Fund Description: ProShares UltraShort Bloomberg Crude Oil, formerly ProShares UltraShort DJ-UBS Crude Oil, formerly ProShares UltraShort DJ-AIG Crude Oil, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the ProShares Trust II, an open-end investment management company. INVESTMENT OBJECTIVE: The ProShares UltraShort Bloomberg Crude Oil seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Bloomberg WTI Crude Oil Subindex, formerly Dow Jones-UBS-Crude Oil Sub-Index. INDEX DESCRIPTION: The Bloomberg WTI Crude Oil Subindex is intended to reflect the crude oil segment of the commodities market. The Index consists of futures contracts on crude oil only. Unlike equities, which entitle the holder to a continuing stake in a corporation, commodity futures contracts specify a delivery date for an physical commodity. The Index purchases futures contracts of a commodity, and, as the date for a futures contract comes due, the Index replaces such contract with similar contracts with later expirations. The Index thus rolls its futures positions, and continually avoids delivery of the physical commodity. The Index is valued using the settlement prices for the futures contracts. The Index rolls its contracts over the course of 5 consecutive business days, starting on the 6th business day of the month. Each day, approximately 20% of each futures position that is included in the month's roll is rolled. FUND STRATEGY: In seeking to achieve the Fund’s investment objective, the Sponsor, ProShare Capital Management LLC, uses a mathematical approach to investing. Using this approach, the Sponsor determines the type, quantity and mix of investment positions that is believed in combination should produce daily returns consistent with the Fund’s objective. The Sponsor relies upon a pre-determined model to generate orders that will result in repositioning the Fund’s investments in accordance with its daily investment objectives. It is currently contemplated that the Fund will invest principally in any one of or combinations of the Financial Instruments with respect to the Index. Assets of the Fund not invested in Financial Instruments will be invested in cash and/or U.S. Treasury Securities or other high credit quality short-term fixed-income or similar securities (such as shares of money market funds, bank deposits, bank money market accounts, certain variable rate-demand notes and repurchase agreements collateralized by government securities, whether denominated in U.S. or the applicable foreign currency with respect to a Currency Fund) that will serve as collateral for the Financial Instruments. FUND MANAGEMENT: The Sponsor, ProShare Capital Management LLC, has exclusive management and control of all aspects of the business of the Fund.