ProShares UltraPro QQQ

• A blockchain token designed to track the price of ProShares UltraPro QQQ (NASDAQ: TQQQ), a leveraged exchange-traded fund.

• It is not a fund unit. Holding the token does not make you a shareholder of the fund and confers no rights against the fund or its manager.

• The underlying is a daily-objective leveraged product, so this token inherits that structure and is unsuitable for holding over long periods.

• Issuer: ProShares

• Launched: February 2010

• Objective: 3x the daily return of the Nasdaq-100

• Listed on: Nasdaq (TQQQ)

• Rebalancing: Daily

• Category: Leveraged index fund

• TQQQ seeks three times the DAILY return of the Nasdaq-100 index.

• Because leverage resets daily, returns over periods longer than one day diverge from three times the index return, and in volatile sideways markets this decay works against the holder.

• It is designed as a short-term trading instrument, not a long-term holding.

• The fund gains exposure through swaps, futures and direct holdings.

• Leverage resets each trading day.

• The index is dominated by large technology stocks.

• You get price exposure to the underlying instrument.

• You do not get shareholder voting rights.

• Dividend or distribution treatment depends on the issuer's structure and is often not passed through.

• You take on issuer and custodian risk in addition to the price risk of the underlying.

Pros:

• It can amplify a one-day move.

• It is one of the most traded leveraged funds.

• It needs no margin account.

Cons:

• Losses are amplified too.

• Daily reset causes decay over time.

• Drawdowns can be severe.

• Leverage decay: the underlying resets its leverage daily, so holding for more than a day produces returns that differ from the stated multiple, usually unfavourably in volatile markets.

• Loss can be rapid and severe. A three-times leveraged product can lose the large majority of its value in a short period.

• Counterparty risk: if the issuer or custodian fails, the backing may not be recoverable.

• Tracking risk: the token price can diverge from the underlying, particularly outside US market hours when the underlying does not trade.

• Liquidity risk: on-chain liquidity is thinner than the underlying market, so spreads can widen sharply.

• Regulatory risk: India does not yet have a settled framework for tokenised equities, and tax treatment remains unclear.

• Price risk specific to the underlying instrument.