General FAQs

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▶ Who is VelocityShares?

VelocityShares designs exchange-traded products to be issued by well-known financial institutions.  Our focus is to create unique instruments that will assist professional traders in managing their market views, risk, or desired exposures.

▶ What are VelocityShares ETNs?

VelocityShares exchange-traded notes (“ETNs”) are senior, unsecured debt securities issued by financial institutions that provide traders with sophisticated tools for executing their trading strategies.  The ETNs provide investors with exposure to the performance of an index minus an investor fee.  The ETNs will trade on an exchange and can be sold short.

▶ On which exchanges are VelocityShares ETNs listed?

VelocityShares ETNs’ primary listing is on the NYSE ARCA, but they may trade on other U.S. stock exchanges.

▶ What is the yearly fee?

The yearly fee for each product is described in the relevant prospectus.

▶ To which index or indices are VelocityShares ETNs linked?

Each VelocityShares ETN is linked to an index as described in the pricing supplement.  Some of the indices are created, maintained, and published by VelocityShares Index and Calculation Services, a division of VelocityShares LLC while others are licensed from third party index providers.

▶ Will I be exposed to credit risk?

The value of an ETN, including any payment at maturity or on early redemption, is subject to the creditworthiness of the issuer of that ETN.  The buyer  of an ETN is therefore exposed to the credit risk of the issuer while holding the ETN.

▶ What risk exposure do I have to VelocityShares?

VelocityShares and its affiliates may calculate and publish certain information related to the indices and the ETNs.  In the event of a market disruption or force majeure event affecting VelocityShares LLC or the components of any index, there is a risk VelocityShares LLC, may be unable to perform its duties.  The consequences of such an event are described in the prospectus for each ETN.

▶ Does VelocityShares make markets in the ETNs?

No. VelocityShares has no market making or trading capabilities.

▶ How can I track the value of my ETN?

The intraday indicative value, the most current approximation of the closing indicative value of the ETNs, is calculated and disseminated over the Consolidated Tape and/or other major market data vendors every 15 seconds.  There is no guarantee the ETNs will trade at their intraday indicative value.

▶ Can VelocityShares ETNs be sold short?

Yes. VelocityShares ETNs can be sold short, subject to applicable laws, rules and regulations.

▶ How do the ETNs settle?

The ETNs are listed on NYSE Arca and may be bought and sold on one or more U.S. stock exchanges.  Secondary market transactions settle regular way, T+3.  Subject to certain restrictions, holders of the ETNs may choose to redeem their ETNs with the relevant issuer prior to maturity. Restrictions and instructions for early redemptions of the ETNs are set forth in the relevant prospectus.

Velocity Shares LLC  | 19 Old Kings Highway S | Darien, CT 06820 | 877-5 VELOCITY (877-583-5624) | Contact Us | Site Design: 341 Studios

Trading
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Short
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Implied Volatility
Equity Volatility		 Silver
Gold
Platinum
Palladium
Copper
Precious Metals
Energy
Oil
Natural Gas		 Nat Gas
Brent Crude
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WTI
West Texas Intermediate
Volatility
VIX		 S&P 500
ETF
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VelocityShares is a trade name used by VLS Securities LLC, a registered U.S. broker-dealer, in connection with the services and products described herein.

“VelocityShares” and the VelocityShares logo are trademarks of VelocityShares Index & Calculation Services, a division of VelocityShares, LLC.

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500™”, “S&P 500 VIX Short-Term Futures™”,  “S&P 500 VIX Mid-Term Futures™”, “S&P GSCI®”, “S&P GSCI® Gold Index”,  “S&P GSCI® Silver Index” , “S&P GSCI® Platinum Index”, “S&P GSCI® Palladium Index”,   “S&P GSCI®  Brent Crude Index”, “S&P GSCI® Crude Oil Index”, “S&P GSCI® Natural Gas Index” and “S&P GSCI®  Copper Index”are trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by VelocityShares, LLC. “VIX” is a trademark of the Chicago Board Options Exchange, Incorporated (“CBOE”) and has been licensed for use by S&P. The ETNs are not sponsored, endorsed, sold or promoted by S&P or CBOE and S&P and CBOE make no representation regarding the advisability of investing in the ETNs. The S&P GSCI index and the S&P GSCI sub-indices are not owned, endorsed, or approved by or associated with Goldman Sachs & Co. or its affiliated companies.

