apply ~~products~~ to both futures and swaps ~~certain~~across ~~energy~~four ~~products~~relevant (evenues: OTC, DCMs, SEFs as well as certain non-U.gS. located platforms. The CFTC’s first attempt at finalizing the Position Limit Rules, ~~oil~~in 2011, was successfully challenged by market participants in 2012 and, ~~natural~~since ~~gas)~~then, the CFTC has re-proposed them and solicited comments from market participants multiple times. AsAt athis ~~result~~time, it is unclear how the Position Limit Rules may affect a Trust Series, but the effect may be ~~limited~~substantial ~~with~~and ~~respect~~adverse. toBy way of example, the ~~size~~Position Limit Rules may negatively impact the ability of a Trust Series to meet its ~~investments~~investment inobjectives ~~any~~through ~~commodities~~limits ~~subject~~that may inhibit USCF’s ability to ~~these~~sell ~~limits~~additional Creation Baskets of a Trust Series. See "The Commodity Interest Markets-Commodities Regulation" in this annual report on Form 10-K for additional information.

~~Under~~Until ~~existing~~such ~~and~~time ~~recently~~as ~~adopted~~the ~~CFTC~~Position Limit Rules are ~~regulations~~adopted, ~~for~~ the ~~purpose~~regulatory ofarchitecture ~~position~~in ~~limits,~~effect aprior ~~market~~to ~~participant~~the isadoption ~~generally~~of ~~required,~~the ~~subject~~Position toLimit ~~certain~~Rules will ~~narrow~~govern ~~exceptions,~~transactions toin ~~aggregate~~commodities ~~all~~and ~~positions~~related ~~for~~derivatives. ~~which~~Under that ~~participant~~system, ~~controls~~ the ~~trading~~CFTC ~~decisions~~enforces ~~with~~federal ~~all~~limits ~~positions~~on ~~for~~speculation ~~which~~in ~~that participant~~nine agricultural ~~has~~products a(e.g., 10corn, ~~percent~~wheat orand ~~greater~~soy), ~~ownership~~while ~~interest~~futures inexchanges anestablish ~~account~~and orenforce position, aslimits ~~well~~and asaccountability ~~the~~levels ~~positions of two or more persons acting~~for ~~pursuant~~other toagricultural anproducts and ~~express~~certain orenergy ~~implied~~products ~~agreement~~(e.g., oroil ~~understanding~~and ~~with~~natural ~~that participant (the “Aggregation Rules”~~gas). ~~The~~As ~~Aggregation Rules~~a ~~will~~result, a ~~also~~Trust ~~apply~~Series may be limited with respect to the ~~Position~~size ~~Limit~~of ~~Rules~~its ifinvestments ~~and~~in ~~when~~any ~~such~~commodities ~~Position~~subject ~~Limit~~to ~~Rules~~these ~~are adopted~~limits.

13Under existing and recently adopted CFTC regulations, for the purpose of position limits, a market participant is generally required, subject to certain narrow exceptions, to aggregate all positions for which that participant controls the trading decisions with all positions for which that participant has a 10 percent or greater ownership interest in an account or position, as well as the positions of two or more persons acting pursuant to an express or implied agreement or understanding with that participant (the “Aggregation Rules”). The Aggregation Rules will also apply with respect to the Position Limit Rules if and when such Position Limit Rules are adopted.

Price Volatility. The price volatility of Oil Futures Contracts generally has been historically greater than that for traditional securities such as stocks and bonds. Price volatility often is greater day-to-day as opposed to intra-day. Oil Futures Contracts tend to be more volatile than stocks and bonds because price movements for crude oil are more currently and directly influenced by economic factors for which current data is available and are traded by crude oil futures traders throughout the day. Because USOU and USOD invest a significant portion of their assets in Oil Futures Contracts, the assets of USOU and USOD, and therefore the prices of USOU and USOD shares, may be subject to greater volatility than traditional securities.13

~~Marking-to-Market~~Price ~~Futures Positions~~Volatility. The price volatility of Oil Futures Contracts ~~are~~generally ~~marked~~has tobeen ~~market~~historically atgreater ~~the~~than ~~end~~that offor ~~each~~traditional ~~trading~~securities ~~day~~such as stocks and ~~the~~bonds. Price ~~margin~~volatility ~~required~~often ~~with~~is ~~respect~~greater day-to-day ~~such~~as ~~contracts is~~opposed ~~adjusted~~to ~~accordingly~~intra-day. ~~This~~Oil ~~process~~Futures ofContracts ~~marking-~~tend to~~-market~~ isbe ~~designed~~more tovolatile ~~prevent~~than ~~losses~~stocks and ~~from~~bonds ~~accumulating~~because inprice ~~any~~movements ~~futures~~for ~~account.~~crude oil are more currently and directly influenced by economic factors for which current ~~Therefore,~~data ifis ~~USOU’s~~available orand ~~USOD’s~~are traded by crude oil futures ~~positions~~traders ~~have~~throughout ~~declined~~the inday. ~~value,~~Because USOU orand USOD ~~may~~invest bea ~~required~~significant ~~to post “variation~~portion ~~margin”~~of totheir ~~cover~~assets ~~this~~in ~~decline.~~Oil ~~Alternatively~~Futures Contracts, ifthe assets of USOU’s orand USOD’s, ~~futures~~and ~~positions~~therefore ~~have~~the ~~increased~~prices inof ~~value, this~~USOU ~~increase~~and ~~will~~USOD beshares, ~~credited~~may be subject to ~~USOU’s~~greater orvolatility ~~USOD~~than ~~account~~traditional securities.

~~What~~Marking-to-Market Futures Positions. Oil Futures Contracts are marked to market at the ~~Trading~~end ~~Policies~~of each trading day and the margin required with respect to such contracts is adjusted accordingly. This process of marking-to-market is designed to prevent losses from accumulating in any futures account. Therefore, if USOU’s or USOD’s futures positions have declined in value, USOU or USOD may be required to post “variation ~~and~~margin” to cover this decline. Alternatively, if USOU’s or USOD?’s futures positions have increased in value, this increase will be credited to USOU’s or USOD account.

~~Liquidity~~What are the Trading Policies of USOU and USOD?

Each Trust Series invests only in Oil Futures Contracts and Other Oil-Related Investments that, in the opinion of USCF, are traded in sufficient volume to permit the ready taking and liquidation of positions in these financial interests and in Other Oil-Related Investments that, in the opinion of USCF, may be readily liquidated with the original counterparty or through a third party assuming the position of the Trust Series.Liquidity

~~Spot~~Each ~~Commodities~~Trust Series invests only in Oil Futures Contracts and Other Oil-Related Investments that, in the opinion of USCF, are traded in sufficient volume to permit the ready taking and liquidation of positions in these financial interests and in Other Oil-Related Investments that, in the opinion of USCF, may be readily liquidated with the original counterparty or through a third party assuming the position of the Trust Series.

~~While~~Spot the crude Oil Futures Contracts traded can be physically settled, each Trust Series does not intend to take or make physical delivery. Each Trust Series may from time to time trade in Other Oil-Related Investments, including contracts based on the spot price of crude oil.Commodities

~~Leverage~~While the crude Oil Futures Contracts traded can be physically settled, each Trust Series does not intend to take or make physical delivery. Each Trust Series may from time to time trade in Other Oil-Related Investments, including contracts based on the spot price of crude oil.

With respect to USOU, USCF endeavors to have the aggregate market value of its obligations under its Oil Futures Contracts and Other Oil-Related Investments equal to three times (3x) the Fund’s total net assets. Commodity pools’ trading positions in futures contracts or other related investments are typically required to be secured by the deposit of margin funds that represent only a small percentage of a futures contract’s (or other commodity interest’s) entire market value.Leverage

With respect to ~~USOD~~USOU, USCF endeavors to have the aggregate ~~short~~ market value of its obligations under its Oil Futures Contracts and Other Oil-Related Investments equal to three times (3x) the ~~value of the~~ Fund’s ~~Treasuries,~~total ~~cash~~net ~~and cash equivalents, whether held by the Fund or posted as margin or other collateral, at the close of each trading day (as measured at the time the Fund calculates its NAV)~~assets. Commodity pools’ trading positions in futures contracts or other related investments are typically required to be secured by the deposit of margin funds that represent only a small percentage of a futures contract’s (or other commodity interest’s) entire market value.

~~Borrowings~~With respect to USOD, USCF endeavors to have the aggregate short market value of its obligations under its Oil Futures Contracts and Other Oil-Related Investments equal to three times (3x) the value of the Fund’s Treasuries, cash and cash equivalents, whether held by the Fund or posted as margin or other collateral, at the close of each trading day (as measured at the time the Fund calculates its NAV). Commodity pools’ trading positions in futures contracts or other related investments are typically required to be secured by the deposit of margin funds that represent only a small percentage of a futures contract’s (or other commodity interest’s) entire market value.

Borrowings are not expected to be used by USOU and USOD unless USOU or USOD is required to borrow money in the event of physical delivery, if USOU or USOD trades in cash commodities, or for short-term needs created by unexpected redemptions.

14Borrowings are not expected to be used by USOU and USOD unless USOU or USOD is required to borrow money in the event of physical delivery, if USOU or USOD trades in cash commodities, or for short-term needs created by unexpected redemptions.

~~OTC Derivatives (Including Spreads and Straddles)~~14

InOTC ~~addition~~Derivatives to(Including ~~Oil Futures Contracts, there~~Spreads ~~are also a number of listed options on the Oil Futures Contracts on the principal futures exchanges. These contracts offer investors~~ and hedgers another set of financial vehicles to use in managing exposure to the crude oil market. Consequently, each Trust Series may purchase options on crude Oil Futures Contracts on these exchanges in pursuing its investment objective.Straddles)

In addition to ~~the~~ Oil Futures Contracts ~~and options on the Oil Futures Contracts~~, there ~~also exists an active non-exchange-traded market in derivatives tied to crude oil.~~ ~~These~~are ~~derivatives transactions (~~also ~~known~~a asnumber ~~OTC contracts) are usually entered into between two parties in private contracts. Unlike most~~ of ~~the~~listed ~~exchange-traded Oil Futures Contracts or exchange-traded~~ options on the Oil Futures Contracts, ~~each~~on ~~party to such contract bears~~ the ~~credit~~principal ~~risk~~futures ~~of the other party, i~~exchanges.~~e.,~~ ~~the~~These ~~risk~~contracts ~~that~~offer ~~the~~investors and ~~other~~hedgers ~~party~~another ~~may~~set ~~not~~of befinancial ~~able~~vehicles to ~~perform~~use ~~its~~in ~~obligations under~~managing ~~its~~exposure ~~contract.~~to ~~To reduce~~ the ~~credit~~crude ~~risk~~oil ~~that~~market. ~~arises in connection with such contracts~~Consequently, ~~the~~each ~~Fund~~Trust ~~will generally enter into~~Series may anpurchase ~~agreement~~options ~~with each counterparty based~~ on ~~the~~crude ~~Master~~Oil ~~Agreement~~Futures ~~published~~Contracts byon ~~the~~these ~~International~~exchanges ~~Swaps~~in ~~and~~pursuing ~~Derivatives Association, Inc. (“ISDA”) that provides for the netting of~~ its ~~overall~~investment ~~exposure to its counterparty~~objective.

~~USCF~~In ~~assesses~~addition orto ~~reviews~~the Oil Futures Contracts and options on the Oil Futures Contracts, there also exists an active non-exchange-traded market in derivatives tied to crude oil. These derivatives transactions (also known as ~~appropriate~~OTC contracts) are usually entered into between two parties in private contracts. Unlike most of the exchange-traded Oil Futures Contracts or exchange-traded options on the Oil Futures Contracts, each party to such contract bears the ~~creditworthiness~~credit risk of ~~each~~the ~~potential~~other orparty, ~~existing~~i.e., ~~counterparty~~the risk that the other party may not be able to anperform ~~OTC~~its obligations under its contract. ~~pursuant~~To toreduce ~~guidelines~~the ~~approved~~credit risk that arises in connection with such contracts, the Fund will generally enter into an agreement with each counterparty based on the Master Agreement published by ~~USCF’s~~the International Swaps and Derivatives Association, Inc. ~~Board~~(“ISDA”) that provides for the netting of its overall exposure to its counterparty.

~~Each~~USCF ~~Trust~~assesses ~~Series may enter into certain transactions where an OTC component is exchanged for a corresponding futures contract (an “Exchange for Related Position”~~ or ~~“EFRP~~reviews, ~~transaction”).~~as In appropriate, the ~~most~~creditworthiness ~~common type~~ of ~~EFRP transaction entered into by~~ each ~~Trust~~potential ~~Series, the OTC component is the purchase~~ or ~~sale~~existing ofcounterparty ~~one or more baskets of the Fund shares. These EFRP transactions may expose the Fund~~ to ~~counterparty risk~~an ~~during the interim period between the execution of the~~ OTC ~~component and the exchange for a corresponding futures~~ contract~~. Generally,~~ ~~the~~pursuant ~~counterparty~~to ~~risk~~guidelines ~~from~~approved ~~the~~by ~~EFRP transaction will exist only on the day of execution~~USCF’s Board.

Each Trust Series may ~~employ~~enter ~~spreads~~into orcertain ~~straddles~~transactions inwhere ~~its~~an ~~trading~~OTC tocomponent ~~mitigate~~is ~~the~~exchanged ~~differences~~for ina ~~its~~corresponding ~~investment~~futures ~~portfolio~~contract ~~and~~(an ~~its~~“Exchange ~~goal~~for Related Position” or “EFRP transaction”). In the most common type of ~~tracking,~~EFRP ontransaction aentered ~~leveraged~~into ~~basis~~by each Trust Series, the OTC component is the ~~price~~purchase or sale of ~~the~~one ~~Benchmark~~or ~~Oil~~more ~~Futures~~baskets ~~Contract.~~of ~~Each~~the ~~Trust~~Fund ~~Series~~shares. ~~would~~These ~~use~~EFRP atransactions ~~spread~~may ~~when~~expose itthe ~~chooses~~Fund to ~~take~~counterparty risk ~~simultaneous~~during ~~long~~ the interim period between the execution of the OTC component and ~~short~~the ~~positions~~exchange infor a corresponding futures ~~written~~contract. Generally, onthe counterparty risk from the ~~same~~EFRP ~~underlying~~transaction ~~asset,~~will ~~but~~exist ~~with~~only ~~different~~on ~~delivery~~the ~~months~~day of execution.

Each Trust Series may ~~does~~employ ~~not~~spreads or ~~anticipate~~straddles ~~engaging~~ in its trading to mitigate the differences in ~~futures~~its ~~contracts~~investment ~~listed~~portfolio and its goal of tracking, on a ~~foreign~~leveraged ~~exchange~~basis, the ~~forward~~price ~~contracts~~of orthe ~~options~~Benchmark onOil ~~such~~Futures ~~contracts,~~Contract. ~~but~~Each Trust Series would use a spread when it ~~may~~chooses doto sotake simultaneous aslong ~~outlined~~and short positions in ~~the~~futures ~~Fund’s~~written ~~listing~~on ~~exemptive~~the ~~order~~same orunderlying asasset, ~~permitted~~but ~~under~~with ~~current~~different ~~regulations~~delivery months.

~~During~~Each ~~the~~Trust ~~reporting~~Series does ~~period~~not ofanticipate engaging ~~this~~in ~~annual report~~trading in futures contracts listed on ~~Form~~a ~~10-K~~foreign exchange, ~~each~~forward ~~Trust~~contracts ~~Series~~or ~~limited~~options ~~its~~on ~~derivatives~~such ~~activities~~contracts, tobut ~~Oil~~it ~~Futures~~may do ~~Contracts~~so ~~and~~as ~~EFRP~~outlined ~~transactions~~in the Fund’s listing exemptive order or as permitted under current regulations.

~~Pyramiding~~During the reporting period of this annual report on Form 10-K, each Trust Series limited its derivatives activities to Oil Futures Contracts and EFRP transactions.

USCF has not employed, and will not employ, the technique, commonly known as pyramiding, in which the speculator uses unrealized profits on existing positions as variation margin for the purchase or sale of additional positions in the same or another commodity interest.Pyramiding

15USCF has not employed, and will not employ, the technique, commonly known as pyramiding, in which the speculator uses unrealized profits on existing positions as variation margin for the purchase or sale of additional positions in the same or another commodity interest.

~~Who are the Service Providers?~~15

~~REX~~Who ~~MLPshares,~~are ~~LLC (“REX”) is a single member limited liability company that was formed in~~ the ~~state~~Service of Delaware on December 3, 2015. It maintains its main business office at 44 Post Road West, Westport, CT 06880. REX is a wholly-owned subsidiary of REX Shares, LLC, a Delaware limited liability company (“REX Shares”). REX Shares creates and delivers intelligently engineered investment products and is based in Westport, Connecticut.Providers?

~~Pursuant~~REX toMLPshares, ~~its~~LLC ~~agreement~~(“REX”) is ~~with~~a ~~USCF,~~single ~~REX provides~~member ~~services~~limited toliability ~~USCF~~company inthat ~~connection~~was ~~with~~formed in the ~~development~~state ~~and~~of ~~launch~~Delaware ofon ~~the~~December 3, ~~Fund~~2015. It maintains its main business office at 44 Post Road West, ~~the~~Westport, ~~investment~~CT ~~methodology~~06880. REX is a wholly-owned subsidiary of REX Shares, ~~the~~LLC, ~~appropriate~~a Delaware ~~benchmarks,~~limited ~~and~~liability ~~assisting~~company ~~with~~(“REX ~~the~~Shares”). ~~strategy~~REX ~~for~~Shares ~~satisfying~~creates ~~the~~and delivers intelligently engineered investment ~~methodology~~products and is based in Westport, Connecticut.

~~USCF~~Pursuant ~~will~~to ~~pay~~its aagreement ~~monthly~~with ~~fee~~USCF, to REX ~~for~~ provides services ~~provided~~ to USCF in connection with the development and launch of the Fund, ~~that~~the ~~will~~investment bemethodology, ~~calculated~~the ~~according~~appropriate benchmarks, toand assisting with the ~~following~~strategy ~~formula~~for (satisfying the ~~“Monthly~~investment ~~Fee”):~~methodology.

~~Monthly~~USCF ~~Fee~~will =pay ~~(A-B)~~a monthly fee to REX for xservices Cprovided to the Fund that will be calculated according to the following formula (the “Monthly Fee”):

~~For~~Monthly ~~purposes~~Fee of= ~~calculating~~(A-B) ~~the~~x ~~Monthly Fee:~~C

~~“A”~~For ~~equals the~~purposes ~~Management~~of ~~Fee payable by~~ calculating the ~~Fund~~Monthly ~~to USCF during the applicable calendar month; and,~~Fee:

“BA” equals ~~the amount~~ of the ~~Manager~~Management ~~Expenses~~Fee payable ~~during the applicable calendar month where (i) “Manager Expenses” means: (a) all direct expenses incurred~~ by ~~USCF in connection with formation and operation of~~ the ~~Trust and the~~ Fund, ~~as set forth in the trust agreement for the Trust, (b) all expenses, including Fund Expenses, reimbursed by USCF~~ to ~~the Fund, and (c) such other expenses as REX and~~ USCF ~~may~~during ~~agree from time to time to designate as “Manager Expenses” provided that, for~~ the ~~avoidance~~applicable ofcalendar doubt, “Manager Expenses” shall specifically exclude Management Fees, and (ii) “Fund Expenses” means (a) the Management Fee payable to USCF, (b) brokerage fees, futures commission merchant fees and other fees and commissions incurred in connection with the trading activities of the Fund, (c) any costs and expenses related to registration of additional shares of the Fund, and (d) all other expenses allocated to the Fund by USCF in consultation with REXmonth; and,

“CB” equals the amount ~~40%.~~of the Manager Expenses payable during the applicable calendar month where (i) “Manager Expenses” means: (a) all direct expenses incurred by USCF in connection with formation and operation of the Trust and the Fund, as set forth in the trust agreement for the Trust, (b) all expenses, including Fund Expenses, reimbursed by USCF to the Fund, and (c) such other expenses as REX and USCF may agree from time to time to designate as “Manager Expenses” provided that, for the avoidance of doubt, “Manager Expenses” shall specifically exclude Management Fees, and (ii) “Fund Expenses” means (a) the Management Fee payable to USCF, (b) brokerage fees, futures commission merchant fees and other fees and commissions incurred in connection with the trading activities of the Fund, (c) any costs and expenses related to registration of additional shares of the Fund, and (d) all other expenses allocated to the Fund by USCF in consultation with REX; and

~~In any month where~~ “AC” ~~minus “B”~~ equals ~~zero (0) or a number less than zero (0), then the amount of the Monthly Fee paid to REX for such month shall~~ ~~be zero~~40%. ~~USCF will pay the Monthly Fee on behalf of the Fund to REX on a monthly basis within thirty business days of the end of each calendar month.~~

~~Custodian,~~In ~~Registrar,~~any ~~Transfer~~month ~~Agent~~where “A” minus “B” equals zero (0) or a number less than zero (0), then the amount of the Monthly Fee paid to REX for such month shall ~~and~~be ~~Administrator~~zero. USCF will pay the Monthly Fee on behalf of the Fund to REX on a monthly basis within thirty business days of the end of each calendar month.

~~In its capacity as the~~ Custodian ~~for each Trust Series~~, ~~BBH&Co. (in such capacity~~Registrar, ~~the~~Transfer ~~“Custodian”) may hold each Trust Series Treasuries~~Agent, ~~cash and/or cash~~ ~~equivalents pursuant to a custodial agreement. BBH&Co. is also the registrar~~ and ~~transfer agent for the shares. In addition, in its capacity as~~ Administrator for the Fund, BBH&Co. (in such capacity, the “Administrator”) performs certain administrative and accounting services for the Fund and prepares certain SEC, NFA and CFTC reports on behalf of the Fund.

~~Currently,~~In ~~USCF pays BBH&Co. for~~ its ~~services,~~ incapacity as the ~~foregoing~~Custodian ~~capacities,~~for aeach Trust ~~minimum amount of $75~~Series,~~000~~ ~~annually~~BBH&Co. ~~for~~(in ~~its~~such ~~custody~~capacity, ~~fund~~the ~~accounting~~“Custodian”) ~~and~~may ~~fund~~hold ~~administration services rendered to~~ each ~~series~~Trust ofSeries Treasuries, ~~the~~cash ~~Trust~~ and/or cash ~~each~~equivalents ofpursuant ~~the~~to ~~Related Public Funds, as well as~~ a ~~$20,000~~custodial ~~annual fee for its transfer agency services~~agreement. ~~In addition, USCF pays~~ BBH&Co. anis ~~asset-based~~also ~~charge~~the ~~of:~~registrar ~~(a)~~and ~~0.06%~~transfer agent for the ~~first~~shares. ~~$500~~In ~~million of the Related~~addition, ~~Public~~in ~~Funds’~~its ~~combined~~capacity ~~net~~as ~~assets,~~Administrator ~~(b) 0.0465%~~ for the ~~Related Public Funds’ combined net assets greater than $500 million but less than $1 billion~~Fund, ~~and~~BBH&Co. (c)in ~~0.035%~~such ~~once~~capacity, the ~~Related~~“Administrator”) ~~Public~~performs ~~Funds’ combined net assets exceed $1 billion. The~~certain ~~annual~~administrative ~~minimum~~and ~~amount~~accounting ~~will~~services ~~not~~for ~~apply if~~ the ~~asset-based~~Fund ~~charge~~and ~~for~~prepares ~~all~~certain ~~accounts in the aggregate exceeds $75~~SEC,~~000.~~ ~~USCF~~NFA ~~also~~and ~~pays transaction~~CFTC ~~fees~~reports ~~ranging~~on ~~from~~behalf $7of tothe ~~$15 per transaction~~Fund.

Currently, USCF pays BBH&Co.’s ~~principal~~for ~~business~~its ~~address~~services, isin 50the ~~Post~~foregoing ~~Office Square~~capacities, ~~Boston~~a minimum amount of $75,000 MAannually ~~02110.~~for ~~BBH&Co.~~its custody, afund ~~private~~accounting ~~bank~~and ~~founded~~fund inadministration services ~~1818,~~rendered isto ~~neither~~each aseries ~~publicly~~of ~~held~~the ~~company nor~~Trust ~~insured~~and byeach of the ~~Federal~~Related ~~Deposit~~Public ~~Insurance~~Funds, ~~Corporation~~as well as a $20,000 annual fee for its transfer agency services. In addition, USCF pays BBH&Co. isan ~~authorized~~asset-based tocharge ~~conduct~~of: (a) 0.06% ~~commercial~~for ~~banking~~the ~~business~~first ~~in accordance~~$500 ~~with~~million of the Related ~~provisions~~Public ofFunds’ ~~Article~~combined IVnet ofassets, (b) 0.0465% for the ~~New~~Related ~~York~~Public ~~State~~Funds’ ~~Banking~~combined ~~Law,~~net ~~New~~assets ~~York~~greater than ~~Banking~~$500 ~~Law~~million ~~§§160–181, and~~but isless ~~subject~~than to$1 ~~regulation~~billion, ~~supervision,~~ and ~~examination~~(c) 0.035% byonce the ~~New~~Related ~~York~~Public ~~State~~Funds’ ~~Department~~combined ofnet ~~Financial~~assets ~~Services.~~exceed $1 ~~BBH&Co~~billion. is ~~also~~The ~~licensed~~annual tominimum ~~conduct~~amount awill ~~commercial~~not ~~banking~~apply ~~business~~if by the ~~Commonwealths~~asset-based ofcharge ~~Massachusetts~~for ~~and~~all ~~Pennsylvania~~accounts ~~and~~in isthe ~~subject~~aggregate exceeds $75,000. toUSCF ~~supervision~~also ~~and~~pays ~~examination~~transaction byfees ~~the~~ranging ~~banking~~from ~~supervisors~~$7 ofto ~~those~~$15 ~~states~~per transaction.

16BBH&Co.’s principal business address is 50 Post Office Square, Boston, MA 02110-1548. BBH&Co., a private bank founded in 1818, is neither a publicly held company nor insured by the Federal Deposit Insurance Corporation. BBH&Co. is authorized to conduct a commercial banking business in accordance with the provisions of Article IV of the New York State Banking Law, New York Banking Law §§160–181, and is subject to regulation, supervision, and examination by the New York State Department of Financial Services. BBH&Co. is also licensed to conduct a commercial banking business by the Commonwealths of Massachusetts and Pennsylvania and is subject to supervision and examination by the banking supervisors of those states.

~~Delaware Trustee~~16

~~Wilmington Trust, National Association, a national banking association, with its principal place of business in the State of~~ Delaware, ~~as Delaware trustee (the “~~Trustee~~”) serves as the Trust’s corporate trustee as required under the Delaware Statutory Trust Act (“DSTA”). USCF pays the Trustee $3,000 annually for its services to the Trust.~~

~~The~~Wilmington ~~Trustee~~Trust, isNational ~~the sole trustee of the~~Association, ~~Trust.~~a ~~The~~national ~~rights~~banking ~~and~~association, ~~duties of the Trustee and USCF~~ with ~~respect~~its toprincipal ~~the~~place ~~offering~~ of ~~the~~business ~~shares~~in ~~and~~ the ~~Fund~~State ~~management~~of ~~and~~Delaware, ~~the shareholders~~as ~~are~~Delaware ~~governed~~trustee by (the ~~provisions~~“Trustee”) serves ofas the ~~DSTA and by the~~ Trust’s ~~Agreement.~~corporate ~~The~~trustee ~~Trustee~~as ~~will~~required ~~accept~~under ~~service of legal process on~~ the ~~Trust in the State of~~ Delaware ~~and~~Statutory ~~will~~Trust ~~make~~Act ~~certain filings under the~~ (“DSTA”). ~~The~~USCF ~~Trustee does not owe any other duties to~~pays the ~~Trust, USCF or the shareholders of the Fund. The~~ Trustee’s ~~principal offices are located at 1100 North Market Street~~$3, ~~Wilmington,~~000 ~~Delaware,~~annually ~~19890.~~for ~~The~~its ~~Trustee~~services isto ~~unaffiliated~~the ~~with USCF~~Trust.

The Trustee is ~~permitted~~the tosole ~~resign~~trustee ~~upon~~of the atTrust. ~~least~~The ~~sixty~~rights ~~(60)~~and ~~days’~~duties ~~notice~~of the Trustee and USCF with respect to the ~~Trust,~~offering ~~provided,~~of ~~that~~the ~~any~~shares ~~such~~and ~~resignation~~the ~~will~~Fund ~~not~~management beand ~~effective~~the shareholders ~~until~~are agoverned ~~successor Trustee~~by isthe ~~appointed~~provisions of the DSTA and by ~~USCF~~the Trust Agreement. ~~USCF~~The ~~has~~Trustee will accept service of legal process on the ~~discretion~~Trust in the State of Delaware and will make certain filings under the DSTA. The Trustee does not owe any other duties to the ~~replace~~Trust, USCF or the shareholders of the Fund. The Trustee’s principal offices are located at 1100 North Market Street, Wilmington, Delaware, 19890. The Trustee is unaffiliated with USCF.

~~Only~~The ~~the~~Trustee ~~assets~~is ofpermitted ~~the~~to ~~Trust~~resign ~~and USCF are~~upon ~~subject~~at toleast ~~issuer~~sixty ~~liability~~(60) ~~under~~days’ ~~the~~notice ~~federal securities laws for the information contained in this prospectus and under federal securities laws with respect~~ to the ~~issuance~~Trust, ~~and~~provided, ~~sale~~that ofany ~~the shares. Under~~ such ~~laws,~~resignation ~~neither~~will ~~the~~not ~~Trustee,~~be ~~either~~effective inuntil ~~its~~a ~~capacity~~successor as Trustee ~~or in its individual capacity, nor any director, officer or controlling person of the Trustee~~ is, orappointed ~~has~~by ~~any liability as, the issuer or a director, officer or controlling person of the issuer of the shares~~USCF. ~~The~~USCF ~~Trustee’s~~has ~~liability in connection with~~ the ~~issuance~~discretion ~~and sale of the shares is limited solely~~ to ~~the~~replace ~~express obligations of~~ the Trustee ~~set forth in the Trust Agreement~~.

~~Under~~Only the ~~Trust~~assets ~~Agreement, USCF has exclusive management and control~~ of ~~all aspects of~~ the Trust’s ~~business.~~and ~~The~~USCF ~~Trustee~~are subject ~~has~~to noissuer ~~duty or~~ liability tounder ~~supervise~~ the ~~performance of~~federal ~~USCF,~~securities ~~nor~~laws ~~will the Trustee have any liability~~ for the ~~acts~~information orcontained ~~omissions~~in ofthis ~~USCF.~~prospectus ~~The~~and ~~shareholders~~under ~~have~~federal securities nolaws ~~voice~~with inrespect ~~the day~~ to ~~day~~ ~~management of~~ the ~~business~~issuance and ~~operations~~sale of the ~~Fund~~shares. ~~and~~Under ~~the~~such ~~Trust~~laws, ~~other~~neither ~~than~~the ~~certain~~Trustee, ~~limited~~either ~~voting~~in ~~rights~~its capacity as ~~set~~Trustee ~~forth~~ or in ~~the~~its ~~Trust~~individual ~~Agreement.~~capacity, Innor ~~the~~any ~~course~~director, ofofficer ~~its~~or ~~management~~controlling person of the ~~business~~Trustee ~~and~~is, ~~affairs~~or ofhas any liability as, the ~~Fund~~issuer ~~and~~or ~~the~~a ~~Trust~~director, ~~USCF~~officer ~~may,~~or incontrolling ~~its sole~~person ~~and~~of ~~absolute~~the ~~discretion,~~issuer ~~appoint~~of anthe ~~affiliate~~shares. orThe ~~affiliates~~Trustee’s ofliability ~~USCF~~in asconnection with ~~additional~~the ~~sponsors~~issuance and ~~retain~~sale ~~such persons, including affiliates~~ of ~~USCF,~~the asshares itis ~~deems~~limited ~~necessary~~solely to ~~effectuate~~the ~~and~~express ~~carry~~obligations ~~out~~of the ~~purposes,~~Trustee ~~business~~set ~~and~~forth ~~objectives~~in of the Trust Agreement.

~~Because~~Under the ~~Trustee~~Trust ~~has~~Agreement, noUSCF ~~authority~~has ~~over~~exclusive management and control of all aspects of the Trust’s ~~operations~~business. The Trustee has no duty or liability to supervise the performance of USCF, nor will the Trustee ~~itself~~have isany ~~not~~liability ~~registered~~for the acts or omissions of USCF. The shareholders have no voice in ~~any~~the ~~capacity~~day ~~with~~to day management of the ~~CFTC~~business and operations of the Fund and the Trust, other than certain limited voting rights as set forth in the Trust Agreement. In the course of its management of the business and affairs of the Fund and the Trust, USCF may, in its sole and absolute discretion, appoint an affiliate or affiliates of USCF as additional sponsors and retain such persons, including affiliates of USCF, as it deems necessary to effectuate and carry out the purposes, business and objectives of the Trust.

~~Marketing~~Because ~~Agent~~the Trustee has no authority over the Trust’s operations, the Trustee itself is not registered in any capacity with the CFTC.

~~Each Trust Series also employs ALPS Distributors, Inc. (“ALPS Distributors”) as the~~ Marketing Agent, which is further discussed under “What is the Plan of Distribution?” USCF pays the Marketing Agent a fee for its services as marketing agent to each Trust Series equal to 0.06% on Fund assets up to the first $3 billion; and 0.04% on Fund assets in excess of $3 billion. In no event may the aggregate compensation paid to the Marketing Agent and any affiliate of USCF for marketing and/or distribution-related services in connection with the offering of shares exceed ten percent (10%) of the gross proceeds of the offering.

~~ALPS~~Each ~~Distributors’~~Trust ~~principal~~Series also ~~business~~employs ALPS ~~address~~Distributors, Inc. is(“ALPS ~~1290~~Distributors”) ~~Broadway,~~as ~~Suite~~the ~~1100,~~Marketing ~~Denver~~Agent, COwhich ~~80203.~~is ~~ALPS~~further ~~Distributors~~discussed under “What is the Plan of Distribution?” USCF pays the Marketing Agent a ~~broker-dealer~~fee ~~registered~~for ~~with~~its services as marketing agent to each Trust Series equal to 0.06% on Fund assets up to the Ufirst $3 billion; and 0.S04% on Fund assets in excess of $3 billion. ~~Securities~~In no event may the aggregate compensation paid to the Marketing Agent and ~~Exchange~~any ~~Commission~~affiliate of USCF for marketing and/or isdistribution-related aservices ~~member~~in ofconnection with the ~~Financial~~offering ~~Industry~~of ~~Regulatory~~shares ~~Authority~~exceed ten percent (~~“FINRA”~~10%) ~~and~~of ~~Securities~~the ~~Investor Protection~~gross ~~Corporation~~proceeds of the offering.

~~Relationship~~ALPS Distributors’ principal business address is 1290 Broadway, Suite 1100, Denver, CO 80203. ALPS Distributors is a broker-dealer registered with the ~~Charles~~SEC ~~Schwab~~and &is a member of the Financial Industry Regulatory Authority (“FINRA”) and Securities Investor ~~Co.,~~Protection ~~Inc~~Corporation.

~~USCF~~Futures orCommission the Marketing Agent, or an affiliate of USCF or the Marketing Agent, may directly or indirectly make cash payments to certain broker-dealers for participating in activities that are designed to make registered representatives and other professionals more knowledgeable about exchange-traded funds and exchange-traded products, including each Trust Series and the Related Public Funds, or for other activities, such as participation in marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems. USCF and/or the Marketing Agent have, or may in the future have, arrangements to make payments, other than for the educational programs and marketing activities described above, to Charles Schwab & Co., Inc. (“Schwab”). Pursuant to the arrangement between USCF and Schwab, Schwab has agreed to promote certain exchange-traded funds and exchange-traded products to Schwab’s customers, which may include the Fund and certain of the Related Public Funds, and not to charge certain of its customers any commissions when those customers purchase or sell shares of participating exchange-traded funds and exchange-traded products. Payments to a broker-dealer or intermediary may create potential conflicts of interest between the broker-dealer or intermediary and its clients. These amounts, which may be significant, are paid by USCF and/or the Marketing from their own resources and not from the assets of the Fund or the Related Public Funds.Merchant

17On July 6, 2017, USCF entered into a Futures and Cleared Derivatives Transactions Customer Account Agreement with RBC Capital Markets, LLC (“RBC Capital” or “RBC”) to serve as FCM for USOU and USOD. This agreement requires RBC Capital to provide services to USOU and USOD in connection with the purchase and sale of Oil Futures Contracts and Other Oil-Related Investments that may be purchased or sold by or through RBC Capital for the account of USOU and USOD. USOU and USOD each pay RBC Capital commissions for executing and clearing trades on behalf of USOU or USOD, as applicable.

~~Futures~~RBC ~~Commission~~Capital’s ~~Merchant~~primary address is 500 West Madison Street, Suite 2500, Chicago, Illinois 60661. RBC Capital is the futures clearing broker for USOU and USOD. RBC Capital is registered in the United States with FINRA as a broker-dealer and with the CFTC as an FCM. RBC Capital is a member of various U.S. futures and securities exchanges.

