What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-25 compared with 2021-02-26 · 83 added, 168 removed, 1120 unchanged (18% of the section changed)

9 unchanged sentences

Wilmington Trust Company, a Delaware trust company, is the Delaware trustee of the Trust.

The Trust and CPER are managed and controlled by United States Commodity Funds LLC (“USCF”).

The Trust, USCI and CPER are managed and controlled by United States Commodity Funds LLC (“USCF”).

USCF is a limited liability company formed in Delaware on May 10, 2005, that is registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission and is a member of the National Futures Association (“NFA”).

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This is because natural market forces called contango and backwardation have impacted the total return on an investment in CPER’s shares during the past year relative to a hypothetical direct investment in various commodities and, in the future, it is likely that the relationship between the market price of CPER’s shares and changes in the spot prices of the underlying commodities will continue to be so impacted by contango and backwardation.

(It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing the commodities, which could be substantial.).

As of December 31, 2020, CPER held 741 Futures Contracts on the COMEX.

(It is important to note that the disclosure above ignores the potential costs associated with physically owning and storing the commodities, which could be substantial.) As of December 31, 2021, CPER held 2,051 Futures Contracts on the COMEX.

Other Defined Terms – Trust Series

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Wainwright is a holding company that currently holds both USCF, as well as USCF Advisers LLC, an investment adviser registered under the Investment Advisers Act of 1940, as amended, (“USCF Advisers”).

USCF Advisers serves as the investment adviser for the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (“SDCI”), a series of the USCF ETF Trust.

USCF Advisers serves as the investment adviser for the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (“SDCI”), USCF Midstream Energy Income Fund (“UMI”) and USCF Gold Strategy Plus Income Fund (“GLDX”), each a series of the USCF ETF Trust.

USCF Advisers was also the investment adviser for each of the following funds prior to such fund’s liquidation:

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Each of USOU and USOD liquidated all of its assets and distributed cash pro rata to all remaining shareholders in December 2019.

USO, UNG, UGA, UNL, USL, BNO, USCI and CPER are referred to collectively herein as the “Related Public Funds.”

USO, UNG, UGA, UNL, USL and BNO are referred to collectively herein as the “Related Public Funds.”

The Related Public Funds are subject to reporting requirements under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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Brown Brothers Harriman & Co.

("BBH&Co.") served as the administrator and custodian for each Trust Series prior to BNY Mellon.

(“BBH&Co.”) served as the administrator and custodian for each Trust Series prior to BNY Mellon.

Certain fund accounting and fund administration services rendered by BBH&Co.

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While USCF has made significant investments in Benchmark Component Futures Contracts on the Futures Exchanges, for various reasons, including the ability to enter into the precise amount of exposure to the commodities market and position limits on Futures Contracts, it may also invest in economically equivalent Futures Contracts other than those that compose the Benchmark Component Futures Contracts and Other Commodity-Related Investments.

To the extent that USCI invests in Other Related Investments, it would prioritize investments in contracts and instruments that are economically equivalent to the Benchmark Component Futures Contracts, including cleared swaps that satisfy such criteria, and then to a lesser extent, it would invest in other types of cleared swaps and other contracts, instruments and non-cleared swaps, such as swaps in over-the-counter market (or commonly referred to as the "

If USCI is required by law or regulation, or by one of its regulators, including a Futures Exchange, to reduce its position in one or more Benchmark Component Futures Contracts to the applicable position limit or to a specified accountability level, a substantial portion of USCI’s assets could be invested in Other Commodity-Related Investments that are intended to replicate the return on the SDCI or particular Benchmark Component Futures Contracts.

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As of December 31, 2021, CPER held 2,051 Futures Contracts on the COMEX.

No Trust Series exceeded accountability levels imposed by the NYMEX, COMEX, CME, CBOT, KCBT or ICE Futures.

No Trust Series exceeded accountability levels imposed by the NYMEX, COMEX, CME, CBOT, LME or ICE Futures.

Position limits differ from accountability levels in that they represent fixed limits on the maximum number of futures contracts that any person may hold and cannot allow such limits to be exceeded without express CFTC authority to do so.

