Defiance ETFs Launches OKLS: The First 2X Short ETF of Oklo Inc.

Core Viewpoint - Defiance ETFs has launched the Defiance Daily Target 2X Short OKLO ETF (Ticker: OKLS), aimed at sophisticated traders looking for short-term market expression through leveraged inverse investment strategies [1]. Investment Objective - The Fund aims for daily inverse investment results of -2 times (-200%) the daily percentage change in the share price of Oklo Inc. (NYSE: OKLO), focusing solely on single trading days [2]. Underlying Stock: Oklo Inc. - Oklo Inc. is a developer of advanced nuclear fission power modules, focusing on next-generation microreactor designs for reliable, clean energy. Its growth potential is linked to regulatory progress, partnerships, site licensing, reactor deployment, and global decarbonization trends [3]. Fund Suitability - The Fund is designed for knowledgeable investors who understand the risks of seeking daily leveraged inverse results and are willing to actively monitor their portfolios. It is not suitable for passive investors [4]. Performance Characteristics - The Fund's performance over periods longer than a single trading day will be influenced by compounded daily returns, which may differ significantly from -200% of the return of OKLO due to daily resets [4][12]. Risks Associated with the Fund - The Fund is subject to various risks, including: - OKLO price appreciation risk, where an increase in OKLO's share price could lead to significant losses for the Fund [7]. - Indirect investment risk, as Oklo Inc. is not affiliated with the Fund and has no obligations towards it [8]. - Performance risk linked to successful milestones achieved by Oklo Inc., which could lead to an increase in its stock price and losses for the Fund [9]. - Single issuer risk, as the Fund's focus on a single company may lead to higher volatility compared to diversified investments [11]. Investment Strategy - The Fund utilizes swap contracts and options to achieve its inverse exposure, which carries risks similar to short selling, including increased volatility and liquidity challenges [15][18]. Market Dynamics - The Fund's performance may be affected by market disruptions, regulatory restrictions, and volatility, which could hinder its ability to meet its daily investment objectives [13].