On July 6, 2017, USCF entered into a Futures and Cleared Derivatives Transactions Customer Account Agreement with RBC Capital Markets, LLC (“RBC Capital” or “RBC”) to serve as FCM for USOU and USOD. This agreement requires RBC Capital to provide services to USOU and USOD in connection with the purchase and sale of Oil Futures Contracts and Other Oil-Related Investments that may be purchased or sold by or through RBC Capital for the account of USOU and USOD. USOU and USOD each pay RBC Capital commissions for executing and clearing trades on behalf of USOU or USOD, as applicable.17

RBC Capital is a large broker dealer subject to many different complex legal and regulatory requirements. As a result, certain of RBC Capital’s ~~primary~~regulators ~~address~~may isfrom time ~~500~~to ~~West~~time ~~Madison~~conduct ~~Street~~investigations, ~~Suite~~initiate ~~2500,~~enforcement ~~Chicago,~~proceedings ~~Illinois~~and/or ~~60661~~enter into settlements with RBC Capital with respect to issues raised in various investigations. RBC Capital iscomplies ~~the~~fully ~~futures~~with ~~clearing~~its ~~broker~~regulators ~~for~~in ~~USOU~~all investigations being conducted and in ~~USOD~~all settlements it reaches. In addition, RBC Capital is ~~registered~~and has been subject to a variety of civil legal claims in ~~the~~various ~~United~~jurisdictions, a ~~States~~variety ~~with~~of ~~FINRA~~settlement asagreements and a ~~broker-dealer~~variety of orders, awards and ~~with~~judgments ~~the~~made ~~CFTC~~against asit anby ~~FCM~~courts and tribunals, both in regard to such claims and investigations. RBC Capital iscomplies afully ~~member~~with ~~of various~~all ~~U.S.~~settlements ~~futures~~it reaches and ~~securities~~all ~~exchanges~~orders, awards and judgments made against it.

RBC Capital ishas abeen ~~large~~named ~~broker~~as ~~dealer~~a ~~subject~~defendant toin ~~many~~various ~~different complex~~ legal ~~and regulatory requirements. As a result~~actions, ~~certain~~including ~~of RBC Capital’s regulators may from time to time conduct investigations~~arbitrations, ~~initiate~~class ~~enforcement~~actions ~~proceedings~~ and~~/or~~ ~~enter~~other ~~into~~litigation ~~settlements~~including ~~with~~those ~~RBC~~described ~~Capital~~below, ~~with~~arising ~~respect to~~in ~~issues~~connection ~~raised~~with inits ~~various investigations~~activities. ~~RBC~~Certain ~~Capital~~of ~~complies~~the ~~fully~~actual ~~with~~or ~~its~~threatened ~~regulators~~legal inactions ~~all~~include ~~investigations~~claims ~~being~~for ~~conducted~~substantial compensatory and/or inpunitive ~~all~~damages ~~settlements~~or itclaims ~~reaches.~~for Inindeterminate ~~addition,~~amounts of damages. RBC Capital is ~~and~~also ~~has~~involved, ~~been subject to a variety of civil legal claims~~ in ~~various~~other ~~jurisdictions~~reviews, investigations aand ~~variety~~proceedings of(both ~~settlement~~formal ~~agreements~~ and ainformal) ~~variety~~by ofgovernmental ~~orders, awards~~ and ~~judgments~~self-regulatory ~~made~~agencies ~~against~~regarding itRBC byCapital’s ~~courts and tribunals~~business, ~~both~~ inincluding ~~regard~~among toother ~~such~~matters, ~~claims~~accounting and ~~investigations.~~operational ~~RBC~~matters, ~~Capital~~certain ~~complies~~of ~~fully~~which ~~with~~may ~~all~~result ~~settlements~~in itadverse ~~reaches and all orders~~judgments, ~~awards~~settlements, ~~and~~fines, ~~judgments~~penalties, ~~made~~injunctions ~~against~~or itother relief.

RBC Capital ~~has~~contests ~~been~~liability ~~named~~and/or the amount of damages as aappropriate ~~defendant~~ in ~~various~~each ~~legal~~pending ~~actions,~~matter. ~~including~~In ~~arbitrations,~~view ~~class~~of ~~actions~~the ~~and~~inherent ~~other~~difficulty ~~litigation~~of ~~including~~predicting ~~those~~the ~~described~~outcome ~~below~~of such matters, particularly ~~arising~~in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in ~~connection~~the ~~with~~early ~~its~~stages, ~~activities.~~RBC ~~Certain~~Capital ofcannot predict the ~~actual~~loss or ~~threatened~~range ~~legal~~of ~~actions~~loss, ~~include~~if ~~claims~~any, ~~for~~related ~~substantial~~to ~~compensatory~~such ~~and/or punitive~~matters; ~~damages~~how or ~~claims~~if ~~for~~such ~~indeterminate~~matters will ~~amounts~~be ofresolved; ~~damages.~~when ~~RBC~~they ~~Capital~~will isultimately ~~also~~be ~~involved,~~resolved; inor ~~other~~what ~~reviews~~the eventual settlement, ~~investigations and~~fine, ~~proceedings~~penalty ~~(both~~or ~~formal~~other ~~and~~relief, ~~informal)~~if byany, might ~~governmental~~be. ~~and~~Subject ~~self-regulatory~~to ~~agencies~~the ~~regarding~~foregoing, RBC Capital’s ~~business~~believes, ~~including~~ ~~among~~based ~~other~~on ~~matters,~~current ~~accounting~~knowledge and ~~operational~~after ~~matters~~consultation with counsel, ~~certain~~that the outcome of ~~which~~such ~~may~~pending ~~result~~matters inwill not have a material adverse ~~judgments,~~effect ~~settlements, fines,~~on ~~penalties,~~the ~~injunctions~~consolidated orfinancial ~~other~~condition ~~relief~~of RBC Capital.

~~RBC~~On ~~Capital~~April 27, ~~contests~~2017, ~~liability~~pursuant ~~and/or~~to ~~the~~an ~~amount~~offer of ~~damages~~settlement, asa ~~appropriate~~Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that RBC Capital engaged in ~~each~~EFRP ~~pending~~transactions ~~matter.~~which Infailed ~~view~~to satisfy the Rules of the ~~inherent~~Chicago ~~difficulty~~Board of ~~predicting~~Trade (the ~~outcome~~“Chicago ofBoard ~~such matters,~~of ~~particularly~~Trade”) in ~~cases~~one ~~where~~or ~~claimants~~more ~~seek~~ways. ~~substantial~~Specifically, orthe ~~indeterminate~~Panel ~~damages~~found orthat ~~where~~RBC ~~investigations~~Capital ~~and~~traders ~~proceedings~~entered ~~are~~into EFRP trades in which RBC ~~the~~Capital ~~early~~accounts ~~stages,~~were ~~RBC~~on ~~Capital~~both ~~cannot~~sides ~~predict~~of the ~~loss~~transactions. orWhile ~~range~~the purpose of ~~loss,~~the iftransactions ~~any,~~was ~~related~~ to ~~such~~transfer ~~matters;~~positions ~~how~~between the orRBC ifCapital ~~such~~accounts, ~~matters will~~the bePanel ~~resolved;~~found ~~when~~that ~~they~~the ~~will~~manner ~~ultimately~~in bewhich ~~resolved;~~the ortrades ~~what~~occurred violated the ~~eventual~~Chicago ~~settlement,~~Board ~~fine,~~of ~~penalty~~Trade’s prohibition oron ~~other~~wash ~~relief,~~trades. ifThe ~~any, might~~Panel befound that RBC Capital thereby violated CBOT Rules 534 and (legacy) 538.B. ~~Subject~~and toC. In accordance with the ~~foregoing~~settlement offer, the Panel ordered RBC Capital ~~believes~~to pay a $175,000 ~~based~~fine. onOn ~~current~~October 1, ~~knowledge~~2019, the CFTC issued an order filing and ~~after~~settling ~~consultation~~charges ~~with~~against ~~counsel~~RBCCM for the above activity, as well as related charges. The order required that ~~the~~RBCCM ~~outcome~~cease ofand ~~such~~desist ~~pending~~from ~~matters~~violating ~~will~~the ~~not~~applicable ~~have~~regulations, pay a ~~material~~$5 ~~adverse~~million ~~effect~~civil onmonetary ~~the~~penalty, ~~consolidated~~and ~~financial~~comply ~~condition~~with ofvarious conditions, ~~RBC~~including ~~Capital~~conditions regarding public statements and future cooperation with the CFTC.

On ~~April 27~~June 18, ~~2017~~2015, ~~pursuant~~in toconnection ~~an offer~~with ofthe ~~settlement,~~Municipalities aContinuing ~~Panel~~Disclosure Cooperation initiative of the ~~Chicago~~SEC, ~~Board~~the ofSEC ~~Trade~~commenced ~~Business~~and ~~Conduct~~settled ~~Committee~~an ~~(“Panel”)~~administrative ~~found~~proceeding against ~~that~~ RBC Capital ~~engaged in~~for ~~EFRP~~willful ~~transactions~~violations ~~which~~of ~~failed~~Sections ~~to satisfy the Rules~~ 17(a)(2) of the ~~Chicago~~Securities ~~Board~~Act of ~~Trade~~1933, ~~(the~~as amended (“~~Exchange~~1933 Act”) ~~in one or more~~ ~~ways.~~after ~~Specifically,~~ the ~~Panel~~firm ~~found~~self-reported ~~that~~instances ~~RBC~~in ~~Capital~~which ~~traders~~it ~~entered~~conducted ~~into~~inadequate ~~EFRP~~due ~~trades~~diligence in ~~which~~certain ~~RBC~~municipal ~~Capital~~securities ~~accounts were on both~~offerings ~~sides~~and ofas ~~the~~a ~~transactions.~~result, ~~While~~failed ~~the purpose of the transactions was~~ to ~~transfer~~form ~~positions~~a ~~between~~reasonable ~~the~~basis ~~RBC~~for ~~Capital~~believing ~~accounts,~~ the ~~Panel~~ ~~found~~truthfulness ~~that~~of ~~the~~certain ~~manner~~material representations in ~~which the trades occurred violated the Exchange’s prohibition on wash trades. The Panel found~~official ~~that~~statements ~~RBC~~issued ~~Capital~~in ~~thereby~~connection ~~violated~~with ~~CBOT~~those ~~Rules 534 and (legacy) 538~~offerings.B. ~~and C. In accordance with the settlement offer, the Panel ordered~~ RBC Capital topaid ~~pay~~ a fine of $~~175~~500,000 ~~fine~~.

OnRBC ~~June~~Capital ~~18,~~and ~~2015,~~certain inaffiliates ~~connection with the~~were ~~Municipalities~~named ~~Continuing~~as ~~Disclosure~~defendants ~~Cooperation~~in ~~initiative~~a oflawsuit ~~the~~relating ~~SEC,~~to ~~the~~their ~~SEC~~role ~~commenced~~in ~~and~~transactions ~~settled~~involving aninvestments ~~administrative~~made ~~proceeding against~~by ~~RBC Capital for willful violations of Sections 17(~~a~~)(2)~~ ofnumber ~~the Securities Act~~ of ~~1933,~~Wisconsin ~~as amended (“1933 Act”)~~school ~~after~~districts ~~the~~in ~~firm~~certain ~~self-reported~~collateralized ~~instances~~debt inobligations. ~~which~~These ittransactions ~~conducted~~were ~~inadequate~~also ~~due~~the ~~diligence~~subject inof ~~certain~~a ~~municipal~~regulatory ~~securities~~investigation, ~~offerings~~which ~~and~~was asresolved ain ~~result,~~2011. ~~failed~~RBC toCapital ~~form~~reached a ~~reasonable~~final ~~basis~~settlement ~~for~~with ~~believing~~all ~~the~~parties ~~truthfulness of certain material representations~~ in ~~official statements~~the ~~issued~~civil inlitigation, ~~connection~~and ~~with~~the ~~those~~civil ~~offerings.~~action against RBC Capital ~~paid~~was adismissed ~~fine~~with ofprejudice ~~$500~~on December 6,~~000~~ 2016.

~~RBC~~Beginning ~~Capital~~in ~~and~~2015, ~~certain~~putative ~~affiliates~~class ~~were~~actions ~~named~~were asbrought ~~defendants~~against inRBC aCapital ~~lawsuit~~and/or ~~relating~~Royal toBank ~~their~~of ~~role~~Canada in ~~transactions~~the ~~involving~~U.S., ~~investments~~Canada ~~made~~and byIsrael. aThese ~~number~~actions ofwere ~~Wisconsin~~each ~~school~~brought against ~~districts~~multiple inforeign ~~certain~~exchange ~~collateralized~~dealers ~~debt~~and ~~obligations.~~allege, ~~These~~among ~~transactions~~other ~~were~~things, collusive behavior in foreign exchange trading. Various regulators are also ~~the~~conducting ~~subject~~inquiries regarding potential violations of law by a ~~regulatory~~number ~~investigation~~of banks and other entities, ~~which~~including RBC Capital, ~~was~~regarding ~~resolved~~foreign inexchange ~~2011~~trading. ~~RBC~~In ~~Capital~~August 2018, ~~reached~~the U.S. District Court entered a final order approving RBC Capital’s pending settlement with ~~all~~class ~~parties~~plaintiffs. Certain institutional plaintiffs opted out of participating in the ~~civil~~settlement ~~litigation,~~and have brought their own claims. The Canadian class actions and ~~the~~one ~~civil~~other U.S. action ~~against~~that is purportedly brought on behalf of different ~~RBC~~classes ~~Capital~~of ~~was~~plaintiffs ~~dismissed~~also ~~with~~remain ~~prejudice~~pending. Based on ~~December~~the 6facts currently known, ~~2016~~it is not possible at this time for us to predict the ultimate outcome of these investigations or proceedings or the timing of their resolution.

Beginning in 2015, putative class actions were brought against RBC Capital and/or Royal Bank of Canada in the U.S., Canada and Israel. These actions were each brought against multiple foreign exchange dealers and allege, among other things, collusive behavior in foreign exchange trading. Various regulators are also conducting inquiries regarding potential violations of law by a number of banks and other entities, including RBC Capital, regarding foreign exchange trading. In August 2018, the U.S. District Court entered a final order approving RBC Capital’s pending settlement with class plaintiffs. Certain institutional plaintiffs opted out of participating in the settlement and have brought their own claims. The Canadian class actions, one other U.S. action that is purportedly brought on behalf of different classes of plaintiffs, and an action filed in Israel remain pending. Based on the facts currently known, it is not possible at this time for us to predict the ultimate outcome of these investigations or proceedings or the timing of their resolution.18

18On April 13, 2015, RBC Capital’s affiliate, Royal Bank of Canada Trust Company (Bahamas) Limited (“RBC Bahamas”), was charged in France with complicity in tax fraud. RBC Bahamas believes that its actions did not violate French law and contested the charge in the French court. The trial of this matter has concluded and a verdict was delivered on January 12, 2017, acquitting the company and the other defendants and on June 29, 2018, the French appellate court affirmed the acquittals. The acquittals are being appealed.

OnVarious ~~April~~regulators 13and competition and enforcement authorities around the world, ~~2015~~including in Canada, the United Kingdom, and the U.S., are conducting investigations related to certain past submissions made by panel banks in connection with the setting of the U.S. dollar London interbank offered rate (“LIBOR”). These investigations focus on allegations of collusion between the banks that were on the panel to make submissions for certain LIBOR rates. Royal Bank of Canada, RBC Capital’s indirect parent, is a member of certain LIBOR ~~affiliate~~panels, including the U.S. dollar LIBOR panel, and has in the past been the subject of regulatory requests for information. In addition, Royal Bank of Canada ~~Trust~~and ~~Company~~other ~~(Bahamas)~~U.S. ~~Limited~~dollar ~~(RBC~~panel ~~Bahamas),~~banks ~~was~~have ~~charged~~been named as defendants in ~~France~~private ~~with~~lawsuits ~~complicity~~filed in ~~tax fraud.~~the ~~RBC~~U.S. ~~Bahamas~~with ~~believes~~respect ~~that~~to ~~its~~the ~~actions~~setting ~~did~~of ~~not~~LIBOR ~~violate~~including ~~French~~a ~~law~~number ~~and~~of ~~contested~~class action lawsuits which have been consolidated before the ~~charge~~U.S. District inCourt for the ~~French~~Southern ~~court~~District of New York. The ~~trial~~complaints ofin ~~this matter~~those ~~has~~private ~~concluded~~lawsuits assert claims against us and aother panel ~~verdict~~banks ~~was~~under ~~delivered~~various onU.S. ~~January~~laws, 12including U.S. antitrust laws, ~~2017~~the U.S. Commodity Exchange Act, ~~acquitting~~and state law. On February 28, 2018, the ~~company~~motion ~~and~~by the ~~other~~plaintiffs ~~defendants~~in ~~and~~the onclass ~~June~~action lawsuits to have the class certified was denied in relation to Royal Bank 29of Canada. As such, ~~2018~~unless that ruling is reversed on appeal, ~~the~~Royal ~~French~~Bank ~~appellate~~of ~~court~~Canada ~~affirmed~~is no longer a defendant in any pending class action. Royal Bank of Canada is still a party to the ~~acquittals~~various individual LIBOR actions. ~~The~~Based ~~acquittals~~on ~~are~~the ~~being~~facts ~~appealed~~currently known, it is not possible at this time for us to predict the ultimate outcome of these investigations or proceedings or the timing of their resolution.

~~Various~~Thornburg ~~regulators~~Mortgage ~~and~~Inc. ~~competition and~~(“TMST”) ~~enforcement authorities around the world, including in Canada, the United Kingdom,~~ and ~~the~~RBC ~~U.S.,~~Capital ~~are~~were ~~conducting~~parties ~~investigations related~~ to ~~certain~~a ~~past~~master ~~submissions~~repurchase ~~made~~agreement byexecuted ~~panel banks~~ in ~~connection~~September 2003 ~~with~~whereby ~~the~~TMST ~~setting~~financed its purchase of ~~the~~residential ~~U.S.~~mortgage-backed ~~dollar London interbank offered rate (“LIBOR”)~~securities. ~~These~~Upon ~~investigations~~TMST’s ~~focus~~default onduring ~~allegations of collusion between~~ the ~~banks~~financial ~~that~~crisis, ~~were~~RBC onCapital ~~the~~valued ~~panel to~~TMST’s ~~make~~collateral ~~submissions~~at ~~for~~allegedly ~~certain~~deflated ~~LIBOR rates~~prices. ~~Royal~~After ~~Bank~~TMST’s ofbankruptcy ~~Canada~~filing, ~~RBC Capital~~TMST’s ~~indirect~~trustee ~~parent,~~brought issuit aagainst ~~member~~RBC ~~of certain LIBOR~~Capital ~~panels, including the U.S. dollar LIBOR panel, and has~~ in ~~the~~2011 ~~past~~for ~~been~~breach ~~the subject~~ of ~~regulatory requests for information~~contract. In ~~addition~~ 2015, ~~Royal~~TMST ~~Bank~~was ofawarded ~~Canada~~more ~~and~~than ~~other~~$45 ~~U.S.~~million ~~dollar panel banks have been named as defendants~~ in ~~private~~damages. ~~lawsuits~~RBC ~~filed~~Capital inhas ~~the U~~appealed.S. ~~with~~The ~~respect~~appeals court toset ~~the setting of LIBOR including~~ a ~~number~~briefing ofschedule ~~class~~and ~~action~~simultaneously ~~lawsuits~~ordered ~~which have been consolidated before~~ the ~~U.S. District~~parties ~~Court~~to ~~for~~participate ~~the~~in ~~Southern~~a ~~District of New York~~mediation. The ~~complaints~~parties insubsequently ~~those private lawsuits assert claims against us and other~~reached ~~panel~~an ~~banks~~agreement ~~under~~to ~~various~~settle ~~U.S. laws, including U.S. antitrust laws,~~ the ~~U.S.~~matter; ~~Commodity~~a ~~Exchange Act, and state law. On February 28, 2018, the~~ motion ~~by the plaintiffs in the class action lawsuits~~ to ~~have~~approve the ~~class~~settlement ~~certified~~ was ~~denied~~filed inwith ~~relation~~the tobankruptcy ~~Royal Bank~~court ~~of Canada. As such, unless that ruling is reversed~~ on ~~appeal~~January 10, ~~Royal Bank of Canada is no longer a defendant in any pending~~2016 ~~class~~and ~~action.~~granted ~~Royal Bank of Canada is still a party to the various individual LIBOR actions. Based~~ on ~~the facts currently known~~February 27, it ~~is not possible at this time for us to predict the ultimate outcome of these investigations or proceedings or the timing of their resolution~~2017.

~~Thornburg~~On ~~Mortgage~~October 14, ~~Inc.~~2014, ~~(now~~the ~~known~~Delaware Court asof Chancery (the “~~TMST~~Court of Chancery”) in a class action brought by former shareholders of Rural/Metro Corporation, ~~and~~held RBC Capital ~~were~~liable ~~parties~~for toaiding and abetting a ~~master~~breach ~~repurchase~~of ~~agreement~~fiduciary ~~executed~~duty inby ~~September~~three ~~2003~~Rural/Metro ~~whereby~~directors, ~~TMST~~but ~~financed~~did ~~its~~not ~~purchase~~make ofan ~~residential~~additional ~~mortgage-backed~~award ~~securities.~~for ~~Upon TMST~~attorney’s ~~default~~fees. ~~during~~A ~~the~~final ~~financial~~judgment ~~crisis~~was entered on February 19, ~~RBC~~2015 ~~Capital~~in ~~valued~~the ~~TMST’s collateral~~amount atof ~~allegedly~~US$93 ~~deflated~~million plus ~~prices~~post judgment interest. ~~After~~RBC ~~TMST’s~~Capital ~~bankruptcy~~appealed ~~filing,~~the ~~TMST~~Court of Chancery’s ~~trustee~~determination ~~brought~~of ~~suit~~liability ~~against~~and ~~RBC~~quantum ~~Capital~~of damages, inand ~~2011~~the ~~for~~plaintiffs ~~breach~~cross-appealed ofthe ~~contract~~ruling on additional attorneys’ fees. InOn November 30, 2015, ~~TMST~~the ~~was~~Delaware ~~awarded~~Supreme Court ~~more~~affirmed ~~than~~the ~~$45~~Court ~~million~~of inChancery ~~damages~~with respect to both the appeal and cross-appeal. RBC Capital ~~has~~is ~~appealed.~~cooperating ~~The~~with ~~appeals~~an investigation ~~court~~by ~~set~~the aSEC ~~briefing~~relating ~~schedule~~to ~~and~~this ~~simultaneously~~matter. ~~ordered~~In particular, the ~~parties~~SEC tocontended ~~participate~~that inRBC aCapital ~~mediation.~~caused ~~The~~materially ~~parties~~false ~~subsequently~~and ~~reached~~misleading information anto ~~agreement~~be toincluded ~~settle~~in the ~~matter;~~proxy astatement ~~motion~~that Rural filed to ~~approve~~solicit shareholder approval for the ~~settlement~~sale ~~was~~in ~~filed~~violation ~~with~~of section 14(A) of the ~~bankruptcy~~Exchange ~~court~~Act onand ~~January~~Rule 14A-9 10thereunder. On August 31, 2016, RBC Capital was ordered by the SEC to cease and desist ~~granted~~and onpaid ~~February~~$500,000 27in disgorgement, ~~2017~~plus interest of $77,759 and a civil penalty of $2 million.

OnPlease ~~October~~see ~~14, 2014, the Delaware Court of Chancery (the “Court of Chancery”) in a class action brought by former shareholders of Rural/Metro Corporation, held~~ RBC Capital ~~liable for aiding and abetting a breach of fiduciary duty by three Rural/Metro directors, but did not make an additional award for attorney~~’s ~~fees. A final judgment was entered on February 19~~Form BD, ~~2015 in the amount~~ ofwhich USis ~~$93~~available ~~million plus post judgment interest. RBC Capital appealed the Court of Chancery’s determination of liability and quantum of damages, and the plaintiffs cross-appealed the ruling~~ on ~~additional attorneys’ fees. On November 30, 2015,~~ the ~~Delaware~~FINRA ~~Supreme~~BrokerCheck ~~Court affirmed the Court of Chancery with respect to both the appeal and cross-appeal. RBC Capital is cooperating with an investigation by the SEC relating to this matter. In particular~~program, ~~the SEC contended that RBC Capital caused materially false and misleading information to be included in the proxy statement that Rural filed to solicit shareholder approval~~ for ~~the~~more ~~sale in violation of section 14(A) of the Exchange Act and Rule 14A-9 thereunder~~details. ~~On August 31, 2016, RBC Capital was ordered by the SEC to cease and desist and paid $500,000 in disgorgement, plus interest of $77,759 and a civil penalty of $2 million.~~

~~Please~~RBC ~~see~~will ~~RBC~~act ~~Capital’s~~only as clearing broker for ~~Form~~each ~~BD,~~Trust ~~which~~Series and isas ~~available~~such will be paid commissions for executing and clearing trades on behalf of the ~~FINRA~~Trust ~~BrokerCheck~~Series. ~~program,~~RBC has ~~for~~not ~~more~~passed ~~details~~upon the adequacy or accuracy of this annual report on Form 10-K. RBC will not act in any supervisory capacity with respect to USCF or participate in the management of USCF or the Trust Series.

RBC ~~will~~is ~~act~~not ~~only~~affiliated aswith ~~clearing~~the ~~broker for each~~ Trust Series or USCF. ~~and~~Therefore, asneither ~~such~~USCF ~~will~~nor ~~be paid commissions for executing and clearing trades on behalf of~~ the Trust Series. believes ~~RBC~~that ~~has not~~there ~~passed~~are ~~upon~~any ~~the~~conflicts ~~adequacy or accuracy~~ of ~~this~~interest ~~annual~~with ~~report on Form 10-K.~~ RBC ~~will~~or ~~not~~its ~~act in any supervisory capacity with~~trading ~~respect~~principals toarising ~~USCF~~from orits ~~participate~~acting inas the ~~management~~FCM offor ~~USCF~~each ~~or the~~ Trust Series.

~~RBC~~Currently, isUSCF does not ~~affiliated~~employ ~~with~~commodity trading advisors for the trading of the contracts for each Trust Series or. USCF. ~~Therefore~~currently does, ~~neither~~however, ~~USCF~~employ ~~nor~~SummerHaven ~~the~~Investment Management, ~~Trust~~LLC ~~Series~~as ~~believes~~a ~~that~~trading ~~there~~advisor ~~are~~for ~~any~~USCI ~~conflicts~~and ofCPER. ~~interest~~If, ~~with~~in ~~RBC~~the orfuture, ~~its~~USCF ~~trading principals~~does ~~arising~~employ ~~from~~commodity ~~its~~trading ~~acting~~advisors asfor the Fund, ~~FCM~~it ~~for~~will choose each ~~Trust~~advisor ~~Series~~based on arm’s-length negotiations and will consider the advisor’s experience, fees and reputation.

Currently, USCF does not employ commodity trading advisors for the trading of the contracts for each Trust Series. USCF currently does, however, employ SummerHaven Investment Management, LLC as a trading advisor for USCI and CPER. If, in the future, USCF does employ commodity trading advisors for the Fund, it will choose each advisor based on arm’s-length negotiations and will consider the advisor’s experience, fees and reputation.19

19Fees of USOU and USOD

Fees ofand ~~USOU~~Compensation Arrangements with USCF, Non-Affiliated Service Providers and ~~USOD~~the Trustee

Fees and Compensation Arrangements with USCF, Non-Affiliated Service Providers and the Trustee

Service Provider		Compensation Paid by Each Trust Series and USCF

United States Commodity Funds LLC, Sponsor		Each Trust Series pays USCF a management fee based on its average daily net assets and paid monthly at an annual rate of 0.95%.⁽¹⁾

BBH&Co., Custodian, Transfer Agent and Administrator		Minimum amount of $75,000 annually for its custody, fund accounting and fund administration services rendered to the Trust Series and the Related Public Funds, as well as a $20,000 annual fee for its transfer agency services. In addition, an asset-based charge of (a) 0.06% for the first $500 million of the Trust Series’ and the Related Public Funds’ combined net assets, (b) 0.0465% for the Trust Series’ and the Related Public Funds’ combined net assets greater than $500 million but less than $1 billion, and (c) 0.035% once the Trust Series’ and the Related Public Funds’ combined net assets exceed $1 billion.⁽²⁾

ALPS Distributors, Marketing Agent		Each Trust Series pays 0.06% on assets up to $3 billion and 0.04% on assets in excess of $3 billion.⁽²⁾

Wilmington Trust Company, Trustee		On behalf of the Trust, USCF pays $3,000 annually.⁽²⁾

Service Provider		Compensation Paid by Each Trust Series and USCF
United States Commodity Funds LLC, Sponsor		Each Trust Series pays USCF a management fee based on its average daily net assets and paid monthly at an annual rate of 0.95%.(1)
BBH&Co., Custodian, Transfer Agent and Administrator		Minimum amount of $75,000 annually for its custody, fund accounting and fund administration services rendered to the Trust Series and the Related Public Funds, as well as a $20,000 annual fee for its transfer agency services. In addition, an asset-based charge of (a) 0.06% for the first $500 million of the Trust Series’ and the Related Public Funds’ combined net assets, (b) 0.0465% for the Trust Series’ and the Related Public Funds’ combined net assets greater than $500 million but less than $1 billion, and (c) 0.035% once the Trust Series’ and the Related Public Funds’ combined net assets exceed $1 billion.(2)
ALPS Distributors, Marketing Agent		Each Trust Series pays 0.06% on assets up to $3 billion and 0.04% on assets in excess of $3 billion.(2)
Wilmington Trust Company, Trustee		On behalf of the Trust, USCF pays $3,000 annually.(2)

⁽¹⁾

Each Trust Series is contractually obligated to pay USCF a management fee based on daily net assets and paid monthly of 0.95%. Average daily net assets are calculated daily by taking the average of the total net assets of the Fund over the calendar year, i.e., the sum of daily total net assets divided by the number of calendar days in the year. On days when markets are closed, the total net assets are the total net assets from the last day when the market was open.

(12) ~~Each~~The ~~Trust~~Funds ~~Series is contractually obligated to~~ pay USCF a unitary management fee ~~based on daily net assets and paid monthly of 0~~.~~95%.~~ ~~Average~~As ~~daily~~a ~~net assets are calculated daily by taking the average of the total net assets of the Fund over the calendar year~~result, ~~i.e.,~~USCF ~~the~~is ~~sum~~responsible offor ~~daily~~paying ~~total~~this ~~net assets divided by the number of calendar days in the year~~compensation. ~~On days when markets are closed, the total net assets are the total net assets from the last day when the market was open.~~

Asset-based fees are calculated on a daily basis (2accrued at 1/365 of the applicable percentage of total net assets on that day) ~~USCF~~and ~~pays~~paid ~~this~~on ~~compensation~~a monthly basis. Total net assets are calculated by taking the current market value of each Trust Series’ total assets and subtracting any liabilities.

~~Asset-based~~Compensation ~~fees~~to are calculated on a daily basis (accrued at 1/365 of the applicable percentage of total net assets on that day) and paid on a monthly basis. Total net assets are calculated by taking the current market value of each Trust Series’ total assets and subtracting any liabilities.USCF

~~Compensation~~USOU and USOD are contractually obligated to pay USCF a management fee based on 0.95%, per annum on its average daily total net assets. Fees are calculated on a daily basis (accrued at 1/365 of the applicable percentage of total net assets on that day) and paid on a monthly basis. Total net assets are calculated by taking the current market value of each Trust Series’ total assets and subtracting any liabilities.

~~USOU and USOD are contractually obligated to pay USCF a management fee based on 0.95%, per annum on its average daily total net assets.~~ Fees ~~are calculated on a daily basis (accrued at 1/365 of the applicable percentage of total net assets on that day)~~ and ~~paid~~Compensation ~~on a monthly basis. Total net assets are~~Arrangements ~~calculated~~between byUSOU ~~taking~~or ~~the~~USOD ~~current market value of each Trust Series’ total assets~~ and ~~subtracting~~Non-Affiliated ~~any~~Service ~~liabilities.~~Providers(3)

Fees and Compensation Arrangements between USOU or USOD and Non-Affiliated Service Providers(3)

Service Provider		Compensation Paid by USOU and USOD
RBC Capital Futures Commission Merchant		Approximately $3.50 per buy or sell; charges may vary

Service Provider		Compensation Paid by USOU and USOD
RBC Capital Futures Commission Merchant		Approximately $3.50 per buy or sell; charges may vary

⁽³⁾USOU and USOD pay this compensation.

~~(3) USOU and USOD pay this compensation.~~20

20Expenses Paid or Accrued by USOU from Inception through December 31, 2019* in dollar terms:

Expenses Paid or Accrued by USOU from Inception through December 31, 2018 in dollar terms:

Expenses:	Amount in Dollar Terms
Amount Paid or Accrued to USCF:	$	273,171
Amount Paid or Accrued in Portfolio Brokerage Commissions:	$	169,259
Other Amounts Paid or Accrued⁽⁴⁾:	$	—
Total Expenses Paid or Accrued:	$	442,430

Expenses:	Amount in Dollar Terms
Amount Paid or Accrued to USCF:	$	89,235
Amount Paid or Accrued in Portfolio Brokerage Commissions:	$	50,550
Other Amounts Paid or Accrued(4):	$	—
Total Expenses Paid or Accrued:	$	139,785

⁽⁴⁾

Includes expenses relating to the registration of additional shares, legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of USCF.

~~(4)~~Expenses Paid ~~Includes~~or ~~expenses~~Accrued ~~relating~~by toUSOU ~~the~~from ~~registration~~Inception ofthrough ~~additional shares~~December 31, ~~legal~~2019* ~~fees,~~as ~~auditing~~a ~~fees,~~Percentage ~~printing~~of ~~expenses,~~Average ~~licensing~~Daily ~~fees,~~Net ~~tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of USCF.~~Assets:

Expenses Paid or Accrued by USOU from Inception through December 31, 2018 as a Percentage of Average Daily Net Assets:

Expenses:		Amount as a Percentage of Average Daily Net Assets
Amount Paid or Accrued to USCF:		0.96% annualized
Amount Paid or Accrued in Portfolio Brokerage Commissions:		0.60% annualized
Other Amounts Paid or Accrued⁽⁵⁾:		—% annualized
Total Expenses Paid or Accrued:		1.56% annualized

Expenses:		Amount as a Percentage of Average Daily Net Assets
Amount Paid or Accrued to USCF:		0.99% annualized
Amount Paid or Accrued in Portfolio Brokerage Commissions:		0.56% annualized
Other Amounts Paid or Accrued(5):		0.00% annualized
Total Expenses Paid or Accrued:		1.55% annualized

⁽⁵⁾

~~(5)~~* ~~Includes~~USOU ~~expenses~~ceased ~~relating~~trading toon the ~~registration~~NYSE ofArca on ~~additional shares~~December 12, ~~legal~~2019 ~~fees,~~and ~~auditing~~the ~~fees,~~Fund's ~~printing~~liquidation ~~expenses,~~date ~~licensing~~was ~~fees~~December 18, ~~tax reporting fees~~2019, ~~prepaid~~and ~~insurance~~the ~~expenses~~proceeds ~~and~~of ~~miscellaneous~~the ~~expenses~~liquidation ~~and~~were sent ~~fees~~to ~~and~~all ~~expenses~~remaining ~~paid~~shareholders toof ~~the~~USOU ~~independent~~as ~~directors~~ of ~~USCF~~December 19, 2019.

Expenses Paid or Accrued by USOD from Inception through December 31, ~~2018~~2019* in dollar terms:

Expenses:	Amount in Dollar Terms
Amount Paid or Accrued to USCF:	$	2452,~~586~~504
Amount Paid or Accrued in Portfolio Brokerage Commissions:	$	1437,~~800~~534
Other Amounts Paid or Accrued(6):	$	—
Total Expenses Paid or Accrued:	$	3990,~~386~~038

⁽⁶⁾

Expenses Paid or Accrued by USOD from Inception through December 31, ~~2018~~2019* as a Percentage of Average Daily Net Assets:

Expenses:		Amount as a Percentage of Average Daily Net Assets
Amount Paid or Accrued to USCF:		1.1704% annualized
Amount Paid or Accrued in Portfolio Brokerage Commissions:		0.7075% annualized
Other Amounts Paid or Accrued(7):		~~0.00~~—% annualized
Total Expenses Paid or Accrued:		1.8779% annualized

⁽⁷⁾

21* USOD ceased trading on the NYSE Arca on December 12, 2019 and the Fund's liquidation date was December 18, 2019, and the proceeds of the liquidation were sent to all remaining shareholders of USOD as of December 19, 2019.

