The Defiance Oil Enhanced Options Income ETF

USOY is an actively managed ETF that seeks income while maintaining the opportunity for indirect exposure to the share price of United States Oil Fund, LP (“USO”), subject to a limit on potential investment gains. USOY aims to generate additional income from its options investments when USO’s share price rises in value, based on the specific put options it sold.

USOY uses an at-the-money or in-the-money put selling strategy to provide income and exposure to the price of the USO. The Fund’s options contracts provide current income from the premium it receives from the sale of such options contracts. In addition, the Fund’s in-the-money put options may provide upside appreciation, also known as “intrinsic value.”

At least once a week, the Fund will sell put options that are priced either at-the-money or up to five percent in-the-money. If the Fund sells an option that’s priced above the current market price, the Fund may profit if USOY’s share price increases above its current price, stays flat, or decreases slightly (i.e., the decrease to the Fund is less than the original extrinsic premium received).

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At-the-money options: The strike price equals the current market price of the Underlying ETP’s shares.
In-the-money options: The strike price is more favorable than the current market price of the Underlying ETP’s shares.

There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment. While the ETF seeks to provide monthly income, there is no assurance a distribution will be made. If distributions are made, it is likely such distributions will vary greatly from one distribution to the next.

Distribution from USOY include the following estimated return of capital per the 07/10/2026 19-a1 Notice: 90.98%. Distributions which include return of capital decrease the Fund’s NAV and trading price which over time can result in losses on an investment.