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As such, none of the Trust Series anticipates that position limits that apply to the last few days prior to a contract’s expiration will impact it.

For the year ended December 31, 2020, no Trust Series exceeded position limits imposed by the NYMEX, COMEX, CME, CBOT, KCBT or ICE Futures.

For the year ended December 31, 2021, no Trust Series exceeded position limits imposed by the NYMEX, COMEX, CME, CBOT, LME or ICE Futures.

On October 15, 2020, the CFTC approved a final rule that amends the existing federal position limits regime set forth in Part 150 of the CFTC’s regulations as well as the framework for exchange-set position limits and exemptions (such final rule, the “Position Limits Rule”).

The Position Limits Rule establishes federal position limits for 25 core referenced futures contracts (comprised of agricultural, energy and metals futures contracts), futures and options linked to the core referenced futures contracts, and swaps that are economically equivalent to the core referenced futures contracts.

The Position Limits Rule sets position limits for the spot month and non-spot month;

however, the non-spot month limits only apply in respect of the agricultural futures contracts that are currently subject to position limits under Part 150 of the CFTC regulations (the “legacy agricultural contracts”).

With respect to regulatory oversight, the Position Limits Rule delegates authority to designated contract markets and swap execution facilities to oversee certain aspects of the position limits framework.

In addition to setting the federal position limits, the Position Limits Rule also provides several exemptions from such position limits, including an expanded list of enumerated bona fide hedge exemptions and certain spread exemptions.

Further, the Position Limits Rule sets forth two alternative processes for pursuing an exemption for non-enumerated hedge positions.

Other than for the legacy agricultural contracts, compliance with the limits imposed by the Position Limits Rule will not be required until 2022, except that economically equivalent swaps need not comply with the Position Limits Rule until 2023.

Certain Applicable Benchmark Component Futures Contracts will be subject to position limits under the Position Limits Rule, and the Trust Series’ trading does not qualify as an enumerated bona fide hedge.

Certain Applicable Benchmark Component Futures Contracts will be subject to position limits under the Position Limits Rule, and the Trust Series’ trading does not qualify for an exemption therefrom.

Accordingly, the Position Limits Rule could negatively impact the ability of the Trust Series to meet their investment objectives by inhibiting USCF’s ability to effectively invest the proceeds from sales of Creation Baskets of the Trust Series in particular amounts and types of its permitted investments.

Until such time as compliance with the Position Limits Rule is required, the regulatory architecture in effect prior to the adoption of the Position Limit Rules will govern transactions in commodities and related derivatives.

Under that system, the CFTC enforces federal limits on speculation in the nine legacy agricultural contracts, while futures exchanges establish and enforce position limits and accountability levels for other agricultural products and certain energy products (e.g., oil and natural gas).

Under existing CFTC regulations and the Position Limits Rule, for the purpose of position limits, a market participant is generally required, subject to certain narrow exceptions, to aggregate all positions for which that participant controls the trading decisions with all positions for which that participant has a 10 percent or greater ownership interest in an account or position, as well as the positions of two or more persons acting pursuant to an express or implied agreement or understanding with that market participant (the “Aggregation Rules”).

Price Volatility.

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USD/metric ton

Commodity Symbol

Allowed Contracts

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All questions of interpretation with respect to the application of the provisions of the SDCI methodology, including any determinations that need to be made in the event of a market emergency or other extraordinary circumstances, will be resolved by SHIM.

The composition of the SDCI was revised beginning with the commodity selection process that commenced on December 24, 2020.

SHIM revised the composition of the SDCI to consolidate the six commodity sectors that comprised the index into five sectors.

Specifically, prior to December 24, 2020, the SDCI reflected commodities in six commodity sectors:

energy (e.g., crude oil, natural gas, heating oil, etc.), precious metals (e.g., gold, silver platinum), industrial metals (e.g., zinc, nickel, aluminum, copper, etc.), grains (e.g., wheat, corn, soybeans, etc.), softs (e.g., sugar, cotton, coffee, cocoa), and livestock (e.g., live cattle, lean hogs, feeder cattle).

