Trade the 2026 Midterm Elections and the 2028 Presidential Election | Prediction Market ETFs

Company

The funds have filed a registration statement with the Securities and Exchange Commission but are not yet effective. An investment in the funds cannot be made, nor money accepted, until the registration statement is effective. An investor should consider the investment objectives, risks, and charges and expenses of the funds carefully before investing. A preliminary prospectus which contains this and other information about the fund may be obtained by calling 1-855-561-5728 or visit the website at www.roundhillinvestments.com/etf/. The information in the preliminary prospectus is not complete and may be changed. The final prospectus should be read carefully before investing, and when available may be obtained from the same source. This communication is not an offer to sell fund shares and is not soliciting an offer to buy fund shares in any state where the offer or sale is not permitted.

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus, if available, with this and other information about the Fund, please call 1-855-561-5728 or visit our website at https:// www.roundhillinvestments.com/prediction-markets. Read the prospectus or summary prospectus carefully before investing.

It is critical that investors understand this risk before investing in the Fund. Investors who require that their investment reflect the definitive, officially certified result of the election should not invest in the Fund.

The Funds seeks to achieve their investment objectives exclusively through exposure to event contracts that are designed to appreciate in value in the event that a member of the respective Party is the winner of the respective Election. The event contracts are listed by a Designated Contract Market (“DCM”) that is regulated by the CFTC. The DCM that lists the event contracts, in its sole discretion, sets forth the rules regarding how and when the winner of the Election has been determined. These rules are described in detail in the Fund's prospectus.

Roundhill Democratic Senate ETF (BLUS)

In the event that the Democratic Party does not win control of the U.S. Senate following the 2026 Senate Election, the Fund will lose substantially all of its value. This makes an investment in the Fund highly risky. An investment in the Fund is not appropriate for investors who do not wish to invest in a highly risky investment product or who do not fully understand the Fund’s investment strategy. Such investors are urged not to purchase Fund Shares.

Catastrophic Loss Risk. In the event that the Democratic Party does not win control of the U.S. Senate following the 2026 Senate Election, the Fund will suffer a catastrophic loss in value. Investors that are unwilling to incur such losses are urged not to purchase Fund Shares.

Concentrated Exposure Risk. The Fund’s investment strategy results in concentrated exposure to a single event, the outcome of the 2026 Senate Election. Unlike diversified funds that spread risk across multiple asset classes, sectors or issuers, the Fund’s performance is primarily driven by developments related to this particular event and the market’s evolving assessment of its likely result. As a result, the Fund is more susceptible to adverse political developments, polling shifts, legal disputes, regulatory actions, changes in exchange rules, or unexpected news that directly or indirectly influence expectations regarding the election. Concentration also amplifies structural risks inherent in the trading venue, including position limits, liquidity constraints and clearinghouse disruptions. If conditions in the market for the relevant event contracts deteriorate or the contracts become unavailable, the Fund may be unable to find substitute investments that provide similar exposures, which could force the Fund to hold cash or other instruments with materially different profiles. This degree of concentration will likely increase volatility in the Fund’s NAV, heighten the likelihood of significant losses over short periods, and cause the Fund’s returns to diverge substantially from those of more diversified investments.

Erroneous Settlement Risk. The value of Fund Shares is ultimately determined by the settlement of the event contracts to which the Fund has exposure, not by the official outcome of the 2026 Senate Election. Settlement of those contracts is governed exclusively by the rules of the DCM upon which those contracts are listed. The Fund and the Fund’s investment adviser have no role in, and no discretion over, the settlement process. Whether the Fund’s positions settle at $1.00 or at $0.00 is determined entirely by the DCM pursuant to its contract rules. Under those rules, as described above, the contracts may settle on an accelerated basis before the Democratic Senate Contract Expiration Date if at least four of the eight Designated Media Sources identified by the DCM have declared that a political party has won control of the U.S. Senate and none have issued a contradictory declaration. If the “Media Declaration” criteria have not been satisfied by the Democratic Senate Contract Expiration Date, the contracts will settle based upon the political party of the individual serving as the President pro tempore of the U.S. Senate on the Democratic Senate Contract Expiration Date. In either case, the DCM retains the authority to initiate a “Market Outcome Review Process” before settlement is finalized. It is possible that the settlement process will produce an outcome that does not reflect the actual winner of the 2026 Senate Election. For example, it is possible that the Media Declaration criteria are satisfied and the contracts settle to $0.00, reflecting a determination that the Republican Party has won control of the U.S. Senate even though it is subsequently determined that the Democratic Party has won control. It is also possible that post-settlement developments, including a reversal of a prior election call, could alter the partisan outcome after the contracts have already settled. In all of these circumstances, the settlement of the contracts may have already occurred based on the DCM’s determination at the time of settlement, and that determination will be final and binding for purposes of the Fund. Once the contracts have settled, there is no mechanism by which the Fund or its shareholders can recover value based on a subsequent determination that the settlement outcome was incorrect. Holders of Fund Shares will have no recourse in that circumstance, regardless of the subsequent official determination of the election result. By purchasing Fund Shares, investors are accepting the risk that the settlement of the event contracts may not reflect the definitive outcome of the 2026 Senate Election and that no recourse will be available if it does not. Investors who require that their investment reflect the definitive, officially certified result of the election should not purchase Fund Shares.

Event Contracts Risk. The Fund’s investment performance is closely tied to the behavior of event contracts, a novel class of derivative instruments whose values are derived from the occurrence or non-occurrence of specified, objectively verifiable events. Event contracts may not develop the depth, liquidity, or trading efficiency associated with more established derivatives markets, and their pricing may be influenced by factors unrelated to fundamental probability assessments, including speculative activity, behavioral biases, regulatory headlines or concentrated participation by a limited number of traders. Because event contracts typically feature binary payouts at expiration, the value of a position may decline rapidly or even become worthless if the referenced event ultimately does not occur, regardless of prior market pricing. Exchanges may alter contract specifications, suspend trading, impose position limits, or take other actions that affect how these instruments trade or settle, and the legal and regulatory treatment of certain types of event contracts remains subject to ongoing review and potential change. In addition, event contracts may react sharply to news, polling data, or other developments, but may not provide continuous price discovery during periods of stress or uncertainty. As a result, investments in event contracts involve unique risks that differ from those associated with traditional futures, options, or securities, and could lead to significant losses, valuation uncertainty, and deviations from the Fund’s investment objective. Although the event contracts to which the Fund has exposure are listed for trading on a DCM, there can be no assurance that an active trading market for such event contracts will be available at all times and the DCM may halt trading of such event contracts in certain circumstances. Trading in the event contracts on a DCM may be halted due to market conditions or for reasons that, in the view of the DCM, make trading in the event contracts and/or Fund Shares inadvisable. In the event of a suspension of trading on the DCM, swap counterparties may (i) be unwilling to enter into additional swaps referencing Democratic Senate Contracts, (ii) provide reduced capacity, (iii) widen pricing/spreads, and/or (iv) increase collateral and other terms that are unfavorable to the Fund. In the event of a trading halt for an extended period, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy.

Swap Agreements Risk. The Fund will utilize swap agreements to derive exposure to the 2026 Senate Election. Swap agreements may involve greater risks than direct investment in securities as they may be leveraged and are subject to credit risk, counterparty risk and valuation risk. A swap agreement could result in losses if the underlying reference or asset does not perform as anticipated. In addition, many swaps trade over-the-counter and may be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses. In addition, the Fund’s ability to fully achieve its investment objective may depend on its capacity to enter into swap agreements providing exposure to the relevant event contract in sufficient size. The number of counterparties willing and able to offer such swaps may be limited, and any counterparty may reduce or eliminate its willingness to transact based on internal risk limits, capital constraints, regulatory requirements, or its own assessment of market or legal risk associated with event contracts. If the Fund is unable to access adequate swap capacity, it may be unable to establish or maintain desired exposure to the underlying event contract. Because the market for swaps referencing event contracts is nascent and involves a limited number of willing counterparties, capacity constraints may arise suddenly and without advance notice, particularly in periods of heightened regulatory scrutiny, market stress or as the relevant election approaches. Any such limitation could prevent the Fund from providing its desired level of exposure to the outcome of the election. Lastly, the cost to utilize swap agreements is embedded in the returns such agreements ultimately provide and is thus an indirect cost to investors that is not reflected in the table entitled “Fees and Expenses of the Fund” and the accompanying expense example. The fee paid by the Fund will include a commission and a financing expense typically determined by multiplying the face value of the swap agreement by an agreed upon interest rate.

