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Disclosure

An investment in the units issued by United States Gasoline Fund, LP ("UGA") involves risks. These risks can significantly impact the market value of the units. Some of the risks you may face are summarized below.

  • Unlike mutual funds, commodity pools or other investment pools that actively manage their investments in an attempt to realize income and gains from their investing activities and distribute such income and gains to their investors, UGA generally does not expect to distribute cash to limited partners.
  • UGA is not a registered investment company so unit holders do not have the protections afforded by the Investment Company Act of 1940.
  • There is a risk that UGA will not earn trading gains sufficient to compensate for the fees and expenses that it must pay and as such UGA may not earn any profit.
  • If USCF permits UGA to become leveraged, investors could lose all or substantially all of their investment if UGA’s trading positions suddenly turn unprofitable.
  • An unanticipated number of redemption requests during a short period of time could have an adverse effect on the net asset value of UGA
  • Investing in Gasoline Interests subjects UGA to the risks of the gasoline industry and this could result in large fluctuations in the price of UGA’s units.
  • An investment in UGA involves the risk that the changes in the price of UGA’s units will not accurately track the changes in the Benchmark Futures Contract.
  • USCF may manage a large amount of assets and this could affect UGA’s ability to trade profitably.
  • UGA engages in the trading of futures contracts and options on futures contracts (collectively, “derivatives”).  UGA is exposed to both market risk, which is the risk arising from changes in the market value of the contracts, and credit risk, which is the risk of failure by another party to perform according to the terms of a contract.
  • UGA’s exposure to market risk depends on a number of factors, including the markets for gasoline, the volatility of interest rates and foreign exchange rates, the liquidity of the Futures Contracts and Other Gasoline-Related Investments markets and the relationships among the contracts held by UGA.  Drastic market occurrences could ultimately lead to the loss of all or substantially all of an investor’s capital.
  • The price of UGA’s units may be influenced by factors such as the short-term supply and demand for gasoline and the short-term supply and demand for UGA’s units.  This may cause the units to trade at a price that is above or below UGA’s net asset value.  Accordingly, change in the price of units may substantially vary from the spot price of gasoline.  If this variation occurs, then investors may not be able to effectively use UGA as a way to hedge against gasoline-related losses or as a way to indirectly invest in gasoline.
  • Risks associated with the use of futures contracts are an imperfect correlation between movements in the price of the futures contracts and the market value of the underlying securities and the possibility of an illiquid market for a futures contract.
  • When UGA enters into Futures Contracts and Other Gasoline-Related Investments, it is exposed to the credit risk that the counterparty will not be able to meet its obligations.
  • UGA has credit risk under its futures contracts since the sole counterparty to all domestic and foreign futures contracts is the clearinghouse for the exchange on which the relevant contracts are traded.  In addition, UGA bears the risk of financial failure by the clearing broker.
  • UGA also may be subject to the risk of the failure of, or delay in performance by, any exchanges and markets and their clearing organizations, if any, on which commodity interest contracts are traded.
  • In the future, UGA may purchase over-the-counter contracts (“OTC Contracts”).  Unlike most exchange-traded futures contracts or exchange-traded options on such futures, each party to an OTC Contract bears the credit risk that the other party may not be able to perform its obligations under its contract.
  • USCF invests a portion of UGA’s cash in money market funds that seek to maintain a stable net asset value.  UGA is exposed to any risk of loss associated with an investment in these money market funds.
  • Trading on non-U.S. exchanges may differ from trading on U.S. exchanges in a variety of ways and, accordingly, may subject UGA to additional risks.
  • USCF’s trading system is quantitative in nature and it is possible that USCF might make a mathematical error. In addition, it is also possible that a computer or software program may malfunction and cause an error in computation.
  • Proposed regulation by the CFTC and SEC as promulgated under the Dodd-Frank Act would change operational requirements by UGA, increasing cost and changing operational procedures which could negatively impact UGA
  • Regulation of the commodity interests and energy markets is extensive and constantly changing; future regulatory developments are impossible to predict but may significantly and adversely affect USOF
  • UGA could terminate at any time and cause the liquidation and potential loss of an investor’s investment and could upset the overall maturity and timing of an investor’s investment portfolio.

*Some risks listed above may be mitigated due to rules proposed by the CFTC and SEC as promulgated under the Dodd-Frank Act.  For a discussion of these risks and others, please see the current Prospectus .

For a copy of the Prospectus contact: ALPS Distributors, Inc., 1290 Broadway, Suite 1100, Denver, Colorado 80203 or call 800.920.0259 or click here .

UGA 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.

Commodities and futures generally are volatile and are not suitable for all investors. UGA is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in UGA. Funds that focus on a single sector generally experience greater volatility.

For further discussion of these and additional risks associated with an investment in UGA units, click here.

Investing in UGA subjects you to the risks of the gasoline industry. These risks could result in large fluctuations in the price of UGA's units. An investor could lose all or substantially all of his/her investment.

The price of units may not accurately track the spot price of gasoline and you may not be able to effectively use UGA as a way to hedge the risk of losses in your gasoline-related transactions or as a way to indirectly invest in gasoline.

Investors buy and sell units in the secondary market (i.e., not directly from UGA). Only "authorized purchasers" may trade directly with UGA, in minimum blocks of 100,000 units.

The United States Gasoline Fund is distributed by ALPS Distributors, Inc.

© Copyright 2007-2012 | United States Gasoline Fund | All rights reserved.