During the year ended December 31, 2021, the composition of SDCI reflected the five commodity sectors:

petroleum (e.g., crude oil, heating oil, etc.), precious metals (e.g., gold, silver platinum), industrial metals (e.g., zinc, nickel, aluminum, copper, etc.), grains (e.g., wheat, corn, soybeans, etc.), and non-primary sector (e.g., sugar, cotton, coffee, cocoa, natural gas, live cattle, lean hogs, feeder cattle), discussed above and utilized the commodity selection as described below.

Contract Expirations

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At the end of Selection Date, the signals are observed and on the first day following Selection Date a new portfolio is constructed that is equally weighted in terms of notional positions in the newly selected contracts.

Changes to the SDCI

The above discussion about the SDCI is based on the current composition of the SDCI, which was revised effective December 24, 2020.

Beginning with the commodity selection process that commenced on December 24, 2020, SHIM revised the composition of the SDCI to consolidate the six commodity sectors that comprised the index into five sectors.

Specifically, prior to December 24, 2020, the SDCI reflected commodities in six commodity sectors:

Table 3 below lists the previously-existing commodity sectors.

This Table 3 was replaced by Table 2 above effective December 24, 2020.

Allowed Contracts

All 12 Calendar Months

Feeder Cattle

Jan, Mar, Apr, May, Aug, Sep, Oct, Nov

Feb, Apr, Jun, Jul, Aug, Oct, Dec

Feb, Apr, Jun, Aug, Oct, Dec

Jan, Mar, May, Jul, Aug, Sep, Oct, Dec

Mar, May, Jul, Sep, Dec

Jan, Mar, May, Jul, Aug, Sep, Nov

Jan, Mar, May, Jul, Aug, Sep, Oct, Dec

Wheat (Soft Red Winter)

Mar, May, Jul, Sep, Dec

Industrial Metals

All 12 Calendar months

Industrial Metals

All 12 Calendar Months

Industrial Metals

All 12 Calendar Months

Industrial Metals

All 12 Calendar Months

Industrial Metals

All 12 Calendar Months

Industrial Metals

All 12 Calendar Months

Precious Metals

Feb, Apr, Jun, Aug, Oct, Dec

Precious Metals

Jan, Apr, Jul, Oct

Precious Metals

Mar, May, Jul, Sep, Dec

Mar, May, Jul, Dec

Mar, May, Jul, Oct

In addition, beginning on December 24, 2020, SHIM revised the commodity selection process for the SDCI.

Prior to this date, the commodity selection for the SDCI operated as follows:

Monthly commodity selection was a two-step process based upon examination of the relevant futures prices for each commodity:

1) The annualized percentage price difference between the closest-to-expiration Futures Contract and the next closest-to-expiration Futures Contract was calculated for each of the 27 eligible Futures Contracts on USCI’s Selection Date.

The seven commodities with the highest percentage price difference were selected.

2) For the remaining 20 eligible commodities, the percentage price change of each commodity over the previous year was calculated, as measured by the change in the price of the closest-to-expiration Futures Contract on the Selection Date from the price of the closest-to-expiration Futures Contract a year prior to USCI’s Selection Date.

The seven commodities with the highest percentage price change were selected.

When evaluating the data from the second step, all six commodity sectors must have been represented.

If the selection of the seven additional commodities with the highest price change failed to meet the overall diversification requirement that all six commodity sectors were represented in the SDCI, the commodity with the highest price change among the commodities of the omitted sector(s) would be substituted for the commodity with the lowest price change among the seven additional commodities.

The 14 commodities selected were included in the SDCI for the next month on an equally-weighted basis.

Due to the dynamic monthly commodity selection, the sector weights would vary from approximately 7% to 43% over time, depending on the price observations each month.

The Selection Date for the SDCI was the fifth business day prior to the end of that calendar month.

What is the SCI?

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All questions of interpretation with respect to the application of the provisions of the index methodology for the SCI, including any determinations that need to be made in the event of a market emergency or other extraordinary circumstances, will be resolved by SHIM.