~~Form of Shares~~21

~~Registered~~ Form~~. Shares are issued in registered form in accordance with the Trust Agreement. The Administrator has been appointed registrar and transfer agent for the purpose~~ of transferring shares in certificated form. The Administrator keeps a record of all Shareholders and holders of the shares in certificated form in the registry (“Register”). USCF recognizes transfer of shares in certified form only if done in accordance with the Trust Agreement. The beneficial interests in such shares are held in book-entry form through participants and/or accountholders in the Depository Trust Company (“DTC”).Shares

~~Book~~Registered ~~Entry~~Form. ~~Individual~~Shares ~~certificates~~ are ~~not~~ issued ~~for~~in ~~the~~registered ~~shares.~~form ~~Instead,~~in ~~shares~~accordance ~~are~~with ~~represented~~the byTrust ~~one~~Agreement. orThe ~~more~~Administrator ~~global~~has ~~certificates,~~been ~~which~~appointed ~~are~~registrar ~~deposited~~and bytransfer ~~the Administrator~~agent ~~with~~for ~~DTC and registered in~~ the ~~name~~purpose of ~~Cede~~transferring &shares ~~Co.,~~in ascertificated ~~nominee for DTC~~form. The ~~global~~Administrator ~~certificates~~keeps ~~evidence~~a ~~all~~record of ~~the~~all ~~shares outstanding at any time.~~ Shareholders ~~are~~and ~~limited~~holders toof the ~~(1)~~shares ~~participants~~ in ~~DTC~~certificated ~~such~~form asin ~~banks,~~the ~~brokers,~~registry ~~dealers and trust companies~~ (“~~DTC Participants~~Register”),. ~~(2)~~USCF ~~those~~recognizes ~~who~~transfer ~~maintain,~~of ~~either~~shares ~~directly~~in orcertified ~~indirectly,~~form only aif ~~custodial~~done ~~relationship~~in accordance with athe ~~DTC~~Trust ~~Participant~~Agreement. ~~(“Indirect Participants”),~~The ~~and~~beneficial ~~(3) those who hold~~ interests in ~~the~~such shares ~~through~~are ~~DTC~~held ~~Participants or Indirect Participants,~~ in ~~each case~~book-entry ~~who~~form ~~satisfy the requirements for transfers of shares. DTC Participants acting on behalf of investors holding shares~~ through ~~such~~ participants’ ~~accounts~~and/or accountholders in ~~DTC will follow~~ the ~~delivery~~Depository ~~practice~~Trust ~~applicable~~Company ~~to securities eligible for~~ (“DTC~~’s Same-Day Funds Settlement System~~”). ~~Shares are credited to DTC Participants’ securities accounts following confirmation of receipt of payment.~~

~~DTC~~Book Entry. ~~DTC~~Individual ~~has~~certificates are ~~advised~~not usissued ~~as follows:~~for Itthe isshares. aInstead, ~~limited~~shares ~~purpose~~are ~~trust~~represented ~~company~~by ~~organized~~one ~~under~~or more global certificates, which are deposited by the ~~laws~~Administrator with ofDTC and registered in the ~~State~~name of ~~New~~Cede & ~~York~~Co., ~~and~~as isnominee afor ~~member~~DTC. The global certificates evidence all of the ~~Federal~~shares ~~Reserve~~outstanding ~~System,~~at aany ~~“clearing~~time. ~~corporation”~~Shareholders ~~within~~are ~~the~~limited ~~meaning~~to of(1) participants ~~the~~in ~~New~~DTC ~~York~~such ~~Uniform~~as ~~Commercial~~banks, ~~Code~~brokers, dealers and atrust ~~“clearing~~companies ~~agency~~(“DTC Participants”), ~~registered~~(2) those ~~pursuant~~who tomaintain, ~~the~~either ~~provisions~~directly ofor ~~Section~~indirectly, ~~17A~~a ofcustodial ~~the~~relationship ~~Exchange~~with ~~Act.~~a DTC Participant ~~holds~~(“Indirect ~~securities~~Participants”), ~~for~~and (3) those who hold interests in the shares through DTC Participants ~~and~~or ~~facilitates~~Indirect Participants, in each case who satisfy the ~~clearance~~requirements ~~and~~for ~~settlement~~transfers of ~~transactions~~shares. ~~between~~ DTC Participants acting on behalf of investors holding shares through ~~electronic~~such ~~book-entry~~participants’ ~~changes~~accounts in DTC will follow the delivery practice applicable to securities ~~accounts~~eligible offor DTC’s Same-Day Funds Settlement System. Shares are credited to DTC Participants’ securities accounts following confirmation of receipt of payment.

~~Transfer~~DTC. DTC has advised us as follows: It is a limited purpose trust company organized under the laws of ~~Shares~~the State of New York and is a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code and a “clearing agency” registered pursuant to the provisions of Section 17A of the Exchange Act. DTC holds securities for DTC Participants and facilitates the clearance and settlement of transactions between DTC Participants through electronic book-entry changes in accounts of DTC Participants.

~~The~~Transfer ~~shares are only transferable through the book-entry system~~ of DTC. Shareholders who are not DTC Participants may transfer their shares through DTC by instructing the DTC Participant holding their shares (or by instructing the Indirect Participant or other entity through which their shares are held) to transfer the shares. Transfers are made in accordance with standard securities industry practice.Shares

~~Transfers~~The ~~of interests in~~ shares ~~with DTC~~ are ~~made~~only intransferable ~~accordance with~~ through the ~~usual~~book-entry ~~rules~~system ~~and operating procedures~~ of DTC. ~~and~~Shareholders ~~the~~who ~~nature~~are ofnot ~~the transfer.~~ DTC ~~has~~Participants ~~established procedures~~may totransfer ~~facilitate~~their ~~transfers~~shares ~~among~~through ~~the participants and/or accountholders of~~ DTC. ~~Because~~by ~~DTC~~instructing ~~can only act on behalf of DTC~~the ~~Participants,~~DTC ~~who~~Participant inholding ~~turn~~their ~~act~~shares on(or ~~behalf~~by ofinstructing ~~Indirect Participants,~~ the ~~ability~~Indirect ofParticipant ~~a person~~ or other entity ~~having~~through anwhich ~~interest~~their inshares ~~a global~~are ~~certificate~~held) to ~~pledge~~transfer ~~such~~the ~~interest~~shares. toTransfers ~~persons~~are ormade ~~entities that do not participate~~ in ~~DTC,~~accordance orwith ~~otherwise~~standard ~~take~~securities ~~actions~~industry ~~in respect of such interest, may be affected by the lack of a certificate or other definitive document representing such interest~~practice.

~~DTC~~Transfers ~~has~~of ~~advised~~interests usin ~~that~~shares itwith ~~will~~DTC are ~~take~~made ~~any action~~in ~~permitted~~accordance towith bethe ~~taken~~usual byrules and aoperating ~~shareholder~~procedures ~~(including,~~of ~~without~~DTC ~~limitation,~~and the ~~presentation~~nature of athe ~~global~~transfer. ~~certificate~~DTC ~~for~~has ~~exchange)~~established ~~only~~procedures atto ~~the~~facilitate ~~direction~~transfers ofamong ~~one~~the participants and/or ~~more~~accountholders of DTC. ~~Participants~~Because inDTC ~~whose~~can ~~account~~only ~~with~~act on behalf of DTC Participants, ~~interests~~who in ~~global~~turn ~~certificates~~act ~~are~~on ~~credited~~behalf ~~and only~~of inIndirect ~~respect~~Participants, the ability of ~~such~~a ~~portion~~person ofor ~~the~~entity ~~aggregate~~having ~~principal~~an ~~amount~~interest ofin ~~the~~a global certificate as to ~~which~~pledge such ~~DTC~~interest ~~Participant~~to persons or entities that do not participate in DTC, or otherwise take actions in respect ~~Participants~~of ~~has~~such interest, may be affected by the lack of a certificate or ~~have~~other ~~given~~definitive document representing such ~~direction~~interest.

~~Calculating~~DTC ~~Per~~has ~~Share~~advised ~~NAV~~us that it will take any action permitted to be taken by a shareholder (including, without limitation, the presentation of a global certificate for exchange) only at the direction of one or more DTC Participants in whose account with DTC interests in global certificates are credited and only in respect of such portion of the aggregate principal amount of the global certificate as to which such DTC Participant or Participants has or have given such direction.

~~Each~~Calculating ~~Trust~~Per ~~Series~~Share ~~per share~~ NAV ~~will be calculated by:~~

·Each ~~Taking~~Trust ~~the~~Series per ~~current~~share ~~market~~NAV ~~value~~will be ofcalculated ~~its total assets;~~by:

· Taking the current market value of its total assets; · Subtracting any liabilities; and · Dividing that total by the total number of outstanding shares.

·The ~~Dividing~~Administrator ~~that~~will ~~total~~calculate the NAV of each Fund once each NYSE Arca trading day. The NAV for a normal trading day will be released after 4:00 p.m. Eastern time (“E.T.”). Trading during the Exchange’s Core Trading Session typically closes at 4:00 p.m. E.T. For futures contracts and options traded on exchanges the Administrator will use the closing or settlement price published by the ~~total~~applicable exchange ~~number~~or, in the case of ~~outstanding~~a ~~shares~~market disruption, the last traded price before settlement. In the case of the Benchmark Oil Futures Contract, the NYMEX closing price (determined at the earlier of the close of the NYMEX or 2:30 p.m. E.T.) for the contracts traded on the NYMEX will be used. Other investments’ values for purposes of determining the NAV for each Fund, including Treasuries, cash equivalents (other than money market funds), cleared and non-cleared swaps, forwards, options and swaps will be calculated by the Administrator using market quotations and market data, if available, or other information customarily used to determine the fair value of such investments as of the earlier of the close of the NYSE Arca or 4:00 p.m. E.T. Money market funds will be valued at their end of day NAV. The Funds may hold cash in the form of U.S. dollars.

The Administrator will calculate the NAV of each Fund once each NYSE Arca trading day. The NAV for a normal trading day will be released after 4:00 p.m. Eastern time (“E.T.”). Trading during the Exchange’s Core Trading Session typically closes at 4:00 p.m. E.T. For futures contracts and options traded on exchanges the Administrator will use the closing or settlement price published by the applicable exchange or, in the case of a market disruption, the last traded price before settlement. In the case of the Benchmark Oil Futures Contract, the NYMEX closing price (determined at the earlier of the close of the NYMEX or 2:30 p.m. E.T.) for the contracts traded on the NYMEX will be used. Other investments’ values for purposes of determining the NAV for each Fund, including Treasuries, cash equivalents (other than money market funds), cleared and non-cleared swaps, forwards, options and swaps will be calculated by the Administrator using market quotations and market data, if available, or other information customarily used to determine the fair value of such investments as of the earlier of the close of the NYSE Arca or 4:00 p.m. E.T. Money market funds will be valued at their end of day NAV. The Funds may hold cash in the form of U.S. dollars.22

22Third parties supplying quotations or market data may include, without limitation, information vendors, dealers in the relevant markets, end-users of the relevant product, brokers and other sources of market information. Other information customarily used in determining fair value includes information consisting of market data in the relevant market supplied by one or more third parties including, without limitation, relevant rates, prices, yields, yield curves, volatilities, spreads, correlations or other market data in the relevant market; or information of the types described above from internal sources if that information is of the same type used by a Fund in the regular course of business for the valuation of similar transactions. The information may include costs of funding, to the extent costs of funding are not and would not be a component of the other information being utilized.

~~Third~~In ~~parties~~addition, ~~supplying~~in ~~quotations~~order orto ~~market~~provide updated ~~data~~information ~~may~~relating ~~include,~~to ~~without~~the ~~limitation,~~Fund ~~information~~for ~~vendors,~~use ~~dealers~~by ininvestors ~~the~~and ~~relevant~~market ~~markets~~professionals, ~~end-users~~NYSE ofArca ~~the~~will ~~relevant~~calculate ~~product,~~and disseminate throughout ~~brokers~~the ~~and~~core ~~other~~trading ~~sources~~session ofon ~~market~~each ~~information.~~trading ~~Other~~day ~~information~~an ~~customarily~~updated ~~used~~indicative infund ~~determining~~value. ~~fair~~The indicative fund value ~~includes~~will ~~information~~be calculated by ~~consisting~~using ofthe ~~market~~prior ~~data~~day’s inclosing NAV per share of the ~~relevant~~Fund ~~market~~as ~~supplied~~a bybase ~~one~~and orupdating ~~more~~that ~~third~~value ~~parties~~throughout ~~including,~~the ~~without~~trading ~~limitation,~~day ~~relevant~~to reflect ~~rates,~~changes ~~prices,~~in ~~yields,~~the ~~yield~~most ~~curves,~~recently ~~volatilities,~~reported ~~spreads,~~trade ~~correlations~~price orfor ~~other~~the ~~market~~active ~~data~~light, insweet Oil Futures Contract on the ~~relevant~~NYMEX. ~~market;~~The orprices ~~information~~reported offor the ~~types~~active ~~described~~Oil ~~above~~Futures ~~from~~Contract ~~internal~~month ~~sources~~are ifadjusted based on the prior day’s spread differential between settlement values for that ~~information~~contract isand ofthe spot month contract. In the ~~same~~event ~~type~~that ~~used~~the byspot amonth ~~Fund~~contract inis also the ~~regular~~Benchmark ~~course~~Oil Futures Contract, ofthe ~~business~~last sale price for the ~~valuation~~Benchmark ofOil ~~similar~~Futures ~~transactions~~Contract is not adjusted. The ~~information~~indicative ~~may~~fund ~~include~~value ~~costs~~share basis disseminated during NYSE Arca core trading session hours should not be viewed as an actual real time update of ~~funding~~the NAV, tobecause the ~~extent~~per ~~costs~~share NAV is calculated only once at the end of ~~funding~~each trading day based upon the relevant end of day values of the Fund’s investments. ~~are~~The ~~not~~indicative ~~and~~fund ~~would~~value share basis disseminated during NYSE Arca core trading session hours should not be aviewed ~~component~~as an actual real time update of the ~~other~~NAV, ~~information~~because ~~being~~NAV ~~utilized~~is calculated only once at the end of each trading day based upon the relevant end of day values of the Fund’s investments.

InThe ~~addition,~~indicative infund ~~order~~value towill ~~provide~~be ~~updated~~disseminated ~~information~~on ~~relating~~a toper ~~the~~share ~~Fund~~basis ~~for~~every ~~use~~15 byseconds ~~investors~~during ~~and~~regular ~~market professionals,~~ NYSE ~~Arca will calculate and disseminate throughout the~~ core trading session onhours ~~each~~of ~~trading~~9:30 ~~day an updated indicative fund value~~a.m. New ~~The~~York ~~indicative~~time ~~fund~~to ~~value~~4:00 ~~will be calculated by~~p.m. New ~~using~~York ~~the~~time. ~~prior~~The ~~day’s~~normal ~~closing~~trading ~~NAV~~hours ~~per share~~ of the ~~Fund~~NYMEX asare 9:00 a.m. New ~~base~~York ~~and~~time ~~updating~~to ~~that~~2:30 ~~value~~p.m. New ~~throughout~~York ~~the~~time. ~~trading~~This ~~day~~means ~~to reflect~~that ~~changes~~there inwill ~~the~~be ~~most~~a ~~recently~~gap ~~reported~~in ~~trade~~time ~~price~~at ~~for~~ the ~~active~~end ~~light,~~of ~~sweet~~each ~~Oil~~day ~~Futures~~during ~~Contract~~which on the ~~NYMEX.~~Fund’s ~~The~~shares ~~prices reported for the active Oil Futures Contract month~~ are ~~adjusted~~traded ~~based~~ on the ~~prior~~NYSE ~~day’s~~Arca, ~~spread~~but ~~differential~~real-time NYMEX ~~between~~trading ~~settlement~~prices ~~values~~ for ~~that~~oil ~~contract~~futures ~~and~~contracts ~~the~~traded ~~spot~~on ~~month contract. In~~ the ~~event~~NYMEX ~~that~~are ~~the~~not ~~spot~~available. ~~month~~During ~~contract~~such isgaps ~~also~~in ~~the~~time ~~Benchmark Oil Futures Contract,~~ the ~~last sale price for the Benchmark Oil Futures Contract is not adjusted. The~~ indicative fund value ~~share~~will ~~basis disseminated during NYSE Arca core trading session hours should not~~ be ~~viewed as an actual real time update of the NAV, because the per share NAV is~~ calculated ~~only~~based ~~once~~on at the end of ~~each trading~~ day ~~based~~price ~~upon~~of ~~the~~such ~~relevant~~Oil ~~end~~Futures ofContracts ~~day~~from ~~values of~~ the ~~Fund~~NYMEX’s ~~investments.~~immediately preceding ~~The~~trading ~~indicative~~session. ~~fund~~In ~~value~~addition, ~~share~~other ~~basis~~Oil ~~disseminated~~Futures ~~during~~Contracts, ~~NYSE~~Other ~~Arca~~Oil-Related ~~core~~Investments ~~trading~~and ~~session~~Treasuries ~~hours~~held ~~should~~by ~~not~~the beFund ~~viewed~~will asbe valued anby ~~actual real~~the ~~time~~Administrator, ~~update~~using ofrates ~~the~~and ~~NAV,~~points ~~because~~received ~~NAV~~from isclient-approved ~~calculated~~third ~~only~~party ~~once~~vendors at(such ~~the~~as ~~end~~Reuters ofand ~~each~~WM ~~trading~~Company) and ~~day~~advisor ~~based~~quotes. ~~upon~~These ~~the~~investments ~~relevant~~will ~~end~~not ~~of day~~be ~~values~~included ofin the ~~Fund’s~~indicative ~~investments~~fund value.

~~The~~NYSE ~~indicative~~Arca ~~fund value~~ will bedisseminate ~~disseminated on a per share basis every 15 seconds during regular NYSE core trading session hours of 9:30 a.m. New York time to 4:00 p.m. New York time. The normal trading hours of~~ the ~~NYMEX are 9:00 a.m. New York time to 2:30 p.m. New York time. This means that there~~indicative ~~will~~fund bevalue athrough ~~gap in time at~~ the ~~end~~facilities of ~~each~~CTA/CQ ~~day~~High ~~during~~Speed ~~which~~Lines. ~~the~~In ~~Fund’s shares are traded on the NYSE Arca~~addition, ~~but real-time NYMEX trading prices for oil futures contracts traded on~~ the ~~NYMEX are not available. During such gaps in time the~~ indicative fund value will be ~~calculated~~published ~~based~~ on ~~the end of day price of such Oil Futures Contracts from the NYMEX~~NYSE Arca’s ~~immediately~~website ~~preceding trading session. In addition, other Oil Futures Contracts, Other Oil-Related Investments~~ and ~~Treasuries held by the Fund~~ will be ~~valued by~~available ~~the~~through ~~Administrator, using rates and points received from client~~on-~~approved~~line ~~third~~information ~~party~~services ~~vendors (~~such as ~~Reuters~~Bloomberg and ~~WM Company) and advisor quotes~~Reuters. ~~These investments will not be included in the indicative fund value.~~

Dissemination of the indicative fund value provides additional information that is not otherwise available to the public and is useful to investors and market professionals in connection with the trading of the shares of the Fund on NYSE Arca. Investors and market professionals will ~~disseminate~~be able throughout the trading day to compare the market price of the Fund and the indicative fund value. ~~through~~If the ~~facilities~~market price of ~~CTA/CQ~~the ~~High~~shares ~~Speed~~of ~~Lines.~~the Fund Indiverges ~~addition,~~significantly from the indicative fund value, market professionals will have an incentive to execute arbitrage trades. For example, if the Fund appears to be ~~published~~trading at a discount compared to the indicative fund value, a market professional could buy shares of the Fund on NYSE Arca’ ~~website~~ and ~~will~~sell beshort ~~available~~oil ~~through~~futures ~~on-line~~contracts. ~~information~~Such ~~services~~arbitrage ~~such~~trades ascan ~~Bloomberg~~tighten the tracking between the market price of the Fund and ~~Reuters~~the indicative fund value and thus can be beneficial to all market participants.

~~Dissemination~~Creation ~~of the indicative fund value provides additional information that is not otherwise available to the public~~ and isRedemption ~~useful to investors and market professionals in connection with the trading~~ of the shares of the Fund on NYSE Arca. Investors and market professionals will be able throughout the trading day to compare the market price of the Fund and the indicative fund value. If the market price of the shares of the Fund diverges significantly from the indicative fund value, market professionals will have an incentive to execute arbitrage trades. For example, if the Fund appears to be trading at a discount compared to the indicative fund value, a market professional could buy shares of the Fund on NYSE Arca and sell short oil futures contracts. Such arbitrage trades can tighten the tracking between the market price of the Fund and the indicative fund value and thus can be beneficial to all market participants.Shares

~~Creation~~Each Trust Series intends to create and redeem shares from time to time, but only in one or more Creation Baskets or Redemption Baskets. The creation and redemption of ~~Shares~~baskets will be made only in exchange for delivery to the Fund or the distribution by the Fund of the amount of Treasuries and/or cash represented by the baskets being created or redeemed, the amount of which will be equal to the combined NAV of the number of shares included in the baskets being created or redeemed determined as of 4:00 p.m. New York time on the day the order to create or redeem baskets is properly received.

~~Each~~Authorized ~~Trust~~Participants ~~Series~~will ~~intends~~be the only persons that may place orders to create and redeem ~~shares~~baskets. ~~from~~Authorized ~~time~~Participants tomust ~~time~~be (1) registered broker-dealers or other securities market participants, ~~but~~such ~~only~~as banks and other financial institutions, that are not required to register as broker-dealers to engage in ~~one~~securities ortransactions ~~more~~described ~~Creation~~below, ~~Baskets~~and or(2) DTC ~~Redemption~~Participants. ~~Baskets~~To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with USCF. The Authorized Participant Agreement will provide the procedures for the creation and redemption of baskets ~~will~~and befor ~~made~~the ~~only~~delivery inof ~~exchange~~the Treasuries and any cash required for ~~delivery~~such tocreation ~~the~~and ~~Fund~~redemptions. The orAuthorized Participant Agreement and the ~~distribution~~related procedures attached thereto may be amended by each Trust Series, without the consent ~~Fund~~of any limited partner or Shareholder or Authorized Participant. Authorized Participants pay a transaction fee equal to 0.04% of ~~the~~total ~~amount~~NAV of ~~Treasuries~~the ~~and/~~Creation Baskets to each Trust Series for each order they place to create one or more Creation Baskets ~~cash~~or ~~represented~~to redeem one or more Redemption Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by ~~the~~USCF. Authorized Participants who make deposits with a Trust Series in exchange for baskets ~~being~~receive ~~created~~no fees, commission or ~~redeemed,~~other form ~~the~~of ~~amount~~compensation or inducement of ~~which~~any kind from either the Trust Series or USCF, and no such person will behave ~~equal~~any obligation or responsibility to USCF or the ~~combined~~Trust ~~NAV~~Series to ofeffect ~~the~~any ~~number~~ sale or resale of shares. ~~included~~As inof ~~the~~December 31, ~~baskets~~2019, ~~being~~2 ~~created~~Authorized Participants orhad ~~redeemed~~entered ~~determined~~into asagreements with USCF on behalf of ~~4:00~~USOU pand USOD.m. ~~New~~During ~~York~~the ~~time~~year onended ~~the~~December 31, ~~day~~2019, USOU issued 29 Creation Baskets and redeemed 49 Redemption Baskets. During the ~~order~~year toended ~~create~~December 31, 2019, USOD issued 36 Creation orBaskets ~~redeem~~and ~~baskets~~redeemed is38 ~~properly~~Redemption ~~received~~Basket.

Authorized Participants will be the only persons that may place orders to create and redeem baskets. Authorized Participants must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions described below, and (2) DTC Participants. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with USCF. The Authorized Participant Agreement will provide the procedures for the creation and redemption of baskets and for the delivery of the Treasuries and any cash required for such creation and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended by each Trust Series, without the consent of any limited partner or Shareholder or Authorized Participant. Authorized Participants pay a transaction fee equal to 0.04% of total NAV of the Creation Baskets to each Trust Series for each order they place to create one or more Creation Baskets or to redeem one or more Redemption Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by USCF. Authorized Participants who make deposits with a Trust Series in exchange for baskets receive no fees, commission or other form of compensation or inducement of any kind from either the Trust Series or USCF, and no such person will have any obligation or responsibility to USCF or the Trust Series to effect any sale or resale of shares. As of December 31, 2018, 3 Authorized Participants had entered into agreements with USCF on behalf of USOU and USOD. During the year ended December 31, 2018, USOU issued 18 Creation Baskets and did not redeem any Redemption Baskets. During the year ended December 31, 2018, USOD issued 4 Creation Baskets and redeemed 1 Redemption Basket.23

23Certain Authorized Participants are expected to be capable of participating directly in the physical crude oil market and the crude oil futures market. In some cases, Authorized Participants or their affiliates may from time to time buy or sell crude oil or Oil Interests and may profit in these instances. USCF believes that the size and operation of the crude oil market make it unlikely that an Authorized Participant’s direct activities in the crude oil or securities markets will significantly affect the price of crude oil, Oil Interests or the price of the shares.

~~Certain~~Each Authorized ~~Participants~~Participant ~~are~~will ~~expected~~be required to be ~~capable~~registered ofas ~~participating~~a ~~directly~~broker-dealer inunder the ~~physical~~Exchange ~~crude~~Act ~~oil~~and ~~market~~a ~~and~~member ~~the~~in ~~crude~~good ~~oil~~standing ~~futures~~with ~~market.~~FINRA, Inor ~~some~~exempt ~~cases,~~from ~~Authorized Participants~~being or ~~their~~otherwise not ~~affiliates~~required ~~may~~to ~~from~~be ~~time~~registered toas ~~time~~a ~~buy~~broker-dealer or ~~sell~~a ~~crude~~member ~~oil~~of orFINRA, ~~Oil~~and ~~Interests~~will ~~and~~be ~~may~~qualified ~~profit~~to inact ~~these~~as ~~instances. USCF~~a ~~believes~~broker ~~that~~or dealer in the states ~~size~~or ~~and~~other ~~operation~~jurisdictions ofwhere the ~~crude~~nature ~~oil~~of ~~market~~its ~~make~~business itso ~~unlikely~~requires. ~~that~~Certain an Authorized ~~Participant’s~~Participants ~~direct~~may also be regulated ~~activities~~under infederal ~~the~~and ~~crude~~state ~~oil~~banking orlaws ~~securities~~and ~~markets~~regulations. ~~will~~Each ~~significantly~~Authorized ~~affect~~Participant ~~the~~has ~~price~~its own set of ~~crude~~rules and ~~oil~~procedures, internal ~~Oil~~controls ~~Interests~~and orinformation ~~the~~barriers ~~price~~ as it determines is appropriate in light of ~~the~~its ~~shares~~own regulatory regime.

~~Each~~Under the Authorized Participant ~~will be required~~Agreement, toUSCF, beand ~~registered~~the asTrust ~~a broker-dealer~~ under ~~the~~limited ~~Exchange~~circumstances, ~~Act~~agree ~~and~~to aindemnify ~~member~~the inAuthorized ~~good~~Participants ~~standing~~against ~~with~~certain ~~FINRA~~liabilities, ~~or exempt from being or otherwise~~including ~~not~~liabilities ~~required~~under tothe be1933 ~~registered as a broker-dealer or a member of FINRA~~Act, and ~~will~~to becontribute ~~qualified~~ to ~~act as a broker or dealer in~~ the ~~states~~ orpayments ~~other jurisdictions where~~ the ~~nature of its business so requires. Certain~~ Authorized Participants may ~~also~~ be ~~regulated under~~required ~~federal~~to ~~and~~make ~~state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate~~ in ~~light~~ respect of ~~its~~those ~~own regulatory regime~~liabilities.

~~Under~~The ~~the~~following ~~Authorized~~description ~~Participant~~of ~~Agreement,~~the procedures ~~USCF,~~for ~~and~~ the ~~Trust~~creation ~~under~~and ~~limited~~redemption ~~circumstances,~~of ~~agree~~baskets tois ~~indemnify~~only ~~the~~a ~~Authorized~~summary ~~Participants~~and ~~against~~an ~~certain~~investor ~~liabilities,~~should ~~including liabilities~~refer ~~under~~to the ~~1933~~relevant ~~Act,~~provisions ~~and~~of tothe ~~contribute~~Trust Agreement toand the ~~payments~~form ~~the~~of Authorized ~~Participants~~Participant ~~may~~Agreement befor ~~required~~more todetail, ~~make~~each inof ~~respect~~which is incorporated by reference into this ofannual ~~those~~report ~~liabilities~~on Form 10-K.

~~The~~Creation following description of the procedures for the creation and redemption of baskets is only a summary and an investor should refer to the relevant provisions of the Trust Agreement and the form of Authorized Participant Agreement for more detail, each of which is incorporated by reference into this annual report on Form 10-K.Procedures

~~Creation~~On ~~Procedures~~any business day, an Authorized Participant may place an order with the Marketing Agent to create one or more baskets. For purposes of processing purchase and redemption orders, a “business day” means any day other than a day when NYSE Arca or any futures exchange upon which a Benchmark Oil Futures Contract is traded is closed for regular trading. Purchase orders must be placed by 12:00 p.m. New York time or the close of regular trading on NYSE Arca, whichever is earlier. The day on which the Marketing Agent accepts a purchase order in satisfactory form and approves such order in accordance with the procedures set forth in the Authorized Participant Agreement is referred to as the purchase order date.

OnBy ~~any~~placing ~~business~~a ~~day~~purchase order, an Authorized ~~Participant~~ ~~may~~Participant ~~place~~agrees ~~an order with the Marketing Agent~~ to ~~create~~deposit ~~one~~Treasuries, cash or ~~more~~a ~~baskets.~~combination ~~For purposes~~ of ~~processing~~Treasuries ~~purchase~~ and ~~redemption~~cash ~~orders, a~~with ~~“business~~the ~~day”~~Trust, ~~means~~as ~~any~~described ~~day~~below. ~~other~~Prior to ~~than~~the adelivery ~~day~~of ~~when~~baskets ~~NYSE~~for ~~Arca or any futures exchange upon which~~ a ~~Benchmark~~purchase ~~Oil~~order, ~~Futures Contract~~the isAuthorized ~~traded~~Participant ~~is closed for regular trading. Purchase orders~~ must bealso ~~placed~~have bywired ~~12:00~~to ~~p.m.~~the ~~New~~Custodian ~~York time or~~ the ~~close of regular~~non-refundable ~~trading~~transaction onfee ~~NYSE~~due ~~Arca,~~for ~~whichever is earlier. The day on which~~ the ~~Marketing Agent accepts a~~ purchase order. ~~in satisfactory form and approves such order in accordance with the procedures set forth in the~~ Authorized ~~Participant~~Participants ~~Agreement~~may isnot ~~referred~~withdraw toa ascreation ~~the purchase order date~~request.

The manner by which creations are made is dictated by the terms of the Authorized Participant Agreement. By placing a purchase order, an Authorized Participant agrees to (1) deposit Treasuries, cash, or a combination of Treasuries and cash with the ~~Trust,~~Custodian asof ~~described~~the ~~below.~~Fund, ~~Prior~~and (2) if required toby ~~the~~USCF ~~delivery~~in ofits ~~baskets~~sole discretion, enter into or arrange for a ~~purchase~~block ~~order~~trade, ~~the~~an ~~Authorized~~exchange ~~Participant~~for ~~must~~physical ~~also~~or ~~have~~exchange ~~wired~~for toswap, or any other OTC transaction (through itself or a designated acceptable broker) with the ~~Custodian~~Fund for the ~~non-refundable~~purchase of a number and type of ~~transaction~~futures ~~fee~~contracts ~~due~~at the closing settlement price for such contracts on the purchase order date. If an Authorized ~~Participants~~Participant ~~may~~fails to ~~not~~consummate ~~withdraw~~(1) and (2), the order shall be cancelled. The number and types of contracts specified shall be determined by USCF, in its sole discretion, to meet the Fund’s investment objective and shall be purchased as a ~~creation~~result ~~request~~of the Authorized Participant’s purchase of shares.

~~The~~Determination ~~manner by which creations are made is dictated by the terms~~ of ~~the~~Required Authorized Participant Agreement. By placing a purchase order, an Authorized Participant agrees to (1) deposit Treasuries, cash, or a combination of Treasuries and cash with the Custodian of the Fund, and (2) if required by USCF in its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for swap, or any other OTC transaction (through itself or a designated acceptable broker) with the Fund for the purchase of a number and type of futures contracts at the closing settlement price for such contracts on the purchase order date. If an Authorized Participant fails to consummate (1) and (2), the order shall be cancelled. The number and types of contracts specified shall be determined by USCF, in its sole discretion, to meet the Fund’s investment objective and shall be purchased as a result of the Authorized Participant’s purchase of shares.Deposits

~~Determination~~The total deposit required to create each basket (“Creation Basket Deposit”) is the amount of ~~Required~~Treasuries ~~Deposits~~and/or cash that is in the same proportion to the total assets of the Fund (net of estimated accrued but unpaid fees, expenses and other liabilities) on the purchase order date as the number of shares to be created under the purchase order is in proportion to the total number of shares outstanding on the purchase order date. USCF intends to determine, directly in its sole discretion or in consultation with the Administrator, the requirements for Treasuries and cash, including the remaining maturities of the Treasuries and proportions of Treasuries and cash that may be included in deposits to create baskets. The Marketing Agent will publish an estimate of the Creation Basket Deposit requirements at the beginning of each business day. The amount of cash deposit required is the difference between the aggregate market value of the Treasuries required to be included in a Creation Basket Deposit as of 4:00 p.m. New York time on the date the order to purchase is properly received and the total required deposit.

The total deposit required to create each basket (“Creation Basket Deposit”) is the amount of Treasuries and/or cash that is in the same proportion to the total assets of the Fund (net of estimated accrued but unpaid fees, expenses and other liabilities) on the purchase order date as the number of shares to be created under the purchase order is in proportion to the total number of shares outstanding on the purchase order date. USCF intends to determine, directly in its sole discretion or in consultation with the Administrator, the requirements for Treasuries and cash, including the remaining maturities of the Treasuries and proportions of Treasuries and cash that may be included in deposits to create baskets. The Marketing Agent will publish an estimate of the Creation Basket Deposit requirements at the beginning of each business day. The amount of cash deposit required is the difference between the aggregate market value of the Treasuries required to be included in a Creation Basket Deposit as of 4:00 p.m. New York time on the date the order to purchase is properly received and the total required deposit.24

24Delivery of Required Deposits

~~Delivery~~An Authorized Participant who places a purchase order will be responsible for transferring to the Trust Series’ account with the Custodian the required amount of Treasuries ~~Required~~and/or ~~Deposits~~cash by noon New York time on the second business day following the purchase order date. Upon receipt of the deposit amount, the Administrator will direct DTC to credit the number of baskets ordered to the Authorized Participant’s DTC account on the second business day following the purchase order date. The expense and risk of delivery and ownership of Treasuries until such Treasuries have been received by the Custodian on behalf of the Trust Series shall be borne solely by the Authorized Participant.

AnBecause ~~Authorized~~orders ~~Participant~~to ~~who~~purchase ~~places~~baskets amust ~~purchase~~be ~~order~~placed ~~will~~by be12:00 ~~responsible~~p.m., ~~for~~New ~~transferring~~York totime, but the ~~Trust~~total ~~Series’~~payment ~~account~~required ~~with~~to ~~the~~create ~~Custodian~~a basket during the ~~required~~continuous ~~amount~~offering ofperiod ~~Treasuries~~will ~~and/or~~not ~~cash~~be bydetermined ~~noon~~until 4:00 p.m., New York time, on the ~~second~~date ~~business day following~~ the purchase order ~~date.~~is ~~Upon~~received, ~~receipt~~Authorized ofParticipants ~~the~~will ~~deposit~~not ~~amount,~~know the ~~Administrator~~total ~~will~~amount ~~direct~~of ~~DTC~~the payment required to ~~credit~~create a basket at the ~~number~~time ofthey ~~baskets~~submit ~~ordered~~an toirrevocable ~~the~~purchase ~~Authorized~~order ~~Participant’s~~for ~~DTC~~the ~~account~~basket. onA ~~the~~Trust ~~second~~Series’ ~~business~~per ~~day~~share ~~following~~NAV and the ~~purchase~~total ~~order~~amount ~~date.~~of ~~The~~the ~~expense~~payment ~~and~~required ~~risk~~to ofcreate ~~delivery~~a ~~and~~basket ~~ownership~~could ofrise ~~Treasuries~~or fall ~~until~~substantially ~~such~~between ~~Treasuries~~the ~~have~~time ~~been~~an ~~received~~irrevocable bypurchase ~~the~~order ~~Custodian~~is onsubmitted ~~behalf~~and of the ~~Trust~~time ~~Series~~the ~~shall~~amount beof ~~borne~~the ~~solely~~purchase byprice ~~the~~in ~~Authorized~~respect ~~Participant~~thereof is determined.

~~Because~~Rejection orders to purchase baskets must be placed by 12:00 p.m., New York time, but the total payment required to create a basket during the continuous offering period will not be determined until 4:00 p.m., New York time, on the date the purchase order is received, Authorized Participants will not know the total amount of ~~the~~Purchase payment required to create a basket at the time they submit an irrevocable purchase order for the basket. A Trust Series’ per share NAV and the total amount of the payment required to create a basket could rise or fall substantially between the time an irrevocable purchase order is submitted and the time the amount of the purchase price in respect thereof is determined.Orders

~~Rejection~~USCF ofacting ~~Purchase~~by ~~Orders~~itself or through the Marketing Agent shall have the absolute right, but shall have no obligation, to reject any purchase order or Creation Basket Deposit if USCF determines that:

~~USCF~~· ~~acting~~the bypurchase ~~itself~~order or ~~through~~Creation Basket Deposit is not in proper form; · it would not be in the ~~Marketing Agent~~best ~~shall~~interest ~~have~~of the ~~absolute~~shareholders ~~right,~~of ~~but~~the ~~shall~~Fund; ~~have~~· nodue ~~obligation~~to position limits or otherwise, investment alternatives that will enable a Trust Series to ~~reject~~meet ~~any~~its investment objective are not available to such Trust Series at that time; · the acceptance of the purchase order or the Creation Basket Deposit would have adverse tax consequences to a Trust Series or its shareholders; · the acceptance or receipt of which would, in the opinion of counsel to USCF, be unlawful; or · circumstances outside the control of USCF, the Marketing Agent or the Custodian make it, for all practical purposes, not feasible to process Creation Baskets (including if USCF determines that: the investments available to the Fund at that time will not enable it to meet its investment objective).

