- A market condition in which a futures price is lower in the distant delivery months than in the near delivery months.
- The midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's Net Asset Value ("NAV") is calculated.
- Cleared Oil Swap
- An oil-based swap agreement that is cleared through the NYMEX or its affiliated provider of clearing services.
- Closing Price
- The 4 p.m. EST closing price of the shares of the Fund as reported on the NYSE Arca.
- Commodity Futures Trading Commission (CFTC)
- The federal agency created by Congress in 1975 to regulate futures trading and protect participants against manipulation and fraud, through its administration of the Commodities Exchange Act.
- Commodity Pool
- An enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Commodity pools are analogous to mutual funds in that many investors pool their assets to gain the power to make trades that they could not make individually. Additional benefits include bypassing margin requirements and limiting risk to the amount invested in the pool.
- A condition in which distant delivery prices for futures exceed spot prices, often due to the costs of storing and insuring the underlying commodity, the opposite of backwardation.
- Creation/Redemption Basket
- The minimum number of shares of an Exchange-Traded Product (ETP) that will be delivered to an Authorized Purchaser (AP) in exchange for the predefined basket of securities underlying the ETP's securities, known as a Creation Basket. The shares can also be sold back in a predefined basket to the ETP; this process is called redemption.
- Exchange-traded product.
- Futures Contract
- A standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality at a specified future date at a price agreed today (the futures price).
- ICE or Intercontinental Exchange
- An Internet-based exchange for the trading of over-the-counter energy contracts.
- Intraday Indicative Value (IIV)
- An Intraday Indicative Value is published by NYSE Alternext US for each ETP as a reference value to be used in conjunction with other ETP market information. The Intraday Indicative Value for the WTI Teucrium Crude Oil Fund is published under a separate symbol every 15 seconds over the Consolidated Tape and calculated throughout the trading day using the prior day’s closing Net Asset Value per share as a base and updating that value throughout the trading day to reflect changes in the value of the Fund’s crude oil interests during the trading day, all on a per-share basis. This value is also referred to as an "Underlying Trading Value," "Indicative Optimized Portfolio Value (IOPV)," and "Intraday Value" in various places such as the prospectus and marketing materials for different ETPs. The Intraday Indicative Value is designed to give investors a sense of the share price of the Fund on an intraday basis. However, for various reasons, the Intraday Indicative Value should not be viewed as an actual real time update of the Net Asset Value.
- The ability of an asset to be converted into cash quickly and without any price discount.
- The amount of equity required for an investment in futures contracts.
- Market Price
- The current price at which an asset or service can be bought or sold.
- National Futures Association (NFA)
- The private-sector, self-regulatory agency of the futures industry, established in 1981.
- Net Asset Value (NAV)
- An exchange-traded product’s (ETP) per-share value. The per-share dollar amount of the Fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of Fund Shares outstanding.
- New York Mercantile Exchange. The primary exchange on which Crude Oil Contracts are traded in the U.S.
- The amount (stated in dollars or percent) by which the selling or purchase price of an ETP is greater than (Premium) or less than (Discount) its face amount/value or Net Asset Value (NAV).
- When an investor replaces an existing futures position with a new one having a later expiration date.
- Spot Month
- The nearest calendar month traded for that commodity futures contract.
- Teucrium WTI Crude Oil or TCRUD Index
- A weighted average of daily changes in the closing settlement prices of (1) the nearest to spot June or December Oil Futures Contract, weighted 35%; (2) the June or December Oil Futures Contract following the aforementioned (1), weighted 30%; and (3) the next December Oil Futures Contract following the aforementioned (2), weighted 35%; before taking Fund expenses and interest income into account. To convert to an index, 100 is set to $50, the opening day price of crude.
- According to Dictionary.com, Teucrium (pronounced two-cree-um) “is a large, widely distributed genus of perennial herbs, shrubs, or subshrubs native to the Mediterranean region to western Asia.”
- We named our firm Teucrium because, according to the Roman poet Horace, the Greek god Teucer, prior to setting sail for Cyprus, told his followers that “We will set sail upon the vast ocean,” a feeling which we believe symbolizes the “voyage of discovery” upon which all of us at Teucrium are embarking each day.
- The extent to which investors have ready access to any required financial information. For the Teucirum WTI Crude Oil Fund, holdings and the Net Asset Value (NAV) are reported on the website daily.
- Weighted Average Price
- The weighted average price is reflected on the Holdings page when there are multiple fill prices for the purchase or sale of a specific commodity contract on a given day. The calculation is as follows: [absolute value of (dollar value of contracts bought minus dollar value of contrcts sold)] divided by [net number of contracts bought or sold].
CRUD has limited operating history, so there is little performance history to serve as a basis for you to evaluate an investment in the Trust. Investing in Crude Oil Interests subjects CRUD to the risks of the crude oil market, and this could result in substantial fluctuations in the price of CRUD’ s Shares. Unlike mutual funds, CRUD generally will not distribute dividends to Shareholders.
Investors may choose to use CRUD as a means of investing indirectly in crude oil or as a vehicle to hedge against the risk of loss, and there are risks involved in such investments and activities. The Sponsor has limited experience in operating a commodity pool, which is defined as an enterprise in which several individuals contribute funds in order to trade futures or futures options collectively.
Commodities and futures generally are volatile and are not suitable for all investors.
The Teucrium WTI Crude Oil Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
Shares of the Teucrium WTI Crude Oil Fund are not FDIC insured, may lose value, and have no bank guarantee.
All supporting documentation will be provided upon request.
Foreside Fund Services, LLC is the distributor for the Teucrium WTI Crude Oil Fund.
© 2012 TEUCRIUM TRADING, LLC. All rights reserved.