Beginning with the commodity selection process that was scheduled to occur on December 31, 2020, the rebalancing period for the SCI changed from the first four business days of each month to the 11th-14th business days of each month, based on signals used for contract selection on the 10th business day of each month, rather than the last business day of each month.

In addition, commencing with the first commodity selection date occurring after the change, the SCI was revised as follows:

the number of Eligible Copper Futures Contracts was reduced, and the SCI itself is now comprised of one or three Eligible Copper Futures Contracts.

Previously, the SCI could have been comprised of two or three Eligible Copper Futures Contracts.

These revisions to the composition of the SCI are intended to ensure that the SCI components at any given time represent copper futures contracts for which there is an active and liquid trading market.

Contract Expirations

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a) the copper futures curve is assessed to be in either backwardation or contango (as discussed below);

b) the annualized percentage price difference between the Closest-to-Expiration Eligible Copper Futures Contract and each of the Next Four Eligible Copper Futures Contracts are identified.

For each month, the Closest-to-Expiration Eligible Copper Futures Contract and the Next Four Eligible Copper Futures Contracts are as follows:

b) the Three Eligible Copper Futures Contracts are identified.

For each month, the Three Eligible Copper Futures Contracts are as follows

Closest to Expiration Futures Contract

Eligible Futures Contracts

A futures curve in backwardation occurs when the price of the closest-to-expiration contract is greater than or equal to the price of the third closest-to-expiration contract.

A futures curve in backwardation occurs when the price of the closest-to-expiration Eligible Copper Futures Contract is greater than or equal to the price of the next closest-to-expiration Eligible Copper Futures Contract.

These contracts will have expirations that are approximately two or three months apart.

A curve not in backwardation is defined as being in contango, which occurs when the price of the closest-to-expiration contract is less than the price of the third closest-to-expiration contract.

A curve not in backwardation is defined as being in contango, which occurs when the price of the closest-to-expiration contract is less than the price of the next closest-to-expiration contract.

2a) Backwardation:

If the copper futures curve is in backwardation on the Selection Date, the SCI takes positions in the two Eligible Copper Futures Contracts with the highest annualized percentage price difference, each, weighted at 50%.

If the copper futures curve is in backwardation on the Selection Date, the SCI takes positions in the first Eligible Copper Futures Contract, weighted at 100%.

A hypothetical example is included below, with the selected Eligible Copper Futures Contract shaded below:

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2b) Contango:

If the copper futures curve is in contango, then the SCI takes positions in first three Eligible Copper Futures Contracts, as follows:

first, the SCI takes positions in the two Eligible Copper Futures Contracts with the highest annualized percentage price difference, each weighted at 25%;

then, the SCI also takes a position in the closest-to-expiration December Eligible Futures Contract that has expiration more distant than the fourth of the Next Four Eligible Copper Futures Contracts for the applicable month, which position is weighted at 50%.

A hypothetical example is included below, with the next two selected Eligible Copper Futures Contracts shaded below (the selected commodities are ranked 1-2):

If the copper futures curve is in contango, then the SCI takes positions in the first three Eligible Copper Futures Contracts, each position is weighted at 33.33%.

A hypothetical example is included below, with the three selected Eligible Copper Futures Contracts indicated below:

Copper Futures Contract

Expiration Date

Contract Price

Nearest-to-maturity

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Rebalancing Period

The SCI is rebalanced during the first four business days of each calendar month, when existing positions are placed by new positions and weightings based on the signals used for contract selection on last business day of the prior calendar month as outlined above.

Changes to the SCI effective on December 31, 2021

Currently, the SCI can be comprised of two or three Eligible Copper Futures Contracts.

Beginning with the commodity selection process scheduled to occur on December 31, 2020, the rebalancing period for the SCI will change from the first four business days of each month to the 11th-14th business days of each month, based on signals used for contract selection on the 10th business day of each month, rather than the last business day of each month.

As a result, when commodity selection occurs for the SCI on January 15, 2021 and going forward, the SCI will be revised as follows:

the number of Eligible Copper Futures Contracts will be reduced and the SCI itself will be comprised of one or three Eligible Copper Futures Contracts.