·None of USCF, the ~~purchase~~Marketing ~~order~~Agent or ~~Creation~~the Custodian ~~Basket~~will ~~Deposit~~be isliable ~~not~~for inthe ~~proper~~rejection ~~form;~~of any purchase order or Creation Basket Deposit.

·Redemption ~~it would not be in the best interest of the shareholders of the Fund;~~Procedures

·The ~~due~~procedures by which an Authorized Participant will be able to ~~position~~redeem ~~limits~~one or ~~otherwise~~more baskets will mirror the procedures for the creation of baskets. On any business day, ~~investment~~an ~~alternatives~~Authorized Participant ~~that~~may ~~will~~place ~~enable~~an aorder ~~Trust~~with ~~Series~~the Marketing Agent to ~~meet~~redeem ~~its~~one ~~investment~~or ~~objective~~more ~~are~~baskets. Redemption orders must be placed by 12:00 p.m. New York time or the close of regular trading on NYSE Arca, whichever is earlier. A redemption order so received will be effective on the date it is received in satisfactory form and approved by the Marketing Agent (“Redemption Order Date”) in accordance with the procedures set forth in the Authorized Participant Agreement. The redemption procedures allow Authorized Participants to redeem baskets and do not ~~available~~entitle an individual shareholder to ~~such~~redeem ~~Trust~~any ~~Series~~shares atin ~~that~~an ~~time;~~amount less than a Redemption Basket, or to redeem baskets other than through an Authorized Participant.

·By placing a redemption order, an Authorized Participant agrees to deliver the ~~acceptance~~baskets to be redeemed through DTC’s book-entry system to the Fund not later than noon New York time on the second business day following the effective date of the ~~purchase~~redemption order. orPrior to the ~~Creation~~delivery ~~Basket~~of ~~Deposit~~the ~~would~~redemption distribution ~~have~~for ~~adverse~~a ~~tax~~redemption ~~consequences~~order, the Authorized Participant must also have wired to aUSCF’s ~~Trust~~account ~~Series~~at orthe ~~its~~Custodian ~~shareholders;~~the non-refundable transaction fee due for the redemption order. An Authorized Participant may not withdraw a redemption order.

·The manner by which redemptions will be made will be dictated by the ~~acceptance~~terms orof ~~receipt~~the Authorized Participant Agreement. By placing a redemption order, an Authorized Participant will be agreeing to (1) deliver the Redemption Basket to be redeemed through DTC’s book-entry system to a Trust Series’ account with the Custodian no later than 3:00 p.m. New York time on the second business day following the effective date of the ~~which~~redemption ~~would~~order (“Redemption Order Date”), and (2) if required by USCF in its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for swap, or any other OTC transaction (through itself or a designated acceptable broker) with a Trust Series for the ~~opinion~~purchase of ~~counsel~~a number and type of futures contracts at the closing settlement price for such contracts on the Redemption Order Date. If an Authorized Participant fails to consummate (1) and (2), the order shall be cancelled. The number and type of contracts specified shall be determined by USCF, in its sole discretion, to meet a Trust Series’ investment objective and shall be ~~unlawful;~~sold oras a result of the Authorized Participant’s sale of shares.

· circumstances outside the control of USCF, the Marketing Agent or the Custodian make it, for all practical purposes, not feasible to process Creation Baskets (including if USCF determines that the investments available to the Fund at that time will not enable it to meet its investment objective).25

~~None~~Determination of ~~USCF,~~Redemption ~~the Marketing Agent or the Custodian will be liable for the rejection of any purchase order or Creation Basket Deposit.~~Distribution

~~Redemption~~The ~~Procedures~~redemption distribution from a Trust Series will consist of a transfer to the redeeming Authorized Participant of an amount of Treasuries and/or cash that is in the same proportion to the total assets of such Trust Series (net of estimated accrued but unpaid fees, expenses and other liabilities) on the date the order to redeem is properly received as the number of shares to be redeemed under the redemption order is in proportion to the total number of shares outstanding on the date the order is received. USCF, directly or in consultation with the Administrator, determines the requirements for Treasuries and cash, including the remaining maturities of the Treasuries and proportions of Treasuries and cash that may be included in distributions to redeem baskets. The Marketing Agent will publish an estimate of the redemption distribution per basket as of the beginning of each business day.

~~The~~Delivery ~~procedures by which an Authorized Participant will be able to redeem one or more baskets will mirror the procedures for the creation~~ of ~~baskets. On any business day, an Authorized Participant may place an order with the Marketing Agent to redeem one or more baskets.~~ Redemption orders must be placed by 12:00 p.m. New York time or the close of regular trading on NYSE Arca, whichever is earlier. A redemption order so received will be effective on the date it is received in satisfactory form and approved by the Marketing Agent (“Redemption Order Date”) in accordance with the procedures set forth in the Authorized Participant Agreement. The redemption procedures allow Authorized Participants to redeem baskets and do not entitle an individual shareholder to redeem any shares in an amount less than a Redemption Basket, or to redeem baskets other than through an Authorized Participant.Distribution

ByThe ~~placing~~redemption distribution due from a Trust Series will be delivered to the Authorized Participant on the second business day following the redemption order date if, anby ~~Authorized Participant~~3:00 ~~agrees~~p.m., New York time on such second business day, such Trust Series’ DTC account has been credited with the baskets to ~~deliver~~be redeemed. If such Trust Series’ DTC account has not been credited with all of the baskets to be redeemed ~~through~~by ~~DTC’s~~such ~~book-entry~~time, the ~~system~~redemption distribution will be delivered to the ~~Fund~~extent ~~not~~of ~~later~~whole ~~than~~baskets ~~noon~~received. Any remainder of the redemption distribution ~~New~~will ~~York~~be ~~time~~delivered on the ~~second~~next business day ~~following~~to the ~~effective~~extent ~~date~~ of ~~the~~remaining ~~redemption~~whole ~~order.~~baskets ~~Prior~~received if USCF receives the fee applicable to the ~~delivery~~extension of the redemption distribution ~~for~~date awhich ~~redemption~~USCF ~~order~~may, from time to time, determine and the ~~Authorized~~remaining ~~Participant~~baskets ~~must~~to be ~~also~~redeemed ~~have~~are ~~wired~~credited to ~~USCF~~a Trust Series’s DTC account atby 3:00 p.m., New York time on such next business day. Any further outstanding amount of the redemption order shall be cancelled. Pursuant to information from USCF, the Custodian will also be authorized to deliver the redemption distribution notwithstanding that the baskets to be redeemed are not credited to a Trust Series’ ~~non-refundable~~DTC ~~transaction~~account ~~fee~~by ~~due~~3:00 ~~for~~p.m., New York time on the second business day following the redemption order. Andate if the Authorized Participant has ~~may~~collateralized ~~not~~its ~~withdraw~~obligation ato ~~redemption~~deliver ~~order~~the baskets through DTC’s book entry-system on such terms as USCF may from time to time determine.

~~The~~Suspension manner by which redemptions will be made will be dictated by the terms of the Authorized Participant Agreement. By placing a redemption order, an Authorized Participant will be agreeing to (1) deliver the Redemption Basket to be redeemed through DTC’s book-entry system to a Trust Series’ account with the Custodian no later than 3:00 p.m. New York time on the second business day following the effective date of the redemption order (“Redemption Order Date”), and (2) if required by USCF in its sole discretion, enter into or ~~arrange for~~Rejection ~~a block trade, an exchange for physical or exchange for swap, or any other OTC transaction (through itself or a designated acceptable broker) with a Trust Series for the purchase~~ of ~~a number and type of futures contracts at the closing settlement price for such contracts on the~~ Redemption ~~Order Date. If an Authorized Participant fails to consummate (1) and (2), the order shall~~ be cancelled. The number and type of contracts specified shall be determined by USCF, in its sole discretion, to meet a Trust Series’ investment objective and shall be sold as a result of the Authorized Participant’s sale of shares.Orders

25USCF may, in its discretion, suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during which NYSE Arca or any of the futures exchanges upon which a Benchmark Oil Futures Contract is traded is closed other than customary weekend or holiday closings, or trading on NYSE Arca or such futures exchanges is suspended or restricted, (2) for any period during which an emergency exists as a result of which delivery, disposal or evaluation of Treasuries is not reasonably practicable, or (3) for such other period as USCF determines to be necessary for the protection of the shareholders. For example, USCF may determine that it is necessary to suspend redemptions to allow for the orderly liquidation of a Trust Series’ assets at an appropriate value to fund a redemption. If USCF has difficulty liquidating a Trust Series’ positions, e.g., because of a market disruption event in the futures markets or an unanticipated delay in the liquidation of a position in an over the counter contract, it may be appropriate to suspend redemptions until such time as such circumstances are rectified. None of USCF, the Marketing Agent, or the Custodian will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.

~~Determination~~Redemption orders must be made in whole baskets. USCF acting by itself or through the Marketing Agent may, in its sole discretion, reject any Redemption Order (1) USCF determines that the Redemption Order is not in proper form, (2) the fulfillment of which its counsel advises may be illegal under applicable laws and regulations, or (3) if circumstances outside the control of USCF, the Marketing Agent or the Custodian make it for all practical purposes not feasible for the shares to be delivered under the Redemption ~~Distribution~~Order. USCF may also reject a redemption order if the number of shares being redeemed would reduce the remaining outstanding shares to 100,000 shares (i.e., two (2) baskets) or less.

~~The~~Creation ~~redemption distribution from a Trust Series will consist of a transfer to the redeeming Authorized Participant of an amount of Treasuries~~ and~~/or~~ ~~cash~~Redemption ~~that is in the~~Transaction same proportion to the total assets of such Trust Series (net of estimated accrued but unpaid fees, expenses and other liabilities) on the date the order to redeem is properly received as the number of shares to be redeemed under the redemption order is in proportion to the total number of shares outstanding on the date the order is received. USCF, directly or in consultation with the Administrator, determines the requirements for Treasuries and cash, including the remaining maturities of the Treasuries and proportions of Treasuries and cash that may be included in distributions to redeem baskets. The Marketing Agent will publish an estimate of the redemption distribution per basket as of the beginning of each business day.Fee

~~Delivery~~To compensate each Trust Series for expenses in connection with the creation and redemption of ~~Redemption~~baskets, ~~Distribution~~an Authorized Participant is required to pay a transaction fee to each Trust Series equal to 0.04% of total NAV of the Creation Baskets to create or redeem baskets. The transaction fee may be waived, reduced, increased or otherwise changed by USCF. USCF shall notify DTC of any change in the transaction fee and will not implement any increase in the fee for the redemption of baskets until thirty (30) days after the date of notice.

~~The~~Tax redemption distribution due from a Trust Series will be delivered to the Authorized Participant on the second business day following the redemption order date if, by 3:00 p.m., New York time on such second business day, such Trust Series’ DTC account has been credited with the baskets to be redeemed. If such Trust Series’ DTC account has not been credited with all of the baskets to be redeemed by such time, the redemption distribution will be delivered to the extent of whole baskets received. Any remainder of the redemption distribution will be delivered on the next business day to the extent of remaining whole baskets received if USCF receives the fee applicable to the extension of the redemption distribution date which USCF may, from time to time, determine and the remaining baskets to be redeemed are credited to a Trust Series’ DTC account by 3:00 p.m., New York time on such next business day. Any further outstanding amount of the redemption order shall be cancelled. Pursuant to information from USCF, the Custodian will also be authorized to deliver the redemption distribution notwithstanding that the baskets to be redeemed are not credited to a Trust Series’ DTC account by 3:00 p.m., New York time on the second business day following the redemption order date if the Authorized Participant has collateralized its obligation to deliver the baskets through DTC’s book entry-system on such terms as USCF may from time to time determine.Responsibility

~~Suspension~~Authorized Participants are responsible for any transfer tax, sales or ~~Rejection~~use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable to the creation or redemption of ~~Redemption~~baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized ~~Orders~~Participant, and agree to indemnify USCF and each Trust Series if they are required by law to pay any such tax, together with any applicable penalties, additions to tax and interest thereon.

USCF may, in its discretion, suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during which NYSE Arca or any of the futures exchanges upon which a Benchmark Oil Futures Contract is traded is closed other than customary weekend or holiday closings, or trading on NYSE Arca or such futures exchanges is suspended or restricted, (2) for any period during which an emergency exists as a result of which delivery, disposal or evaluation of Treasuries is not reasonably practicable, or (3) for such other period as USCF determines to be necessary for the protection of the shareholders. For example, USCF may determine that it is necessary to suspend redemptions to allow for the orderly liquidation of a Trust Series’ assets at an appropriate value to fund a redemption. If USCF has difficulty liquidating a Trust Series’ positions, e.g., because of a market disruption event in the futures markets or an unanticipated delay in the liquidation of a position in an over the counter contract, it may be appropriate to suspend redemptions until such time as such circumstances are rectified. None of USCF, the Marketing Agent, or the Custodian will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.26

~~Redemption~~Secondary ~~orders~~Market must be made in whole baskets. USCF acting by itself or through the Marketing Agent may, in its sole discretion, reject any Redemption Order (1) USCF determines that the Redemption Order is not in proper form, (2) the fulfillment of which its counsel advises may be illegal under applicable laws and regulations, or (3) if circumstances outside the control of USCF, the Marketing Agent or the Custodian make it for all practical purposes not feasible for the shares to be delivered under the Redemption Order. USCF may also reject a redemption order if the number of shares being redeemed would reduce the remaining outstanding shares to 100,000 shares (i.e., two (2) baskets) or less.Transactions

~~Creation~~As noted, each Trust Series will create and redeem shares from time to time, but only in one or more Creation Baskets or Redemption ~~Transaction~~Baskets. The creation and redemption ~~Fee~~of baskets are only made in exchange for delivery to a Trust Series or the distribution by a Trust Series of the amount of Treasuries and/or cash equal to the aggregate NAV of the number of shares included in the baskets being created or redeemed determined on the day the order to create or redeem baskets is properly received.

ToAs ~~compensate~~discussed ~~each~~above, ~~Trust~~Authorized ~~Series~~Participants will ~~for~~be ~~expenses~~the only persons that may place orders to create and redeem baskets. Authorized Participants must be registered broker-dealers inor ~~connection~~other ~~with~~securities ~~the~~market ~~creation~~participants, such as banks and ~~redemption~~other offinancial institutions that are not required to register as broker-dealers to engage in securities transactions. An Authorized Participant will be under no obligation to create or redeem baskets, anand an Authorized Participant iswill ~~required~~be tounder ~~pay~~no aobligation ~~transaction~~to ~~fee~~offer to ~~each~~the public shares of any baskets it does create. Authorized Participants ~~Trust~~that ~~Series~~do ~~equal~~offer to ~~0.04%~~the public shares from the baskets they create will do so at per-share offering prices that are expected to reflect, among other factors, the trading price of ~~total~~the shares on NYSE Arca, the NAV of the shares at the time the Authorized Participant purchased the Creation Baskets, the NAV of the shares at the time of the offer of the shares to ~~create~~the orpublic, ~~redeem~~the ~~baskets~~supply of and demand for shares at the time of sale, and the liquidity of the Oil Futures Contract market and the market for Other Oil-Related Investments. Baskets ~~The~~will ~~transaction~~generally ~~fee~~be redeemed when the price per share is at a discount to the NAV per share. Shares initially comprising the same basket but offered by Authorized Participants to the public at different times may have different offering prices. An order for one or more baskets may be ~~waived,~~placed by an Authorized Participant on behalf of multiple clients. Authorized Participants ~~reduced~~who make deposits with a Trust Series in exchange for baskets receive no fees, ~~increased~~commissions or ~~otherwise~~other ~~changed~~forms byof compensation or inducement of any kind from either a Trust Series or USCF. and no such person has any obligation or responsibility to USCF or ~~shall~~a ~~notify~~Trust ~~DTC~~Series to ofeffect any ~~change~~sale or resale of shares. Shares trade in the ~~transaction~~secondary ~~fee~~market ~~and~~on ~~will~~NYSE ~~not~~Arca. ~~implement~~Shares are expected ~~any~~to ~~increase~~trade in the ~~fee~~secondary ~~for~~market on NYSE Arca. Shares may trade in the ~~redemption~~secondary market at prices that are lower or higher relative to their NAV per share. The amount of ~~baskets~~the discount or premium in the trading price relative to the NAV per share may be influenced by various factors, including the number of investors who seek to purchase or sell shares in the secondary market and the liquidity of the Oil Futures Contract market and the market for Other Oil-Related Investments. While the shares trade during the core trading session on the NYSE Arca until ~~thirty~~4:00 ~~(30)~~p.m. New ~~days~~York ~~after~~time, liquidity in the ~~date~~market for Oil Interests may be reduced after the close of ~~notice~~the NYMEX at 2:30 p.m. New York time. As a result, during this time, trading spreads, and the resulting premium or discount, on the shares may widen.

~~Tax~~Who ~~Responsibility~~is the Trustee?

~~Authorized~~Wilmington ~~Participants are responsible for any transfer tax~~Trust, ~~sales~~National ~~or use tax~~Association, a ~~stamp~~national ~~tax,~~banking ~~recording tax~~association, ~~value~~with ~~added~~its ~~tax~~principal orplace ~~similar~~of ~~tax~~business orin ~~governmental charge applicable to~~ the ~~creation~~State ~~or redemption~~ of ~~baskets~~Delaware, ~~regardless~~as ofDelaware ~~whether~~trustee ~~or not such tax or charge is imposed directly on~~ (the ~~Authorized~~“Trustee”) ~~Participant,~~serves ~~and~~as ~~agree~~the ~~to indemnify USCF and each~~ Trust’s ~~Series~~corporate iftrustee ~~they~~as ~~are~~ required byunder ~~law~~the toDelaware ~~pay~~Statutory ~~any~~Trust ~~such~~Act ~~tax,~~(“DSTA”). ~~together~~USCF ~~with any~~pays ~~applicable~~the ~~penalties~~Trustee $3,000 ~~additions~~annually tofor ~~tax~~its ~~and~~services ~~interest~~to ~~thereon~~the Trust.

26The Trustee is the sole trustee of the Trust. The rights and duties of the Trustee and USCF with respect to the offering of the shares and the Fund management and the shareholders are governed by the provisions of the DSTA and by the Trust Agreement. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the DSTA. The Trustee does not owe any other duties to the Trust, USCF or the shareholders of the Fund. The Trustee’s principal offices are located at 1100 North Market Street, Wilmington, Delaware, 19890. The Trustee is unaffiliated with USCF.

~~Secondary~~The ~~Market~~Trustee ~~Transactions~~is permitted to resign upon at least sixty (60) days’ notice to the Trust, provided, that any such resignation will not be effective until a successor Trustee is appointed by USCF. USCF has the discretion to replace the Trustee.

AsOnly ~~noted,~~the ~~each~~assets of the Trust ~~Series~~and ~~will~~USCF ~~create~~are ~~and~~subject ~~redeem~~to ~~shares~~issuer ~~from~~liability ~~time~~under tothe ~~time,~~federal ~~but~~securities ~~only~~laws for the information contained in ~~one~~this orprospectus ~~more~~and ~~Creation~~under ~~Baskets~~federal securities orlaws ~~Redemption~~with ~~Baskets.~~respect ~~The~~to ~~creation~~the issuance and ~~redemption~~ sale of ~~baskets~~the ~~are~~shares. ~~only~~Under ~~made~~such inlaws, ~~exchange~~neither ~~for~~the ~~delivery~~Trustee, toeither ain ~~Trust~~its ~~Series~~capacity as Trustee or ~~the~~in ~~distribution~~its byindividual acapacity, ~~Trust~~nor ~~Series~~any director, officer or controlling person of the ~~amount~~Trustee ofis, ~~Treasuries and/~~or ~~cash~~has ~~equal~~any toliability as, the ~~aggregate~~issuer ~~NAV~~or a director, officer or controlling person of the ~~number~~issuer of the shares. ~~included~~The Trustee’s liability in connection with the ~~baskets~~issuance ~~being~~and ~~created~~sale orof ~~redeemed~~the ~~determined~~shares ~~on the~~is ~~day~~limited solely to the ~~order~~express toobligations ~~create~~of orthe ~~redeem~~Trustee ~~baskets~~set isforth ~~properly~~in ~~received~~the Trust Agreement.

As discussed above, Authorized Participants will be the only persons that may place orders to create and redeem baskets. Authorized Participants must be registered broker-dealers or other securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers to engage in securities transactions. An Authorized Participant will be under no obligation to create or redeem baskets, and an Authorized Participant will be under no obligation to offer to the public shares of any baskets it does create. Authorized Participants that do offer to the public shares from the baskets they create will do so at per-share offering prices that are expected to reflect, among other factors, the trading price of the shares on NYSE Arca, the NAV of the shares at the time the Authorized Participant purchased the Creation Baskets, the NAV of the shares at the time of the offer of the shares to the public, the supply of and demand for shares at the time of sale, and the liquidity of the Oil Futures Contract market and the market for Other Oil-Related Investments. Baskets will generally be redeemed when the price per share is at a discount to the NAV per share. Shares initially comprising the same basket but offered by Authorized Participants to the public at different times may have different offering prices. An order for one or more baskets may be placed by an Authorized Participant on behalf of multiple clients. Authorized Participants who make deposits with a Trust Series in exchange for baskets receive no fees, commissions or other forms of compensation or inducement of any kind from either a Trust Series or USCF and no such person has any obligation or responsibility to USCF or a Trust Series to effect any sale or resale of shares. Shares trade in the secondary market on NYSE Arca. Shares are expected to trade in the secondary market on NYSE Arca. Shares may trade in the secondary market at prices that are lower or higher relative to their NAV per share. The amount of the discount or premium in the trading price relative to the NAV per share may be influenced by various factors, including the number of investors who seek to purchase or sell shares in the secondary market and the liquidity of the Oil Futures Contract market and the market for Other Oil-Related Investments. While the shares trade during the core trading session on the NYSE Arca until 4:00 p.m. New York time, liquidity in the market for Oil Interests may be reduced after the close of the NYMEX at 2:30 p.m. New York time. As a result, during this time, trading spreads, and the resulting premium or discount, on the shares may widen.

~~Who~~USCF will cause a Trust Series to transfer the proceeds of the sale of Creation Baskets to the Custodian or another custodian for use in trading activities. USCF will invest a Trust Series’ assets in Oil Interests. When a Trust Series purchases Oil Interests that are exchange-traded, the Trust Series will be required to deposit typically 5% to 30% with the FCM on behalf of the exchange a portion of the value of the contract or other interest as security to ensure payment for the obligation under the Oil Interests at maturity. This deposit is known as initial margin. Counterparties in transactions in OTC contracts will generally impose similar collateral requirements on a Trust Series. USCF will invest a Trust Series’ assets that remain after margin and collateral is posted in Treasuries, cash and/or cash equivalents. Subject to these margin and collateral requirements, USCF has sole authority to determine the ~~Trustee?~~percentage of assets that will be:

~~Wilmington~~· ~~Trust,~~held ~~National~~as ~~Association, a~~margin ~~national~~or ~~banking~~collateral ~~association,~~ with ~~its~~FCMs ~~principal~~or ~~place~~other ofcustodians; ~~business~~· inused ~~the~~for ~~State~~other ~~of Delaware~~investments, asand ~~Delaware~~· ~~trustee~~held ~~(the~~in ~~“Trustee”) serves~~bank asaccounts ~~the~~to ~~Trust’s~~pay ~~corporate~~current ~~trustee~~obligations and as ~~required under the Delaware Statutory Trust Act (“DSTA”)~~reserves. ~~USCF pays the Trustee $3,000 annually for its services to the Trust.~~

The Trustee is the sole trustee of the Trust. The rights and duties of the Trustee and USCF with respect to the offering of the shares and the Fund management and the shareholders are governed by the provisions of the DSTA and by the Trust Agreement. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the DSTA. The Trustee does not owe any other duties to the Trust, USCF or the shareholders of the Fund. The Trustee’s principal offices are located at 1100 North Market Street, Wilmington, Delaware, 19890. The Trustee is unaffiliated with USCF.27

~~The~~Approximately ~~Trustee~~15% isto ~~permitted~~90% toof ~~resign~~a ~~upon~~Trust atSeries’ ~~least~~assets ~~sixty~~will ~~(60)~~be ~~days’~~committed ~~notice~~as margin for commodity futures contracts. However, from time to time, the ~~Trust,~~percentage of ~~provided~~assets committed as margin may be substantially more, ~~that~~or ~~any~~less, than such ~~resignation~~range. Ongoing margin and collateral payments will ~~not~~generally be ~~effective~~required ~~until~~for aboth ~~successor~~exchange-traded and OTC contracts based on changes in the value of the Oil Interests. ~~Trustee~~Furthermore, ongoing collateral requirements with respect to OTC contracts are negotiated by the parties, and may be affected by overall market volatility, volatility of the underlying commodity or index, the ability of the counterparty to hedge its exposure under the Oil Interests, and each party’s creditworthiness. In light of the differing requirements for initial payments under exchange-traded and OTC contracts and the fluctuating nature of ongoing margin and collateral payments, it is not ~~appointed~~possible to estimate what portion of a Trust Series’ assets will be posted as margin or collateral at any given time. The Treasuries, cash and cash equivalents held by ~~USCF~~a Trust Series will constitute reserves that will be available to meet ongoing margin and collateral requirements. All interest income will be used for the Trust Series’ benefit. USCF ~~has~~invests the ~~discretion~~balance of a Trust Series’ assets not invested in Oil Interests or held in margin as reserves to ~~replace~~be available for changes in margin. All interest income is used for the ~~Trustee~~Trust Series’ benefit.

~~Only~~An the assets of the Trust and USCF are subject to issuer liability under the federal securities laws for the information contained in this prospectus and under federal securities laws with respect to the issuance and sale of the shares. Under such lawsFCM, ~~neither the Trustee~~counterparty, ~~either~~government ~~in its capacity~~agency ~~as Trustee~~ or inexchange ~~its~~could ~~individual~~increase ~~capacity,~~margin ~~nor~~or ~~any~~collateral ~~director,~~requirements ~~officer~~applicable orto ~~controlling~~a ~~person~~Trust ofSeries to ~~the~~hold ~~Trustee~~trading ~~is,~~positions orat ~~has~~ any ~~liability~~ astime. Moreover, ~~the~~margin ~~issuer~~is ormerely a ~~director,~~security ~~officer~~deposit ~~or controlling person of the issuer of the shares. The Trustee’s liability in connection with the issuance~~ and ~~sale~~has ofno ~~the~~bearing ~~shares~~on ~~is limited solely to~~ the ~~express~~profit ~~obligations~~or ofloss ~~the~~potential ~~Trustee~~for ~~set~~any ~~forth~~positions ~~in the Trust Agreement~~held.

~~Investments~~The assets of a Trust Series posted as margin for the Benchmark Oil Futures Contracts or other exchange-traded futures contracts will be held in segregation pursuant to the CEA and CFTC regulations.

~~USCF~~If ~~will cause~~ a Trust Series enters tointo ~~transfer~~a swap ~~the~~agreement, ~~proceeds~~it ofmust ~~the~~post ~~sale~~both ofcollateral ~~Creation~~and ~~Baskets~~independent amounts to ~~the~~its ~~Custodian~~swap ~~or another custodian for use in trading activities~~counterparty(ies). ~~USCF~~The ~~will~~amount ~~invest a~~of ~~Trust~~collateral ~~Series’ assets in Oil Interests. When~~ a Trust Series posts ~~purchases~~changes ~~Oil~~according ~~Interests~~to ~~that~~the ~~are~~amounts ~~exchange-traded,~~owed by the Trust ~~Series~~ ~~will be required~~ Series to ~~deposit~~its ~~typically~~counterparty ~~5% to 30% with the FCM~~ on ~~behalf of the exchange~~ a ~~portion~~given ofswap ~~the value of the contract~~transaction, orwhile ~~other~~independent ~~interest~~amounts asare ~~security~~fixed toamounts ~~ensure~~posted ~~payment~~by ~~for~~ the ~~obligation~~Trust ~~under~~Series at the ~~Oil~~start ~~Interests~~of ata ~~maturity.~~swap ~~This deposit is known as initial margin~~transaction. ~~Counterparties~~Collateral ~~in transactions in OTC contracts will generally impose similar collateral requirements on a Trust~~and ~~Series.~~independent ~~USCF~~amounts ~~will invest a Trust Series’ assets that remain after margin and collateral is~~ posted ~~in Treasuries, cash and/or cash equivalents. Subject~~ to ~~these~~swap ~~margin~~counterparties ~~and~~will ~~collateral~~be ~~requirements,~~held ~~USCF~~by ~~has~~a ~~sole~~third ~~authority~~party ~~to determine the percentage of assets that will be:~~custodian.

·The ~~held~~Commodity asInterest ~~margin or collateral with FCMs or other custodians;~~Markets

~~· used for other investments, and~~General

·The ~~held~~CEA ingoverns ~~bank~~the ~~accounts~~regulation of commodity interest transactions, markets and intermediaries. The CEA provides for varying degrees of regulation of commodity interest transactions depending upon: (1) the type of instrument being traded (e.g., contracts for future delivery, forwards, options, swaps or spot contracts), (2) the type of commodity underlying the instrument (distinctions are made between instruments based on agricultural commodities, energy and metals commodities and financial commodities), (3) the nature of the parties to ~~pay~~the ~~current~~transaction ~~obligations~~(e.g., retail or eligible contract participant), (4) whether the transaction is entered into on a principal-to-principal or intermediated basis, (5) the type of market on which the transaction occurs, and as(6) whether ~~reserves~~the transaction is subject to clearing through a clearing organization.

27The offer and sale of shares of each Trust Series, as well as shares of each Related Public Fund, is registered under the Securities Act. Each Trust Series and the Related Public Funds are subject to the requirements of the Securities Act, the Exchange Act and the rules and regulations adopted thereunder as administered by the SEC. Firms’ participation in the distribution of shares is regulated as described above, as well as by the self-regulatory association, FINRA.

~~Approximately~~Futures 15% to 90% of a Trust Series’ assets will be committed as margin for commodity futures contracts. However, from time to time, the percentage of assets committed as margin may be substantially more, or less, than such range. Ongoing margin and collateral payments will generally be required for both exchange-traded and OTC contracts based on changes in the value of the Oil Interests. Furthermore, ongoing collateral requirements with respect to OTC contracts are negotiated by the parties, and may be affected by overall market volatility, volatility of the underlying commodity or index, the ability of the counterparty to hedge its exposure under the Oil Interests, and each party’s creditworthiness. In light of the differing requirements for initial payments under exchange-traded and OTC contracts and the fluctuating nature of ongoing margin and collateral payments, it is not possible to estimate what portion of a Trust Series’ assets will be posted as margin or collateral at any given time. The Treasuries, cash and cash equivalents held by a Trust Series will constitute reserves that will be available to meet ongoing margin and collateral requirements. All interest income will be used for the Trust Series’ benefit. USCF invests the balance of a Trust Series’ assets not invested in Oil Interests or held in margin as reserves to be available for changes in margin. All interest income is used for the Trust Series’ benefit.Contracts

AnA ~~FCM,~~futures ~~counterparty,~~contract ~~government~~is ~~agency~~a standardized contract traded on, or ~~exchange~~subject ~~could~~to ~~increase~~the ~~margin~~rules of, oran ~~collateral~~exchange ~~requirements~~that ~~applicable~~calls tofor the future delivery of a ~~Trust~~specified ~~Series~~quantity toand ~~hold~~type ~~trading~~of a ~~positions~~commodity at ~~any~~a specified time and place. Futures contracts are traded on a wide variety of commodities, including agricultural ~~Moreover~~products, ~~margin~~bonds, isstock ~~merely~~indices, ainterest ~~security~~rates, ~~deposit~~currencies, energy and ~~has~~metals. noThe ~~bearing~~size and terms of futures contracts on ~~the~~a ~~profit~~particular commodity orare ~~loss~~identical ~~potential~~and ~~for~~are not subject to any ~~positions~~negotiation, ~~held~~other than with respect to price and the number of contracts traded between the buyer and seller.

The ~~assets~~contractual obligations of a ~~Trust~~buyer or ~~Series~~seller ~~posted~~may asgenerally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting ~~margin~~sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery. The difference between the price at which the futures contract is purchased or sold and the price paid for the ~~Benchmark~~offsetting ~~Oil~~sale ~~Futures~~or ~~Contracts~~purchase, after allowance for brokerage commissions, constitutes the profit or ~~other~~loss ~~exchange-traded~~to the trader. Some futures contracts, ~~will~~such beas ~~held~~stock index contracts, settle in ~~segregation~~cash ~~pursuant to~~(reflecting the ~~CEA~~difference between the contract purchase/sale price and ~~CFTC~~the ~~regulations~~contract settlement price) rather than by delivery of the underlying commodity.

IfIn amarket ~~Trust~~terminology, ~~Series~~a ~~enters~~trader ~~into~~who purchases a ~~swap~~futures ~~agreement, it~~contract ~~must~~is ~~post~~long ~~both~~in ~~collateral~~the market and ~~independent~~a ~~amounts~~trader towho ~~its~~sells ~~swap~~a ~~counterparty(ies).~~futures ~~The~~contract ~~amount~~is ofshort ~~collateral~~in athe ~~Trust~~market. ~~Series~~Before ~~posts~~a trader closes ~~changes~~out ~~according~~his tolong ~~the~~or ~~amounts~~short ~~owed~~position by ~~the~~an ~~Trust~~offsetting ~~Series~~sale toor ~~its~~purchase, ~~counterparty~~his onoutstanding acontracts ~~given~~are ~~swap~~known ~~transaction,~~as ~~while~~open ~~independent~~trades ~~amounts are~~or ~~fixed~~open ~~amounts~~positions. The ~~posted~~aggregate byamount ~~the~~of ~~Trust~~open ~~Series~~positions atheld ~~the~~by ~~start~~traders ofin a ~~swap~~particular ~~transaction.~~contract ~~Collateral~~is ~~and~~referred ~~independent amounts posted~~ to ~~swap counterparties~~as ~~will~~the beopen ~~held~~interest byin asuch ~~third party custodian~~contract.

~~The Commodity Interest Markets~~28

~~General~~Forward Contracts

~~The~~A ~~CEA~~forward ~~governs~~contract ~~the~~is ~~regulation~~a contractual obligation to purchase or sell a specified quantity of a commodity at or before a specified date in the future at a specified price and, therefore, ~~interest~~is ~~transactions~~economically similar to a futures contract. Unlike futures contracts, however, forward contracts are typically traded in the OTC markets and ~~intermediaries.~~are ~~The~~not ~~CEA~~standardized ~~provides~~contracts. Forward contracts for ~~varying~~a ~~degrees~~given ofcommodity ~~regulation~~are ofgenerally ~~commodity~~available ~~interest~~for ~~transactions~~various amounts ~~depending~~and ~~upon:~~maturities ~~(1)~~and ~~the~~are ~~type~~subject ofto ~~instrument~~individual ~~being~~negotiation ~~traded~~between (ethe parties involved.g. Moreover, ~~contracts~~generally ~~for~~there ~~future~~is ~~delivery,~~no ~~forwards,~~direct ~~options,~~means of ~~swaps~~offsetting or ~~spot contracts),~~closing ~~(2)~~out ~~the~~a ~~type~~forward ofcontract ~~commodity~~by ~~underlying~~taking ~~the~~an ~~instrument~~offsetting ~~(distinctions~~position ~~are~~as ~~made~~one ~~between~~would ~~instruments~~a ~~based~~futures contract on ~~agricultural~~a U.S. exchange. ~~commodities,~~If ~~energy~~a ~~and~~trader ~~metals~~desires ~~commodities~~to ~~and~~close ~~financial~~out ~~commodities)~~a forward contract position, ~~(3)~~he generally will establish an opposite position in the ~~nature~~contract but ofwill settle and recognize the ~~parties~~profit toor loss on both positions simultaneously on the ~~transaction~~delivery (edate.g. Thus, ~~retail~~ orunlike ~~eligible~~in the futures contract ~~participant),~~market ~~(4)~~where ~~whether~~a ~~the~~trader ~~transaction~~who ishas ~~entered~~offset ~~into~~positions onwill arecognize ~~principal-to-principal~~profit or ~~intermediated basis~~loss immediately, ~~(5)~~in the ~~type~~forward of market ona ~~which~~trader with a position that has been offset at a profit will generally not receive such profit until the ~~transaction~~delivery ~~occurs~~date, and ~~(6)~~likewise ~~whether~~a trader ~~the~~with ~~transaction~~a isposition ~~subject~~that has been offset at a loss will generally not have to ~~clearing~~pay ~~through~~money until the delivery date. Nevertheless, in some instances forward contracts now provide a right of offset or cash settlement as an alternative to making or taking delivery ~~clearing~~of ~~organization~~the underlying commodity.