Special Tax Risk. Because Democratic Senate Contracts and swap agreements on Democratic Senate Contracts produce non-qualifying income for purposes of the Fund qualifying as a RIC, the Fund makes its investments in Democratic Senate Contracts and swap agreements on Democratic Senate Contracts through the Subsidiary. The Fund intends to treat any income it may derive from the Democratic Senate Contracts and swap agreements on Democratic Senate Contracts received by the Subsidiary as “qualifying income” under the provisions of the Code applicable to RICs. The Internal Revenue Service has issued numerous private letter rulings (“PLRs”) provided to third parties not associated with the Fund or its affiliates (which only those parties may rely on as precedent) concluding that similar arrangements resulted in qualifying income. Many of these PLRs have now been revoked by the Internal Revenue Service. In March of 2019, the Internal Revenue Service published regulations that concluded that income from a corporation similar to the Subsidiary would be qualifying income, if the income is related to the Fund’s business of investing in stocks or securities. Although the regulations do not require distributions from the Subsidiary, the Fund intends to cause the Subsidiary to make distributions that would allow the Fund to make timely distributions to its shareholders. The Fund generally will be required to include in its own taxable income the income of the Subsidiary for a tax year, regardless of whether the Fund receives a distribution of the Subsidiary’s income in that tax year, and this income would nevertheless be subject to the distribution requirement for qualification as a regulated investment company and would be taken into account for purposes of the 4% excise tax. If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities than they otherwise would have incurred and would have a negative impact on Fund returns. In such an event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify shareholders of the implications of that failure.

The Fund is also subject to significant tax risk arising from the binary nature of the event contracts to which it has exposure. If the outcome to which the Fund has exposure comes to pass, that is, if the applicable election result occurs in the Fund’s favor, the Fund will experience a sudden and substantial gain in the value of its portfolio. This gain will give rise to a significant taxable income or capital gain obligation that the Fund will be required to distribute to shareholders. At the same time, it is possible that a substantial number of investors will elect to sell their Fund Shares in the immediate aftermath of the election outcome. This increased sale activity will likely lead to Authorized Participants undertaking a large amount of redemption activity. Such redemptions could cause the Fund’s assets to decline significantly in a short period of time. To the extent the Fund must satisfy redemptions in cash, it may be required to liquidate positions and recognize gains at an accelerated pace, further concentrating the tax burden within the Fund. While the Adviser intends to employ equalization accounting and other available techniques in an effort to ensure that redeeming shareholders bear an appropriate share of the tax liability attributable to their ownership, there is no guarantee that such techniques will be fully effective. Shareholders who remain invested in the Fund following a significant redemption event could bear a disproportionate share of the Fund’s aggregate tax liability relative to the gains they themselves experienced, which could materially and adversely affect the after-tax value of their investment. Prospective investors should carefully consider these tax risks prior to purchasing Fund Shares.

In addition, although there is no current direct authority, it is possible that the event contracts are viewed as “wagering contracts” for U.S. federal income tax purposes. Classification as wagering contracts would trigger a number of U.S. tax consequences. The United States imposes an excise tax on persons in the business of accepting wagers. If the Fund were determined to be in the business of accepting wagers, the Fund may be held liable for the excise tax. Losses from wagering contracts are allowed only to the extent of the lesser of (i) 90% of such losses or (ii) gains from wagering contracts. The Subsidiary could be subject to the limitation on losses, which could affect the income of the Fund, depending on the elections that the Fund makes. If the Fund’s investment in the Subsidiary is treated as a wagering contract, the Fund could be subject to the loss limitations. If a shareholder’s investment in the Fund is viewed as a wagering contract, the shareholder could be subject to the loss limitations.

Roundhill Republican Senate ETF (REDS)

In the event that the Republican Party does not win control of the U.S. Senate following the 2026 Senate Election, the Fund will lose substantially all of its value. This makes an investment in the Fund highly risky. An investment in the Fund is not appropriate for investors who do not wish to invest in a highly risky investment product or who do not fully understand the Fund’s investment strategy. Such investors are urged not to purchase Fund Shares.

Catastrophic Loss Risk. In the event that the Republican Party does not win control of the U.S. Senate following the 2026 Senate Election, the Fund will suffer a catastrophic loss in value. Investors that are unwilling to incur such losses are urged not to purchase Fund Shares.

Erroneous Settlement Risk. The value of Fund Shares is ultimately determined by the settlement of the event contracts to which the Fund has exposure, not by the official outcome of the 2026 Senate Election. Settlement of those contracts is governed exclusively by the rules of the DCM upon which those contracts are listed. The Fund and the Fund’s investment adviser have no role in, and no discretion over, the settlement process. Whether the Fund’s positions settle at $1.00 or at $0.00 is determined entirely by the DCM pursuant to its contract rules. Under those rules, as described above, the contracts may settle on an accelerated basis before the Republican Senate Contract Expiration Date if at least four of the eight Designated Media Sources identified by the DCM have declared that a political party has won control of the U.S. Senate and none have issued a contradictory declaration. If the “Media Declaration” criteria have not been satisfied by the Republican Senate Contract Expiration Date, the contracts will settle based upon the political party of the individual serving as the President pro tempore of the U.S. Senate on the Republican Senate Contract Expiration Date. In either case, the DCM retains the authority to initiate a “Market Outcome Review Process” before settlement is finalized. It is possible that the settlement process will produce an outcome that does not reflect the actual winner of the 2026 Senate Election. For example, it is possible that the Media Declaration criteria are satisfied and the contracts settle to $0.00, reflecting a determination that the Democratic Party has won control of the U.S. Senate even though it is subsequently determined that the Republican Party has won control. It is also possible that post-settlement developments, including a reversal of a prior election call, could alter the partisan outcome after the contracts have already settled. In all of these circumstances, the settlement of the contracts may have already occurred based on the DCM’s determination at the time of settlement, and that determination will be final and binding for purposes of the Fund. Once the contracts have settled, there is no mechanism by which the Fund or its shareholders can recover value based on a subsequent determination that the settlement outcome was incorrect. Holders of Fund Shares will have no recourse in that circumstance, regardless of the subsequent official determination of the election result. By purchasing Fund Shares, investors are accepting the risk that the settlement of the event contracts may not reflect the definitive outcome of the 2026 Senate Election and that no recourse will be available if it does not. Investors who require that their investment reflect the definitive, officially certified result of the election should not purchase Fund Shares.

Event Contracts Risk. The Fund’s investment performance is closely tied to the behavior of event contracts, a novel class of derivative instruments whose values are derived from the occurrence or non-occurrence of specified, objectively verifiable events. Event contracts may not develop the depth, liquidity, or trading efficiency associated with more established derivatives markets, and their pricing may be influenced by factors unrelated to fundamental probability assessments, including speculative activity, behavioral biases, regulatory headlines or concentrated participation by a limited number of traders. Because event contracts typically feature binary payouts at expiration, the value of a position may decline rapidly or even become worthless if the referenced event ultimately does not occur, regardless of prior market pricing. Exchanges may alter contract specifications, suspend trading, impose position limits, or take other actions that affect how these instruments trade or settle, and the legal and regulatory treatment of certain types of event contracts remains subject to ongoing review and potential change. In addition, event contracts may react sharply to news, polling data, or other developments, but may not provide continuous price discovery during periods of stress or uncertainty. As a result, investments in event contracts involve unique risks that differ from those associated with traditional futures, options, or securities, and could lead to significant losses, valuation uncertainty, and deviations from the Fund’s investment objective. Although the event contracts to which the Fund has exposure are listed for trading on a DCM, there can be no assurance that an active trading market for such event contracts will be available at all times and the DCM may halt trading of such event contracts in certain circumstances. Trading in the event contracts on a DCM may be halted due to market conditions or for reasons that, in the view of the DCM, make trading in the event contracts and/or Fund Shares inadvisable. In the event of a suspension of trading on the DCM, swap counterparties may (i) be unwilling to enter into additional swaps referencing Republican Senate Contracts, (ii) provide reduced capacity, (iii) widen pricing/spreads, and/or (iv) increase collateral and other terms that are unfavorable to the Fund. In the event of a trading halt for an extended period, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy.

