AxelaTrader™ ETNs are not intended to be “buy and hold” investments. Instead, the ETNs are intended to be daily trading tools for traders and similarly sophisticated investors to express short-term market views and manage daily trading risks. The ETNs are designed to achieve their stated investment objectives on a daily basis, and, therefore, their performance over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate or long-term investment objectives, and may not be suitable for investors who plan to hold them for a period of more than one day. Investors should actively and frequently monitor their investments in the ETNs, on a daily or intraday basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. If you hold the ETNs for more than one day, it is possible that you will suffer significant losses in the ETNs even if the performance of the relevant underlying index over the time you hold the ETNs is positive, in the case of ETNs having positive daily leverage, or negative, in the case of ETNs having negative daily leverage. Accordingly, the ETNs should be purchased only by sophisticated investors who understand the relevant underlying index and the consequences of investing in the ETNs that are designed to provide positive or negative leveraged exposure, as applicable, to the daily performance of such index.
Investing in the ETNs involves significant risks. Please see the section entitled “Risk Factors” in the applicable pricing supplement.