~~The~~In ~~offer~~general, ~~and~~the ~~sale~~CFTC ofdoes ~~shares~~not ofregulate the ~~each~~interbank ~~Trust Series,~~and asforward ~~well~~foreign ascurrency ~~shares~~markets ofwith ~~each~~respect ~~Related~~to ~~Public~~transactions ~~Fund,~~in iscontracts ~~registered~~between ~~under~~certain ~~the~~sophisticated ~~Securities~~counterparties such ~~Act.~~as ~~Each~~a Trust Series or between certain regulated institutions and ~~the~~retail ~~Related Public~~investors. ~~Funds~~Although ~~are~~U.S. ~~subject~~banks toare ~~the~~regulated ~~requirements~~in various ofways by the ~~Securities~~Federal ~~Act~~Reserve Board, the ~~Exchange~~Comptroller ~~Act~~of ~~and~~ the ~~rules~~Currency and ~~regulations~~other ~~adopted~~U.S. ~~thereunder as~~federal ~~administered~~and bystate ~~the~~banking ~~SEC.~~officials, banking ~~Firms’~~authorities ~~participation~~do innot regulate the ~~distribution~~forward ofmarkets ~~shares~~to isthe ~~regulated~~same asextent ~~described~~that ~~above,~~the asswap ~~well~~markets as are regulated by the ~~self-regulatory~~CFTC ~~association, FINRA~~and SEC.

~~Futures~~Regulation ~~Contracts~~exempts both foreign exchange swaps and foreign exchange forwards from the definition of “swap” and, by extension, certain regulatory requirements applicable to swaps (such as clearing and margin). The exemption does not extend to other foreign exchange derivatives, such as foreign exchange options, currency swaps and non-deliverable forwards.

AWhile ~~futures~~the ~~contract~~U.S. isgovernment adoes ~~standardized~~not ~~contract~~currently ~~traded~~impose ~~on,~~any orrestrictions ~~subject~~on to the ~~rules~~movements of currencies, anit ~~exchange~~could ~~that~~choose ~~calls~~to ~~for~~do ~~the~~so. ~~future~~The ~~delivery~~imposition ofor arelaxation ~~specified quantity and type~~ of aexchange ~~commodity~~controls atin avarious ~~specified~~jurisdictions ~~time~~could ~~and~~significantly ~~place.~~affect ~~Futures~~the ~~contracts~~market ~~are~~for ~~traded~~that onand aother ~~wide~~jurisdictions’ ~~variety~~currencies. ofTrading ~~commodities,~~in ~~including agricultural products,~~the ~~bonds,~~interbank ~~stock~~market ~~indices,~~also ~~interest~~exposes ~~rates,~~the ~~currencies,~~Trust ~~energy~~Series to ~~and~~a ~~metals.~~risk ~~The~~of ~~size~~default ~~and~~since ~~terms~~failure of ~~futures~~a ~~contracts~~bank onwith which a ~~particular~~Trust ~~commodity~~Series had ~~are~~entered ~~identical~~into ~~and~~a ~~are~~forward ~~not~~contract ~~subject~~would tolikely ~~any~~result ~~negotiation,~~in ~~other~~a ~~than~~default ~~with respect to price~~ and ~~the~~thus ~~number~~possibly ofsubstantial ~~contracts~~losses ~~traded~~to ~~between~~ the ~~buyer~~Trust ~~and seller~~Series.

~~The~~Options contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting sale or purchase of an identical futures contract on ~~the~~Futures same or linked exchange before the designated date of delivery. The difference between the price at which the futures contract is purchased or sold and the price paid for the offsetting sale or purchase, after allowance for brokerage commissions, constitutes the profit or loss to the trader. Some futures contracts, such as stock index contracts, settle in cash (reflecting the difference between the contract purchase/sale price and the contract settlement price) rather than by delivery of the underlying commodity.Contracts

InOptions ~~market~~on ~~terminology,~~futures acontracts ~~trader~~are ~~who purchases~~standardized contracts traded on an exchange. An option on a futures contract isgives ~~long~~the inbuyer of the ~~market~~option ~~and~~the aright, ~~trader~~but ~~who~~not ~~sells~~the obligation, to take a ~~futures~~position ~~contract~~at isa ~~short~~specified inprice (the ~~market.~~striking, ~~Before~~strike, aor ~~trader~~exercise ~~closes out~~price) ~~his~~in ~~long~~the underlying futures contract or ~~short~~underlying interest. ~~position~~The bybuyer anof ~~offsetting~~a ~~sale~~call oroption ~~purchase,~~acquires ~~his~~the ~~outstanding~~right, ~~contracts~~but ~~are~~not ~~known~~the asobligation, ~~open~~to ~~trades~~purchase or ~~open~~take ~~positions. The~~a ~~aggregate~~long ~~amount~~position ofin ~~open~~the ~~positions~~underlying interest, ~~held~~and bythe ~~traders~~buyer inof a ~~particular~~put ~~contract~~option isacquires ~~referred~~the toright, asbut not the ~~open~~obligation, ~~interest~~to sell or take a short position in ~~such~~the ~~contract~~underlying interest.

28The seller, or writer, of an option is obligated to take a position in the underlying interest at a specified price opposite to the option buyer if the option is exercised. The seller of a call option must stand ready to take a short position in the underlying interest at the strike price if the buyer should exercise the option. The seller of a put option, on the other hand, must stand ready to take a long position in the underlying interest at the strike price.

~~Forward~~A ~~Contracts~~call option is said to be in-the-money if the strike price is below current market levels and out-of-the-money if the strike price is above current market levels. Conversely, a put option is said to be in-the-money if the strike price is above the current market levels and out-of-the-money if the strike price is below current market levels.

AOptions ~~forward~~have ~~contract~~limited islife aspans, ~~contractual obligation~~usually tied to ~~purchase~~the ordelivery ~~sell a specified quantity of a commodity at~~ or ~~before~~settlement ~~a specified~~ date inof the ~~future~~underlying ~~at a specified price and, therefore, is economically similar to a futures contract~~interest. ~~Unlike~~Some ~~futures contracts~~options, however, ~~forward~~expire ~~contracts~~significantly ~~are typically traded~~ in ~~the OTC~~advance ~~markets~~of ~~and are not standardized contracts. Forward contracts for a given commodity are generally available for various amounts~~such ~~and maturities and are subject to individual negotiation between the parties involved~~date. ~~Moreover,~~The ~~generally~~purchase ~~there~~price ~~is no direct means~~ of ~~offsetting or closing out a forward contract by taking~~ an ~~offsetting~~option ~~position~~is asreferred ~~one would a futures contract on a U.S. exchange. If a trader desires~~ to ~~close~~as ~~out~~its ~~a forward contract position~~premium, hewhich ~~generally~~consists ~~will~~of ~~establish~~its anintrinsic ~~opposite~~value ~~position~~(which inis ~~the~~related ~~contract~~to ~~but~~the ~~will~~underlying ~~settle~~market ~~and~~value) ~~recognize~~plus ~~the~~its ~~profit~~time orvalue. ~~loss~~As onan ~~both~~option ~~positions~~nears ~~simultaneously~~its onexpiration ~~the delivery~~ date~~. Thus~~, ~~unlike in~~ the ~~futures contract~~time ~~market~~value ~~where~~shrinks aand ~~trader who has offset positions will recognize profit or loss immediately, in~~ the ~~forward~~ market ~~a trader~~ ~~with~~and aintrinsic ~~position~~values ~~that~~move ~~has~~into ~~been~~parity. ~~offset~~An atoption athat ~~profit~~is ~~will~~out-of-the-money ~~generally~~and not ~~receive~~offset ~~such~~by ~~profit until~~ the ~~delivery~~time ~~date,~~it ~~and~~expires ~~likewise~~becomes aworthless. ~~trader~~On ~~with~~certain aexchanges, ~~position~~in-the-money ~~that~~options ~~has~~are ~~been~~automatically ~~offset~~exercised aton atheir ~~loss~~expiration ~~will generally not have to pay money until the delivery~~ date~~. Nevertheless~~, in ~~some~~but ~~instances~~on ~~forward~~others ~~contracts~~unexercised ~~now~~options simply ~~provide~~become aworthless ~~right~~after oftheir ~~offset~~expiration ~~or cash settlement as an alternative to making or taking delivery of the underlying commodity~~date.

InRegardless ~~general,~~of ~~the~~how ~~CFTC~~much ~~does~~the ~~not~~market ~~regulate~~swings, the ~~interbank~~most ~~and~~an ~~forward~~option ~~foreign~~buyer ~~currency~~can ~~markets~~lose ~~with~~is ~~respect~~the tooption ~~transactions~~premium. inThe ~~contracts~~option ~~between~~buyer ~~certain~~deposits ~~sophisticated~~his ~~counterparties such~~premium aswith ahis ~~Trust~~broker, ~~Series~~and orthe ~~between~~money ~~certain~~goes to ~~regulated~~the ~~institutions~~option ~~and~~seller. ~~retail~~Option ~~investors.~~sellers, ~~Although~~on ~~U.S.~~the ~~banks~~other ~~are~~hand, ~~regulated~~face inrisks ~~various ways~~similar byto participants in the ~~Federal~~futures ~~Reserve~~markets. ~~Board~~For example, since the ~~Comptroller~~seller of ~~the~~a ~~Currency~~call ~~and~~option ~~other~~is ~~U.S.~~assigned ~~federal~~a ~~and~~short ~~state~~futures ~~banking~~position ~~officials~~if the option is exercised, ~~banking~~his risk is the same as someone ~~authorities~~who doinitially ~~not~~sold ~~regulate~~a ~~the~~futures ~~forward~~contract. ~~markets~~Because tono one can predict exactly how the ~~same~~market ~~extent~~will ~~that~~move, the ~~swap~~option ~~markets~~seller ~~are~~typically posts ~~regulated~~margin byto ~~the~~demonstrate ~~CFTC~~his ~~and~~ability ~~SEC~~to meet any potential contractual obligations.

Regulation exempts both foreign exchange swaps and foreign exchange forwards from the definition of “swap” and, by extension, certain regulatory requirements applicable to swaps (such as clearing and margin). The exemption does not extend to other foreign exchange derivatives, such as foreign exchange options, currency swaps and non-deliverable forwards.29

~~While~~Options ~~the U.S. government does not currently impose any restrictions~~ on ~~the~~Forward ~~movements~~Contracts ~~of currencies, it could choose to do so. The imposition~~ or relaxation of exchange controls in various jurisdictions could significantly affect the market for that and other jurisdictions’ currencies. Trading in the interbank market also exposes the Trust Series to a risk of default since failure of a bank with which a Trust Series had entered into a forward contract would likely result in a default and thus possibly substantial losses to the Trust Series.Commodities

Options on ~~Futures~~forward ~~Contracts~~contracts or commodities operate in a manner similar to options on futures contracts. An option on a forward contract or commodity gives the buyer of the option the right, but not the obligation, to take a position at a specified price in the underlying forward contract or commodity. However, unlike options on futures contracts, options on forward contracts or on commodities are individually negotiated contracts between counterparties and are typically traded in the OTC market. Therefore, options on forward contracts and physical commodities possess many of the same characteristics of forward contracts with respect to offsetting positions and credit risk that are described above.

~~Options~~Swap on futures contracts are standardized contracts traded on an exchange. An option on a futures contract gives the buyer of the option the right, but not the obligation, to take a position at a specified price (the striking, strike, or exercise price) in the underlying futures contract or underlying interest. The buyer of a call option acquires the right, but not the obligation, to purchase or take a long position in the underlying interest, and the buyer of a put option acquires the right, but not the obligation, to sell or take a short position in the underlying interest.Contracts

~~The~~Swap ~~seller,~~transactions orgenerally ~~writer,~~involve ofcontracts between antwo ~~option~~parties ~~is obligated~~ to ~~take~~exchange a ~~position~~stream ~~in the underlying interest at a specified price opposite to the option buyer if the option is exercised. The seller~~ of apayments ~~call~~computed ~~option~~by ~~must~~reference ~~stand ready~~ to ~~take~~ a ~~short~~notional ~~position~~amount inand the ~~underlying~~price ~~interest~~of at the ~~strike~~asset ~~price~~that is if the ~~buyer should~~subject ~~exercise~~of the ~~option~~swap. ~~The~~Swap ~~seller~~contracts ofare aprincipally ~~put~~traded ~~option~~off-exchange, onalthough ~~the~~certain ~~other~~swap ~~hand,~~contracts ~~must~~are ~~stand~~also ~~ready~~being traded toin ~~take~~electronic atrading ~~long~~facilities ~~position~~and incleared ~~the~~through ~~underlying interest~~clearing ~~at the strike price~~organizations.

ASwaps ~~call~~are ~~option~~usually entered into on a net basis, that is, ~~said~~the totwo bepayment streams are netted out in- a cash settlement on the~~-money~~ payment date or dates specified in the agreement, ifwith the ~~strike~~parties ~~price~~receiving isor ~~below~~paying, ~~current~~as ~~market~~the ~~levels~~case ~~and~~may ~~out-of-~~be, only the~~-money~~ ifnet amount of the ~~strike~~two ~~price~~payments. isSwaps ~~above~~do ~~current~~not ~~market~~generally ~~levels~~involve the delivery of underlying assets or principal. ~~Conversely~~Accordingly, the risk of loss with respect to swaps is generally limited to the anet ~~put~~amount ~~option~~of payments that the party is ~~said~~contractually obligated to bemake. ~~in-~~In some swap transactions one or both parties may require collateral deposits from the~~-money~~ ifcounterparty to support that counterparty’s obligation under the ~~strike~~swap ~~price~~agreement. isIf ~~above~~the counterparty to such a swap defaults, the ~~current~~risk ~~market~~of ~~levels~~loss ~~and~~consists ~~out-~~of- the~~-money~~ ifnet amount of payments that the ~~strike price~~party is ~~below~~contractually ~~current~~entitled ~~market~~to ~~levels~~receive less any collateral deposits it is holding.

~~Options~~Some ~~have~~swap ~~limited~~transactions ~~life~~are ~~spans,~~cleared ~~usually~~through ~~tied~~central counterparties. “Clearing” refers to the ~~delivery~~process orby ~~settlement~~which ~~date~~a oftrade ~~the~~that ~~underlying~~is ~~interest.~~bilaterally ~~Some~~executed ~~options~~by two parties is submitted to a central clearing counterparty, ~~however~~via a clearing member (i.e., ~~expire~~an ~~significantly~~FCM), inand ~~advance~~replaced ofby ~~such~~two mirror swaps, with the ~~date.~~central ~~The~~clearing ~~purchase~~counterparty ~~price~~becoming ofthe ancounterparty ~~option~~to isboth ~~referred~~of the initial parties to asthe ~~its~~swap. ~~premium~~These transactions, ~~which~~known ~~consists~~as cleared swaps, involve two counterparties first agreeing to the terms of ~~its~~a ~~intrinsic~~swap ~~value~~transaction, ~~(which~~then issubmitting ~~related~~the transaction to ~~the~~a ~~underlying~~clearing ~~market~~house ~~value)~~that ~~plus~~acts ~~its~~as ~~time~~the ~~value~~central counterparty. AsOnce anaccepted ~~option~~by ~~nears~~the ~~its~~clearing ~~expiration date~~house, the ~~time~~original ~~value~~swap ~~shrinks~~transaction ~~and~~is ~~the market~~terminated and ~~intrinsic~~replaced ~~values~~by ~~move~~two ~~into~~mirror ~~parity.~~trades Anfor ~~option~~which ~~that~~the iscentral ~~out-of-~~counterparty becomes the~~-money~~ ~~and~~counterparty ~~not~~to ~~offset~~each byof the ~~time~~original itparties ~~expires~~based upon ~~becomes~~the ~~worthless. On~~trade ~~certain~~terms ~~exchanges,~~determined in- the~~-money~~ ~~options~~original ~~are~~transaction. ~~automatically~~In ~~exercised~~this onmanner ~~their~~each ~~expiration~~individual ~~date,~~swap ~~but~~counterparty onreduces ~~others~~its ~~unexercised options~~risk ~~simply~~of ~~become~~loss ~~worthless~~due ~~after~~to ~~their~~counterparty ~~expiration~~nonperformance ~~date~~because the clearing house acts as the counterparty to each transaction.

~~Regardless~~Commodities of how much the market swings, the most an option buyer can lose is the option premium. The option buyer deposits his premium with his broker, and the money goes to the option seller. Option sellers, on the other hand, face risks similar to participants in the futures markets. For example, since the seller of a call option is assigned a short futures position if the option is exercised, his risk is the same as someone who initially sold a futures contract. Because no one can predict exactly how the market will move, the option seller typically posts margin to demonstrate his ability to meet any potential contractual obligations.Regulation

29Futures exchanges in the United States are subject to varying degrees of regulation under the CEA depending on whether such exchange is a designated contract market, exempt board of trade or electronic trading facility. Clearing organizations are also subject to the CEA and the rules and regulations adopted thereunder and administered by the CFTC. The CFTC is the governmental agency charged with responsibility for regulation of futures exchanges and commodity interest trading. The CFTC’s function is to implement the CEA’s objectives of preventing price manipulation and excessive speculation and promoting orderly and efficient commodity interest markets. In addition, the various exchanges and clearing organizations themselves exercise regulatory and supervisory authority over their member firms.

~~Options~~The onCFTC ~~Forward~~also ~~Contracts~~regulates the activities of “commodity trading advisors” and “commodity pool operators” and the CFTC has adopted regulations with respect to certain of such persons’ activities. Pursuant to its authority, the CFTC requires a CPO, such as USCF, to keep accurate, current and orderly records with respect to each pool it operates. The CFTC may suspend, modify or ~~Commodities~~terminate the registration of any registrant for failure to comply with CFTC rules or regulations. Suspension, restriction or termination of USCF’s registration as a CPO would prevent it, until such time (if any) as such registration were to be reinstated, from managing, and might result in the termination of, the Trust Series or the Related Public Funds.

~~Options~~Under oncertain ~~forward~~circumstances, ~~contracts or commodities operate in a manner similar to options on futures contracts. An option on a forward contract or commodity gives~~ the ~~buyer~~CEA ~~of the~~grants ~~option~~shareholders the right, ~~but not the obligation,~~ to ~~take~~institute a ~~position~~reparations atproceeding abefore ~~specified~~the ~~price~~CFTC inagainst ~~the~~USCF ~~underlying~~(as ~~forward~~a ~~contract~~registered or commodity~~. However,~~ ~~unlike~~pool ~~options on futures contracts~~operator), as ~~options~~well onas ~~forward~~those ~~contracts~~of ortheir onrespective ~~commodities~~employees who are ~~individually~~required ~~negotiated~~to ~~contracts between~~be ~~counterparties~~registered ~~and~~under ~~are typically traded in~~ the ~~OTC market~~CEA. ~~Therefore,~~Shareholders ~~options~~may onalso ~~forward~~be ~~contracts~~able ~~and physical commodities~~to ~~possess~~maintain ~~many~~a ofprivate ~~the~~right ~~same characteristics~~ of ~~forward~~action ~~contracts~~for ~~with~~certain ~~respect~~violations toof ~~offsetting~~the ~~positions and credit risk that are described above~~CEA.

~~Swap~~Pursuant ~~Contracts~~to authority in the CEA, the NFA has been formed and registered with the CFTC as a registered futures association. The NFA is the only self-regulatory association for commodities professionals other than the exchanges. As such, the NFA promulgates rules governing the conduct of commodity professionals and disciplines those professionals that do not comply with such standards. The CFTC has delegated to the NFA responsibility for the registration of commodity pool operators. USCF is a member of the NFA. As a member of the NFA, USCF is subject to NFA standards relating to fair trade practices, financial condition, and consumer protection.

Swap transactions generally involve contracts between two parties to exchange a stream of payments computed by reference to a notional amount and the price of the asset that is the subject of the swap. Swap contracts are principally traded off-exchange, although certain swap contracts are also being traded in electronic trading facilities and cleared through clearing organizations.30

~~Swaps~~The ~~are~~CEA ~~usually~~requires ~~entered~~all ~~into~~FCMs, oni.e., ~~a net~~Trust ~~basis,~~Series’ ~~that~~clearing isbrokers, ~~the~~to ~~two~~meet ~~payment~~and ~~streams~~maintain ~~are~~specified ~~netted~~fitness ~~out~~and infinancial arequirements, ~~cash~~to ~~settlement~~segregate oncustomer ~~the~~funds from ~~payment~~proprietary ~~date~~funds orand ~~dates~~account ~~specified~~separately infor ~~the~~all ~~agreement, with~~customers’ ~~the~~funds ~~parties~~and ~~receiving~~positions, orand ~~paying,~~to asmaintain ~~the~~specified ~~case~~books ~~may~~and records ~~be,~~open ~~only~~to ~~the~~inspection ~~net~~by ~~amount~~the staff of the ~~two payments~~CFTC. ~~Swaps~~The doCFTC ~~not~~has ~~generally~~similar ~~involve the~~authority ~~delivery~~over ofintroducing ~~underlying~~brokers, ~~assets~~or persons who solicit or ~~principal.~~accept ~~Accordingly,~~orders ~~the~~for ~~risk~~commodity ofinterest ~~loss~~trades ~~with~~but ~~respect~~who todo ~~swaps~~not isaccept ~~generally~~margin ~~limited~~deposits tofor the ~~net~~ ~~amount~~execution of ~~payments~~trades. ~~that~~The CEA authorizes the ~~party~~CFTC ~~is contractually obligated~~ to ~~make.~~regulate Intrading ~~some~~by ~~swap~~FCMs ~~transactions~~and ~~one~~by ortheir ~~both~~officers ~~parties~~and ~~may~~directors, ~~require collateral~~permits ~~deposits from~~ the ~~counterparty~~CFTC to ~~support~~require ~~that~~action ~~counterparty’s~~by ~~obligation~~exchanges ~~under~~in the ~~swap agreement. If the counterparty~~ toevent ~~such~~of amarket ~~swap defaults~~emergencies, ~~the~~and ~~risk~~establishes ofan ~~loss~~administrative ~~consists~~procedure ofunder ~~the~~which ~~net~~customers ~~amount~~may ofinstitute ~~payments~~complaints ~~that~~for ~~the party is contractually entitled to receive~~damages ~~less~~arising ~~any~~from ~~collateral~~alleged ~~deposits~~violations itof isthe ~~holding~~CEA.

~~Some~~The ~~swap~~regulations ~~transactions~~of ~~are~~the ~~cleared~~CFTC ~~through central~~and ~~counterparties.~~the ~~“Clearing”~~NFA prohibit ~~refers~~any torepresentation ~~the process~~ by ~~which~~ a ~~trade~~person ~~that~~registered iswith ~~bilaterally~~the ~~executed~~CFTC or by ~~two~~any ~~parties is submitted to a central clearing counterparty, via a clearing~~ member ~~(i.e.,~~of anthe ~~FCM)~~NFA, ~~and~~that ~~replaced~~registration ~~by two mirror swaps,~~ with the CFTC, ~~central~~or ~~clearing~~membership ~~counterparty~~in ~~becoming~~ the ~~counterparty~~NFA, toin ~~both~~any ofrespect ~~the~~indicates ~~initial~~that ~~parties to~~ the ~~swap.~~CFTC ~~These~~or ~~transactions~~the NFA, ~~known~~ as ~~cleared~~ ~~swaps, involve two counterparties first agreeing to~~ the ~~terms~~case ofmay ~~a swap transaction~~be, ~~then~~has ~~submitting~~approved ~~the~~or ~~transaction~~endorsed tothat aperson ~~clearing~~or ~~house~~ that ~~acts~~person’s astrading ~~the~~program ~~central~~or ~~counterparty~~objectives. ~~Once~~The ~~accepted~~registrations ~~by the clearing house, the original swap transaction is terminated~~ and ~~replaced~~memberships ~~by two mirror trades for which the central counterparty becomes the counterparty to each~~ of the ~~original~~ parties ~~based upon~~described ~~the trade terms determined~~ in ~~the original transaction. In~~ this summary ~~manner~~must ~~each~~not ~~individual~~be ~~swap~~considered ~~counterparty~~as ~~reduces~~constituting ~~its~~any ~~risk of~~such ~~loss~~approval ~~due~~or toendorsement. ~~counterparty~~Likewise, ~~nonperformance~~no ~~because~~futures ~~the~~exchange ~~clearing~~has ~~house~~given ~~acts~~or aswill give ~~the~~any ~~counterparty~~similar toapproval ~~each~~or ~~transaction~~endorsement.

~~Commodities~~CFTC ~~Regulation~~regulations require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs for FCMs. These regulations are intended to afford greater assurances to market participants that customer segregated funds and secured amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are strengthened to safeguard the continued operations, and the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a thorough manner.

~~Futures~~Each ~~exchanges~~Trust inSeries’ ~~the~~investors ~~United States~~ are afforded ~~subject~~prescribed torights ~~varying~~for ~~degrees~~reparations ~~of regulation~~ under the CEA ~~depending~~against onUSCF ~~whether~~(as ~~such~~a ~~exchange~~registered iscommodity apool ~~designated~~operator), ~~contract~~as ~~market,~~well as its ~~exempt~~respective ~~board~~employees ofwho ~~trade~~are orrequired ~~electronic~~to ~~trading~~be ~~facility.~~registered ~~Clearing~~under ~~organizations~~the ~~are~~CEA. ~~also~~Investors ~~subject~~may toalso ~~the~~be ~~CEA~~able ~~and~~to ~~the~~maintain ~~rules~~a ~~and~~private ~~regulations~~right of ~~adopted~~action ~~thereunder~~for ~~and~~violations ~~administered~~of by the ~~CFTC~~CEA. The CFTC ishas adopted rules implementing the ~~governmental~~reparation ~~agency~~provisions ~~charged~~of ~~with~~the ~~responsibility~~CEA, ~~for~~which ~~regulation~~provide ofthat ~~futures~~any ~~exchanges~~person ~~and~~may ~~commodity~~file ~~interest~~a ~~trading.~~complaint ~~The~~for ~~CFTC’s~~a ~~function~~reparations isaward towith ~~implement~~ the ~~CEA’s~~CFTC ~~objectives~~for violation of ~~preventing price~~the ~~manipulation~~CEA ~~and~~against ~~excessive~~a ~~speculation~~floor ~~and~~broker ~~promoting~~or ~~orderly~~an FCM, ~~and~~introducing ~~efficient~~broker, commodity ~~interest~~trading ~~markets.~~advisor, ~~In addition~~CPO, ~~the various exchanges~~ and ~~clearing organizations themselves exercise regulatory and supervisory authority over~~ their ~~member~~respective ~~firms~~associated persons.

The ~~CFTC~~regulation ~~also~~of ~~regulates~~commodity ~~the~~interest ~~activities~~trading ofin ~~“commodity~~the ~~trading~~United ~~advisors”~~States and ~~“commodity~~other ~~pool~~countries ~~operators”~~is ~~and~~an ~~the~~evolving ~~CFTC~~area ~~has~~of ~~adopted~~the ~~regulations~~law. ~~with respect~~Below toare ~~certain~~discussed ofseveral ~~such~~key ~~persons’~~regulatory ~~activities.~~items ~~Pursuant~~that are relevant to ~~its~~the ~~authority,~~Trust ~~the~~Series. ~~CFTC~~The ~~requires~~various astatements ~~CPO,~~made ~~such~~in asthis ~~USCF,~~summary are subject to ~~keep accurate,~~modification ~~current~~by legislative action and ~~orderly~~changes ~~records~~in ~~with~~the ~~respect~~rules and toregulations ~~each~~of ~~pool~~the itCFTC, ~~operates.~~the ~~The~~NFA, ~~CFTC~~the ~~may~~futures ~~suspend~~exchanges, ~~modify~~clearing ororganizations ~~terminate~~and ~~the~~other ~~registration~~regulatory ofbodies. ~~any~~In ~~registrant~~addition, ~~for~~with ~~failure~~regard to ~~comply~~any ~~with~~other ~~CFTC~~ rules that orthe ~~regulations.~~CFTC ~~Suspension, restriction~~ or ~~termination~~SEC ofmay ~~USCF’s registration~~adopt asin athe ~~CPO would prevent it~~future, ~~until~~the ~~such~~effect ~~time~~of ~~(if~~ any) as such ~~registration~~regulatory changes ~~were~~on toa beTrust ~~reinstated,~~Series is ~~from~~impossible ~~managing,~~to ~~and might result in the termination of~~predict, ~~the~~but ~~Trust~~it ~~Series~~could orbe ~~the~~substantial ~~Related~~and ~~Public Funds~~adverse.

~~Under~~Futures ~~certain~~Contracts ~~circumstances,~~and ~~the~~Position CEA grants shareholders the right to institute a reparations proceeding before the CFTC against USCF (as a registered commodity pool operator), as well as those of their respective employees who are required to be registered under the CEA. Shareholders may also be able to maintain a private right of action for certain violations of the CEA.Limits

~~Pursuant~~The ~~to authority in the CEA, the NFA has been formed and registered with the~~ CFTC ~~as a registered futures association. The NFA~~ is ~~the~~generally ~~only~~prohibited ~~self-regulatory~~by ~~association~~statute ~~for~~from ~~commodities~~regulating ~~professionals~~trading ~~other~~on ~~than~~non-U.S. ~~the~~futures exchanges. ~~As such, the NFA promulgates rules governing the conduct of commodity professionals~~ and ~~disciplines those professionals that do not comply with such standards~~markets. The CFTC, however, has ~~delegated~~adopted toregulations ~~the~~relating ~~NFA~~to ~~responsibility for~~ the ~~registration~~ marketing of ~~commodity pool operators~~non-U.S. ~~USCF~~futures iscontracts ain ~~member of~~ the ~~NFA~~United States. AsThese aregulations ~~member~~permit ofcertain ~~the~~contracts ~~NFA,~~on ~~USCF~~non-U.S. isexchanges ~~subject~~ to ~~NFA~~be ~~standards~~offered ~~relating~~and tosold ~~fair~~in ~~trade~~the ~~practices,~~United ~~financial condition, and consumer protection~~States.

30As discussed above, the CFTC has proposed to adopt limits on speculative positions in 25 physical commodity futures and option contracts as well as swaps that are economically equivalent to such contracts in the agriculture, energy and metals markets. The Position Limit Rules would, among other things: identify which contracts are subject to speculative position limits; set thresholds that restrict the size of speculative positions that a person may hold in the spot month, other individual months, and all months combined; create an exemption for positions that constitute bona fide hedging transactions; impose responsibilities on DCMs and SEFs to establish position limits or, in some cases, position accountability rules; and apply to both futures and swaps across four relevant venues: OTC, DCMs, SEFs as well as certain non-U.S. located platforms. The CFTC’s first attempt at finalizing the Position Limit Rules, in 2011, was successfully challenged by market participants in 2012 and, since then, the CFTC has re-proposed them and solicited comments from market participants multiple times. At this time, it is unclear how the Position Limit Rules may affect the Trust Series, but the effect may be substantial and adverse. By way of example, the Position Limit Rules may negatively impact the ability of a Trust Series to meet its investment objectives through limits that may inhibit USCF’s ability to sell additional Creation Baskets of a Trust Series. See "The Commodity Interest Markets-Commodities Regulation" in this annual report on Form 10-K for additional information.

~~The~~Until ~~CEA~~such ~~requires~~time ~~all~~as ~~FCMs,~~the ~~i.e.,~~Position ~~Trust Series’~~Limit ~~clearing brokers~~Rules are adopted, tothe ~~meet~~regulatory ~~and~~architecture ~~maintain~~in ~~specified~~effect ~~fitness~~prior ~~and financial requirements,~~ to ~~segregate~~the ~~customer~~adoption ~~funds from~~of ~~proprietary~~the ~~funds~~Position ~~and~~Limit ~~account~~Rules will ~~separately~~govern ~~for~~transactions in ~~all~~commodities ~~customers’ funds~~ and ~~positions,~~related ~~and~~derivatives. toUnder ~~maintain~~that ~~specified~~system, ~~books and records open to inspection by~~ the ~~staff of the~~ CFTC. ~~The~~enforces ~~CFTC~~federal ~~has~~limits ~~similar~~on ~~authority~~speculation ~~over~~in ~~introducing~~nine ~~brokers, or persons who solicit~~agricultural orproducts ~~accept~~(e.g., ~~orders~~corn, ~~for~~wheat ~~commodity~~and ~~interest~~soy), ~~trades~~while ~~but~~futures ~~who~~exchanges doestablish ~~not~~and ~~accept~~enforce ~~margin~~position ~~deposits~~limits ~~for~~and ~~the~~accountability ~~execution~~levels ~~of trades. The CEA authorizes~~for ~~the~~other ~~CFTC~~agricultural ~~to regulate trading by FCMs~~ products and bycertain ~~their~~energy ~~officers~~products ~~and directors~~(e.g., ~~permits~~oil ~~the~~and ~~CFTC~~natural togas). ~~require~~As ~~action~~a byresult, a ~~exchanges~~Trust ~~in the~~Series may ~~event~~be oflimited ~~market~~with ~~emergencies,~~respect ~~and~~to ~~establishes~~the ansize ~~administrative~~of ~~procedure~~its ~~under~~investments ~~which~~in ~~customers~~any ~~may~~commodities ~~institute~~subject ~~complaints~~to ~~for~~these ~~damages arising from alleged violations of the CEA~~limits.

~~The~~Under ~~regulations~~existing ofand ~~the~~recently adopted CFTC regulations, ~~and~~for the ~~NFA prohibit~~purpose ~~any~~of ~~representation~~position bylimits, a ~~person~~market ~~registered~~participant ~~with~~is ~~the~~generally ~~CFTC or by any member of the NFA~~required, ~~that~~subject ~~registration~~to ~~with~~certain ~~the~~narrow ~~CFTC~~exceptions, orto ~~membership~~aggregate inall ~~the~~positions ~~NFA,~~for inwhich ~~any~~that ~~respect~~participant ~~indicates~~controls ~~that~~ the ~~CFTC~~trading ordecisions ~~the~~with ~~NFA,~~all aspositions ~~the~~for ~~case~~which ~~may~~that ~~be,~~ participant has ~~approved~~a or10 ~~endorsed~~percent ~~that person~~ or ~~that~~greater ~~person’s~~ownership ~~trading~~interest ~~program~~in an account or ~~objectives.~~position, ~~The~~as ~~registrations~~well ~~and~~as ~~memberships~~the positions of ~~the~~two ~~parties~~or ~~described~~more inpersons ~~this~~acting ~~summary~~pursuant ~~must~~to ~~not~~an beexpress ~~considered~~or asimplied ~~constituting~~agreement ~~any~~or ~~such~~understanding ~~approval~~with orthat ~~endorsement~~participant. ~~Likewise,~~The noAggregation ~~futures~~Rules will ~~exchange~~also ~~has~~apply with ~~given~~respect orto ~~will give~~the ~~any~~Position ~~similar~~Limit ~~approval~~Rules if orand ~~endorsement~~when such Position Limit Rules are adopted.

CFTC regulations require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs for FCMs. These regulations are intended to afford greater assurances to market participants that customer segregated funds and secured amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are strengthened to safeguard the continued operations, and the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a thorough manner.31

~~Each~~Margin Trust Series’ investors are afforded prescribed rights for reparations under the CEA against USCF (as a registered commodity pool operator), as well as its respective employees who are required to be registered under the CEA. Investors may also be able to maintain a private right of action for violations of the CEA. The CFTC has adopted rules implementing the reparation provisions of the CEA, which provide that any person may file a complaint for a reparations award with the CFTC for violation of the CEA against a floor broker or an FCM, introducing broker, commodity trading advisor, CPO, and their respective associated persons.Requirements

~~The~~Futures ~~regulation of commodity interest trading in the United States~~ and ~~other~~Cleared countries is an evolving area of the law. Below are discussed several key regulatory items that are relevant to the Trust Series. The various statements made in this summary are subject to modification by legislative action and changes in the rules and regulations of the CFTC, the NFA, the futures exchanges, clearing organizations and other regulatory bodies. In addition, with regard to any other rules that the CFTC or SEC may adopt in the future, the effect of any such regulatory changes on a Trust Series is impossible to predict, but it could be substantial and adverse.Swaps

~~Futures~~Original ~~Contracts~~or initial margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and ~~Position~~maintain ~~Limits~~an open position in futures contracts. Maintenance margin is the amount (generally less than the original margin) to which a trader’s account may decline before he must deliver additional margin. A margin deposit is like a cash performance bond. It helps assure the trader’s performance of the futures contracts that he or she purchases or sells.

~~The~~Futures ~~CFTC~~contracts isare ~~generally~~customarily ~~prohibited~~bought and bysold ~~statute~~ on initial margin that represents a very small percentage (ranging upward from ~~regulating~~5%) ~~trading~~of onthe ~~non-U.S.~~aggregate ~~futures~~purchase ~~exchanges~~or ~~and~~sales price ~~markets~~of the contract. ~~The~~Because ~~CFTC,~~of ~~however~~such low margin requirements, ~~has~~price ~~adopted~~fluctuations ~~regulations~~occurring ~~relating~~in the futures markets may create profits and losses that, in relation to the ~~marketing~~ amount invested, are greater than are customary in other forms of ~~non-U~~investment or speculation.S. As ~~futures~~discussed ~~contracts~~below, adverse price changes in the ~~United~~futures ~~States.~~contract ~~These~~may ~~regulations~~result ~~permit~~in ~~certain~~margin ~~contracts~~requirements onthat ~~non-U~~greatly exceed the initial margin.S. ~~exchanges~~In addition, the amount of margin required in connection with a particular futures contract is set from time to betime ~~offered~~by the exchange on which the contract is traded and ~~sold~~may inbe modified from time to time by the ~~United~~exchange ~~States~~during the term of the contract.