Special Tax Risk. Because Republican Senate Contracts and swap agreements on Republican Senate Contracts produce non-qualifying income for purposes of the Fund qualifying as a RIC, the Fund makes its investments in Republican Senate Contracts and swap agreements on Republican Senate Contracts through the Subsidiary. The Fund intends to treat any income it may derive from the Republican Senate Contracts and swap agreements on Republican Senate Contracts received by the Subsidiary as “qualifying income” under the provisions of the Code applicable to RICs. The Internal Revenue Service has issued numerous private letter rulings (“PLRs”) provided to third parties not associated with the Fund or its affiliates (which only those parties may rely on as precedent) concluding that similar arrangements resulted in qualifying income. Many of these PLRs have now been revoked by the Internal Revenue Service. In March of 2019, the Internal Revenue Service published regulations that concluded that income from a corporation similar to the Subsidiary would be qualifying income, if the income is related to the Fund’s business of investing in stocks or securities. Although the regulations do not require distributions from the Subsidiary, the Fund intends to cause the Subsidiary to make distributions that would allow the Fund to make timely distributions to its shareholders. The Fund generally will be required to include in its own taxable income the income of the Subsidiary for a tax year, regardless of whether the Fund receives a distribution of the Subsidiary’s income in that tax year, and this income would nevertheless be subject to the distribution requirement for qualification as a regulated investment company and would be taken into account for purposes of the 4% excise tax. If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities than they otherwise would have incurred and would have a negative impact on Fund returns. In such an event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify shareholders of the implications of that failure.

Roundhill Democratic House ETF (BLUH)

In the event that the Democratic Party does not win control of the U.S. House following the 2026 House Election, the Fund will lose substantially all of its value. This makes an investment in the Fund highly risky. An investment in the Fund is not appropriate for investors who do not wish to invest in a highly risky investment product or who do not fully understand the Fund’s investment strategy. Such investors are urged not to purchase Fund Shares.

Catastrophic Loss Risk. In the event that the Democratic Party does not win control of the U.S. House following the 2026 House Election, the Fund will suffer a catastrophic loss in value. Investors that are unwilling to incur such losses are urged not to purchase Fund Shares.

Concentrated Exposure Risk. The Fund’s investment strategy results in concentrated exposure to a single event, the outcome of the 2026 House Election. Unlike diversified funds that spread risk across multiple asset classes, sectors or issuers, the Fund’s performance is primarily driven by developments related to this particular event and the market’s evolving assessment of its likely result. As a result, the Fund is more susceptible to adverse political developments, polling shifts, legal disputes, regulatory actions, changes in exchange rules, or unexpected news that directly or indirectly influence expectations regarding the election. Concentration also amplifies structural risks inherent in the trading venue, including position limits, liquidity constraints and clearinghouse disruptions. If conditions in the market for the relevant event contracts deteriorate or the contracts become unavailable, the Fund may be unable to find substitute investments that provide similar exposures, which could force the Fund to hold cash or other instruments with materially different profiles. This degree of concentration will likely increase volatility in the Fund’s NAV, heighten the likelihood of significant losses over short periods, and cause the Fund’s returns to diverge substantially from those of more diversified investments.

It is possible that the settlement process will produce an outcome that does not reflect the actual winner of the 2026 House Election. For example, it is possible that the “Media Declaration” criteria have been satisfied and the contracts settle to $0.00, reflecting a determination that the Republican Party has won control of the U.S. House even though it is subsequently determined that the Democratic Party has won control.

Additionally, if the “Media Declaration” criteria have not been satisfied and the Democratic House Contracts settle based upon the political party of the individual serving as the Speaker of the U.S. House on the Democratic House Contract Expiration Date, it is possible that the political party with a majority of the seats in the U.S. House has elected a member from the opposing party as the Speaker of the U.S. House. Under such circumstances, investors should clearly understand that in the event that the Democratic Party wins a majority of seats in the U.S. House but elects a member of the Republican Party as the Speaker of the U.S. House, the Fund’s Democratic House Contracts, by their terms, will settle to $0.00 and the Fund will lose substantially all of its value. This is considered highly unlikely but it is possible and investors should be aware of this possibility.

It is also possible that post-settlement developments, including a reversal of a prior election call, could alter the partisan outcome after the contracts have already settled. In all of these circumstances, the settlement of the contracts may have already occurred based on the DCM’s determination at the time of settlement, and that determination will be final and binding for purposes of the Fund. Once the contracts have settled, there is no mechanism by which the Fund or its shareholders can recover value based on a subsequent determination that the settlement outcome was incorrect. Holders of Fund Shares will have no recourse in that circumstance, regardless of the subsequent official determination of the election result. By purchasing Fund Shares, investors are accepting the risk that the settlement of the event contracts may not reflect the definitive outcome of the 2026 House Election and that no recourse will be available if it does not. Investors who require that their investment reflect the definitive, officially certified result of the election should not purchase Fund Shares.

Event Contracts Risk. The Fund’s investment performance is closely tied to the behavior of event contracts, a novel class of derivative instruments whose values are derived from the occurrence or non-occurrence of specified, objectively verifiable events. Event contracts may not develop the depth, liquidity, or trading efficiency associated with more established derivatives markets, and their pricing may be influenced by factors unrelated to fundamental probability assessments, including speculative activity, behavioral biases, regulatory headlines or concentrated participation by a limited number of traders. Because event contracts typically feature binary payouts at expiration, the value of a position may decline rapidly or even become worthless if the referenced event ultimately does not occur, regardless of prior market pricing. Exchanges may alter contract specifications, suspend trading, impose position limits, or take other actions that affect how these instruments trade or settle, and the legal and regulatory treatment of certain types of event contracts remains subject to ongoing review and potential change. In addition, event contracts may react sharply to news, polling data, or other developments, but may not provide continuous price discovery during periods of stress or uncertainty. As a result, investments in event contracts involve unique risks that differ from those associated with traditional futures, options, or securities, and could lead to significant losses, valuation uncertainty, and deviations from the Fund’s investment objective. Although the event contracts to which the Fund has exposure are listed for trading on a DCM, there can be no assurance that an active trading market for such event contracts will be available at all times and the DCM may halt trading of such event contracts in certain circumstances. Trading in the event contracts on a DCM may be halted due to market conditions or for reasons that, in the view of the DCM, make trading in the event contracts and/or Fund Shares inadvisable. In the event of a suspension of trading on the DCM, swap counterparties may (i) be unwilling to enter into additional swaps referencing Democratic House Contracts, (ii) provide reduced capacity, (iii) widen pricing/spreads, and/or (iv) increase collateral and other terms that are unfavorable to the Fund. In the event of a trading halt for an extended period, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy.

Swap Agreements Risk. The Fund will utilize swap agreements to derive exposure to the 2026 House Election. Swap agreements may involve greater risks than direct investment in securities as they may be leveraged and are subject to credit risk, counterparty risk and valuation risk. A swap agreement could result in losses if the underlying reference or asset does not perform as anticipated. In addition, many swaps trade over-the-counter and may be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses. In addition, the Fund’s ability to fully achieve its investment objective may depend on its capacity to enter into swap agreements providing exposure to the relevant event contract in sufficient size. The number of counterparties willing and able to offer such swaps may be limited, and any counterparty may reduce or eliminate its willingness to transact based on internal risk limits, capital constraints, regulatory requirements, or its own assessment of market or legal risk associated with event contracts. If the Fund is unable to access adequate swap capacity, it may be unable to establish or maintain desired exposure to the underlying event contract. Because the market for swaps referencing event contracts is nascent and involves a limited number of willing counterparties, capacity constraints may arise suddenly and without advance notice, particularly in periods of heightened regulatory scrutiny, market stress or as the relevant election approaches. Any such limitation could prevent the Fund from providing its desired level of exposure to the outcome of the election. Lastly, the cost to utilize swap agreements is embedded in the returns such agreements ultimately provide and is thus an indirect cost to investors that is not reflected in the table entitled “Fees and Expenses of the Fund” and the accompanying expense example. The fee paid by the Fund will include a commission and a financing expense typically determined by multiplying the face value of the swap agreement by an agreed upon interest rate.