In addition, the existing contract selection and weighting process will be updated to reflect the following:

New Contract Selection and Weighting

Weights for each of the Benchmark Component Copper Futures Contracts are determined for the next month.

The methodology used to calculate the SCI weighting is based solely on quantitative data using observable futures prices and is not subject to human bias.

The monthly weighting selection is a process based upon examination of the relevant futures prices for copper:

1) On CPER’s Selection Date (“CPER’s Selection Date”):

a) the copper futures curve is assessed to be in either backwardation or contango (as discussed below);

b) the Three Eligible Copper Futures Contracts are identified.

For each month, the Three Eligible Copper Futures Contracts are as follows

Closest to Expiration Futures Contract

Eligible Futures Contracts

A futures curve in backwardation occurs when the price of the closest-to-expiration Allowed Contract is greater than or equal to the price of the next closest-to-expiration Allocated Contract.

These contracts will have expirations that are approximately two or three months apart.

A curve not in backwardation is defined as being in contango, which occurs when the price of the closest-to-expiration contract is less than the price of the next closest-to-expiration contract.

2a) Backwardation:

If the copper futures curve is in backwardation on the Selection Date, the SCI takes positions in the first Eligible Copper Futures Contract, weighted at 100%.

A hypothetical example is included below, with the selected Eligible Copper Futures Contract shaded below:

Copper Futures Contract

Expiration Date

Nearest-to-maturity

Next nearest-to-maturity

Eligible Copper Futures Contracts

2b) Contango:

If the copper futures curve is in contango, then the SCI takes positions in first three Eligible Copper Futures Contracts, each position is weighted at 33.33%.

A hypothetical example is included below, with the three selected Eligible Copper Futures Contracts indicated below:

Copper Futures Contract – Expiration Date – Contract Price

Nearest-to-maturity

Next nearest-to-maturity

Eligible Copper Futures Contracts

Due to the dynamic monthly weighting calculation, the individual weights will vary-over time, depending on the price observations each month.

CPER’s Selection Date for the SCI is the 10th business day of the calendar month.

The SCI is rebalanced during the 11th-14th business days of each month, based on signals used for contract selection on the 10th business day of each month, when existing positions are placed by new positions and weightings based on the signals used for contract selection on the prior calendar month as outlined above.

Treasuries, Cash and Cash Equivalents

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Custodian, Registrar, Transfer Agent, and Administrator

USCF engaged The Bank of New York Mellon ("BNY Mellon"), a New York corporation authorized to do a banking business ("BNY Mellon"), to provide each Trust Series and each of the Related Public Funds with certain custodial, administrative and accounting, and transfer agency services, pursuant to the following agreements with BNY Mellon dated as of March 20, 2020 (together, the "BNY Mellon Agreements"), which were effective as of April 1, 2020:

USCF engaged The Bank of New York Mellon (“BNY Mellon”), a New York corporation authorized to do a banking business (“BNY Mellon”), to provide each Trust Series and each of the Related Public Funds with certain custodial, administrative and accounting, and transfer agency services, pursuant to the following agreements with BNY Mellon dated as of March 20, 2020 (together, the “BNY Mellon Agreements”), which were effective as of April 1, 2020:

(i) a Custody Agreement;

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Brown Brothers Harriman and Co.

("BBH&Co.") previously served as the Administrator, Custodian, Transfer Agent and Fund Accounting Agent for each Trust Series and the Related Public Funds prior to BNY Mellon commencing such services on April 1, 2020.

(“BBH&Co.”) previously served as the Administrator, Custodian, Transfer Agent and Fund Accounting Agent for each Trust Series and the Related Public Funds prior to BNY Mellon commencing such services on April 1, 2020.

Certain fund accounting and fund administration services rendered by BBH&Co.

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In accordance with the settlement offer, the Panel ordered RBC Capital to pay a $175,000 fine.

On October 1, 2019, the CFTC issued an order filing and settling charges against RBCCM for the above activity, as well as related charges.