AsBrokerage ~~discussed above~~firms, ~~the~~such ~~CFTC~~as ~~has~~the ~~proposed~~Trust Series’ toclearing ~~adopt~~brokers, ~~limits~~carrying onaccounts ~~speculative~~for ~~positions~~traders in ~~25 physical~~ commodity ~~futures~~interest ~~and option~~ contracts asmay ~~well~~not asaccept ~~swaps that are economically equivalent to such contracts in the agriculture~~lower, ~~energy~~ and ~~metals~~generally ~~markets.~~require ~~The Position Limit Rules would~~higher, ~~among other things:~~ ~~identify~~amounts ~~which contracts are subject to speculative position limits; set thresholds that restrict the size~~ of ~~speculative~~margin ~~positions that~~as a ~~person~~matter ~~may~~of ~~hold~~policy ~~in the spot month, other individual months, and all months combined; create an exemption for positions that constitute bona fide hedging transactions; impose responsibilities on DCMs and SEFs~~ to ~~establish~~further ~~position~~protect ~~limits or, in some cases, position accountability rules; and apply to both futures and swaps across four relevant venues: OTC, DCMs, SEFs as well as certain non-U~~themselves.S. ~~located platforms.~~ The ~~CFTC’s~~clearing ~~first~~brokers ~~attempt~~require ata ~~finalizing~~Trust ~~the~~Series to ~~Position Limit Rules, in 2011, was successfully challenged~~make bymargin ~~market~~deposits ~~participants~~equal into ~~2012~~exchange ~~and,~~minimum ~~since~~levels ~~then,~~for ~~the~~all ~~CFTC~~commodity ~~has~~interest ~~re-proposed them and solicited comments from market participants multiple times~~contracts. AtThis ~~this~~requirement ~~time, it is unclear how the Position Limit Rules~~ may ~~affect the Trust Series, but the effect may~~ be ~~substantial and~~altered ~~adverse.~~from ~~By way of example, the Position Limit Rules may negatively impact the ability of a Trust Series to meet its investment~~time ~~objectives through limits that may inhibit USCF’s ability~~ to ~~sell~~time ~~additional Creation Baskets of a Trust Series. See "The Commodity Interest Markets-Commodities Regulation"~~ in ~~this~~the ~~annual~~clearing ~~report~~brokers’ ~~on Form 10-K for additional information~~discretion.

~~Until~~Margin ~~such~~requirements ~~time~~are ascomputed ~~the~~each ~~Position Limit Rules~~day ~~are~~by ~~adopted,~~ the ~~regulatory~~relevant ~~architecture~~clearing inorganization ~~effect~~and ~~prior~~a totrader’s ~~the~~clearing ~~adoption~~broker. ofWhen the ~~Position~~market ~~Limit~~value ~~Rules~~of ~~will~~a ~~govern~~particular ~~transactions~~open incommodity ~~commodities~~interest ~~and~~position ~~related~~changes ~~derivatives.~~to ~~Under~~a ~~that~~point ~~system,~~where the ~~CFTC~~margin ~~enforces federal limits~~ on ~~speculation~~deposit indoes ~~nine~~not ~~agricultural~~satisfy ~~products (e.g.,~~maintenance ~~corn,~~margin ~~wheat and soy)~~requirements, ~~while~~a ~~futures~~margin ~~exchanges establish and enforce position limits and accountability levels for other~~call ~~agricultural~~is ~~products and~~made ~~certain~~by ~~energy~~the ~~products (e~~broker.~~g.,~~ ~~oil~~With ~~and~~respect ~~natural~~to ~~gas).~~trading Asby a ~~result~~Trust Series, a Trust Series (and ~~may~~not ~~be limited with respect to the size of~~ its ~~investments~~investors inpersonally) ~~any~~is ~~commodities~~ subject to ~~these~~margin ~~limits~~calls.

~~Under~~Finally, ~~existing~~many ~~and~~major ~~recently~~U.S. ~~adopted~~exchanges ~~CFTC~~have ~~regulations,~~passed ~~for~~certain ~~the~~cross ~~purpose~~margining ofarrangements ~~position~~involving ~~limits,~~procedures apursuant ~~market participant is generally required, subject~~ to ~~certain narrow exceptions, to aggregate all positions for~~ which ~~that participant controls~~ the ~~trading~~futures ~~decisions~~and ~~with~~options ~~all~~ positions ~~for~~held ~~which that participant has a 10 percent or greater ownership interest~~ in an account ~~or position~~would, asin ~~well as~~ the ~~positions~~case of ~~two~~some oraccounts, ~~more~~be ~~persons~~aggregated ~~acting pursuant~~and tomargin anrequirements ~~express~~would orbe ~~implied~~assessed ~~agreement~~on ora ~~understanding~~portfolio ~~with~~basis, ~~that participant. The Aggregation Rules will also apply with~~measuring ~~respect to~~ the ~~Position~~total ~~Limit~~risk ~~Rules~~of ifthe ~~and~~combined ~~when such Position Limit Rules are adopted~~positions.

31Options

~~Margin~~When ~~Requirements~~a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she may be required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest.

~~Futures~~OTC ~~and Cleared~~ Swaps

~~Original~~In orOctober 2015 ~~initial~~the ~~margin~~Office isof the ~~minimum~~ ~~amount~~Comptroller of ~~funds~~the ~~that~~Currency, ~~must~~the beBoard ~~deposited~~of byGovernors aof ~~commodity~~the ~~interest~~Federal ~~trader~~Reserve ~~with~~System, the ~~trader’s~~FDIC, ~~broker~~the toFarm ~~initiate~~Credit Administration, and the ~~maintain~~Federal ~~an open~~Housing ~~position~~Finance inAgency ~~futures~~(each ~~contracts.~~an ~~Maintenance~~“Agency” ~~margin~~and, iscollectively, the ~~amount~~“Agencies”) ~~(generally~~jointly ~~less~~adopted final ~~than~~rules to ~~the~~establish ~~original~~minimum margin) toand ~~which~~capital arequirements ~~trader’s account~~for ~~may~~registered ~~decline~~swap ~~before~~dealers, hemajor ~~must~~swap ~~deliver~~participants, ~~additional~~security-based swap ~~margin.~~dealers, Aand ~~margin~~major ~~deposit~~security-based isswap ~~like~~participants a(“Swap ~~cash~~Entities”) ~~performance~~that ~~bond.~~are Itsubject ~~helps~~to ~~assure~~ the ~~trader’s~~jurisdiction ~~performance~~of one of the ~~futures~~Agencies ~~contracts~~(such ~~that~~entities, he“Covered orSwap ~~she~~Entities”, ~~purchases~~and orthe ~~sells~~joint final rules, the “Final Margin Rules”).

~~Futures~~The ~~contracts~~Final ~~are~~Margin ~~customarily~~Rules will ~~bought~~subject non-cleared swaps and ~~sold~~non-cleared onsecurity-based ~~initial~~swaps ~~margin~~between ~~that~~Covered ~~represents~~Swap aEntities ~~very~~and ~~small~~Swap ~~percentage~~Entities, ~~(ranging~~and ~~upward~~between ~~from~~Covered ~~5%)~~Swap Entities ofand ~~the~~financial end users that have material swaps exposure (i.e., an average daily aggregate ~~purchase~~notional orof ~~sales~~$8 billion or ~~price~~more ofin non-cleared swaps calculated in accordance with the ~~contract~~Final Margin Rules), to a mandatory two-way minimum initial margin requirement. ~~Because~~The minimum amount of ~~such~~the ~~low~~initial margin ~~requirements,~~required ~~price~~to ~~fluctuations~~be ~~occurring~~posted inor ~~the~~collected ~~futures~~would ~~markets~~be ~~may~~either ~~create~~the amount calculated ~~profits~~by ~~and~~the ~~losses~~Covered ~~that,~~Swap inEntity ~~relation~~using a standardized schedule set forth as an appendix to the ~~amount~~Final ~~invested~~Margin Rules, ~~are~~which ~~greater~~provides ~~than~~the gross ~~are~~initial ~~customary~~margin in(as ~~other~~a ~~forms~~percentage of ~~investment~~total ornotional ~~speculation. As~~exposure) ~~discussed~~for ~~below~~certain asset classes, ~~adverse~~or ~~price~~an ~~changes~~internal inmargin ~~the~~model ~~futures~~of ~~contract~~the Covered ~~may~~Swap ~~result~~Entity inconforming ~~margin~~to the requirements of the Final Margin Rules that ~~greatly~~is ~~exceed~~approved by the ~~initial~~Agency having jurisdiction ~~margin~~over the particular Covered Swap Entity. InThe ~~addition,~~Final Margin Rules specify the ~~amount~~types of ~~margin~~collateral ~~required~~that inmay ~~connection~~be ~~with~~posted aor ~~particular~~collected as ~~futures~~initial ~~contract~~margin isfor ~~set~~non-cleared ~~from~~swaps ~~time~~and tonon-cleared ~~time~~security-based byswaps with financial end users (generally cash, certain ~~the~~government, ~~exchange~~government-sponsored onenterprise ~~which~~securities, ~~the~~certain ~~contract~~liquid isdebt, ~~traded~~certain ~~and~~equity ~~may~~securities, becertain ~~modified~~eligible ~~from~~publicly traded ~~time~~debt, toand ~~time~~gold); byand ~~the~~sets ~~exchange~~forth ~~during~~haircuts ~~the~~for ~~term~~certain ofcollateral ~~the~~asset ~~contract~~classes.

Brokerage firms, such as the Trust Series’ clearing brokers, carrying accounts for traders in commodity interest contracts may not accept lower, and generally require higher, amounts of margin as a matter of policy to further protect themselves. The clearing brokers require a Trust Series to make margin deposits equal to exchange minimum levels for all commodity interest contracts. This requirement may be altered from time to time in the clearing brokers’ discretion.32

The Final Margin ~~requirements~~Rules require ~~are~~minimum variation ~~computed~~margin ~~each~~to ~~day~~be exchanged daily for non-cleared swaps and non-cleared security-based swaps between Covered Swap Entities byand ~~the~~Swap ~~relevant~~Entities ~~clearing~~and ~~organization~~between Covered Swap Entities and aall ~~trader’s~~financial ~~clearing~~end-users ~~broker.~~(without ~~When~~regard to the ~~market~~swaps ~~value~~exposure of athe particular financial ~~open~~end-user). ~~commodity interest~~The ~~position~~minimum ~~changes~~variation margin amount is the daily mark-to-market achange ~~point~~in ~~where~~the value of the ~~margin~~swap onto ~~deposit~~the ~~does~~Covered Swap ~~not~~Entity, ~~satisfy~~taking ~~maintenance~~into account variation margin ~~requirements~~previously posted or collected. For non-cleared swaps and security-based swaps between Covered Swap Entities and financial end-users, avariation margin ~~call~~may be posted or collected in cash or non-cash collateral that is ~~made~~considered byeligible ~~the~~for ~~broker~~initial margin purposes. ~~With~~Variation ~~respect~~margin tois ~~trading~~not bysubject ato ~~Trust~~segregation ~~Series,~~with aan ~~Trust~~independent, ~~Series~~third-party custodian, (and ~~not~~may, ~~its~~if ~~investors~~permitted ~~personally)~~by iscontract, ~~subject to~~be ~~margin calls~~rehypothecated.

~~Finally~~The initial margin requirements of the Final Margin Rules are being phased in over time, ~~many~~and ~~major~~the ~~U.S.~~variation ~~exchanges~~margin ~~have~~requirements of the Final Margin Rules are ~~passed~~currently ~~certain~~in ~~cross~~effect. ~~margining~~Each ~~arrangements~~of ~~involving~~the ~~procedures~~Trust ~~pursuant~~Series is tonot ~~which~~a Covered Swap Entity under the ~~futures~~Final ~~and~~Margin ~~options~~Rules, ~~positions~~but ~~held~~it inis ana financial ~~account~~end-user. ~~would~~Accordingly, ineach of the ~~case~~Trust ofSeries is ~~some~~currently ~~accounts,~~subject beto ~~aggregated~~the ~~and~~variation margin requirements ~~would~~of bethe ~~assessed~~Final onMargin Rules. aHowever, ~~portfolio~~each ~~basis~~of the Trust Series does not have material swaps exposure and, ~~measuring~~ accordingly, will not be subject to the initial ~~total~~margin ~~risk~~requirements of the ~~combined~~Final ~~positions~~Margin Rules.

~~Options~~The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) required the CFTC and the SEC to adopt their own margin rules to apply to a limited number of registered swap dealers, security-based swap dealers, major swap participants, and major security-based swap participants that are not subject to the jurisdiction of one of the Agencies. On December 16, 2015, the CFTC finalized its margin rules, which are substantially the same as the Final Margin Rules and have the same implementation timeline. The SEC adopted margin rules for security-based swap dealers and major security-based swap participants on June 21, 2019. The SEC’s margin rules are generally aligned with the Final Margin Rules and the CFTC’s margin rules, but they differ in a few key respects relating to timing for compliance and the manner in which initial margin must be segregated. Trust Series do not currently engage in security-based swap transactions and, therefore, the SEC’s margin rules are not expected to apply to Trust Series.

~~When~~Mandatory aTrading trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she may be required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, inClearing ~~addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling~~ of ~~options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher~~ than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest.Swaps

CFTC regulations require that certain swap transactions be executed on organized exchanges or “swap execution facilities” and cleared through regulated clearing organizations (“derivative clearing organizations” (“DCOs”)), if the CFTC mandates the central clearing of a particular class of swap and such swap is “made available to trade” on a swap execution facility. Currently, swap dealers, major swap participants, commodity pools, certain private funds and entities predominantly engaged in activities that are financial in nature are required to execute on a swap execution facility, and clear, certain interest rate swaps and index-based credit default swaps. As a result, if a Trust Series enters into an interest rate or index-based credit default swaps that is subject to these requirements, such swap will be required to be executed on a swap execution facility and centrally cleared. Mandatory clearing and “made available to trade” determinations with respect to additional types of swaps are expected in the future, and, when finalized, could require a Trust Series to electronically execute and centrally clear certain OTC instruments ~~Swaps~~presently entered into and settled on a bi-lateral basis. If a swap is required to be cleared, initial and variation margin requirements are set by the relevant clearing organization, subject to certain regulatory requirements and guidelines. Additional margin may be required and held by the FCM of each Trust Series.

InOther ~~October~~Requirements 2015 the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the FDIC, the Farm Credit Administration, and the Federal Housing Finance Agency (each an “Agency” and, collectively, the “Agencies”) jointly adopted final rules to establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants (“Swap Entities”) that are subject to the jurisdiction of one of the Agencies (such entities, “Covered Swap Entities”, and the joint final rules, the “Final Margin Rules”).Swaps

~~The~~In ~~Final~~addition ~~Margin~~to ~~Rules~~the ~~will~~margin ~~subject non-cleared~~requirements ~~swaps~~described ~~and~~above, ~~non-cleared security-based~~ swaps ~~between Covered Swap Entities and Swap Entities, and between Covered Swap Entities and financial end users~~ that ~~have~~are ~~material~~not swaps exposure (i.e., an average daily aggregate notional of $8 billion or more in non-cleared swaps calculated in accordance with the Final Margin Rules), to a mandatory two-way minimum initial margin requirement. The minimum amount of the initial margin required to be ~~posted~~cleared orand ~~collected~~executed ~~would~~on bean ~~either~~SEF ~~the~~but ~~amount~~that ~~calculated~~are byexecuted ~~the~~bilaterally ~~Covered~~are ~~Swap~~also ~~Entity~~subject ~~using~~to avarious ~~standardized~~requirements ~~schedule~~pursuant ~~set forth as an appendix~~ to ~~the~~CFTC ~~Final~~regulations, ~~Margin Rules~~including, ~~which~~among ~~provides~~other ~~the gross initial margin (as a percentage of total notional exposure) for certain asset classes~~things, orreporting anand ~~internal~~recordkeeping ~~margin model of the Covered Swap Entity conforming to the~~ requirements ~~of the Final Margin Rules that is approved by the Agency having jurisdiction over the particular Covered Swap~~and, ~~Entity.~~depending ~~The~~on ~~Final Margin Rules specify~~ the ~~types~~status of ~~collateral~~the ~~that may be posted or collected as initial margin for non-cleared swaps and non-cleared security-based swaps with financial end users (generally cash~~counterparties, ~~certain~~trading ~~government,~~documentation ~~government-sponsored~~requirements ~~enterprise securities, certain liquid debt, certain equity securities, certain eligible publicly traded debt,~~ and ~~gold);~~dispute ~~and~~resolution ~~sets forth haircuts for certain collateral asset classes~~requirements.

32Derivatives Regulations in Non-U.S. Jurisdictions

~~The~~In ~~Final~~addition ~~Margin~~to ~~Rules~~U.S. ~~require~~laws ~~minimum~~and regulations, the ~~variation~~Trust ~~margin~~Series may to be ~~exchanged~~subject ~~daily~~to ~~for~~ non-~~cleared~~U.S. ~~swaps~~derivatives ~~and~~laws ~~non-cleared security-based swaps between Covered Swap Entities~~ and ~~Swap~~regulations ~~Entities~~if ~~and~~it ~~between~~engages ~~Covered~~in ~~Swap~~futures ~~Entities~~ and/or ~~all~~swap ~~financial end-users (without regard to the swaps exposure of the particular~~transactions ~~financial~~with ~~end~~non-~~user)~~U.S. ~~The~~persons. ~~minimum~~For ~~variation margin amount is~~ example, the ~~daily~~Trust ~~mark-to-market~~Series may ~~change~~be inimpacted ~~the~~by ~~value~~European oflaws ~~the~~and ~~swap~~regulations to the ~~Covered~~extent that ~~Swap~~it ~~Entity,~~engages ~~taking~~in ~~into~~futures ~~account~~transactions ~~variation~~on ~~margin~~European ~~previously~~exchanges ~~posted~~ or ~~collected.~~derivatives ~~For~~transactions ~~non-cleared~~with ~~swaps~~European ~~and~~entities. ~~security-based~~Other ~~swaps~~jurisdictions ~~between~~impose ~~Covered~~requirements ~~Swap~~applicable ~~Entities~~to futures and ~~financial~~derivatives ~~end-users, variation margin may be posted or collected in cash or non-cash collateral~~ that isare ~~considered~~similar ~~eligible~~to ~~for~~those ~~initial~~imposed ~~margin~~by ~~purposes~~the U.S., ~~Variation~~including ~~margin~~position ~~is not subject to segregation with an independent~~limits, ~~third-party~~ ~~custodian~~margin, clearing and ~~may,~~trade ifexecution ~~permitted by contract, be rehypothecated~~requirements.

~~The~~SEC initial margin requirements of the Final Margin Rules are being phased in over time, and the variation margin requirements of the Final Margin Rules are currently in effect. Each of the Trust Series is not a Covered Swap Entity under the Final Margin Rules, but it is a financial end-user. Accordingly, each of the Trust Series is currently subject to the variation margin requirements of the Final Margin Rules. However, each of the Trust Series does not have material swaps exposure and, accordingly, will not be subject to the initial margin requirements of the Final Margin Rules.Reports

The ~~Dodd-Frank~~Trust ~~Wall~~makes ~~Street~~available, ~~Reform~~free ~~and~~of ~~Consumer~~charge, ~~Protection~~on ~~Act~~its ~~(the~~website, ~~“Dodd-Frank~~its ~~Act”)~~annual ~~required~~reports ~~the~~on ~~CFTC~~Form 10-K, ~~and~~its ~~the~~quarterly ~~SEC~~reports toon ~~adopt their own margin rules to apply to a limited number of registered swap dealers, security~~Form 10-~~based swap dealers~~Q, ~~major~~its ~~swap~~current ~~participants,~~reports ~~and~~on ~~major security~~Form 8-~~based~~K and ~~swap~~amendments ~~participants that~~to ~~are~~these ~~not~~reports ~~subject~~filed toor ~~the~~furnished ~~jurisdiction~~pursuant ofto ~~one~~Section 13(a) or 15(d) of the ~~Agencies.~~Exchange OnAct ~~December~~as ~~16,~~soon as ~~2015,~~reasonably ~~the~~practicable ~~CFTC~~after ~~finalized~~these ~~its~~forms ~~margin rules, which~~ are ~~substantially~~filed ~~the~~with, ~~same~~or asfurnished to, the ~~Final~~SEC. ~~Margin~~These ~~Rules~~reports ~~and~~are ~~have~~also ~~the~~available ~~same~~from ~~implementation timeline. The~~ the SEC ~~has~~through ~~yet~~its towebsite ~~finalize~~at: ~~its margin rules~~www.sec.gov.

~~Mandatory~~CFTC ~~Trading and Clearing of Swaps~~Reports

~~CFTC~~The ~~regulations~~Trust ~~require that certain swap transactions be executed on organized exchanges or “swap execution facilities”~~ and ~~cleared~~its through regulated clearing organizations (“derivative clearing organizations” (“DCOs”)), if the CFTC mandates the central clearing of a particular class of swap and such swap is “made available to trade” on a swap execution facility. Currently, swap dealers, major swap participants, commodity pools, certain private funds and entities predominantly engaged in activities that are financial in nature are required to execute on a swap execution facility, and clear, certain interest rate swaps and index-based credit default swaps. As a result, if a Trust Series ~~enters into an interest rate or index-based credit default swaps that is subject~~ also tomakes ~~these requirements, such swap will be required to be executed on a swap execution facility and centrally cleared. Mandatory clearing and “made~~ available toits ~~trade”~~monthly ~~determinations~~reports ~~with respect to additional types of swaps are expected in the future,~~ and, ~~when~~its ~~finalized,~~annual ~~could~~reports ~~require a Trust Series to electronically execute and centrally clear certain OTC instruments presently entered into and settled on a bi-lateral basis. If a swap is~~ required to be ~~cleared,~~prepared ~~initial~~ and ~~variation~~filed ~~margin~~with ~~requirements are set by~~ the ~~relevant~~NFA ~~clearing~~under ~~organization, subject to certain regulatory requirements and guidelines. Additional margin may be required and held by~~ the ~~FCM~~CFTC ~~of each Trust Series~~regulations.

~~Other Requirements for Swaps~~33

InIntellectual addition to the margin requirements described above, swaps that are not required to be cleared and executed on an SEF but that are executed bilaterally are also subject to various requirements pursuant to CFTC regulations, including, among other things, reporting and recordkeeping requirements and, depending on the status of the counterparties, trading documentation requirements and dispute resolution requirements.Property

~~Derivatives~~USCF ~~Regulations~~owns trademark registrations for USCF (and Design) (U.S. Reg. No. 5127374) for “Fund investment services,” in ~~Non-~~use since April 10, 2016, USCF (U.S. ~~Jurisdictions~~Reg No. 5040755) for “Fund investment services,” in use since June 24, 2008, and INVEST IN WHAT’S REAL (U.S. Reg. No. 5450808) for “Fund investment services,” in use since April 2016 USCF relies upon these trademarks and service mark through which it markets its services and strives to build and maintain brand recognition in the market and among current and potential investors. So long as USCF continues to use these trademarks to identify its services, without challenge from any third party, and properly maintains and renews the trademark registrations under applicable laws, rules and regulations; it will continue to have indefinite protection for these trademarks under current laws, rules and regulations. USCF has been granted two patents Nos. 7,739,186 and 8,019,675, for systems and methods for an exchange traded fund (ETF) that tracks the price of one or more commodities.

InItem ~~addition to U~~1A.S. ~~laws~~Risk ~~and regulations, the Trust Series may be subject to non-U~~Factors.S. derivatives laws and regulations if it engages in futures and/or swap transactions with non-U.S. persons. For example, the Trust Series may be impacted by European laws and regulations to the extent that it engages in futures transactions on European exchanges or derivatives transactions with European entities. Other jurisdictions impose requirements applicable to futures and derivatives that are similar to those imposed by the U.S., including position limits, margin, clearing and trade execution requirements.

~~SEC~~The ~~Reports~~following risk factors should be read in connection with the other information included in this annual report on Form 10-K, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Trust‘s and Trust Series’ financial statements and the related notes.

~~The~~Risks ~~Trust~~Related ~~makes available, free of charge, on its website, its annual reports on Form 10-K, its quarterly reports on Form 10-Q, its current reports on Form 8-K and amendments~~ to ~~these~~Leveraged reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after these forms are filed with, or furnished to, the SEC. These reports are also available from the SEC through its website at: www.sec.gov.Investments

~~CFTC~~Due ~~Reports~~to the compounding of daily returns, each Fund’s returns over periods longer than a single day will likely differ in amount and possibly even direction from such Fund multiple times the benchmark return for the period.

The ~~Trust~~investment ~~and~~objective of each Fund was for the daily changes in percentage terms of its ~~Trust~~per ~~Series~~share ~~also~~NAV ~~makes~~to reflect, in the case of USOU, three times (3x) the daily change ~~available~~in percentage terms of the Benchmark Oil Futures Contract, and in the case of USOD, three times the inverse (-3x) of the daily change in percentage terms of the Benchmark Oil Futures Contract. Each Fund sought investment results for a single day only, as measured from NAV calculation time to NAV calculation time, and not for any other period. The return of each Fund for a period longer than a single day is the result of its ~~monthly~~return ~~reports~~for each day compounded over the period, and usually will differ from, in the case of USOU, three times (3x) the return of the Benchmark Oil Futures Contract for the same period, and in the case of USOD, three times the inverse (-3x) of the return of the Benchmark Oil Futures Contract for the same period. The Funds could lose money over time regardless of the performance of the Benchmark Oil Futures Contract, including as a result of daily rebalancing, the Benchmark Oil Futures Contract’s volatility, and compounding. Longer holding periods, higher volatility of the Benchmark Oil Futures Contract, inverse exposure in the case of USOD, and greater leverage each affect the impact of compounding on each Fund’s returns. Daily compounding of each Fund’s investment returns can dramatically and adversely affect its ~~annual~~longer-term performance ~~reports~~during ~~required~~periods toof high volatility. Volatility may be ~~prepared~~at ~~and~~least ~~filed~~as ~~with~~important to each Fund’s return for a period as the ~~NFA~~return ~~under~~of the ~~CFTC~~Benchmark ~~regulations~~Oil Futures Contract.

33The Funds uses leverage and should produce returns for a single day that are more volatile than that of the Benchmark Oil Futures Contract. For example, the return for a single day should be approximately three times as volatile for a single day as the return of a fund with an objective of matching, in the case of USOU, or inversely tracking, in the case of USOD, the performance of the Benchmark Oil Futures Contract. The Funds are not appropriate for all investors and present different risks than other funds. The Funds uses leverage and are riskier than similarly benchmarked exchange-traded funds that do not use leverage. An investor should only consider an investment in the Funds if he or she understands the consequences of seeking daily leveraged investment results, or the inverse thereof, for a single day. Daily objective leveraged funds or inverse leveraged funds, if used properly and in conjunction with the investor’s view on the future direction and volatility of the markets, can be useful tools for investors who want to manage their exposure to various markets and market segments and who are willing to monitor and/or periodically rebalance their portfolios. Shareholders who invest in the Funds should actively manage and monitor their investments, as frequently as daily.

~~Intellectual~~In ~~Property~~general, during periods of higher volatility for the Benchmark Oil Futures Contract, compounding will cause each Fund’s results for periods longer than a single day to be less than, in the case of USOU, three times (3x) the return of the Benchmark Oil Futures Contract, and in the case of USOD, three times the inverse (-3x) of the return of the Benchmark Oil Futures Contract. This effect becomes more pronounced as volatility increases. Conversely, in periods of lower volatility for the Benchmark Oil Futures Contract (particularly when combined with higher returns for the Benchmark Oil Futures Contract), each Fund’s returns over longer periods can be higher than, in the case of USOU, three times (3x) the return of the Benchmark Oil Futures Contract, or, in the case of USOD, three times the inverse (-3x) of the return of the Benchmark Oil Futures Contract. Actual results for a particular period, before fees and expenses, are also dependent on the magnitude of the return of the Benchmark Oil Futures Contract in addition to the volatility of the Benchmark Oil Futures Contract. The significance of these effects may be even greater with inverse leveraged funds, such as the Funds.

USCF owns trademark registrations for USCF (and Design) (U.S. Reg. No. 5127374) for “fund investment services,” in use since April 10, 2016, USCF (U.S. Reg No. 5040755) for “fund investment services,” in use since June 24, 2008, USCF UNITED STATES COMMODITY FUNDS LLC & Design (U.S. Reg. No. 4304004) for “fund investment services,” in use since June 24, 2008, and INVEST IN WHAT’S REAL (U.S. Reg. No. 5450808) for “fund investment services,” in use since April 2016 USCF relies upon these trademarks and service mark through which it markets its services and strives to build and maintain brand recognition in the market and among current and potential investors. So long as USCF continues to use these trademarks to identify its services, without challenge from any third party, and properly maintains and renews the trademark registrations under applicable laws, rules and regulations; it will continue to have indefinite protection for these trademarks under current laws, rules and regulations. USCF has been granted two patents Nos. 7,739,186 and 8,019,675, for systems and methods for an exchange traded fund (ETF) that tracks the price of one or more commodities.34

~~Item~~Intraday ~~1A.~~Price/Performance Risk ~~Factors.~~

~~The~~Each ~~following~~Fund ~~risk~~is ~~factors~~typically ~~should~~rebalanced beat or ~~read~~about inthe ~~connection~~time ~~with~~of its NAV calculation. As such, the ~~other~~intraday ~~information~~position ~~included~~of ineach ~~this~~Fund ~~annual~~will ~~report~~generally onbe ~~Form~~different 10from such Fund’s stated daily investment objective (i.e., -K3x). When shares are bought intraday, ~~including~~the ~~Management~~performance of each Fund’s ~~Discussion~~shares until ~~and~~such ~~Analysis~~Fund’s ofnext ~~Financial~~NAV ~~Condition~~calculation ~~and~~will ~~Results~~generally ofbe ~~Operations~~greater ~~and~~than ~~the~~or ~~Trust‘s~~less ~~and~~than ~~Trust~~such ~~Series~~Fund’s ~~financial~~stated ~~statements~~daily multiple for ~~and~~USOU ~~the~~or ~~related~~inverse ~~notes~~multiple for USOD.

~~Risks~~The ~~Related~~use toof ~~Leveraged~~leveraged ~~Investments~~or inverse leveraged positions could result in the total loss of an investor’s investment.

~~Due~~Each Fund utilizes leverage in seeking to ~~the~~achieve ~~compounding~~its ofinvestment ~~daily~~objective ~~returns, each~~and ~~Fund’s~~will ~~returns~~lose ~~over~~more ~~periods~~money ~~longer~~in ~~than~~market aenvironments ~~single~~adverse ~~day~~to ~~will~~its ~~likely~~respective ~~differ~~daily ininvestment objectives ~~amount~~than ~~and~~funds ~~possibly~~that ~~even~~do ~~direction~~not ~~from~~employ ~~such Fund~~leverage. ~~multiple~~The ~~times~~use ~~the~~of ~~benchmark~~leveraged ~~return~~positions ~~for~~could result in the ~~period~~total loss of an investor’s investment.

~~The~~For example, because the investment objective of ~~each~~the Fund is for the daily changes in percentage terms of its per share NAV to reflect three times (3x), in the case of USOU, or ~~three~~the ~~times~~inverse (-3x) ~~the daily change in percentage terms~~ of ~~the Benchmark Oil Futures Contract~~, ~~and~~ in the case of USOD, ~~three times~~ the ~~inverse (-3x) of the~~ daily change in percentage terms of the Benchmark Oil Futures Contract., ~~Each Fund seeks investment results for~~ a single -day ~~only, as~~ ~~measured~~movement ~~from~~in ~~NAV~~the ~~calculation~~Benchmark ~~time~~Oil toFutures ~~NAV~~Contract ~~calculation~~approaching ~~time,~~33% ~~and~~at ~~not for~~ any ~~other~~point ~~period.~~in ~~The~~the ~~return of each Fund for a period longer than a single~~ day iscould ~~the~~ result ofin ~~its return for each day compounded over~~ the ~~period,~~total ~~and~~loss ~~usually~~or ~~will differ from, in~~almost ~~the~~total ~~case~~loss of ~~USOU,~~an ~~three~~investor’s ~~times~~investment ~~(3x)~~if ~~the~~that ~~return~~movement ofis ~~the~~contrary ~~Benchmark~~to ~~Oil Futures Contract for~~ the ~~same~~investment ~~period,~~objective ~~and~~of in the ~~case~~applicable ~~of USOD~~Fund, even ~~three~~if ~~times~~ the ~~inverse (-3x) of the return of the~~ Benchmark Oil Futures Contract ~~for~~subsequently ~~the~~moves ~~same~~in ~~period.~~an ~~The~~opposite ~~Funds could lose money over time regardless of the performance of the Benchmark Oil Futures Contract~~direction, ~~including~~eliminating asall or a ~~result~~portion of ~~daily rebalancing,~~ the ~~Benchmark~~ ~~Oil Futures Contract’s volatility, and compounding~~movement. This ~~Longer~~would ~~holding~~be ~~periods, higher volatility of~~ the ~~Benchmark Oil~~case ~~Futures~~with ~~Contract~~downward, ~~inverse exposure~~ in the case of ~~USOD~~USOU, ~~and~~or ~~greater~~upward, ~~leverage~~in ~~each affect~~ the ~~impact~~case of ~~compounding~~USOD, onsingle-day ~~each Fund’s~~or ~~returns.~~intraday ~~Daily~~movements ~~compounding of each Fund’s investment returns can dramatically and adversely affect its longer-term~~in ~~performance~~the ~~during~~Benchmark ~~periods~~Oil ofFutures ~~high~~Contract, ~~volatility.~~even ~~Volatility~~if ~~may~~the beBenchmark atOil ~~least~~Futures asContract ~~important~~maintains ~~to each Fund’s return for~~ a ~~period as~~level ~~the~~greater ~~return~~than ofzero ~~the~~at ~~Benchmark~~all ~~Oil Futures Contract~~times.

~~The~~Investment Funds uses leverage and should produce returns for a single day that are more volatile than that of the Benchmark Oil Futures Contract. For example, the return for a single day should be approximately three times as volatile for a single day as the return of a fund with an objective of matching, in the case of USOU, or inversely tracking, in the case of USOD, the performance of the Benchmark Oil Futures Contract. The Funds are not appropriate for all investors and present different risks than other funds. The Funds uses leverage and are riskier than similarly benchmarked exchange-traded funds that do not use leverage. An investor should only consider an investment in the Funds if he or she understands the consequences of seeking daily leveraged investment results, or the inverse thereof, for a single day. Daily objective leveraged funds or inverse leveraged funds, if used properly and in conjunction with the investor’s view on the future direction and volatility of the markets, can be useful tools for investors who want to manage their exposure to various markets and market segments and who are willing to monitor and/or periodically rebalance their portfolios. Shareholders who invest in the Funds should actively manage and monitor their investments, as frequently as daily.Risk

InThe ~~general,~~NAV ~~during periods~~ of ~~higher volatility for~~ the ~~Benchmark Oil Futures Contract, compounding will cause each~~ Fund’s ~~results for periods longer than a single day to~~shares berelates ~~less~~directly ~~than,~~for ~~in the case of~~ USOU, ~~three times (3x) the return of the Benchmark Oil Futures Contract,~~ and ininversely ~~the~~for ~~case of~~ USOD~~, three~~ ~~times~~to the ~~inverse~~value ~~(-3x)~~ of the ~~return of the~~ Benchmark Oil Futures ~~Contract.~~Contracts ~~This~~and ~~effect~~other ~~becomes~~assets ~~more~~held ~~pronounced~~by ~~as volatility~~such ~~increases. Conversely, in periods of lower volatility for the Benchmark Oil Futures Contract (particularly when combined with higher returns for the Benchmark Oil Futures Contract), each~~ Fund’s returns over longer periods can be higher than, in the case of USOU, three times (3x) the return of the Benchmark Oil Futures Contract, or, in the case of USOD, three times the inverse (-3x) of the return of the Benchmark Oil Futures Contract. Actual results for a particular period, before fees and ~~expenses,~~fluctuations ~~are also dependent on the magnitude of the return of the Benchmark Oil Futures Contract~~ in ~~addition to~~ the ~~volatility~~prices of ~~the Benchmark Oil Futures Contract. The significance of~~ these ~~effects~~assets ~~may~~could bematerially ~~even~~adversely ~~greater~~affect ~~with~~an ~~inverse~~investment ~~leveraged~~in ~~funds,~~ such asFund’s ~~the Funds~~shares.

34The net assets of USOU consist primarily of investments in Oil Futures Contracts and, to a lesser extent, in Other Oil-Related Investments. The net assets of USOD consist primarily of short positions in Oil Futures Contracts and, to a lesser extent, in Other Oil-Related Investments. The NAV of each Fund’s shares relates directly to the value of these assets (less liabilities, including accrued but unpaid expenses), which in turn relates to the price of light, sweet crude oil in the marketplace. Crude oil prices depend on local, regional and global events or conditions that affect supply and demand for oil.

~~Intraday~~Economic ~~Price/Performance~~conditions impacting ~~Risk~~crude oil. The demand for crude oil correlates closely with general economic growth rates. The occurrence of recessions or other periods of low or negative economic growth will typically have a direct adverse impact on crude oil prices. Other factors that affect general economic conditions in the world or in a major region, such as changes in population growth rates, periods of civil unrest, government austerity programs, or currency exchange rate fluctuations, can also impact the demand for crude oil. Sovereign debt downgrades, defaults, inability to access debt markets due to credit or legal constraints, liquidity crises, the breakup or restructuring of fiscal, monetary, or political systems such as the European Union, and other events or conditions that impair the functioning of financial markets and institutions also may adversely impact the demand for crude oil.