Special Tax Risk. Because Democratic House Contracts and swap agreements on Democratic House Contracts produce non-qualifying income for purposes of the Fund qualifying as a RIC, the Fund makes its investments in Democratic House Contracts and swap agreements on Democratic House Contracts through the Subsidiary. The Fund intends to treat any income it may derive from the Democratic House Contracts and swap agreements on Democratic House Contracts received by the Subsidiary as “qualifying income” under the provisions of the Code applicable to RICs. The Internal Revenue Service has issued numerous private letter rulings (“PLRs”) provided to third parties not associated with the Fund or its affiliates (which only those parties may rely on as precedent) concluding that similar arrangements resulted in qualifying income. Many of these PLRs have now been revoked by the Internal Revenue Service. In March of 2019, the Internal Revenue Service published regulations that concluded that income from a corporation similar to the Subsidiary would be qualifying income, if the income is related to the Fund’s business of investing in stocks or securities. Although the regulations do not require distributions from the Subsidiary, the Fund intends to cause the Subsidiary to make distributions that would allow the Fund to make timely distributions to its shareholders. The Fund generally will be required to include in its own taxable income the income of the Subsidiary for a tax year, regardless of whether the Fund receives a distribution of the Subsidiary’s income in that tax year, and this income would nevertheless be subject to the distribution requirement for qualification as a regulated investment company and would be taken into account for purposes of the 4% excise tax. If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities than they otherwise would have incurred and would have a negative impact on Fund returns. In such an event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify shareholders of the implications of that failure.

Roundhill Republican House ETF (REDH)

In the event that the Republican Party does not win control of the U.S. House following the 2026 House Election, the Fund will lose substantially all of its value. This makes an investment in the Fund highly risky. An investment in the Fund is not appropriate for investors who do not wish to invest in a highly risky investment product or who do not fully understand the Fund’s investment strategy. Such investors are urged not to purchase Fund Shares.

Catastrophic Loss Risk. In the event that the Republican Party does not win control of the U.S. House following the 2026 House Election, the Fund will suffer a catastrophic loss in value. Investors that are unwilling to incur such losses are urged not to purchase Fund Shares.

It is possible that the settlement process will produce an outcome that does not reflect the actual winner of the 2026 House Election. For example, it is possible that the “Media Declaration” criteria are satisfied and the contracts settle to $0.00, reflecting a determination that the Democratic Party has won control of the U.S. House even though it is subsequently determined that the Republican Party has won control.

Additionally, if the “Media Declaration” criteria have not been satisfied and the Republican House Contracts settle based upon the political party of the individual serving as the Speaker of the U.S. House on the Republican House Contract Expiration Date, it is possible that the political party with a majority of the seats in the U.S. House has elected a member from the opposing party as the Speaker of the U.S. House. Under such circumstances, investors should clearly understand that in the event that the Republican Party wins a majority of seats in the U.S. House but elects a member of the Democratic Party as the Speaker of the U.S. House, the Fund’s Republican House Contracts, by their terms, will settle to $0.00 and the Fund will lose substantially all of its value. This is considered highly unlikely but it is possible and investors should be aware of this possibility.

Event Contracts Risk. The Fund’s investment performance is closely tied to the behavior of event contracts, a novel class of derivative instruments whose values are derived from the occurrence or non-occurrence of specified, objectively verifiable events. Event contracts may not develop the depth, liquidity, or trading efficiency associated with more established derivatives markets, and their pricing may be influenced by factors unrelated to fundamental probability assessments, including speculative activity, behavioral biases, regulatory headlines or concentrated participation by a limited number of traders. Because event contracts typically feature binary payouts at expiration, the value of a position may decline rapidly or even become worthless if the referenced event ultimately does not occur, regardless of prior market pricing. Exchanges may alter contract specifications, suspend trading, impose position limits, or take other actions that affect how these instruments trade or settle, and the legal and regulatory treatment of certain types of event contracts remains subject to ongoing review and potential change. In addition, event contracts may react sharply to news, polling data, or other developments, but may not provide continuous price discovery during periods of stress or uncertainty. As a result, investments in event contracts involve unique risks that differ from those associated with traditional futures, options, or securities, and could lead to significant losses, valuation uncertainty, and deviations from the Fund’s investment objective. Although the event contracts to which the Fund has exposure are listed for trading on a DCM, there can be no assurance that an active trading market for such event contracts will be available at all times and the DCM may halt trading of such event contracts in certain circumstances. Trading in the event contracts on a DCM may be halted due to market conditions or for reasons that, in the view of the DCM, make trading in the event contracts and/or Fund Shares inadvisable. In the event of a suspension of trading on the DCM, swap counterparties may (i) be unwilling to enter into additional swaps referencing Republican House Contracts, (ii) provide reduced capacity, (iii) widen pricing/spreads, and/or (iv) increase collateral and other terms that are unfavorable to the Fund. In the event of a trading halt for an extended period, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy.

Special Tax Risk. Because Republican House Contracts and swap agreements on Republican House Contracts produce non-qualifying income for purposes of the Fund qualifying as a RIC, the Fund makes its investments in Republican House Contracts and swap agreements on Republican House Contracts through the Subsidiary. The Fund intends to treat any income it may derive from the Republican House Contracts and swap agreements on Republican House Contracts received by the Subsidiary as “qualifying income” under the provisions of the Code applicable to RICs. The Internal Revenue Service has issued numerous private letter rulings (“PLRs”) provided to third parties not associated with the Fund or its affiliates (which only those parties may rely on as precedent) concluding that similar arrangements resulted in qualifying income. Many of these PLRs have now been revoked by the Internal Revenue Service. In March of 2019, the Internal Revenue Service published regulations that concluded that income from a corporation similar to the Subsidiary would be qualifying income, if the income is related to the Fund’s business of investing in stocks or securities. Although the regulations do not require distributions from the Subsidiary, the Fund intends to cause the Subsidiary to make distributions that would allow the Fund to make timely distributions to its shareholders. The Fund generally will be required to include in its own taxable income the income of the Subsidiary for a tax year, regardless of whether the Fund receives a distribution of the Subsidiary’s income in that tax year, and this income would nevertheless be subject to the distribution requirement for qualification as a regulated investment company and would be taken into account for purposes of the 4% excise tax. If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities than they otherwise would have incurred and would have a negative impact on Fund returns. In such an event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify shareholders of the implications of that failure.

Roundhill Democratic President ETF (BLUP)

In the event that a member of the Democratic Party is not the winner of the 2028 Presidential Election, the Fund will lose substantially all of its value. This makes an investment in the Fund highly risky. An investment in the Fund is not appropriate for investors who do not wish to invest in a highly risky investment product or who do not fully understand the Fund’s investment strategy. Such investors are urged not to purchase Fund Shares.

Catastrophic Loss Risk. In the event that a member of the Democratic Party is not the winner of the 2028 Presidential Election, the Fund will suffer a catastrophic loss in value. Investors that are unwilling to incur such losses are urged not to purchase Fund Shares.