The order required that RBCCM cease and desist from violating the applicable regulations, pay a $5 million civil monetary penalty, and comply with various conditions, including conditions regarding public statements and future cooperation with the CFTC.

On October 1, 2019, the CFTC issued an order filing and settling charges against RBC Capital for the above activity, as well as related charges.

The order required that RBC Capital cease and desist from violating the applicable regulations, pay a $5 million civil monetary penalty, and comply with various conditions, including conditions regarding public statements and future cooperation with the CFTC.

On June 18, 2015, in connection with the Municipalities Continuing Disclosure Cooperation initiative of the SEC, the SEC commenced and settled an administrative proceeding against RBC Capital for willful violations of Sections 17(a)(2) of the Securities Act of 1933, as amended (“1933 Act”) after the firm self-reported instances in which it conducted inadequate due diligence in certain municipal securities offerings and as a result, failed to form a reasonable basis for believing the truthfulness of certain material representations in official statements issued in connection with those offerings.

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Please see RBC Capital’s Form BD, which is available on the FINRA BrokerCheck program, for more details.

Each FCM will act only as clearing broker for a Trust Series and as such will be paid commissions for executing and clearing trades on behalf of a Trust Series.

No FCM has passed upon the adequacy or accuracy of this annual report on Form 10-K.

No FCM will act in any supervisory capacity with respect to USCF or participate in the management of USCF or a Trust Series.

RBC Capital will act only as clearing broker for a Trust Series and as such will be paid commissions for executing and clearing trades on behalf of a Trust Series.

RBC Capital has not passed upon the adequacy or accuracy of this annual report on Form 10-K.

RBC Capital will not act in any supervisory capacity with respect to USCF or participate in the management of USCF or a Trust Series.

RBC Capital is not affiliated with any Trust Series or USCF.

Therefore, neither USCF nor any Trust Series believes that there are any conflicts of interest with RBC Capital or its trading principals arising from its acting as the FCM for the Trust Series.

Marex North America, LLC

On August 23, 2021, the Trust, on behalf of USCI and CPER, entered into a Commodity Futures Customer Agreement with Marex North America, LLC (“MNA”) to serve as an additional FCM for USCI and CPER.

This agreement requires MNA to provide services to USCI and CPER in connection with the purchase and sale of Futures Contracts and Other Commodity-Related Investments for USCI and Futures Contracts and other Copper-Related Investments for CPER, in each case that may be purchased or sold by or through MNA for USCI’s or CPER’s account, as applicable.

For the period August 23, 2021 and after, USCI and CPER pay MNA commissions for executing and clearing trades on their behalf.

MNA’s primary address is 360 Madison Avenue, 3rd Floor, New York, NY 10017.

MNA is registered in the United States with the CFTC as an FCM.

MNA is a member of various U.S.

futures exchanges.

MNA is a large broker dealer subject to many different complex legal and regulatory requirements.

As a result, certain of MNA’s regulators may from time to time conduct investigations, initiate enforcement proceedings and/or enter into settlements with MNA with respect to issues raised in various investigations.

MNA complies fully with its regulators in all investigations which may be conducted and in all settlements it may reach.

MNA settled with the CFTC in September 2020 to pay a monetary penalty of $250,000 for failure to meet minimum adjusted net capital requirements.

MNA improperly accounted for deductions arising out of an agreement that it entered to guarantee a revolving line of credit for an affiliated company when computing its net capital requirement.

MNA will act only as clearing broker for a Trust Series and as such will be paid commissions for executing and clearing trades on behalf of a Trust Series.

MNA has not passed upon the adequacy or accuracy of this disclosure document.

MNA will not act in any supervisory capacity with respect to USCF or participate in the management of USCF or a Trust Series.

MNA is not affiliated with any Trust Series or USCF.

Therefore, neither USCF nor any Trust Series believes that there are any conflicts of interest with MNA or its trading principals arising from its acting as the FCM for the Trust Series.

Commodity Trading Advisor

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SummerHaven provides advisory services to USCF with respect to the SDCI, the SCI and investment decisions for each of USCI and CPER.

