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Disclosure

An investment in the units issued by United States 12 Month Natural Gas Fund, LP ("US12NG") involves risks. These risks can significantly impact the market value of the units. Some of the risks you may face are summarized below.

  • US12NG is not a registered investment company so unitholders do not have the protections afforded by the Investment Company Act of 1940.
  • 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, US12NG generally does not expect to distribute cash to limited partners.
  • Investing in Natural Gas Interests subjects US12NG to the risks of the natural gas industry and this could result in large fluctuations in the price of US12NG’s units.
  • Changes in US12NG’s NAV may not correlate with changes in the price of the Benchmark Futures Contracts. If this were to occur, you may not be able to effectively use US12NG as a way to hedge against natural gas related losses or as a way to indirectly invest in natural gas.
  • The Benchmark Futures Contracts may not correlate with the spot price of natural gas and this could cause changes in the price of units to substantially vary from the spot price of natural gas. If this were to occur, then you may not be able to effectively use US12NG as a way to hedge against natural gas related losses or as a way to indirectly invest in natural gas.
  • An unanticipated number of redemption requests during a short period of time could have an adverse effect on the Net Asset Value (NAV) of US12NG.
  • US12NG engages in the trading of futures contracts, options on futures contracts and cleared swaps (collectively, “derivatives”).  US12NG 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.
  • There is a risk that US12NG will not earn trading gains sufficient to compensate for the fees and expenses that it must pay and as such US12NG may not earn any profit.
  • Futures contracts and cleared swaps involve, to varying degrees, elements of market risk (specifically commodity price risk) and exposure to loss in excess of the amount of variation margin.
  • 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.
  • An investment in US12NG involves the risk that the changes in the average of the prices of US12NG’s units will not accurately track the changes in the Benchmark Futures Contracts.
  • US12NG 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.
  • US12NG bears the risk of financial failure by the clearing broker.
  • The insolvency of a futures commission merchant could result in the complete loss of US12NG’s assets posted with that futures commission merchant; however, the vast majority of US12NG’s assets are held in U.S. Treasuries, cash and/or cash equivalents with US12NG’s custodian and would not be impacted by the insolvency of a futures commission merchant.  Also, the failure or insolvency of US12NG’s custodian could result in a substantial loss of US12NG’s assets.
  • In the future, US12NG may purchase over-the-counter contracts.  Unlike most exchange-traded Futures Contracts or exchange-traded options on such futures, each party to an over-the-counter 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 US12NG’s cash in money market funds that seek to maintain a stable net asset value.  US12NG is exposed to any risk of loss associated with an investment in these money market funds
  • Trading in the interbank market also exposes US12NG to a risk of default since failure of a bank with which US12NG had entered into a forward contract would likely result in a default and thus possibly substantial losses to US12NG.
  • USCF may manage a large amount of assets and this could affect US12NG’s ability to trade profitably. There are technical and fundamental risks inherent in the trading system USCF employs.
  • US12NG and USCF may have conflicts of interest, which may permit them to favor their own interests to the detriment of unitholders.
  • Trading on non-U.S. exchanges may differ from trading on U.S. exchanges in a variety of ways and, accordingly, may subject US12NG to additional risks.
  • Trading in international markets would expose US12NG to credit and regulatory risks.
  • US12NG 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.
  • 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 US12NG
  • USCF is leanly staffed and relies heavily on key personnel to manage trading activities.
  • 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.
  • The success of US12NG depends on the ability of USCF to accurately implement trading systems, and any failure to do so could subject US12NG to losses on such transactions.
  • US12NG 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.
  • Because US12NG’s portfolio will typically hold as many as 12 different natural gas futures contracts at all times, it may be more expensive for US12NG to buy or sell futures contracts for its 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 .

UNL 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. UNL is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in UNL. Funds that focus on a single sector generally experience greater volatility.

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

Investing in UNL subjects you to the risks of the natural gas industry. These risks could result in large fluctuations in the price of UNL'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 natural gas and you may not be able to effectively use UNL as a way to hedge the risk of losses in your natural gas-related transactions or as a way to indirectly invest in natural gas.

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

The United States 12 Month Natural Gas Fund is distributed by ALPS Distributors, Inc.

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