Concentrated Exposure Risk. The Fund’s investment strategy results in concentrated exposure to a single event, the outcome of the 2028 Presidential Election. Unlike diversified funds that spread risk across multiple asset classes, sectors or issuers, the Fund’s performance is primarily driven by developments related to this particular event and the market’s evolving assessment of its likely result. As a result, the Fund is more susceptible to adverse political developments, polling shifts, legal disputes, regulatory actions, changes in exchange rules, or unexpected news that directly or indirectly influence expectations regarding the election. Concentration also amplifies structural risks inherent in the trading venue, including position limits, liquidity constraints and clearinghouse disruptions. If conditions in the market for the relevant event contracts deteriorate or the contracts become unavailable, the Fund may be unable to find substitute investments that provide similar exposures, which could force the Fund to hold cash or other instruments with materially different profiles. This degree of concentration will likely increase volatility in the Fund’s NAV, heighten the likelihood of significant losses over short periods, and cause the Fund’s returns to diverge substantially from those of more diversified investments.

Erroneous Settlement Risk. The value of Fund Shares is ultimately determined by the settlement of the event contracts to which the Fund has exposure, not by the official outcome of the 2028 Presidential Election. Settlement of those contracts is governed exclusively by the rules of the DCM upon which those contracts are listed. The Fund and the Fund’s investment adviser have no role in, and no discretion over, the settlement process. Whether the Fund’s positions settle at $1.00 or at $0.00 is determined entirely by the DCM pursuant to its contract rules. Under those rules, as described above, the contracts may settle on an accelerated basis before the inauguration of the President if at least four of the eight Designated Media Sources identified by the DCM have declared a winner and none have issued a contradictory declaration. If the “Media Declaration” criteria are not satisfied, the contracts will settle following the inauguration of a President. In either case, the DCM retains the authority to initiate a “Market Outcome Review Process” before settlement is finalized. It is possible that the settlement process will produce an outcome that does not reflect the actual winner of the 2028 Presidential Election. For example, it is possible that the Media Declaration criteria are satisfied and the contracts settle to $0.00, reflecting a determination that a Republican candidate has won, even though a Democratic candidate is subsequently inaugurated as President. It is also possible that post-settlement developments, including Presidential succession or a reversal of a prior election call, could alter the partisan outcome after the contracts have already settled. In all of these circumstances, the settlement of the contracts may have already occurred based on the DCM’s determination at the time of settlement, and that determination will be final and binding for purposes of the Fund. Once the contracts have settled, there is no mechanism by which the Fund or its shareholders can recover value based on a subsequent determination that the settlement outcome was incorrect. Holders of Fund Shares will have no recourse in that circumstance, regardless of the subsequent official determination of the election result. By purchasing Fund Shares, investors are accepting the risk that the settlement of the event contracts may not reflect the definitive outcome of the 2028 Presidential Election and that no recourse will be available if it does not. Investors who require that their investment reflect the definitive, officially certified result of the election should not purchase Fund Shares.

Event Contracts Risk. The Fund’s investment performance is closely tied to the behavior of event contracts, a novel class of derivative instruments whose values are derived from the occurrence or non-occurrence of specified, objectively verifiable events. Event contracts may not develop the depth, liquidity, or trading efficiency associated with more established derivatives markets, and their pricing may be influenced by factors unrelated to fundamental probability assessments, including speculative activity, behavioral biases, regulatory headlines or concentrated participation by a limited number of traders. Because event contracts typically feature binary payouts at expiration, the value of a position may decline rapidly or even become worthless if the referenced event ultimately does not occur, regardless of prior market pricing. Exchanges may alter contract specifications, suspend trading, impose position limits, or take other actions that affect how these instruments trade or settle, and the legal and regulatory treatment of certain types of event contracts remains subject to ongoing review and potential change. In addition, event contracts may react sharply to news, polling data, or other developments, but may not provide continuous price discovery during periods of stress or uncertainty. As a result, investments in event contracts involve unique risks that differ from those associated with traditional futures, options, or securities, and could lead to significant losses, valuation uncertainty, and deviations from the Fund’s investment objective. Although the event contracts to which the Fund has exposure are listed for trading on a DCM, there can be no assurance that an active trading market for such event contracts will be available at all times and the DCM may halt trading of such event contracts in certain circumstances. Trading in the event contracts on a DCM may be halted due to market conditions or for reasons that, in the view of the DCM, make trading in the event contracts and/or Fund Shares inadvisable. In the event of a suspension of trading on the DCM, swap counterparties may (i) be unwilling to enter into additional swaps referencing Democratic President Contracts, (ii) provide reduced capacity, (iii) widen pricing/spreads, and/or (iv) increase collateral and other terms that are unfavorable to the Fund. In the event of a trading halt for an extended period, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy.

Swap Agreements Risk. The Fund will utilize swap agreements to derive exposure to the 2028 Presidential Election. Swap agreements may involve greater risks than direct investment in securities as they may be leveraged and are subject to credit risk, counterparty risk and valuation risk. A swap agreement could result in losses if the underlying reference or asset does not perform as anticipated. In addition, many swaps trade over-the-counter and may be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses. In addition, the Fund’s ability to fully achieve its investment objective may depend on its capacity to enter into swap agreements providing exposure to the relevant event contract in sufficient size. The number of counterparties willing and able to offer such swaps may be limited, and any counterparty may reduce or eliminate its willingness to transact based on internal risk limits, capital constraints, regulatory requirements, or its own assessment of market or legal risk associated with event contracts. If the Fund is unable to access adequate swap capacity, it may be unable to establish or maintain desired exposure to the underlying event contract. Because the market for swaps referencing event contracts is nascent and involves a limited number of willing counterparties, capacity constraints may arise suddenly and without advance notice, particularly in periods of heightened regulatory scrutiny, market stress or as the relevant election approaches. Any such limitation could prevent the Fund from providing its desired level of exposure to the outcome of the election. Lastly, the cost to utilize swap agreements is embedded in the returns such agreements ultimately provide and is thus an indirect cost to investors that is not reflected in the table entitled “Fees and Expenses of the Fund” and the accompanying expense example. The fee paid by the Fund will include a commission and a financing expense typically determined by multiplying the face value of the swap agreement by an agreed upon interest rate.

Special Tax Risk. Because Democratic President Contracts and swap agreements on Democratic President Contracts produce non-qualifying income for purposes of the Fund qualifying as a RIC, the Fund makes its investments in Democratic President Contracts and swap agreements on Democratic President Contracts through the Subsidiary. The Fund intends to treat any income it may derive from the Democratic President Contracts and swap agreements on Democratic President Contracts received by the Subsidiary as “qualifying income” under the provisions of the Code applicable to RICs. The Internal Revenue Service has issued numerous private letter rulings (“PLRs”) provided to third parties not associated with the Fund or its affiliates (which only those parties may rely on as precedent) concluding that similar arrangements resulted in qualifying income. Many of these PLRs have now been revoked by the Internal Revenue Service. In March of 2019, the Internal Revenue Service published regulations that concluded that income from a corporation similar to the Subsidiary would be qualifying income, if the income is related to the Fund’s business of investing in stocks or securities. Although the regulations do not require distributions from the Subsidiary, the Fund intends to cause the Subsidiary to make distributions that would allow the Fund to make timely distributions to its shareholders. The Fund generally will be required to include in its own taxable income the income of the Subsidiary for a tax year, regardless of whether the Fund receives a distribution of the Subsidiary’s income in that tax year, and this income would nevertheless be subject to the distribution requirement for qualification as a regulated investment company and would be taken into account for purposes of the 4% excise tax. If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities than they otherwise would have incurred and would have a negative impact on Fund returns. In such an event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify shareholders of the implications of that failure.

Roundhill Republican President ETF (REDP)

In the event that a member of the Republican Party is not the winner of the 2028 Presidential Election, the Fund will lose substantially all of its value. This makes an investment in the Fund highly risky. An investment in the Fund is not appropriate for investors who do not wish to invest in a highly risky investment product or who do not fully understand the Fund’s investment strategy. Such investors are urged not to purchase Fund Shares.

Catastrophic Loss Risk. In the event that a member of the Republican Party is not the winner of the 2028 Presidential Election, the Fund will suffer a catastrophic loss in value. Investors that are unwilling to incur such losses are urged not to purchase Fund Shares.