~~Each~~Other ~~Fund~~crude oil isdemand-related ~~typically~~factors. ~~rebalanced~~Other atfactors ~~or about~~that may affect the ~~time~~demand offor ~~its~~crude ~~NAV~~oil ~~calculation.~~and Astherefore ~~such~~its price, ~~the~~include ~~intraday~~technological improvements ~~position~~in ofenergy ~~each~~efficiency; ~~Fund~~seasonal ~~will~~weather ~~generally~~patterns, bewhich ~~different~~affect ~~from~~the ~~such~~demand ~~Fund’s~~for crude oil associated with heating and ~~stated~~cooling; ~~daily~~increased ~~investment~~competitiveness ~~objective~~of ~~(i.e.,~~alternative ~~-3x).~~energy ~~When~~sources ~~shares~~that ~~are~~have ~~bought~~so ~~intraday,~~far ~~the~~generally ~~performance~~not ofbeen ~~each~~competitive ~~Fund’s~~with ~~shares~~oil ~~until~~without ~~such~~the ~~Fund’s~~benefit ~~next~~of ~~NAV~~government ~~calculation~~subsidies ~~will~~or ~~generally~~mandates; beand ~~greater~~changes ~~than~~in technology or ~~less~~consumer ~~than~~preferences ~~such~~that ~~Fund’s~~alter ~~stated~~fuel ~~daily~~choices, ~~multiple for~~such ~~USOU~~as ortoward ~~inverse~~alternative ~~multiple~~fueled ~~for USOD~~vehicles.

~~The~~Other ~~use~~crude oil supply-related factors. Crude oil prices also vary depending on a number of ~~leveraged~~factors oraffecting ~~inverse~~supply. ~~leveraged~~For example, ~~positions~~increased ~~could~~supply ~~result~~from the development of new oil supply sources and technologies to enhance recovery from existing sources tends to reduce crude oil prices to the extent such supply increases are not offset by commensurate growth in demand. Similarly, increases in industry refining or petrochemical manufacturing capacity may impact the ~~total~~supply ~~loss~~of crude oil. World oil supply levels can also be affected by factors that reduce available supplies, such as adherence by member countries to the OPEC production quotas and the occurrence of anwars, ~~investor~~hostile actions, natural disasters, disruptions in competitors’s ~~investment~~operations, or unexpected unavailability of distribution channels that may disrupt supplies. Technological change can also alter the relative costs for companies in the petroleum industry to find, produce, and refine oil and to manufacture petrochemicals, which in turn may affect the supply of and demand for oil.

~~Each~~Other ~~Fund~~factors impacting ~~utilizes~~the ~~leverage~~crude inoil ~~seeking to~~market. ~~achieve~~The ~~its~~supply ~~investment~~of ~~objective~~ and ~~will~~demand ~~lose~~for ~~more~~crude ~~money~~oil inmay ~~market~~also ~~environments~~be ~~adverse~~impacted toby ~~its~~changes ~~respective~~in ~~daily~~interest ~~investment~~rates, ~~objectives~~inflation, ~~than~~and ~~funds~~other ~~that~~local door ~~not~~regional ~~employ~~market ~~leverage.~~conditions, ~~The~~as ~~use~~well ofas ~~leveraged~~by ~~positions could result in~~ the ~~total~~development ~~loss~~ of analternative ~~investor’s investment~~energy sources.

~~For~~Price ~~example, because the investment objective~~Volatility ofMay Possibly ~~the~~Cause ~~Fund is for~~ the ~~daily~~Total ~~changes~~Loss ~~in percentage terms~~ of ~~its~~Your ~~per~~Investment. ~~share~~Futures ~~NAV~~contracts tohave ~~reflect~~a ~~three~~high ~~times~~degree ~~(3x), in the case~~ of ~~USOU, or~~price ~~the~~variability ~~inverse (-3x) of, in the case of USOD, the daily change in percentage terms of the Benchmark Oil Futures Contract, a single-day~~and ~~movement~~are insubject ~~the Benchmark Oil Futures Contract approaching 33% at any point in the day could result in the total loss or almost total loss of an investor’s investment if that movement is contrary~~ to ~~the~~occasional ~~investment~~rapid ~~objective~~and ofsubstantial ~~the~~changes. ~~applicable Fund~~Consequently, ~~even if~~you ~~the~~could ~~Benchmark~~lose ~~Oil Futures Contract subsequently moves in an opposite direction, eliminating~~ all or asubstantially ~~portion~~all of ~~the~~your ~~movement.~~investment ~~This would be the case with downward,~~ in the case of USOU, or upward, in the case of USOD, single-day or intraday movements in the Benchmark Oil Futures Contract, even if the Benchmark Oil Futures Contract maintains a level greater than zero at all timesFund.

~~Investment Risk~~35

~~The~~Changes ~~NAV of the Fund’s shares relates directly for USOU and inversely for USOD~~ to ~~the~~U.S. ~~value~~tariff ~~of the Benchmark Oil Futures Contracts~~ and ~~other assets held by such~~import/export ~~Fund~~regulations ~~and~~may ~~fluctuations~~have ina ~~the~~negative ~~prices~~effect ofon ~~these~~a ~~assets~~Trust ~~could materially adversely affect an investment in such Fund’s shares~~Series developments.

~~The~~There ~~net~~has ~~assets~~been ofongoing ~~USOU~~discussion ~~consist~~and ~~primarily~~commentary ofregarding ~~investments~~potential insignificant ~~Oil~~changes ~~Futures Contracts and,~~ to aU.S. ~~lesser~~trade ~~extent~~policies, intreaties ~~Other~~and ~~Oil-Related Investments~~tariffs. The ~~net~~current ~~assets~~U.S. ofpresidential ~~USOD consist~~administration, ~~primarily~~along ofwith ~~short~~the ~~positions~~U.S. inCongress, ~~Oil~~has ~~Futures~~created ~~Contracts~~significant ~~and,~~uncertainty toabout athe ~~lesser~~future ~~extent,~~relationship inbetween ~~Other~~the ~~Oil-Related~~United ~~Investments.~~States ~~The~~and ~~NAV~~other countries ofwith ~~each Fund’s~~respect ~~shares~~to ~~relates~~trade ~~directly~~policies, totreaties and tariffs. These developments, or the ~~value~~perception ofthat ~~these~~any ~~assets~~of ~~(less~~them ~~liabilities~~could occur, may ~~including~~have ~~accrued~~a ~~but~~material ~~unpaid~~adverse ~~expenses),~~effect ~~which in~~on ~~turn~~global ~~relates~~economic toconditions and the ~~price~~stability of ~~light,~~global ~~sweet~~ crude oil, ingenerally. ~~the~~Any ~~marketplace.~~of ~~Crude~~these factors ~~oil~~could ~~prices~~depress ~~depend~~economic activity and could have a material adverse effect on ~~local~~a Trust Series business, ~~regional~~financial condition and ~~global events~~results orof ~~conditions~~operations, ~~that~~which ~~affect~~in ~~supply~~turn ~~and~~would ~~demand~~negatively ~~for~~impact ~~oil~~Fund and its shareholders.

~~Economic~~Uncertainty ~~conditions impacting~~about ~~crude~~presidential ~~oil. The demand for crude oil correlates closely with general economic growth rates. The occurrence of~~administration ~~recessions~~initiatives orcould ~~other~~negatively ~~periods of low or negative economic growth will typically have a direct adverse~~ impact ~~on crude oil prices. Other factors that affect general economic conditions in the world or in~~ a ~~major~~Trust ~~region~~Series business, ~~such~~financial ascondition changes in population growth rates, periods of civil unrest, government austerity programs, or currency exchange rate fluctuations, can also impact the demand for crude oil. Sovereign debt downgrades, defaults, inability to access debt markets due to credit or legal constraints, liquidity crises, the breakup or restructuring of fiscal, monetary, or political systems such as the European Union, and ~~other~~results ~~events or conditions that impair the functioning~~ of ~~financial markets and institutions also may adversely impact the demand for crude oil~~operations.

~~Other~~The ~~crude~~current presidential administration ~~oil~~has ~~demand-related~~called ~~factors~~for significant changes to U.S. ~~Other~~trade, ~~factors~~healthcare, ~~that~~immigration, ~~may~~foreign ~~affect~~and ~~the~~government ~~demand~~regulatory ~~for~~policy. ~~crude~~Accordingly, there ~~oil~~is significant uncertainty with respect to legislation, regulation and ~~therefore~~government ~~its~~policy ~~price~~at the federal level, ~~include~~as ~~technological~~well as ~~improvements~~the state and local levels. Recent events have created heightened uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks. There has been a corresponding increase in ~~energy~~the ~~efficiency;~~uncertainty ~~seasonal~~surrounding ~~weather~~interest ~~patterns~~rates, ~~which~~inflation, ~~affect~~foreign exchange rates, trade volumes and fiscal and monetary policy. To the ~~demand~~extent ~~for~~the ~~crude~~U.S. ~~oil~~Congress ~~associated~~or ~~with~~the ~~heating~~current ~~and~~presidential administration ~~cooling;~~implements ~~increased~~changes ~~competitiveness~~to ofU.S. ~~alternative~~policy, ~~energy~~those ~~sources~~changes ~~that~~may ~~have~~impact, soamong ~~far~~other ~~generally~~things, ~~not~~the ~~been~~U.S. ~~competitive~~and ~~with~~global ~~oil~~economy, ~~without~~international trade and relations, unemployment, immigration, corporate taxes, healthcare, the ~~benefit~~U.S. ofregulatory ~~government~~environment, ~~subsidies~~inflation, orsupply ~~mandates;~~and demand for commodities (including crude oil), and ~~changes~~other inareas. ~~technology~~Although ora ~~consumer~~Trust ~~preferences~~Series cannot ~~that~~predict ~~alter~~the ~~fuel~~impact, ~~choices~~if any, ~~such~~of these aschanges ~~toward~~to ~~alternative~~a ~~fueled~~Trust ~~vehicles~~Series business, they could adversely affect a Trust Series business, financial condition, operating results and cash flows.

~~Other~~Economic ~~crude oil~~impacts ~~supply-related~~due ~~factors. Crude oil prices also vary depending on a number of factors affecting supply. For example, increased supply from the development of new oil supply sources and technologies~~ to ~~enhance recovery from existing sources tends to reduce crude oil prices to the extent such supply increases are not offset by commensurate growth in demand~~Brexit. Similarly, increases in industry refining or petrochemical manufacturing capacity may impact the supply of crude oil. World oil supply levels can also be affected by factors that reduce available supplies, such as adherence by member countries to the OPEC production quotas and the occurrence of wars, hostile actions, natural disasters, disruptions in competitors’ operations, or unexpected unavailability of distribution channels that may disrupt supplies. Technological change can also alter the relative costs for companies in the petroleum industry to find, produce, and refine oil and to manufacture petrochemicals, which in turn may affect the supply of and demand for oil.

~~Other~~In ~~factors~~June 2016, the United Kingdom held ~~impacting~~a referendum in which voters approved an exit from the ~~crude~~European ~~oil~~Union ~~market~~(“Brexit”) and, following the House of Commons having passed a Brexit deal on December 20, 2019, the U.K. formally left the European Union on January 31, 2020. The ~~supply~~U.K. ofis currently in a transition period until December 31, 2020, when agreements surrounding trade and ~~demand~~other ~~for~~aspects ~~crude~~of ~~oil~~the ~~may~~U.K.’s ~~also~~future relationship with the European Union will need to be ~~impacted~~finalized. byUntil ~~changes~~such inagreements ~~interest~~are ~~rates~~finalized, there will be political and ~~inflation,~~economic uncertainty in the United Kingdom and ~~other~~the ~~local~~European orUnion. ~~regional~~In ~~market~~addition, ~~conditions~~the fiscal and monetary policies of foreign nations, such as ~~well~~Russia asand byChina, may have a severe impact on the ~~development~~worldwide and U.S. commodity markets. Such disruptions could adversely impact the value of ~~alternative~~the ~~energy~~investments ~~sources~~of each Trust Series.

Price Volatility May Possibly Cause the Total Loss of Your Investment. Futures contracts have a high degree of price variability and are subject to occasional rapid and substantial changes. Consequently, you could lose all or substantially all of your investment in the Fund.36

35Because USCF anticipates it will “roll” a Trust Series’ positions in Oil Interests, it may be subject to the potential negative impact from rolling futures positions.

~~Because~~ USCF anticipates it will “roll” a Trust Series’ positions in Oil Interests and, itas a result, is subject to risks related to rolling. The contractual obligations of a buyer or seller holding a futures contract to expiration may generally be ~~subject~~satisfied by settling in cash as designated in the contract specifications. Alternatively, futures contracts may be closed out prior to expiration by making an offsetting sale or purchase of an identical futures contract on the ~~potential~~same ~~negative~~or ~~impact~~linked ~~from~~exchange before the designated date of settlement. Once this date is reached, the futures contract “expires.” As the futures contracts held by a Trust Series near expiration, they are generally closed out and replaced by contracts with a later expiration. This process is referred to as “rolling.” The Trust Series does not intend to hold futures contracts through expiration, but instead to “roll” its positions.

~~USCF~~When ~~anticipates~~the itmarket ~~will~~for ~~“roll”~~these contracts is asuch ~~Trust~~that ~~Series’~~the ~~positions~~prices are higher in ~~Oil~~the ~~Interests~~more ~~and,~~distant asdelivery amonths ~~result,~~than isin ~~subject~~the tonearer ~~risks~~delivery ~~related~~months, tothe ~~rolling.~~sale ~~The~~during ~~contractual~~the ~~obligations~~course of athe ~~buyer~~“rolling orprocess” ~~seller~~of ~~holding~~the amore ~~futures~~nearby contract towould ~~expiration~~take ~~may~~place ~~generally~~at bea ~~satisfied~~price bythat ~~settling~~is inlower ~~cash~~than asthe ~~designated~~price inof the ~~contract~~more ~~specifications~~distant contract. ~~Alternatively,~~This ~~futures~~pattern ~~contracts~~of ~~may~~higher befutures ~~closed~~prices ~~out~~for ~~prior~~longer to expiration byfutures ~~making~~contracts anis ~~offsetting~~often ~~sale~~referred orto as “contango.” ~~purchase~~Alternatively, ofwhen anthe ~~identical~~market ~~futures~~for ~~contract~~these oncontracts ~~the~~is ~~same~~such orthat ~~linked~~the ~~exchange~~prices ~~before~~are higher in the ~~designated~~nearer ~~date~~months ofthan ~~settlement.~~in ~~Once~~the ~~this~~more ~~date~~distant ~~is reached~~months, the ~~futures~~sale ~~contract~~during ~~“expires.”~~the Ascourse of the ~~futures~~“rolling ~~contracts~~process” ~~held~~of bythe amore ~~Trust~~nearby ~~Series~~contract ~~near~~would ~~expiration,~~take ~~they~~place ~~are~~at a price ~~generally~~that ~~closed~~is ~~out~~higher ~~and~~than ~~replaced~~the byprice ~~contracts~~of ~~with~~the amore ~~later~~distant ~~expiration~~contract. This ~~process~~pattern isof ~~referred~~higher tofutures asprices ~~“rolling.”~~for ~~The Trust~~shorter ~~Series~~expiration ~~does not intend to hold~~ futures contracts ~~through~~is ~~expiration,~~referred ~~but instead~~ to ~~“roll”~~as ~~its positions~~“backwardation.”

~~When~~The ~~the~~presence ~~market~~of ~~for~~contango ~~these~~in ~~contracts~~certain isfutures ~~such~~contracts ~~that~~at the ~~prices~~time ~~are~~of ~~higher~~rolling inwould ~~the~~be ~~more~~expected ~~distant~~to ~~delivery~~adversely ~~months~~affect ~~than~~a inTrust ~~the~~Series’ ~~nearer~~long ~~delivery months~~positions, ~~the~~and ~~sale~~positively ~~during the course~~affect ~~of the “rolling process” of the more nearby contract would take place at~~ a ~~price~~Trust ~~that~~Series’ isshort ~~lower~~positions. ~~than~~Similarly, the ~~price~~presence of ~~the more~~backwardation ~~distant~~in ~~contract.~~certain ~~This pattern of higher~~ futures ~~prices for longer expiration futures~~ contracts isat ~~often referred to as “contango.” Alternatively, when~~ the ~~market~~time ~~for these contracts is such that the prices are higher in the nearer months than in the more distant months, the sale during the course~~ of ~~the “~~rolling such ~~process”~~contracts ofwould ~~the~~be ~~more~~expected ~~nearby~~to ~~contract~~adversely ~~would~~affect ~~take place at~~ a ~~price that~~Trust isSeries’ ~~higher~~short ~~than~~positions ~~the~~and ~~price~~positively ofaffect ~~the~~a ~~more~~Trust ~~distant contract. This pattern of higher futures prices for shorter expiration futures~~Series’ ~~contracts~~long ~~is referred to as “backwardation~~positions.”

~~The~~There ~~presence~~have ofbeen ~~contango~~extended periods in ~~certain futures~~which ~~contracts~~contango ator ~~the~~backwardation ~~time~~has ofexisted ~~rolling~~in ~~would~~the befutures ~~expected~~contract tomarkets ~~adversely~~for ~~affect~~various atypes ~~Trust~~of ~~Series’~~futures ~~long positions~~contracts, and ~~positively~~such ~~affect~~periods acan ~~Trust~~be ~~Series’~~expected ~~short~~to ~~positions.~~occur ~~Similarly,~~in the ~~presence~~future. ofThese ~~backwardation~~extended periods have in ~~certain~~the ~~futures~~past ~~contracts~~and atcan in the ~~time~~future ofcause ~~rolling~~significant losses ~~such~~for ~~contracts~~a ~~would~~Trust beSeries, ~~expected~~and tothe ~~adversely~~periods ~~affect~~can ahave ~~Trust~~as ~~Series’~~much ~~short~~or ~~positions~~more ~~and~~impact ~~positively~~over ~~affect~~time athan movements in the level of Trust Series’ ~~long~~Benchmark ~~positions~~Oil Futures Contract.

~~There~~An ~~have~~investment ~~been~~in ~~extended~~a ~~periods~~Fund inmay ~~which~~provide ~~contango~~little or ~~backwardation~~no ~~has~~diversification ~~existed~~benefits. ~~in the futures contract markets for various types of futures contracts~~Thus, ~~and such periods can be expected to occur~~ in ~~the~~a ~~future.~~declining ~~These~~market, ~~extended~~a ~~periods~~Fund may have inno ~~the~~gains ~~past~~to ~~and~~offset ~~can in the future cause significant~~ losses ~~for~~ afrom ~~Trust~~other ~~Series~~investments, and ~~the~~an ~~periods~~investor ~~can~~may ~~have~~suffer aslosses ~~much~~on oran ~~more~~investment ~~impact~~in ~~over~~a ~~time~~Fund ~~than~~while ~~movements~~incurring inlosses ~~the~~with ~~level~~respect ofto ~~Trust~~other ~~Series’ Benchmark~~asset ~~Oil Futures Contract~~classes.

AnHistorically, ~~investment~~Oil inFutures aContracts ~~Fund~~and Other ~~may~~Oil-Related ~~provide little~~Investments orhave nogenerally ~~diversification~~been ~~benefits.~~non-correlated ~~Thus,~~to inthe aperformance ~~declining~~of ~~market,~~other aasset ~~Fund~~classes ~~may~~such ~~have~~as nostocks ~~gains~~and tobonds. Non-correlation ~~offset~~means ~~losses~~that ~~from~~there ~~other~~is ~~investments, and~~a anlow ~~investor~~statistically ~~may~~valid ~~suffer~~relationship ~~losses~~between onthe anperformance ~~investment~~of infutures aand ~~Fund~~other ~~while~~commodity interest ~~incurring~~transactions, ~~losses~~on ~~with~~the ~~respect~~one tohand, ~~other~~and ~~asset~~stocks ~~classes~~or bonds, on the other hand.

~~Historically~~However, ~~Oil~~there ~~Futures~~can ~~Contracts~~be ~~and~~no assurance that ~~Other~~such ~~Oil~~non-~~Related~~correlation ~~Investments~~will ~~have~~continue ~~generally~~during ~~been~~future ~~non-correlated~~periods. If, contrary to ~~the~~historic patterns, a Fund’s performance ofwere ~~other~~to move ~~asset~~in ~~classes~~the ~~such~~same general direction as ~~stocks~~the ~~and~~financial ~~bonds.~~markets, investors will obtain little or no diversification benefits from an ~~Non-correlation~~investment ~~means~~in ~~that~~such ~~there~~Fund’s isshares. In such a ~~low~~case, ~~statistically~~a ~~valid~~Fund ~~relationship~~may ~~between~~have ~~the~~no ~~performance~~gains ofto ~~futures~~offset ~~and~~losses from other ~~commodity~~investments, and investors ~~interest~~may ~~transactions,~~suffer losses on their investment in such Fund at the ~~one~~same ~~hand,~~time ~~and~~they ~~stocks~~incur orlosses ~~bonds,~~with onrespect ~~the~~to other ~~hand~~investments.

~~However,~~Variables ~~there can be no assurance that~~ such ~~non-correlation~~as ~~will continue during future periods. If~~drought, ~~contrary to historic patterns~~floods, ~~a Fund’s performance were to~~weather, ~~move~~embargoes, intariffs ~~the~~and ~~same~~other ~~general~~political ~~direction~~events asmay ~~the~~have ~~financial~~a ~~markets,~~larger ~~investors~~impact ~~will~~on ~~obtain~~crude ~~little~~oil orprices noand ~~diversification~~crude ~~benefits~~oil-linked ~~from~~instruments, anincluding ~~investment~~Oil inFutures ~~such~~Contracts ~~Fund’s~~and ~~shares.~~Other InOil-Related ~~such a case~~Investments, athan ~~Fund~~on ~~may~~traditional ~~have~~securities. noThese ~~gains~~additional tovariables ~~offset~~may ~~losses from other investments, and investors~~create ~~may~~additional ~~suffer losses on their~~ investment inrisks ~~such~~that ~~Fund~~subject at the ~~same~~Fund’s ~~time~~investments ~~they~~to ~~incur~~greater ~~losses~~volatility ~~with~~than ~~respect~~investments toin ~~other~~traditional ~~investments~~securities.

~~Variables~~Non-correlation ~~such~~should asnot ~~drought,~~be ~~floods,~~confused with ~~weather~~negative correlation, ~~embargoes,~~ ~~tariffs~~where ~~and~~the performance of two asset classes would be opposite of each other. ~~political~~There ~~events~~is ~~may~~no ~~have~~historical aevidence that ~~larger~~the ~~impact~~spot onprice of crude oil and prices ~~and~~of ~~crude~~other ~~oil-linked~~financial ~~instruments~~assets, ~~including Oil~~such ~~Futures~~as ~~Contracts~~stocks and ~~Other~~bonds, ~~Oil-Related~~are ~~Investments~~negatively correlated. In the absence of negative correlation, ~~than~~a onFund ~~traditional~~cannot ~~securities.~~be ~~These~~expected ~~additional~~to ~~variables~~be ~~may~~automatically ~~create~~profitable during unfavorable periods in the ~~additional~~case ~~investment~~of ~~risks~~USOU ~~that~~or ~~subject~~favorable periods in the ~~Fund’s~~case ~~investments~~of toUSOD ~~greater~~for ~~volatility~~the ~~than~~stock ~~investments~~market, inor ~~traditional~~vice ~~securities~~versa.

~~Non-correlation~~Historical ~~should not be confused with negative correlation, where the~~ performance of ~~two~~a ~~asset classes would be opposite of each other. There is no historical evidence~~Trust ~~that the spot price of crude oil~~ Series and ~~prices of other financial assets, such as stocks and bonds, are negatively correlated. In~~ the ~~absence~~Benchmark ofOil ~~negative~~Futures ~~correlation,~~Contract ais ~~Fund~~not ~~cannot~~indicative ~~be expected to be automatically profitable during unfavorable periods in the case~~ of ~~USOU~~future ~~or favorable periods in the case of USOD for the stock market, or vice versa~~performance.

~~Historical~~Past performance of a Trust ~~Series~~ ~~and~~ Series or the Benchmark Oil Futures Contract is not necessarily indicative of future results. Therefore, past performance of a Trust Series or the Benchmark Oil Futures Contract should not be relied upon in deciding whether to buy shares of a Trust Series.

Past performance of a Trust Series or the Benchmark Oil Futures Contract is not necessarily indicative of future results. Therefore, past performance of a Trust Series or the Benchmark Oil Futures Contract should not be relied upon in deciding whether to buy shares of a Trust Series.37

36Correlation Risk

~~Correlation~~Investors ~~Risk~~purchasing shares to hedge against movements in the price of crude oil will have an efficient hedge only if the price investors pay for their shares closely correlates, in the case of USOU and, closely correlates on an inverse basis, in the case of USOD, with the price of crude oil. Investing in each Fund’s shares for hedging purposes involves the following risks:

~~Investors~~· ~~purchasing~~The ~~shares~~market ~~to hedge against movements in the~~ price ofat ~~crude~~which ~~oil will have an efficient hedge only if~~ the ~~price~~investor ~~investors~~buys ~~pay~~or ~~for~~sells ~~their~~ shares ~~closely~~may ~~correlates, in~~be ~~the~~significantly ~~case~~less ofor ~~USOU~~more ~~and,~~than ~~closely correlates on an inverse basis, in the case of USOD, with the price of crude oil~~NAV. ~~Investing in each Fund’s shares for hedging purposes involves the following risks:~~

· ~~The~~Daily ~~market~~percentage ~~price~~changes atin ~~which~~NAV ~~the~~may ~~investor~~not ~~buys~~closely orcorrelate ~~sells~~with ~~shares~~daily ~~may~~percentage bechanges, ~~significantly~~on ~~less~~a orleveraged ~~more~~basis ~~than~~for ~~NAV~~USOU, and on an inverse leveraged basis for USOD, in the price of the Benchmark Oil Futures Contract.

· Daily percentage changes in ~~NAV~~the price of the Benchmark Oil Futures Contract may not closely correlate with daily percentage changes, ~~on a leveraged basis for USOU, and on an inverse leveraged basis for USOD,~~ in the price of ~~the~~light, ~~Benchmark~~sweet ~~Oil~~crude ~~Futures Contract~~oil.

·Further, ~~Daily~~in ~~percentage~~order ~~changes~~to inachieve ~~the~~a ~~price~~high degree of correlation or inverse correlation, as applicable, with the Benchmark Oil Futures Contract, each Fund seeks to rebalance its portfolios daily to keep exposure consistent with its investment objectives. Being materially under- or overexposed to the Benchmark Oil Futures Contract may ~~not~~prevent ~~closely~~such ~~correlate~~Fund from achieving a high degree of correlation or inverse correlation, as applicable, with the ~~daily~~Benchmark ~~percentage~~Oil ~~changes~~Futures inContract. Market disruptions or closures, large amounts of assets into or out of a Fund, regulatory restrictions or extreme market volatility will adversely affect such Fund’s ability to adjust exposure to requisite levels. The target amount of portfolio exposure is impacted dynamically by the ~~price~~Benchmark Oil Futures Contract’s movements during each day. Because of ~~light~~this, ~~sweet~~it ~~crude~~is ~~oil~~unlikely that a Fund will be perfectly exposed (i.e., 3x or -3x, as applicable) at the end of each day, and the likelihood of being materially under or overexposed is higher on days when the benchmark levels are volatile near the close of the trading day.

~~Further~~In addition, inunlike ~~order~~other tofunds ~~achieve~~that ~~a high degree~~do ofnot ~~correlation~~rebalance ortheir ~~inverse~~portfolios ~~correlation,~~ as ~~applicable~~frequently, ~~with~~ the ~~Benchmark~~Funds ~~Oil~~may ~~Futures~~be ~~Contract,~~subject ~~each Fund seeks~~ to ~~rebalance~~increased ~~its portfolios~~trading ~~daily~~costs toassociated ~~keep exposure consistent~~ with ~~its~~daily ~~investment~~portfolio rebalancing ~~objectives.~~in ~~Being~~order ~~materially~~to ~~under-~~maintain orappropriate ~~overexposed~~exposure to the ~~Benchmark Oil~~underlying ~~Futures Contract may prevent such Fund from achieving a high degree of correlation or inverse correlation, as applicable, with the Benchmark Oil Futures Contract~~benchmarks. ~~Market~~Such ~~disruptions~~costs orinclude ~~closures,~~commissions ~~large~~paid ~~amounts of assets into or out of a Fund, regulatory restrictions or extreme market volatility will adversely affect such Fund’s ability~~ to ~~adjust exposure to requisite levels. The target amount of portfolio exposure is impacted dynamically by~~ the ~~Benchmark Oil Futures Contract’s movements during each day. Because~~ ~~of this~~FCMs, ~~it is unlikely that a Fund will be perfectly exposed (i.e., 3x or -3x, as applicable) at the end of each day,~~ and ~~the likelihood~~may ofvary ~~being~~by ~~materially under or overexposed is higher on days when the benchmark levels are volatile near the close of the trading day~~FCM.

InThe ~~addition,~~market ~~unlike~~price ~~other~~at ~~funds~~which ~~that do~~investors ~~not~~buy ~~rebalance~~or ~~their~~sell ~~portfolios~~shares ~~as frequently, the Funds~~ may be ~~subject~~significantly toless ~~increased~~or ~~trading~~more ~~costs~~than ~~associated with daily portfolio rebalancing in order to maintain appropriate exposure to the underlying benchmarks~~NAV. ~~Such costs include commissions paid to the FCMs, and may vary by FCM.~~

~~The~~Each Fund’s NAV per share will change throughout the day as fluctuations occur in the market ~~price~~value of such Fund’s portfolio investments. The public trading price at which ~~investors buy~~an investor buys or ~~sell~~sells shares during the day from their broker may be ~~significantly~~different ~~less~~from orthe ~~more~~NAV ~~than~~of the shares. Price differences may relate primarily to supply and demand forces at work in the secondary trading market for shares that are closely related to, but not identical to, the same forces influencing the prices of the light, sweet crude oil and the Benchmark Oil Futures Contract at any point in time. USCF expects that exploitation of certain arbitrage opportunities by Authorized Participants and their clients and customers will tend to cause the public trading price to track NAV per share closely over time, but there can be no assurance of that.

~~Each~~The ~~Fund’s~~ NAV ~~per~~of ~~share~~each ~~will~~Fund’s ~~change~~shares may ~~throughout~~also ~~the~~be ~~day~~influenced asby ~~fluctuations~~non-concurrent ~~occur~~trading inhours between the ~~market~~NYSE ~~value~~Arca ofand ~~such~~the ~~Fund’s~~various ~~portfolio~~futures ~~investments.~~exchanges ~~The~~on ~~public trading price at~~ which ancrude ~~investor~~oil ~~buys~~is traded. orWhile ~~sells~~the shares ~~during~~trade on the ~~day~~NYSE Arca from ~~their~~9:30 ~~broker~~a.m. to ~~may~~4:00 bep.m. Eastern ~~different~~Time, ~~from~~ the ~~NAV~~trading ofhours for the ~~shares. Price differences~~futures ~~may~~exchanges ~~relate~~on ~~primarily~~which tolight, ~~supply~~sweet ~~and~~crude ~~demand~~oil ~~forces~~trade atmay ~~work~~not innecessarily ~~the~~coincide ~~secondary~~during ~~trading~~all ~~market~~of ~~for~~this ~~shares~~time. ~~that~~For ~~are~~example, ~~closely~~while ~~related~~the ~~to,~~shares ~~but~~trade ~~not~~on ~~identical~~the ~~to,~~NYSE ~~the~~Arca ~~same~~until ~~forces~~4:00 ~~influencing~~p.m. Eastern ~~the~~Time, ~~prices~~liquidity ofin the global light, sweet crude ~~oil~~market ~~and~~will be reduced after the ~~Benchmark~~close ~~Oil~~of ~~Futures~~the ~~Contract~~ NYMEX at ~~any~~2:30 ~~point~~p.m. Eastern ~~in time~~Time. ~~USCF~~As ~~expects~~a ~~that~~result, ~~exploitation~~during ofperiods ~~certain~~when ~~arbitrage~~the ~~opportunities~~NYSE byArca ~~Authorized~~is ~~Participants~~open and ~~their~~the ~~clients~~futures exchanges ~~and~~on ~~customers~~which ~~will~~light, ~~tend~~sweet tocrude ~~cause~~oil ~~the~~is ~~public~~traded are closed, trading ~~price~~spreads toand ~~track~~the ~~NAV~~resulting ~~per~~premium ~~share~~or ~~closely~~discount ~~over~~on ~~time~~the shares may widen and, ~~but~~therefore, ~~there~~increase ~~can~~the bedifference nobetween ~~assurance~~ the price of ~~that~~the shares and the NAV of the shares.

~~The~~Daily ~~NAV~~percentage ofchanges ~~each~~in each Fund’s ~~shares~~NAV may ~~also~~ benot ~~influenced~~correlate bywith ~~non-concurrent~~daily ~~trading~~percentage ~~hours between the NYSE Arca and the various futures exchanges on which crude oil is traded. While the shares trade on the NYSE Arca from 9:30 a.m. to 4:00 p.m. Eastern Time~~changes, ~~the trading hours for the futures exchanges~~ on ~~which light~~leveraged, ~~sweet~~or ~~crude~~an ~~oil~~inverse ~~trade~~leveraged ~~may not necessarily coincide during all of this time. For example~~basis, ~~while~~as ~~the shares trade on the NYSE Arca until 4:00 p.m. Eastern Time~~applicable, ~~liquidity~~ in ~~the global light sweet crude market will be reduced after the close~~ of the NYMEX at 2:30 p.m. Eastern Time. As a result, during periods when the NYSE Arca is open and the futures exchanges on which light, sweet crude oil is traded are closed, trading spreads and the resulting premium or discount on the shares may widen and, therefore, increase the difference between the price of the ~~shares~~Benchmark ~~and~~Oil ~~the~~Futures ~~NAV of the shares~~Contract.

~~Daily~~It ~~percentage~~is possible that the daily percentage changes in each Fund’s NAV per share may not ~~correlate~~closely ~~with daily percentage changes~~correlate, on leveraged, or an inverse leveraged basis, as applicable, to daily percentage changes in the price of the Benchmark Oil Futures Contract. Non-correlation may be attributable to disruptions in the market for light, sweet crude oil, the imposition of position or accountability limits by regulators or exchanges, or other extraordinary circumstances. As each Fund approaches or reaches position limits with respect to the Benchmark Oil Futures Contract and other Oil Futures Contracts or in view of market conditions, such Fund may begin investing in Other Oil-Related Investments. In addition, the Funds are not able to replicate exactly the changes in the price of the Benchmark Oil Futures Contract because the total return generated by the Funds are reduced by expenses and transaction costs, including those incurred in connection with each Fund’s trading activities, and increased by interest income from each Fund’s holdings of Treasuries (defined below). Tracking the Benchmark Oil Futures Contract for USOU requires trading of its portfolio with a view to tracking the Benchmark Oil Futures Contract over time and is dependent upon the skills of USCF and its trading principals, among other factors. Similarly, tracking the inverse of the Benchmark Oil Futures Contract for USOD requires trading of its portfolio with a view to tracking the inverse of the Benchmark Oil Futures Contract over time and is dependent upon the skills of USCF and its trading principals, among other factors.

It is possible that the daily percentage changes in each Fund’s NAV per share may not closely correlate, on leveraged or an inverse leveraged basis, as applicable, to daily percentage changes in the price of the Benchmark Oil Futures Contract. Non-correlation may be attributable to disruptions in the market for light, sweet crude oil, the imposition of position or accountability limits by regulators or exchanges, or other extraordinary circumstances. As each Fund approaches or reaches position limits with respect to the Benchmark Oil Futures Contract and other Oil Futures Contracts or in view of market conditions, such Fund may begin investing in Other Oil-Related Investments. In addition, the Funds are not able to replicate exactly the changes in the price of the Benchmark Oil Futures Contract because the total return generated by the Funds are reduced by expenses and transaction costs, including those incurred in connection with each Fund’s trading activities, and increased by interest income from each Fund’s holdings of Treasuries (defined below). Tracking the Benchmark Oil Futures Contract for USOU requires trading of its portfolio with a view to tracking the Benchmark Oil Futures Contract over time and is dependent upon the skills of USCF and its trading principals, among other factors. Similarly, tracking the inverse of the Benchmark Oil Futures Contract for USOD requires trading of its portfolio with a view to tracking the inverse of the Benchmark Oil Futures Contract over time and is dependent upon the skills of USCF and its trading principals, among other factors.38

37Daily percentage changes in the price of the Benchmark Oil Futures Contract may not correlate with daily percentage changes in the spot price of light, sweet crude oil.

~~Daily~~The ~~percentage~~correlation between changes in ~~the price~~prices of the Benchmark Oil Futures Contract and the spot price of crude oil may ~~not~~at ~~correlate~~times ~~with~~be ~~daily~~only ~~percentage~~approximate. ~~changes~~The degree of imperfection of correlation depends upon circumstances such as variations in the ~~spot~~speculative ~~price~~oil market, supply of ~~light~~and demand for Oil Futures Contracts (including the Benchmark Oil Futures Contract) and Other Oil-Related Investments, ~~sweet~~and ~~crude~~technical influences in oil futures trading.