Its advisory services include, but are not limited to, general consultation regarding the calculation and maintenance of the SDCI and the SCI, anticipated changes to the SDCI and the SCI and the nature of the SDCI’s and the SCI’s current or anticipated component securities.

Its advisory services include, but are not limited to, general consultation regarding the calculation and maintenance of the SDCI and the SCI and the nature of the SDCI’s and the SCI’s component investments.

For these services, USCF pays fees to SummerHaven as set forth in the table below.

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You should carefully consider the information in “Item 1A.

Factors”, including, but not limited to, the following risks:

Risk Factors”, including, but not limited to, the following risks:

• COVID-19 and other infectious disease outbreaks could negatively affect the valuation and performance of a Trust Series’ investments.

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Each Trust Series pays 0.06% on assets up to $3 billion and 0.04% on assets in excess of $3 billion.

WFS/RBC, FCM and Clearing Broker

Each of Trust Series pays approximately $3.00 per buy or sell on average;

FCM and Clearing Broker

Each Trust Series pays approximately $3.00 per buy or sell on average;

charges may vary.

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(2) USCF pays this compensation.

provided certain fund accounting and fund administration services to USO through May 31, 2020.

provided certain fund accounting and fund administration services to USCI and CPER through May 31, 2020.

(4) BNY Mellon has served as the Custodian and Administrator of USCI and CPER since April 1, 2020.

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Expenses Paid or Accrued by USCI from Inception through December 31, 2021 as a Percentage of Average Daily Net Assets:

Amount as a Percentage

of Average Daily Net Assets

Amount as a Percentage of Average

Daily Net Assets

Amount Paid or Accrued to USCF (8) :

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(11) Represents less than 0.005%.

USCI also pays the fees and expenses associated with its audit expenses, tax accounting and reporting requirements.

USCI also pays the fees and expenses associated with its audit expenses, professional fees, and tax accounting and reporting requirements.

These fees were approximately $212,800 for the fiscal year ended December 31, 2021.

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USCF has no obligation to continue such payments into subsequent periods.

CPER also pays the fees and expenses associated with its audit expenses, tax accounting and reporting requirements.

CPER also pays the fees and expenses associated with its audit expenses, professional fees, and tax accounting and reporting requirements.

These fees were approximately $308,300 for the year ended December 31, 2021.

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The Administrator has been appointed registrar and transfer agent for the purpose of transferring shares in certificated form.

The Administrator keeps a record of all

shareholders and holders of the shares in certificated form in the registry.

The Administrator keeps a record of all shareholders and holders of the shares in certificated form in the registry.

The beneficial interests in such shares are held in book-entry form through participants and/or accountholders in the Depository Trust Company (“DTC”).

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Instead, shares are represented by one or more global certificates, which are deposited by the Administrator with DTC and registered in the name of Cede & Co., as nominee for DTC.

The global certificates evidence all of the shares outstanding at any time.

The global certificates

evidence all of the shares outstanding at any time.

Shareholders are limited to:

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These transactions, known as cleared swaps, involve two counterparties first agreeing to the terms of a swap transaction, then submitting the transaction to a clearing house that acts as the central counterparty.

Once accepted by the clearing house, the original swap transaction is terminated and replaced by two mirror trade and the central counterparty becomes the counterparty to each of the original parties based upon the trade terms determined in the original transaction.

Once accepted by the clearing house, the original swap transaction is terminated and replaced by two mirror trades, for which the central clearing counterparty becomes the counterparty to each of the original parties based upon the trade terms determined in the original transaction.

In this manner each individual swap counterparty reduces its risk of loss due to counterparty nonperformance because the clearing house acts as the counterparty to each transaction.

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Futures Contracts and Position Limits

The CFTC is generally prohibited by statute from regulating trading on non-U.S.

futures exchanges and markets.

The CFTC, however, has adopted regulations relating to the marketing of non-U.S.

futures contracts in the United States.

These regulations permit certain contracts on non-U.S.

exchanges to be offered and sold in the United States.

As discussed above, on October 15, 2020, the CFTC approved the Position Limits Rule.

On October 15, 2020, the CFTC approved the Position Limits Rule.