Erroneous Settlement Risk. The value of Fund Shares is ultimately determined by the settlement of the event contracts to which the Fund has exposure, not by the official outcome of the 2028 Presidential Election. Settlement of those contracts is governed exclusively by the rules of the DCM upon which those contracts are listed. The Fund and the Fund’s investment adviser have no role in, and no discretion over, the settlement process. Whether the Fund’s positions settle at $1.00 or at $0.00 is determined entirely by the DCM pursuant to its contract rules. Under those rules, as described above, the contracts may settle on an accelerated basis before the inauguration of the President if at least four of the eight Designated Media Sources identified by the DCM have declared a winner and none have issued a contradictory declaration. If the “Media Declaration” criteria are not satisfied, the contracts will settle following the inauguration of a President. In either case, the DCM retains the authority to initiate a “Market Outcome Review Process” before settlement is finalized. It is possible that the settlement process will produce an outcome that does not reflect the actual winner of the 2028 Presidential Election. For example, it is possible that the Media Declaration criteria are satisfied and the contracts settle to $0.00, reflecting a determination that a Democratic candidate has won, even though a Republican candidate is subsequently inaugurated as President or is otherwise determined to have won the election through the official governmental certification or judicial process. It is also possible that post-settlement developments, including Presidential succession or a reversal of a prior election call, could alter the partisan outcome after the contracts have already settled. In all of these circumstances, the settlement of the contracts may have already occurred based on the DCM’s determination at the time of settlement, and that determination will be final and binding for purposes of the Fund. Once the contracts have settled, there is no mechanism by which the Fund or its shareholders can recover value based on a subsequent determination that the settlement outcome was incorrect. Holders of Fund Shares will have no recourse in that circumstance, regardless of the subsequent official determination of the election result. By purchasing Fund Shares, investors are accepting the risk that the settlement of the event contracts may not reflect the definitive outcome of the 2028 Presidential Election and that no recourse will be available if it does not. Investors who require that their investment reflect the definitive, officially certified result of the election should not purchase Fund Shares.

Event Contracts Risk. The Fund’s investment performance is closely tied to the behavior of event contracts, a novel class of derivative instruments whose values are derived from the occurrence or non-occurrence of specified, objectively verifiable events. Event contracts may not develop the depth, liquidity, or trading efficiency associated with more established derivatives markets, and their pricing may be influenced by factors unrelated to fundamental probability assessments, including speculative activity, behavioral biases, regulatory headlines or concentrated participation by a limited number of traders. Because event contracts typically feature binary payouts at expiration, the value of a position may decline rapidly or even become worthless if the referenced event ultimately does not occur, regardless of prior market pricing. Exchanges may alter contract specifications, suspend trading, impose position limits, or take other actions that affect how these instruments trade or settle, and the legal and regulatory treatment of certain types of event contracts remains subject to ongoing review and potential change. In addition, event contracts may react sharply to news, polling data, or other developments, but may not provide continuous price discovery during periods of stress or uncertainty. As a result, investments in event contracts involve unique risks that differ from those associated with traditional futures, options, or securities, and could lead to significant losses, valuation uncertainty, and deviations from the Fund’s investment objective. Although the event contracts to which the Fund has exposure are listed for trading on a DCM, there can be no assurance that an active trading market for such event contracts will be available at all times and the DCM may halt trading of such event contracts in certain circumstances. Trading in the event contracts on a DCM may be halted due to market conditions or for reasons that, in the view of the DCM, make trading in the event contracts and/or Fund Shares inadvisable. In the event of a suspension of trading on the DCM, swap counterparties may (i) be unwilling to enter into additional swaps referencing Republican President Contracts, (ii) provide reduced capacity, (iii) widen pricing/spreads, and/or (iv) increase collateral and other terms that are unfavorable to the Fund. In the event of a trading halt for an extended period, the Fund may be unable to execute arrangements with swap counterparties that are necessary to implement the Fund’s investment strategy.

Special Tax Risk. Because Republican President Contracts and swap agreements on Republican President Contracts produce non-qualifying income for purposes of the Fund qualifying as a RIC, the Fund makes its investments in Republican President Contracts and swap agreements on Republican President Contracts through the Subsidiary. The Fund intends to treat any income it may derive from the Republican President Contracts and swap agreements on Republican President Contracts received by the Subsidiary as “qualifying income” under the provisions of the Code applicable to RICs. The Internal Revenue Service has issued numerous private letter rulings (“PLRs”) provided to third parties not associated with the Fund or its affiliates (which only those parties may rely on as precedent) concluding that similar arrangements resulted in qualifying income. Many of these PLRs have now been revoked by the Internal Revenue Service. In March of 2019, the Internal Revenue Service published regulations that concluded that income from a corporation similar to the Subsidiary would be qualifying income, if the income is related to the Fund’s business of investing in stocks or securities. Although the regulations do not require distributions from the Subsidiary, the Fund intends to cause the Subsidiary to make distributions that would allow the Fund to make timely distributions to its shareholders. The Fund generally will be required to include in its own taxable income the income of the Subsidiary for a tax year, regardless of whether the Fund receives a distribution of the Subsidiary’s income in that tax year, and this income would nevertheless be subject to the distribution requirement for qualification as a regulated investment company and would be taken into account for purposes of the 4% excise tax. If the Fund did not qualify as a RIC for any taxable year and certain relief provisions were not available, the Fund’s taxable income would be subject to tax at the Fund level and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a RIC, the Fund might be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions. This would cause investors to incur higher tax liabilities than they otherwise would have incurred and would have a negative impact on Fund returns. In such an event, the Fund’s Board of Trustees may determine to reorganize or close the Fund or materially change the Fund’s investment objective and strategies. In the event that the Fund fails to qualify as a RIC, the Fund will promptly notify shareholders of the implications of that failure.

General Disclosures (Applies to All Funds)

Exchange and Clearinghouse Risk. The Fund’s exposure to event contracts exposes it to the operational, financial and regulatory risks of the DCMs listing such contracts and their affiliated clearing structure. DCMs are responsible for listing, matching and monitoring trades, while the clearinghouse manages margin, collateral and counterparty performance. Failures, disruptions or inadequacies in either function could adversely affect the Fund. For example, system outages, data errors, cyber incidents or failures in trade reporting or risk controls could impair price discovery, delay or prevent order execution, or cause positions to be liquidated incorrectly. Although clearing is intended to mitigate counterparty default risk, it does not eliminate the possibility of losses due to member defaults, insufficient financial resources at the clearinghouse, or recovery and resolution actions that allocate losses to market participants. In addition, the DCM and clearinghouse operate under evolving regulatory oversight, and may adopt rules, such as trading halts, position caps, settlement adjustments, or eligibility restrictions, that alter the economics or availability of contracts to which the Fund has exposure. In stressed market environments, the DCM or clearinghouse could suspend trading, impose liquidation-only orders, or otherwise restrict activity in ways that impede the Fund’s or a Fund counterparty’s ability to manage exposure or unwind positions in an orderly fashion. Any such exchange or clearinghouse issues could result in increased costs, valuation uncertainty, significant losses or the inability of the Fund to implement its strategy.

In addition, new DCMs and prediction market platforms may enter the market and compete with existing DCMs for trading volume, market participants and liquidity in political event contracts. The entry of new competitors could reduce the market share and trading volume of existing DCMs, potentially fragmenting liquidity across multiple venues and reducing the depth of order books available on the DCM upon which the event contracts to which the Fund has exposure are listed. Increased competition could also diminish the informational value of prediction markets more broadly. If market participants shift trading to other platforms, instruments, or prediction venues, or if the overall market for political event contracts on CFTC-regulated DCMs fails to develop the depth and breadth that existing platforms currently anticipate, the prices of event contracts may become less reflective of aggregate probability assessments, which could increase valuation uncertainty, reduce liquidity, and impair the Fund’s ability to efficiently implement its investment strategy. Competitive dynamics may also affect the long-term financial viability of the DCM that lists the contracts to which the Fund has exposure, and the failure or significant deterioration of a competing platform could have contagion effects that adversely affect such DCM as well.