Securities Products: Are Not FDIC Insured * Are Not Bank Guaranteed * May Lose Value

This site is for informational purposes only. Nothing herein constitutes a solicitation, offer or recommendation by VelocityShares or its affiliates to buy or sell securities. VelocityShares does not render investment, tax, accounting or legal advice. The securities discussed herein may not be suitable for all investors and should only be used by knowledgeable investors who understand the potential consequences of seeking inverse or leveraged investment results. Investors should actively monitor their investments in the securities. Investors should review the prospectus for each security and make their own investment decisions based on their specific investment objectives and financial position and after consulting independent tax, accounting, legal and financial advisors. VelocityShares will receive a fee from the issuers of the products discussed on this site based on the quantity of products outstanding.

Past performance does not predict future performance. The value of the securities may decrease and investors may lose some or all of their investment.

VLS Securities LLC, a registered broker-dealer, will only transact business in states in which it is registered, unless it is otherwise excluded or exempted from being registered in such state.

Please see “VelocityShares Terms of Use” for additional information regarding use of this website.

Risk Disclosures Regarding the ETNs

Important information about the VelocityShares ETNs is contained within the current prospectuses. For more complete information regarding the VelocityShares ETNs, download a prospectus from this site, call 1-877-5-VELOCITY or 1-203-992-4301, or write to Prospectus Inquiry, VelocityShares LLC, 19 Old Kings Highway S, Darien, CT, 06820 to request a prospectus. You should read the prospectus carefully before making an investment decision.

The ETNs are only suitable for knowledgeable investors seeking daily exposure (including inverse or leveraged exposure) to the underlying index. The ETNs are intended for short-term trading, therefore investors with a horizon longer than one day trading should carefully consider whether the ETNs are appropriate for their investment portfolio.

Because the inverse leveraged ETNs and leveraged long ETNs are linked to the daily performance of the applicable underlying Index and include either inverse and/or leveraged exposure, changes in the market price of the underlying futures will have a greater likelihood of causing such ETNs to be worth zero than if such ETNs were not linked to the inverse or leveraged return of the applicable underlying Index.

The ETNs do not guarantee any return of principal at maturity and do not pay any interest during their term.

Although we intend to list the ETNs on NYSE Arca, a trading market for your ETNs may not develop. We are not required to maintain any listing of the ETNs on NYSE Arca or any other exchange.

The trading price of the ETNs may vary considerably before any valuation date (as defined in each prospectus), due, among other factors, to fluctuations in the price or the volatility of the underlying investment product, and other events that are difficult to predict. At higher levels of volatility, and since the ETNs are not principal protected, there is a significant chance of a complete loss of ETN value even if the performance of the index is flat.

The closing indicative value on each valuation date is determined in part by reference to the daily percentage change in the level of the underlying index. As a result, to the extent the closing indicative value of the ETNs is greater than or less than the initial indicative value, subsequent changes in the level of the index may have a bigger or smaller impact on the closing indicative value of the ETNs than if the closing indicative value remained constant at the initial indicative value. For example, assuming an initial indicative value of $100, if the closing indicative value of the ETNs increases above $100, a subsequent 1% daily change in the level of the index will result in more than a $1 decrease in the closing indicative value of the ETNs. Likewise, if the closing indicative value of the ETNs is less than $100, a 1% increase in the level of the index will result in less than a $1 increase in the closing indicative value of the ETNs.

If the level of the underlying index decreases or does not increase sufficiently (or if it increases or does not decrease sufficiently in the case of the inverse ETNs), to offset the effect of the Daily Investor Fee over the term of the ETNs, the investor will receive less than the principal amount of his investment upon early redemption, acceleration or maturity of the Notes.

Prior to maturity, you may, subject to certain restrictions described in the prospectus, offer the applicable minimum number of your ETNs to the issuer for redemption on an Early Redemption Date (as defined in the prospectus). You must offer for redemption at least the applicable minimum number of ETNs as set forth in the pricing supplement, or an integral multiple in excess thereof, at one time in order to exercise your right to cause the issuer to redeem your ETNs on any Early Redemption Date. In addition, the issuer may charge investors a redemption charge of a percentage of the stated principal amount of any ETN that is redeemed at the investor’s option, at a rate as indicated in the applicable pricing supplement.

Any payment on the Securities is subject to the ability of Credit Suisse AG to satisfy its obligations as they become due.

The risks listed above are not exhaustive. Investors should review the prospectus for each ETN, including all risk factors set forth therein, and consult their independent tax, accounting, legal and financial advisors before investing in any ETN.