~~The~~Natural ~~correlation~~forces ~~between changes~~ in ~~prices of~~ the ~~Benchmark Oil Futures Contract and the spot price of crude~~ oil ~~may at times be only approximate. The degree of imperfection~~futures ofmarket ~~correlation~~known ~~depends upon circumstances such~~ as ~~variations~~“backwardation” ~~in the speculative oil market, supply of~~ and ~~demand~~“contango” ~~for~~may ~~Oil~~increase ~~Futures Contracts (including~~ the ~~Benchmark~~Fund’s ~~Oil~~tracking ~~Futures~~error ~~Contract)~~ and/or ~~Other~~negatively impact ~~Oil-Related~~total ~~Investments, and technical influences in oil futures trading~~return.

~~Natural~~The ~~forces~~design inof each Fund’s Benchmark Oil Futures Contract is such that every month it begins by using the near month contract to expire until the near month contract is within two weeks of expiration, when, over a four day period, it transitions to the next month contract to expire as its benchmark contract and keeps that contract as its benchmark until it becomes the near month contract and close to expiration. In the event of a crude oil futures market ~~known~~where near month contracts trade at a higher price than next month to expire contracts, a situation described as “backwardation” ~~and~~in the futures market, then absent the impact of the overall movement in crude oil prices the value of the benchmark contract would tend to rise as it approaches expiration. Conversely, in the event of a crude oil futures market where near month contracts trade at a lower price than next month contracts, a situation described as “contango” in the futures market, then absent the impact of the overall movement in crude oil prices the value of the benchmark contract would tend to decline as it approaches expiration. When compared to total return of other price indices, such as the spot price of crude oil, the impact of backwardation and contango may ~~increase~~cause the total return of the Fund’s ~~tracking~~per ~~error~~share ~~and/~~NAV to vary significantly. Moreover, absent the impact of rising or ~~negatively~~falling oil prices, a prolonged period of contango, in the case of USOU, or backwardation, in the case of USOD, could have a significant negative impact on the Fund’s per share NAV and total return and investors could lose part or all of their investment. See “Additional Information About the Funds, Their Investment Objective and Investments” for a discussion of the potential effects of contango and backwardation.

~~The~~Accountability ~~design of each Fund’s Benchmark Oil Futures Contract is such that every month it begins by using the near month contract to expire until the near month contract is within two weeks of expiration~~levels, ~~when,~~position ~~over a four day period~~limits, ~~it transitions to the next month contract to expire as its benchmark~~ ~~contract~~ and ~~keeps~~daily ~~that~~price ~~contract~~fluctuation aslimits ~~its~~set ~~benchmark~~by ~~until it becomes~~ the ~~near~~exchanges ~~month~~have ~~contract and close to expiration. In~~ the ~~event of~~potential ~~a crude oil futures market where near month contracts trade at a higher price than next month~~ to ~~expire~~cause ~~contracts,~~tracking ~~a situation described as “backwardation” in the futures market~~error, ~~then~~which ~~absent~~could ~~the~~cause ~~impact of~~ the overall movement in crude oil prices the value of the benchmark contract would tend to rise as it approaches expiration. Conversely, in the event of a crude oil futures market where near month contracts trade at a lower price ~~than next month contracts, a situation described as “contango”~~ ~~in the futures market, then absent the impact~~ of ~~the~~shares ~~overall movement in crude oil prices the value of the benchmark contract would tend~~ to ~~decline~~substantially asvary itfrom ~~approaches expiration. When compared to total return of other price indices, such as~~ the ~~spot~~ price of ~~crude oil,~~ the ~~impact~~Benchmark ofOil ~~backwardation~~Futures ~~and contango may cause the total return of the Fund’s per share NAV to vary significantly~~Contract. Moreover, absent the impact of rising or falling oil prices, a prolonged period of contango, in the case of USOU, or backwardation, in the case of USOD, could have a significant negative impact on the Fund’s per share NAV and total return and investors could lose part or all of their investment. See “Additional Information About the Funds, Their Investment Objective and Investments” for a discussion of the potential effects of contango and backwardation.

~~Accountability~~DCMs, such as the NYMEX and ICE Futures have established accountability levels, and position limits on the maximum net long or net short futures contracts in commodity interests that any person or group of persons under common trading control (other than as a hedge, which is not currently applicable ~~and~~to ~~daily~~the ~~price~~Trust ~~fluctuation~~Series’ investments) may hold, own or control. These levels and position limits ~~set~~apply byto the ~~exchanges~~futures ~~have~~contracts that the ~~potential~~Fund invests in to ~~cause~~meet ~~tracking~~its ~~error,~~investment ~~which~~objective. ~~could~~In ~~cause~~addition to accountability levels and position limits, the NYMEX and ICE Futures also set daily price limits on futures contracts. The daily price fluctuation limit establishes the maximum amount that the price of ~~shares~~a tofutures ~~substantially~~contract may vary either up or down from the previous day’s settlement price. ofOnce the ~~Benchmark~~daily price ~~Oil~~fluctuation ~~Futures~~limit ~~Contract~~has been reached in a particular futures contract, no trades may be made at a price beyond that limit.

~~DCMs~~The accountability levels for the Benchmark Oil Futures Contract and other Oil Futures Contracts traded on U.S.-based futures exchanges, such as the NYMEX, ~~and~~are ~~ICE~~not ~~Futures~~a fixed ~~have~~ceiling, ~~established~~but ~~accountability~~rather ~~levels~~a ~~and~~threshold ~~position~~above ~~limits~~which on the ~~maximum~~NYMEX ~~net~~may ~~long~~exercise orgreater ~~net~~scrutiny ~~short~~and ~~futures~~control ~~contracts~~over inan ~~commodity~~investor’s positions. ~~interests~~The ~~that~~current ~~any~~accountability ~~person~~level orfor ~~group~~investments offor ~~persons~~any ~~under~~one ~~common~~month ~~trading~~in ~~control~~the ~~(other~~Benchmark ~~than~~Oil asFutures aContract ~~hedge, which~~ is ~~not~~10,000 ~~currently~~contracts. ~~applicable~~In toaddition, the ~~Trust~~NYMEX ~~Series’~~imposes ~~investments)~~an ~~may~~accountability ~~hold~~level for all months of 20,000 ~~own~~net orfutures ~~control~~contracts for light, sweet crude oil. In ~~These~~addition, ~~levels~~the ~~and~~ICE Futures maintains the same accountability levels, position limits ~~apply~~and tomonitoring ~~the~~authority ~~futures~~for ~~contracts~~its light, ~~that~~sweet crude oil contracts as the ~~Fund~~NYMEX. ~~invests~~If inthe toTrust ~~meet~~Series and ~~its~~the ~~investment~~Related ~~objective.~~Public InFunds ~~addition~~exceed tothese accountability levels for ~~and~~investments ~~position~~in ~~limits~~the futures contracts for light, sweet crude oil, the NYMEX and ICE Futures ~~also~~will ~~set~~monitor ~~daily~~such ~~price~~exposure ~~limits~~and may ask for further information on ~~futures~~their ~~contracts.~~activities ~~The~~including ~~daily~~the ~~price~~total ~~fluctuation~~size ~~limit~~of ~~establishes~~all ~~the~~positions, ~~maximum~~investment ~~amount that~~and trading strategy, and the ~~price~~extent of aliquidity ~~futures~~resources ~~contract~~of ~~may~~the ~~vary~~Trust ~~either~~Series and upthe orRelated ~~down~~Public ~~from~~Funds. If deemed necessary by the ~~previous~~NYMEX ~~day’s~~and/or ICE ~~settlement~~Futures, ~~price.~~each ~~Once~~of the ~~daily price~~Trust ~~fluctuation~~Series could ~~limit~~be ~~has~~ordered ~~been~~to ~~reached~~reduce inits aCrude ~~particular~~Oil ~~futures~~Futures ~~contract,~~CL nocontracts ~~trades~~to ~~may~~below bethe ~~made~~10,000 atsingle month aand/or ~~price~~20,000 ~~beyond~~all ~~that~~month ~~limit~~accountability level.

~~The~~Position ~~accountability~~limits ~~levels~~differ ~~for~~from ~~the Benchmark~~accountability ~~Oil~~levels ~~Futures~~in ~~Contract~~that ~~and~~they ~~other~~represent ~~Oil~~fixed ~~Futures~~limits ~~Contracts traded~~ on ~~U.S.-based futures exchanges, such as~~ the ~~NYMEX,~~maximum ~~are~~number ~~not~~of afutures ~~fixed ceiling,~~contracts ~~but~~that ~~rather~~any aperson ~~threshold above which the NYMEX~~ may ~~exercise~~hold ~~greater scrutiny~~ and ~~control~~cannot ~~over an investor’s positions.~~allow ~~The~~such ~~current~~limits ~~accountability~~to ~~level~~be ~~for~~exceeded ~~investments~~without ~~for~~express ~~any~~CFTC ~~one~~authority ~~month~~to indo ~~the Benchmark Oil Futures Contract is 10,000 contracts~~so. In ~~addition,~~ ~~the NYMEX imposes an accountability level for all months of 20,000 net futures contracts for light, sweet crude oil. In~~ addition, ~~the~~to ~~ICE Futures maintains the same~~ accountability levels, and position limits ~~and~~that may ~~monitoring~~apply ~~authority~~at ~~for~~any ~~its light~~time, ~~sweet~~ ~~crude oil contracts as~~ the NYMEX. ~~If the Trust Series~~ and ~~the~~ICE ~~Related~~Futures ~~Public~~impose ~~Funds~~position ~~exceed~~limits ~~these~~on ~~accountability~~contracts ~~levels~~held ~~for investments~~ in the ~~futures~~last ~~contracts~~few ~~for~~days ~~light,~~of ~~sweet~~trading ~~crude~~in ~~oil,~~ the near ~~NYMEX~~month ~~and~~contract ~~ICE~~to ~~Futures~~expire. ~~will~~It ~~monitor~~is ~~such~~unlikely ~~exposure~~that ~~and may ask for further information on their activities including~~ the ~~total~~Trust ~~size~~Series will ofrun ~~all~~up ~~positions,~~against ~~investment~~such ~~and~~position ~~trading~~limits ~~strategy,~~because ~~and the~~each ~~extent~~ of ~~liquidity resources of~~ the Trust Series’ ~~and~~investment ~~the~~strategies ~~Related~~is ~~Public~~to ~~Funds.~~close Ifout ~~deemed~~its ~~necessary~~positions ~~by the NYMEX~~ and~~/or~~ ~~ICE~~“roll” ~~Futures, each~~from of the ~~Trust~~near ~~Series~~month ~~could~~contract to beexpire ~~ordered~~ to ~~reduce~~the ~~its~~next ~~Crude~~month ~~Oil~~contract ~~Futures~~during CLa ~~contracts~~four-day toperiod ~~below~~beginning ~~the~~two ~~10,000~~weeks ~~single~~from ~~month~~expiration ~~and/or 20,000~~of ~~all~~the ~~month accountability level~~contract.

Position limits differ from accountability levels in that they represent fixed limits on the maximum number of futures contracts that any person may hold and cannot allow such limits to be exceeded without express CFTC authority to do so. In addition to accountability levels and position limits that may apply at any time, the NYMEX and ICE Futures impose position limits on contracts held in the last few days of trading in the near month contract to expire. It is unlikely that the Trust Series will run up against such position limits because each of the Trust Series’ investment strategies is to close out its positions and “roll” from the near month contract to expire to the next month contract during a four-day period beginning two weeks from expiration of the contract.39

38As discussed above, the CFTC has proposed to adopt limits on speculative positions in 25 physical commodity futures and option contracts as well as swaps that are economically equivalent to such contracts in the agriculture, energy and metals markets. The Position Limit Rules would, among other things: identify which contracts are subject to speculative position limits; set thresholds that restrict the size of speculative positions that a person may hold in the spot month, other individual months, and all months combined; create an exemption for positions that constitute bona fide hedging transactions; impose responsibilities on DCMs and SEFs to establish position limits or, in some cases, position accountability rules; and apply to both futures and swaps across four relevant venues: OTC, DCMs, SEFs as well as certain non-U.S. located platforms. The CFTC’s first attempt at finalizing the Position Limit Rules, in 2011, was successfully challenged by market participants in 2012 and, since then, the CFTC has re-proposed them and solicited comments from market participants multiple times. At this time, it is unclear how the Position Limit Rules may affect the Trust Series, but the effect may be substantial and adverse. By way of example, the Position Limit Rules may negatively impact the ability of a Trust Series to meet its investment objectives through limits that may inhibit USCF’s ability to sell additional Creation Baskets of a Trust Series. See "The Commodity Interest Markets-Commodities Regulation" in this annual report on Form 10-K for additional information.

AsUntil ~~discussed~~such ~~above,~~time ~~the CFTC has proposed to adopt limits on speculative positions in 25 physical commodity futures and option contracts~~ as ~~well as swaps that are economically equivalent to such contracts in~~ the ~~agriculture, energy and metals markets. The~~ Position Limit Rules ~~would~~ are adopted, ~~among~~the ~~other~~regulatory ~~things: identify~~architecture ~~which~~in ~~contracts~~effect ~~are~~prior ~~subject~~ to ~~speculative position limits; set thresholds that restrict~~ the ~~size~~adoption of ~~speculative~~the ~~positions that~~Position aLimit ~~person~~Rules will ~~may~~govern ~~hold~~ transactions in ~~the~~commodities ~~spot month, other individual months,~~ and ~~all~~related ~~months~~derivatives. ~~combined;~~Under ~~create an exemption for positions~~ that ~~constitute~~ ~~bona~~system, ~~fide~~the ~~hedging~~CFTC ~~transactions;~~enforces ~~impose~~federal ~~responsibilities~~limits on ~~DCMs~~speculation ~~and SEFs to establish position limits or,~~ in ~~some~~nine ~~cases,~~agricultural ~~position~~products ~~accountability rules; and apply to both futures and swaps across four relevant venues: OTC, DCMs, SEFs as well as certain non-U~~(e.Sg. ~~located platforms. The CFTC’s first attempt at finalizing the Position Limit Rules~~, ~~in 2011~~corn, ~~was~~wheat ~~successfully challenged by market participants in 2012~~ and, ~~since then~~soy), ~~the~~while ~~CFTC~~futures ~~has~~exchanges ~~re-proposed~~establish ~~them~~ and ~~solicited~~enforce ~~comments~~position ~~from~~limits ~~market~~and ~~participants~~accountability ~~multiple~~levels for ~~times.~~other Atagricultural ~~this~~products and ~~time,~~certain itenergy isproducts ~~unclear how the Position Limit Rules may affect the Trust Series~~(e.g., ~~but~~oil ~~the effect may be substantial~~ and ~~adverse~~natural gas). ByAs ~~way~~a ~~of example~~result, ~~the Position Limit Rules may negatively impact the ability of~~ a Trust Series ~~to meet its investment~~ may ~~objectives~~be ~~through~~limited ~~limits~~with ~~that~~respect ~~may inhibit USCF’s ability~~ to ~~sell~~the ~~additional~~size ~~Creation Baskets~~ of aits ~~Trust~~investments ~~Series. See "The Commodity Interest Markets-Commodities Regulation"~~ in ~~this~~any ~~annual~~commodities ~~report~~subject onto ~~Form~~these ~~10-K for additional information~~limits.

~~Until~~Under ~~such~~existing ~~time~~and asrecently adopted CFTC regulations, for the ~~Position~~purpose ~~Limit~~of ~~Rules are~~position ~~adopted~~limits, ~~the~~a ~~regulatory~~market ~~architecture~~participant inis ~~effect~~generally ~~prior~~required, subject to ~~the~~certain ~~adoption~~narrow ofexceptions, to ~~the~~aggregate ~~Position~~all ~~Limit~~positions ~~Rules~~for ~~will~~which ~~govern~~that ~~transactions~~participant ~~in commodities~~controls ~~and~~the ~~related~~trading ~~derivatives.~~decisions ~~Under~~with ~~that~~all ~~system,~~positions ~~the~~for ~~CFTC~~which ~~enforces~~that ~~federal~~participant has ~~limits~~a on10 ~~speculation~~percent inor ~~nine~~greater ~~agricultural~~ownership ~~products (e.g.,~~interest ~~corn,~~in ~~wheat~~an ~~and~~account ~~soy)~~or position, ~~while~~as ~~futures~~well ~~exchanges~~as ~~establish~~the ~~and~~positions ~~enforce~~of ~~position~~two ~~limits~~or ~~and~~more ~~accountability~~persons ~~levels~~acting pursuant ~~for~~to ~~other agricultural~~an ~~products and~~express ~~certain~~or ~~energy~~implied ~~products~~agreement ~~(e.g.,~~or ~~oil~~understanding ~~and~~with ~~natural~~that ~~gas)~~participant. AsThe aAggregation ~~result,~~Rules awill ~~Trust~~also ~~Series may be limited~~apply with respect to the ~~size~~Position ofLimit ~~its~~Rules if ~~investments~~and inwhen ~~any~~such ~~commodities~~Position ~~subject~~Limit toRules are ~~these limits~~adopted.

~~Under~~All ~~existing and recently adopted CFTC regulations, for the purpose~~ of ~~position~~these limits, amay ~~market~~potentially ~~participant~~cause a istracking ~~generally~~error ~~required,~~between ~~subject~~the toprice ~~certain~~of ~~narrow~~the ~~exceptions, to~~Fund’s ~~aggregate~~shares ~~all~~and ~~positions~~the ~~for~~price ~~which~~of ~~that participant controls~~ the ~~trading~~Benchmark ~~decisions~~Oil ~~with~~Futures ~~all~~Contract. ~~positions~~This ~~for~~may ~~which that participant~~in ~~has~~turn aprevent 10investors ~~percent~~from orbeing ~~greater~~able ~~ownership~~to ~~interest~~effectively inuse anthe ~~account~~Fund oras ~~position,~~a asway ~~well~~to ashedge ~~the~~against ~~positions~~crude ofoil-related ~~two~~losses or ~~more~~as ~~persons~~a ~~acting~~way ~~pursuant~~ to anindirectly ~~express~~invest, orin ~~implied~~the ~~agreement~~case orof ~~understanding~~USOU, ~~with~~or ~~that~~take ~~participant.~~a ~~The~~short ~~Aggregation~~position, ~~Rules~~in ~~will also apply with respect to~~ the ~~Position~~case ~~Limit~~of ~~Rules~~USOD, ifin ~~and~~crude ~~when such Position Limit Rules are adopted~~oil.

~~All~~The ofFunds ~~these~~do ~~limits~~not ~~may~~limit ~~potentially~~the ~~cause~~size of their aoffering ~~tracking~~and ~~error~~each ~~between~~Fund ~~the~~is ~~price~~committed to utilizing substantially all of ~~the~~its ~~Fund’s~~proceeds ~~shares~~to ~~and~~purchase, in the ~~price~~case of USOU, or take short positions in, in the ~~Benchmark~~case of USOD, Oil Futures ~~Contract.~~Contracts ~~This~~and ~~may~~Other ~~in turn~~Oil-Related ~~prevent~~Investments. ~~investors~~If ~~from~~a ~~being~~Fund ~~able~~encounters toaccountability levels, ~~effectively~~position ~~use~~limits, ~~the~~or ~~Fund~~price asfluctuation alimits ~~way~~for toOil ~~hedge~~Futures ~~against~~Contracts ~~crude~~on ~~oil-related~~the ~~losses~~NYMEX or asICE aFutures, ~~way~~it may then, if permitted tounder ~~indirectly~~applicable ~~invest~~regulatory requirements, purchase, in the case of USOU, or take a short ~~position~~positions in, in the case of USOD, inOil Futures Contracts on other exchanges that trade listed crude oil futures or enter into swaps or other transactions to meet its investment objective. In addition, if a Fund exceeds accountability levels on either the NYMEX or ICE Futures and is required by such exchanges to reduce its holdings, such reduction could potentially cause a tracking error between the price of such Fund’s shares and the price of the Benchmark Oil Futures Contract.

~~The~~Tax Funds do not limit the size of their offering and each Fund is committed to utilizing substantially all of its proceeds to purchase, in the case of USOU, or take short positions in, in the case of USOD, Oil Futures Contracts and Other Oil-Related Investments. If a Fund encounters accountability levels, position limits, or price fluctuation limits for Oil Futures Contracts on the NYMEX or ICE Futures, it may then, if permitted under applicable regulatory requirements, purchase, in the case of USOU, or take short positions in, in the case of USOD, Oil Futures Contracts on other exchanges that trade listed crude oil futures or enter into swaps or other transactions to meet its investment objective. In addition, if a Fund exceeds accountability levels on either the NYMEX or ICE Futures and is required by such exchanges to reduce its holdings, such reduction could potentially cause a tracking error between the price of such Fund’s shares and the price of the Benchmark Oil Futures Contract.Risk

~~Tax~~An ~~Risk~~investor’s tax liability may exceed the amount of distributions, if any, on its shares.

AnCash ~~investor’s~~or property will be distributed at the sole discretion of USCF. USCF does not currently intend to make cash or other distributions with respect to shares. Investors will be required to pay U.S. federal income tax ~~liability~~and, in some cases, state, local, or foreign income tax, on their allocable share ~~may~~of ~~exceed~~a Fund’s taxable income, without regard to whether they receive distributions or the amount of any distributions. Therefore, the iftax ~~any,~~liability onof an investor with respect to its shares may exceed the amount of cash or value of property (if any) distributed.

~~Cash~~An orinvestor’s property will be distributed at the sole discretion of USCF. USCF does not currently intend to make cash or other distributions with respect to shares. Investors will be required to pay U.S. federal income tax and, in some cases, state, local, or foreign income tax, on their allocable share of ~~a Fund’s~~ taxable income, ~~without regard to whether they receive distributions~~ or ~~the~~loss ~~amount~~may ofdiffer ~~any~~from ~~distributions. Therefore, the tax liability of an investor with respect to~~ its ~~shares~~economic ~~may~~income ~~exceed the amount of cash~~ or ~~value~~loss ofon ~~property~~its ~~(if any) distributed~~shares.

AnDue to the application of the assumptions and conventions applied by a Fund in making allocations for U.S. federal income tax purposes and other factors, an investor’s allocable share of ~~taxable~~such Fund’s income, gain, deduction or loss may ~~differ~~be ~~from~~different than its economic ~~income~~profit or loss from its shares for a taxable year. This difference could be temporary or permanent and, if permanent, could result in it being taxed on amounts in excess of its ~~shares~~economic income.

Due to the application of the assumptions and conventions applied by a Fund in making allocations for U.S. federal income tax purposes and other factors, an investor’s allocable share of such Fund’s income, gain, deduction or loss may be different than its economic profit or loss from its shares for a taxable year. This difference could be temporary or permanent and, if permanent, could result in it being taxed on amounts in excess of its economic income.40

39Items of income, gain, deduction, loss and credit with respect to shares could be reallocated, and for taxable periods beginning after December 31, 2017, the Fund could be liable for U.S. federal income tax, if the U.S. Internal Revenue Service (“IRS”) does not accept the assumptions and conventions applied by the Fund in allocating those items, with potential adverse consequences for an investor.

~~Items~~The ofU.S. ~~income,~~tax ~~gain,~~rules pertaining ~~deduction~~to entities taxed as partnerships are complex and their application to large, publicly traded entities such as a Fund is in many respects uncertain. ~~loss~~Each Fund applies certain assumptions and ~~credit~~conventions ~~with~~in ~~respect~~an attempt to ~~shares~~comply ~~could~~with bethe ~~reallocated,~~intent ~~and~~of ~~for~~the ~~taxable~~applicable ~~periods~~rules and to ~~beginning~~report ~~after~~taxable ~~December~~income, 31gains, ~~2017~~deductions, ~~the~~losses ~~Fund could~~and becredits ~~liable~~in ~~for~~a ~~U.S.~~manner ~~federal~~that ~~income~~properly ~~tax,~~reflects ifshareholders’ ~~the~~economic gains Uand losses.S. These assumptions and conventions may not fully comply with all aspects of the Internal Revenue ~~Service~~Code (the “~~IRS~~Code”) and ~~does~~applicable ~~not~~Treasury ~~accept~~Regulations, ~~the~~however, ~~assumptions~~ and ~~conventions~~it ~~applied~~is bypossible that the IRS will successfully challenge such Fund’s inallocation methods ~~allocating~~and ~~those~~require such Fund to reallocate items of income, ~~with~~gain, ~~potential~~deduction, ~~adverse~~loss ~~consequences~~or ~~for~~credit in a manner that adversely affects investors. If this occurs, investors may be required to file an ~~investor~~amended tax return and to pay additional taxes plus deficiency interest.

~~The~~In addition, for periods beginning after December 31, 2017, each Fund may be liable for U.S. federal income tax ~~rules~~on ~~pertaining~~any to“imputed ~~entities~~understatement” of tax ~~taxed~~resulting asfrom ~~partnerships~~an ~~are~~adjustment ~~complex~~as ~~and~~a ~~their~~result ~~application~~of toan ~~large,~~IRS ~~publicly~~audit. ~~traded~~The ~~entities~~amount ~~such~~of asthe aimputed ~~Fund~~understatement isgenerally includes increases in ~~many~~allocations ~~respects~~of ~~uncertain. Each~~items ~~Fund~~of ~~applies~~income ~~certain~~or ~~assumptions~~gains to any investor and ~~conventions~~decreases in anallocations ~~attempt~~of items of deduction, loss, or credit to ~~comply~~any ~~with~~investor ~~the~~without ~~intent~~any offset for any corresponding reductions in allocations of ~~the~~items ~~applicable~~of ~~rules~~income ~~and~~or gain to ~~report~~any investor or ~~taxable~~increases ~~income,~~in ~~gains~~allocations of items of deduction, ~~deductions~~loss, ~~losses~~or ~~and~~credit ~~credits~~to inany investor. If a ~~manner~~Fund ~~that~~is ~~properly~~required ~~reflects~~to ~~shareholders’~~pay ~~economic~~any ~~gains~~U.S. federal income taxes on any imputed understatement, the resulting tax liability would reduce the net assets of such Fund and would likely ~~losses~~have an adverse impact on the value of the shares. ~~These~~Under ~~assumptions~~certain ~~and~~circumstances, ~~conventions~~such Fund may ~~not~~be ~~fully~~eligible ~~comply~~to ~~with~~make ~~all~~an ~~aspects~~election ofto cause the ~~Internal~~investors ~~Revenue~~to ~~Code~~take (into account the ~~“Code”) and~~amount ~~applicable~~of ~~Treasury~~any ~~Regulations,~~imputed ~~however~~understatement, ~~and~~including itany isinterest ~~possible~~and ~~that~~penalties. ~~the~~The ~~IRS~~ability of ~~will~~a ~~successfully~~publicly ~~challenge~~traded partnership such as a Fund’s ~~allocation methods~~to ~~and~~make ~~require~~this election is uncertain. If the election is made, such Fund would be required to ~~reallocate~~provide ~~items~~investors ofwho ~~income,~~owned ~~gain,~~beneficial ~~deduction,~~interests ~~loss~~in orthe ~~credit~~shares in athe ~~manner~~year ~~that~~to ~~adversely~~which ~~affects~~the adjusted allocations relate ~~investors.~~with Ifa ~~this~~statement ~~occurs,~~setting ~~investors~~forth ~~may~~their proportionate shares of the adjustment (“Adjusted K-1s”). The investors would be required to ~~file~~take anthe ~~amended~~adjustment ~~tax~~into ~~return~~account ~~and~~in tothe ~~pay~~taxable ~~additional~~year ~~taxes~~in ~~plus~~which ~~deficiency~~the Adjusted K-1s are issued. For an additional discussion ~~interest~~please see “U.S. Federal Income Tax Considerations – Other Tax Matters.”

InEach ~~addition, for periods beginning after December 31, 2017, each~~ Fund ~~may~~could be ~~liable~~treated ~~for U.S. federal income tax on any “imputed understatement” of tax resulting from an adjustment~~ as a ~~result of an IRS audit. The amount of the imputed understatement generally includes increases in allocations~~corporation ~~of items of income or gains to any investor and decreases in allocations of items of deduction, loss, or credit to any investor without any offset~~ for any corresponding reductions in allocations of items of income or gain to any investor or increases in allocations of items of deduction, loss, or credit to any investor. If a Fund is required to pay any U.S. federal income ~~taxes~~tax ~~on any imputed understatement~~purposes, ~~the~~which ~~resulting~~may ~~tax~~substantially ~~liability would~~ reduce the ~~net assets of such Fund and would likely have an adverse impact on the~~ value of the shares. Under certain circumstances, such Fund may be eligible to make an election to cause the investors to take into account the amount of any imputed understatement, including any interest and penalties. The ability of a publicly traded partnership such as a Fund to make this election is uncertain. If the election is made, such Fund would be required to provide investors who owned beneficial interests in the shares in the year to which the adjusted allocations relate with a statement setting forth their proportionate shares of the adjustment (“Adjusted K-1s”). The investors would be required to take the adjustment into account in the taxable year in which the Adjusted K-1s are issued. For an additional discussion please see “U.S. Federal Income Tax Considerations – Other Tax Matters.”

~~Each~~The Trust, on behalf of each Fund, ~~could~~has received an opinion of counsel that, under current U.S. federal income tax laws, such Fund will be treated as a partnership that is not taxable as a corporation for U.S. federal income tax purposes, provided that (i) at least 90 percent of such Fund’s annual gross income consists of “qualifying income” as defined in the Code, (ii) the Trust and such Fund is organized and operated in accordance with its governing agreements and applicable law and (iii) the Trust and such Fund do not elect to be taxed as a corporation for U.S. federal income tax purposes. Although USCF anticipates that each Fund will satisfy the “qualifying income” requirement for all of its taxable years, ~~which~~that ~~may~~result cannot be assured. The Funds have not requested and nor will the Funds request any ruling from the IRS with respect to the classification of each Fund as a partnership not taxable as a corporation for U.S. federal income tax purposes. If the IRS were to successfully assert that a Fund is taxable as a corporation for U.S. federal income tax purposes in any taxable year, rather than passing through its income, gains, losses and deductions proportionately to shareholders such the Fund would be subject to tax on its net income for the year at corporate tax rates. In addition, although no Fund currently intends to make any distributions with respect to the shares any distributions would be taxable to shareholders as dividend income to the extent of such Fund’s current or accumulated earnings and profits. Subject to holding period and other requirements, any such dividend would be a qualifying dividend subject to U.S. federal income tax at the lower maximum tax rates applicable to long-term capital gains. Taxation of the Trust and the Funds as a corporation could materially reduce the after-tax return on an investment in shares and could substantially reduce the value of the shares.

~~The~~Each ~~Trust, on behalf of each~~ Fund, ~~has received an opinion of counsel that, under current U.S. federal income tax laws, such Fund will be treated as a partnership that~~ is ~~not~~organized ~~taxable~~and operated as a ~~corporation~~series ~~for U.S. federal income tax purposes, provided that (i) at least 90 percent~~ of ~~such~~a ~~Fund’s annual~~Delaware ~~gross~~statutory ~~income~~trust ~~consists of “qualifying income” as defined~~ in ~~the~~accordance ~~Code,~~with ~~(ii)~~ the ~~Trust~~provisions ~~and~~of ~~such Fund is organized and operated in accordance with~~ its ~~governing~~Trust ~~agreements~~Agreement and applicable ~~law~~state and (iii) the Trust and such Fund do not elect to be taxed as a corporation for U.S. federal income tax purposes. Although USCF anticipates that each Fund will satisfy the “qualifying income” requirement for all of its taxable yearslaw, ~~that result cannot be assured. The Funds have not requested and nor will~~but ~~the~~is ~~Funds~~taxed ~~request~~in ~~any ruling from the IRS with respect to the classification of each Fund as~~ a ~~partnership~~manner ~~not~~similar ~~taxable as a corporation for U.S. federal income tax purposes. If the IRS were~~ to ~~successfully assert that~~ a ~~Fund~~limited ~~is taxable as a corporation for U.S. federal income tax purposes in any taxable year~~partnership, ~~rather than passing through its income, gains, losses~~ and ~~deductions proportionately to shareholders such the Fund would be subject to tax on its net income for the year at corporate tax rates. In addition~~, although no Fund currently intends to make any distributions with respect to the shares any distributions would be taxable to shareholders as dividend income to the extent of such Fund’s current or accumulated earnings and profits. Subject to holding period and other requirementstherefore, ~~any~~has ~~such dividend would be~~ a ~~qualifying~~more ~~dividend~~complex ~~subject to U.S. federal income~~ tax attreatment ~~the~~than ~~lower~~conventional ~~maximum tax~~mutual ~~rates applicable to long-term capital gains~~funds. ~~Taxation of the Trust and the Funds as a corporation could materially reduce the after-tax return on an investment in shares and could substantially reduce the value of the shares.~~

~~Each~~The ~~Fund~~Funds isare organized and operated as a as series of a Delaware statutory trust in accordance with the provisions of its Trust Agreement and applicable state law, but is is taxed in a manner similar to a limited partnership, and, therefore, has a more complex tax treatment than conventional mutual funds. No U.S. federal income tax is paid by the Funds on their income. Instead, each Fund will furnish shareholders each year with tax information on IRS Schedule K-1 (Form 1065) and each U.S. shareholder is required to report on its U.S. federal income tax return its allocable share of the income, gain, loss and deduction of such Fund. This must be reported without regard to the amount (if any) of cash or property the shareholder receives as a distribution from such Fund during the taxable year. A shareholder, therefore, may be allocated income or gain by such Fund but receive no cash distribution with which to pay the tax liability resulting from the allocation, or may receive a distribution that is insufficient to pay such liability.

~~The~~In ~~Funds~~addition ~~are~~to ~~organized~~U.S. ~~and~~federal ~~operated~~income astaxes, ~~series~~shareholders ofmay abe ~~Delaware~~subject ~~statutory~~to ~~trust~~other intaxes, ~~accordance~~such ~~with~~as ~~the~~state ~~provisions~~and oflocal ~~its~~income ~~Trust~~taxes, ~~Agreement~~unincorporated ~~and~~business ~~applicable state law~~taxes, ~~but~~business isfranchise ~~taxed~~taxes ~~in a manner similar to a limited partnership,~~ and ~~therefore~~estate, ~~has~~inheritance aor ~~more~~intangible ~~complex~~taxes ~~tax~~that ~~treatment~~may ~~than~~be ~~conventional~~imposed ~~mutual~~by ~~funds. No~~the ~~U.S.~~various ~~federal~~jurisdictions ~~income~~in ~~tax~~which ~~is paid by~~ the Funds ondo ~~their~~business or ~~income.~~own ~~Instead,~~property ~~each~~or ~~Fund~~where ~~will~~the ~~furnish~~ shareholders ~~each~~reside. ~~year~~Although ~~with~~an ~~tax information~~analysis onof ~~IRS~~those ~~Schedule~~various ~~K-1~~taxes ~~(Form~~is ~~1065)~~not ~~and~~presented here, each ~~U.S.~~ prospective shareholder isshould ~~required~~consider totheir ~~report~~potential impact on its ~~U.S.~~investment ~~federal~~in ~~income~~a ~~tax return its allocable share of the income, gain, loss and deduction of such~~ Fund. ~~This~~It ~~must~~is beeach ~~reported~~shareholder’s ~~without~~responsibility ~~regard~~ to ~~the amount (if~~ ~~any)~~file ~~of cash or property~~ the ~~shareholder~~appropriate ~~receives as a distribution from such Fund during the taxable year~~U.S. ~~A shareholder~~federal, ~~therefore~~state, ~~may~~ belocal ~~allocated~~and ~~income~~foreign ~~or gain by such Fund but receive no cash distribution with which to pay the~~ tax ~~liability resulting from the allocation, or may receive a distribution that is insufficient to pay such liability~~returns.

In addition to U.S. federal income taxes, shareholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, business franchise taxes and estate, inheritance or intangible taxes that may be imposed by the various jurisdictions in which the Funds do business or own property or where the shareholders reside. Although an analysis of those various taxes is not presented here, each prospective shareholder should consider their potential impact on its investment in a Fund. It is each shareholder’s responsibility to file the appropriate U.S. federal, state, local and foreign tax returns.41

40If a Fund is required to withhold tax with respect to any Non-U.S. shareholders, the cost of such withholding may be borne by all shareholders.

IfUnder certain circumstances, a Fund ismay be required to ~~withhold~~ pay withholding tax with respect to ~~any~~allocations to Non-U.S. shareholders. Although the Trust Agreement provides that any such withholding will be treated as being distributed to the Non-U.S. shareholder, a Fund may not be able to cause the economic cost of such withholding ~~may~~to be borne by the Non-U.S. shareholder on whose behalf such amounts were withheld since such Fund does not intend to make any distributions. Under such circumstances, the economic cost of the withholding may be borne by all shareholders, not just the shareholders on whose behalf such amounts were withheld. This could have a material impact on the value of the shares.

~~Under~~The ~~certain~~impact circumstances, a Fund may be required to pay withholding tax with respect to allocations to Non-U.S. shareholders. Although the Trust Agreement provides that any such withholding will be treated as being distributed to the Non-U.S. shareholder, a Fund may not be able to cause the economic cost of ~~such withholding to be borne by the Non-~~U.S. ~~shareholder~~tax onreform whose behalf such amounts were withheld since such Fund does not intend to make any distributions. Under such circumstances, the economic cost of the withholding may be borne by all shareholders, not just the shareholders on ~~whose behalf such amounts were withheld. This could have a material impact on~~ the ~~value~~

Filing Compare · USCF Funds Trust