Lastly, adverse legal rulings, regulatory actions, or other material developments affecting other categories of contracts listed on DCMs, such as sports event contracts, entertainment event contracts, or other non-political event contracts that may constitute a significant portion of a DCM’s trading volume or a primary source of the DCM’s revenue, could indirectly create material risks for the political event contracts to which the Fund has exposure. If a court ruling, regulatory action, legislative development, or settlement were to prohibit or significantly restrict trading in sports event contracts or other significant categories of contracts listed on a DCM, the DCM could suffer a significant loss of revenue, trading volume, and market participants, which could impair the DCM’s financial condition, operational capabilities, and willingness to continue investing in the infrastructure, technology, and regulatory compliance activities necessary to support political event contract markets. In extreme cases, such developments could threaten the operational viability of a DCM as a whole, potentially resulting in the cessation of trading in all contracts listed on the affected DCM, including the political event contracts to which the Fund has exposure.

Pre-Paid Forward Contracts Risk. The Fund may seek to gain exposure to event contracts through pre-paid forward contracts. Under a pre-paid forward contract, the Fund pays the full notional purchase price to the counterparty and, in return, receives the counterparty’s obligation to deliver the economic performance of the referenced event contract at a future settlement date. Because the Fund pays the full contract amount upfront, it bears unsecured credit risk against the counterparty for the entire amount of its investment for the duration of the contract. Unlike certain other derivatives that involve periodic mark-to-market margining or collateral posting, the Fund will generally have no collateral securing the counterparty’s obligation and will be an unsecured creditor with respect to the full amount paid. If the counterparty were to become insolvent, enter bankruptcy or otherwise fail to perform its obligations, the Fund could suffer a total loss of the amount paid, irrespective of the performance of the underlying event contract. In addition, such contracts may be illiquid, may trade over-the-counter without the benefit of an organized exchange or central clearing, and may be difficult or impossible to transfer or assign to a replacement counterparty. The number of counterparties willing to enter into pre-paid forward contracts referencing event contracts may be limited, and any counterparty may impose capacity constraints, refuse to enter into new contracts, or require terms that are unfavorable to the Fund.

Regulatory Risk. The regulatory framework governing event contracts tied to political outcomes is evolving and subject to significant uncertainty, and any change in how such contracts are classified, permitted, supervised or restricted under the CEA or by the CFTC could materially and adversely affect the Fund. The regulatory treatment of political event contracts differs in significant respects from the regulatory treatment of more traditional investment instruments. Securities are subject to the comprehensive investor protection framework of the Securities Act of 1933 and the Securities Exchange Act of 1934, including registration requirements, disclosure obligations, anti-fraud provisions, and insider trading prohibitions administered by the SEC. Commodity futures contracts are subject to the CEA’s long-established framework for regulating commodity futures markets, which reflects decades of regulatory experience, rulemaking and judicial precedent. Political event contracts, by contrast, are a novel instrument class for which there is no established body of regulatory precedent, no history of CFTC enforcement actions in this specific context, and no judicial framework addressing the full range of issues that may arise. The CFTC has broad discretionary authority to determine whether particular event contracts are consistent with the public interest, including authority to disapprove or direct a DCM to delist contracts that the CFTC determines involve gaming, are unlawful, or otherwise run contrary to the purposes of the CEA. The CFTC or the listing DCM could, at any time and without advance notice, impose new conditions, margin or position-limit requirements, reporting obligations, trading halts, settlement adjustments or delisting actions. Any such changes could, among other things, (i) impair the Fund’s or a Fund counterparty’s ability to establish, maintain or close positions; (ii) require the Fund or a Fund counterparty to liquidate positions at disadvantageous prices; (iii) alter the economic characteristics on which the Fund relies; or (iv) render the Fund’s principal investment strategy impractical and achievement of investment objective impossible.

A significant source of regulatory uncertainty for political event contracts is the unresolved legal status of prediction markets in the U.S. legal system. Key legal questions, including whether CFTC regulation of DCMs preempts state gaming laws, whether political event contracts constitute gambling under applicable federal or state statutes, and whether the CFTC’s designation of political event contracts is consistent with the CEA’s public interest standard, are currently the subject of active litigation in multiple forums. Courts may decline to resolve some or all of these questions definitively, may render conflicting rulings that create further uncertainty, or may remand issues to administrative agencies for further rulemaking. The litigation landscape surrounding prediction markets is complex, involves multiple parties (including state attorneys general, the CFTC, DCMs and private litigants), and may take years or even decades to resolve fully. Even a favorable court ruling may be narrow in scope, may be appealed, or may leave residual uncertainty about related legal questions. The prospect of prolonged legal uncertainty, as distinct from resolution in favor of prediction market operators, itself constitutes a material risk to the Fund, as it may deter market participants, impair liquidity, and complicate the DCMs’ ability to maintain and develop the event contract markets.

In addition to judicial and regulatory proceedings, prediction markets are subject to ongoing legislative efforts at both the state and federal levels. Numerous states have introduced or advanced legislation that would classify event contracts as gambling, require prediction market operators to obtain state gaming or sports wagering licenses, or prohibit the listing or trading of political event contracts within their jurisdictions. At the federal level, legislative proposals have been introduced in Congress that would restrict prediction market activity, impose additional registration or disclosure requirements on DCMs that list event contracts, or direct the CFTC to take regulatory action with respect to political event contracts. Industry participants, as well as their opponents (including gaming industry interests, anti-gambling advocacy groups, and certain state government associations), have engaged in active lobbying efforts before Congress and federal and state regulatory agencies regarding the permissibility and regulatory framework for prediction markets. The outcome of these legislative and lobbying efforts is uncertain and could ultimately have a significant negative impact on the Fund and holders of Fund Shares. These developments may occur abruptly and may not provide mechanisms for investor recourse or for the orderly unwind of positions. As a result, regulatory actions or uncertainty surrounding such actions could lead to significant losses, tracking error, increased transaction costs or the suspension or termination of the Fund. There can be no assurance whatsoever that the regulatory environment for political event contracts will remain stable or favorable. Investors that do not wish to invest in an investment product subject to significant regulatory uncertainty are urged not to purchase Fund Shares.

Gaming and State Regulatory Litigation Risk. DCMs that list event contracts (including the DCM upon which the event contracts to which the Fund has exposure are listed) have been the subject of significant legal challenges brought by state regulatory authorities and private litigants. Multiple state attorneys general, state gaming commissions, Native American tribal gaming authorities, and other state-level actors have filed lawsuits, administrative proceedings or regulatory enforcement actions against such DCMs, asserting that the trading of event contracts, including political event contracts, constitutes regulated gambling or gaming activity under state law, notwithstanding that such contracts are listed on a CFTC-regulated DCM. These actions allege, among other things, that prediction market operators have violated state gaming statutes, failed to obtain required state gaming or sports wagering licenses, or operated illegal gambling enterprises. The outcomes of such proceedings are uncertain, and adverse rulings could restrict or effectively prohibit the operations of the DCM that lists the event contracts to which the Fund has exposure. In addition, private plaintiffs may file putative class action lawsuits against prediction market operators or their affiliates arising out of the same or similar legal theories. Such actions could seek injunctive relief, disgorgement of profits, civil damages or other remedies that, if granted, could materially impair the financial condition, market-making capabilities, or continued operation of one or more DCMs, including the DCM that lists the event contracts to which the Fund has exposure. These DCMs, and the CFTC in certain court filings, have asserted that federal law, specifically the CEA and the CFTC’s exclusive jurisdiction over CFTC-regulated DCMs, preempts the application of state gaming and gambling regulations to CFTC-regulated event contracts. There is no assurance that federal courts will rule in favor of federal preemption. Courts may decline to find preemption or may find that state gaming laws apply in whole or in part to prediction market activity, notwithstanding federal oversight by the CFTC. Until the preemption question is definitively resolved, which may require years of litigation and potentially appellate review up to and including the U.S. Supreme Court, the legal status of prediction market operations will remain uncertain in a number of states. An adverse ruling in any state regulatory proceeding or federal court action or a failure of the federal preemption defense could result in the suspension or cessation of event contract trading on one or more DCMs (including the DCM upon which the event contracts to which the Fund has exposure are listed), the imposition of material operational restrictions, significant financial penalties, or the effective loss of the ability to list political event contracts. Any of these outcomes could materially and adversely affect the Fund’s ability to achieve its investment objective and could result in significant losses. Investors that do not wish to invest in an investment product subject to significant litigation risk are urged not to purchase Fund Shares.