The Position Limits Rule sets position limits for the spot month and non-spot month;

Further, the Position Limits Rule sets forth two alternative processes for pursuing an exemption for non-enumerated hedge positions.

Margin Requirements

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The initial margin requirements of the Final Margin Rules are being phased in over time, and the variation margin requirements of the Final Margin Rules are currently in effect.

The Trust Series are not Covered Swap Entities under the Final Margin Rules but they are financial end-users.

Accordingly, the Trust Series are currently subject to the variation margin requirements of the Final Margin Rules.

However, the Trust Series do not have material swaps exposure and, accordingly, the Trust Series will not be subject to the initial margin requirements of the Final Margin Rules.

Each of the Trust Series is not a Covered Swap Entity under the Final Margin Rules, but it is a financial end-user.

Accordingly, each of the Trust Series is currently subject to the variation margin requirements of the Final Margin Rules.

However, each of the Trust Series does not have material swaps exposure and, accordingly, will not be subject to the initial margin requirements of the Final Margin Rules.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) required the CFTC and the SEC to adopt their own margin rules to apply to a limited number of registered swap dealers, security-based swap dealers, major swap participants, and major security-based swap participants that are not subject to the jurisdiction of one of the Agencies.

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The SEC adopted margin rules for security-based swap dealers and major security-based swap participants on June 21, 2019.

The SEC’s margin rules are generally aligned with the Final Margin Rules and the CFTC’s margin rules, but they differ in a few key respects relating to timing for compliance and the manner in which initial margin must be segregated.

Trust Series do not currently engage in security-based swap transactions and, therefore, the SEC’s margin rules are not expected to apply to Trust Series.

The SEC’s margin rules are generally aligned with the Final Margin Rules and the CFTC’s margin rules, but they differ in a few key respects

relating to timing for compliance and the manner in which initial margin must be segregated.

The Trust Series do not currently engage in security-based swap transactions and, therefore, the SEC’s margin rules are not expected to apply to any Trust Series.

Mandatory Trading and Clearing of Swaps

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As a result, if a Trust Series enters into an interest rate or index-based credit default swap that is subject to these requirements, such swap will be required to be executed on a swap execution facility and centrally cleared.

Mandatory clearing and “made available to trade” determinations with respect to additional types of swaps are expected in the future, and, when finalized, could require each Trust Series to electronically execute and centrally clear certain OTC instruments presently entered into and settled on a bi-lateral basis.

Mandatory clearing and “made available to trade” determinations with respect to additional types of swaps may be issued in the future, and, when finalized, could require each Trust Series to electronically execute and centrally clear certain OTC instruments presently entered into and settled on a bi-lateral basis.

If a swap is required to be cleared, initial and variation margin requirements are set by the relevant clearing organization, subject to certain regulatory requirements and guidelines.

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Other Requirements for Swaps

In addition to the margin requirements described above, swaps that are not required to be cleared and executed on a SEF but that are executed bilaterally are also subject to various requirements pursuant to CFTC regulations, including, among other things, reporting and recordkeeping requirements and, depending on the status of the counterparties, trading documentation requirements and dispute resolution requirements.

Swaps that are not required to be cleared and executed on a SEF but that are executed bilaterally are also subject to various requirements pursuant to CFTC regulations, including, among other things, reporting and recordkeeping requirements and, depending on the status of the counterparties, trading documentation requirements and dispute resolution requirements.

Derivatives Regulations in Non-U.S.

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Other jurisdictions impose requirements applicable to futures and derivatives that are similar to those imposed by the U.S., including position limits, margin, clearing and trade execution requirements.

The CFTC is generally prohibited by statute from regulating trading on non-U.S.

futures exchanges and markets.

The CFTC, however, has adopted regulations relating to the marketing of non-U.S.

futures contracts in the United States.

These regulations permit certain contracts on non-U.S.

exchanges to be offered and sold in the United States.

The Trust makes available, free of charge, on its website, its annual reports on Form 10-K, its quarterly reports on Form 10-Q, its current reports on Form 8-K and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after these forms are filed with, or furnished to, the SEC.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business