Election Credibility and Security Risk. The event contracts to which the Fund has exposure are tied to the outcomes of U.S. elections. Efforts to interfere with U.S. elections, whether by domestic or foreign actors, could materially affect the integrity, timing, or perceived legitimacy of the election to which the Fund’s event contracts are tied and could adversely affect the Fund and holders of Fund Shares. Election interference can take many forms, including cyberattacks on voting infrastructure or election administration systems, disinformation campaigns intended to suppress turnout or mislead voters, manipulation of voter registration systems, physical interference with polling places or vote tabulation, efforts to delay, prevent, or overturn vote counting or certification, and coordinated activities designed to undermine public confidence in electoral outcomes. Any actual or alleged election interference could create significant uncertainty regarding election outcomes, delay the determination of election results and cause pronounced price volatility in the event contracts to which the Fund has exposure. Moreover, confirmed or suspected election interference may prompt legislative or regulatory responses, including restrictions on prediction market activity, emergency rulemaking by the CFTC, or other governmental actions that could restrict the listing or trading of event contracts.

In addition, political event contracts may be attractive to foreign governments, state-sponsored entities, foreign nationals, or other foreign persons seeking to gain financial exposure to U.S. election outcomes, gather intelligence about the perceived probability of such outcomes, or seek to influence U.S. elections through participation in prediction markets. It has been publicly asserted that event contracts could be used by foreign actors to manipulate prediction market prices, which in turn could be used to influence public perception of election outcomes, bolster or undermine the apparent credibility of particular candidates, or fund broader political influence operations. DCMs on which event contracts are listed may impose restrictions on participation by foreign persons or entities, consistent with applicable law. However, the effectiveness of such restrictions may be limited by the pseudonymous or anonymous nature of certain trading activity, the use of domestic intermediaries or nominee accounts, or the lack of comprehensive verification procedures applicable to all market participants. There is no assurance that all foreign actors will be effectively excluded from trading in event contracts, that DCMs will detect or prevent all improper foreign participation, or that existing regulatory tools are adequate to address this risk. The participation of foreign actors in prediction markets, whether in compliance with or in circumvention of applicable restrictions, could distort the informational value and integrity of market prices, affect liquidity, and expose DCMs to regulatory investigation, sanctions, or reputational harm. All such concerns may also apply to U.S. citizens who are acting as agents of foreign principals and are subject to the Foreign Agents Registration Act. In addition, governmental or congressional investigations into foreign activity in prediction markets, or new legislative or regulatory measures enacted in response to foreign influence concerns, could result in trading restrictions, position limits, market suspensions, or other limitations on the event contracts to which the Fund has exposure. Any such actions could materially and adversely affect the Fund’s ability to achieve its investment objective and could result in significant losses.

Settlement Risk. Event contracts to which the Fund has exposure are settled pursuant to the rules and procedures of the listing DCM and its clearing structure, and the Fund is subject to the risk that settlement may not occur as expected. Settlement depends on the DCM’s determination that the referenced event has occurred (or not occurred) in accordance with contract specifications, as well as on the timely performance of the clearinghouse and its members. Errors, ambiguities, disputes or reinterpretations regarding the definition of the underlying event, the applicable data sources, or the timing of the determination may delay or alter settlement outcomes. In the case of contested or uncertain events, the DCM may exercise discretion to postpone final determination, apply alternative settlement procedures, or adjust settlement values, any of which could diverge from market participants’ expectations and adversely affect the value of the Fund’s positions. Operational or financial issues at the DCM or clearinghouse, such as systems failures, member defaults, or insufficient financial resources, could also interfere with the orderly completion of settlement and potentially lead to loss allocation measures that impact market participants, including the Fund. In extreme cases, settlement may be suspended, cancelled or subject to regulatory review, leaving the Fund unable to realize anticipated gains. Additionally, the DCM may vary terms of event contract settlement in its sole discretion, which could materially impact the performance of Fund Shares.

Valuation Risk. The Fund values its event contract positions based on market prices. However, such values may not fully reflect the prices at which positions could be liquidated, especially in thin or stressed markets. Event contracts tied to political outcomes can trade with limited depth, episodic activity and wide bid-ask spreads, which increases the potential for stale or unrepresentative pricing. Market prices may also be influenced by short-term sentiment, regulatory headlines or speculative behavior that deviates from fundamental assessments of probability. Prices may move rapidly near election dates or following material news developments, and intraday volatility may cause significant swings in the Fund's NAV. If reliable market quotations are not readily available, the Fund may employ fair value methodologies that rely on models, estimates or subjective judgments. These methodologies may differ from those used by other market participants and may produce valuations that subsequently prove inaccurate. Differences between estimated values and realized transaction prices could adversely affect Fund performance, create dilution among shareholders or give rise to realized or unrealized losses when positions are sold. Furthermore, unexpected changes in settlement procedures, exchange rule interpretations, or the timing and recognition of election results could cause contract values to move in ways not anticipated by existing valuation approaches. As a result, valuation risk may contribute to NAV volatility and tracking error.

Volatility Risk. Event contracts tied to political outcomes can exhibit pronounced and unpredictable price volatility, particularly as new information emerges or as critical milestones approach. Because these contracts have binary payouts that converge toward either $1.00 or $0.00 at settlement, relatively small changes in the perceived probability of an outcome can translate into large percentage price swings. Market expectations may shift rapidly in response to polling data, debates, policy announcements, legal challenges, election-administration developments, or unexpected geopolitical or economic events, as well as rumors or sentiment-driven trading. Volatility often increases near key dates, such as party conventions, court rulings, election day, and certification deadlines, and may be further magnified by liquidity constraints, trading halts or changes in position limits on the designated contract market. Sharp price movements can occur even when the broader financial markets are stable, and may result in significant fluctuations in the Fund's NAV over short periods. Elevated volatility also increases the likelihood of the inability to execute trades at expected prices. In addition, following the apparent resolution of the election, volatility may persist until final settlement if uncertainties remain about certification, recounts or succession. The Fund's exposure to these dynamics means that investors should be prepared for substantial NAV variability, including the possibility of large and sudden losses that may not be predictable based on historical patterns or traditional risk metrics.

New Fund Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.

Non-Diversification Risk. As a “non-diversified” fund, the Fund has the ability to invest a relatively high percentage of its assets in the securities of a small number of issuers or in financial instruments with a single counterparty or a few counterparties. This may increase the Fund’s volatility and increase the risk that the Fund’s performance will decline based on the performance of a single issuer or the credit of a single counterparty.

Position Limits Risk. Event contracts listed on DCMs are subject to position limits. These limits may be imposed by the DCM or directed by the CFTC, and may change over time, sometimes without advance notice. To the extent the Fund invests directly in event contracts, position limits can constrain the Fund’s ability to initiate or increase positions, require the Fund to reduce existing positions when limits are tightened or reinterpreted, or prevent the Fund from maintaining desired exposure as the election approaches or as market conditions evolve. In certain circumstances, the DCM may also require the Fund to provide additional information, demonstrate the bona fide nature of its positions, or liquidate positions deemed inconsistent with exchange rules or risk-management objectives. Because political event contracts often concentrate liquidity in specific expirations or outcomes, position limits may become binding more quickly than in broader commodity or financial futures markets. If the Fund is forced to rebalance or liquidate positions to comply with applicable limits, it may incur transaction costs, realize unfavorable gains or losses, experience deviations from its investment strategy, or be unable to replicate market-implied probabilities. Moreover, new or more restrictive position limits imposed in response to regulatory developments, market stress, or exchange policy changes could materially impair the Fund’s ability to pursue its investment objective.

Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.

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