Invesco DB US Dollar Index Bullish Fund

Technology infrastructure · Technology systems and infrastructure failure

Cyber attacks may also cause disruptions to the futures exchanges and clearinghouses through which the Fund invests in futures contracts and to the exchanges on which the Fund buys and sells shares of T-Bill ETFs, which could result in disruptions to the Fund's ability to pursue its investment objective, resulting in financial losses to the Fund and Shareholders.

Cybersecurity and data protection · Third party data security and vendors

Cyber security failures or breaches of the Fund's third party service providers (including, but not limited to, the Index Sponsor, the Administrator and the Transfer Agent) or money market mutual funds and T-Bill ETFs in which the Fund invests, have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of Shareholders or Authorized Participants to transact business in Shares and Creation Units respectively.

Technology infrastructure · Technology systems and infrastructure failure

There may be circumstances outside the control of the Managing Owner and/or the Fund that make it, for all practical purposes, impossible to re-position the Fund and/or to process a purchase or redemption order. Examples of such circumstances include systems failures involving computer or other information systems affecting the aforementioned parties, as well as DTC, or any other participant in the purchase process.

Information management · Technology vendor dependence

Since the Fund is dependent upon third party service providers (including the Managing Owner) for substantially all of its operational needs, the Fund is subject to the risk that a cyber attack on a service provider will materially impair its normal operations even if the Fund itself is not subject to such an attack.

Corporate governance · Internal controls and risk management

The Fund is responsible for establishing and maintaining internal controls over financial reporting. Under this requirement, the Fund must adopt, implement, and maintain an internal control system designed to provide reasonable assurance to its management regarding the preparation and fair presentation of published financial statements. There is a risk that the Fund's internal controls over financial reporting and disclosure controls and procedures could fail to work properly.

Corporate governance · Ethics and compliance culture

Although the Managing Owner attempts to monitor for conflicts, it is extremely difficult, if not impossible, for the Managing Owner to ensure that the conflicts will not, in fact, result in adverse consequences to the Fund and the Shareholders. The Managing Owner has not established any formal procedure to resolve conflicts of interest.

Market and investment · Trading and market making activities

Other Market Participants' Trading of DX Contracts May Adversely Affect the Price that the Fund Pays for DX Contracts. The prices that the Fund pays for DX Contracts may be adversely affected by the trading of DX Contracts by other market participants. If other market participants are able to anticipate the timing of the Fund's DX Contract transactions, they may be able to execute transactions in advance of the Fund.

Credit and liquidity · Credit risk and customer defaults

If the Managing Owner determines in its commercially reasonable judgment that it has become impracticable or inefficient for any reason for the Fund to gain full or partial exposure to the DX Contracts, the Fund may enter into forwards or swaps referencing the Index Currencies. There would be a risk that the counterparty would become unable or unwilling to honor its obligations on the forward agreement.

Credit and liquidity · Liquidity and cash flow constraints

Possible Illiquid Markets May Exacerbate Losses. Futures positions cannot always be liquidated at the desired price. It is difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders in a market. Illiquidity may cause losses for the Fund. The large size of the positions which the Fund may acquire increases the risk of illiquidity by both making its positions more difficult to liquidate and increasing the losses incurred while trying to do so.

Market and investment · Asset valuation and impairment

The NAV Calculation of the Fund May Be Overstated or Understated Due to the Valuation Method Employed When a Settlement Price is Not Available on the Date of NAV Calculation. If a settlement price for a DX Contract could not be determined for any reason, the Managing Owner may value the DX Contract pursuant to policies the Managing Owner has adopted. In such a situation, there is a risk that the resulting calculation of the Fund's NAV could be understated or overstated, perhaps to a significant degree.

Capital structure and performance · Financial performance volatility

There can be no assurance that the Fund will achieve profits or avoid losses, significant or otherwise. Performance of the Fund may not track the Index during particular periods or over the long term. Such tracking error may cause the Fund to outperform or underperform the Index.

Natural and catastrophic events · Pandemic and public health crises

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and may be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates.

Economic and market conditions · Inflation and deflation pressures

Domestic and foreign inflation rates and investors' expectations concerning inflation rates are factors that may affect the prices of the DX Contracts and foreign exchange rates on the Index Currencies.

Natural and catastrophic events · Natural disasters and extreme weather

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and may be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates.

Economic and market conditions · Economic recession and downturns

A decrease in U.S. imports or exports, changes in trade regulations, including the threat or actual imposition of tariffs, trade wars or other economic sanctions on traditional allies or adversaries and their responses thereto, inflation, and/or an economic recession in the U.S. may have a material adverse effect on the U.S. economy, global financial markets as a whole and the currency futures markets to which the Fund has exposure.

Geopolitical and trade · Trade policies tariffs and sanctions

Following Russia's invasion of Ukraine in late February 2022, various countries, including the United States, Australia, Canada, the United Kingdom, Switzerland, Germany, France, and Japan, as well as NATO and the European Union, issued broad-ranging economic sanctions against Russia and Belarus. Increasingly strained relations between the U.S. and foreign countries, including as a result of economic sanctions and tariffs, may also adversely affect currency futures markets.

Natural and catastrophic events · Force majeure and business interruption

The futures market may be subject to temporary distortions due to various factors, including, among others, lack of liquidity, congestion, disorderly closing periods, manipulation and disruptive conduct, limitations on deliverable supplies, excessive speculation, changes in trade regulation or economic sanctions, government regulation and intervention, technical and operational or system failures, nuclear accidents, terrorism, riots and acts of God.

Market position and competition · Competitive pressure and market share loss

An Investment in the Shares May Be Adversely Affected by Competition from Other Methods of Investing in Currencies. The Fund competes with other financial vehicles, including mutual funds, ETFs and other investment companies, other index tracking commodity pools, actively traded commodity pools, hedge funds, other securities backed by or linked to currencies, and direct investments in the underlying currencies or the DX Contracts.

Market position and competition · Market cyclicality and demand volatility

Unusually Long Peak-to-Valley Drawdown Periods with Respect to the Index May Be Reflected in Equally Long Peak-to-Valley Drawdown Periods with Respect to the Performance of the Shares. Although past Index levels are not necessarily indicative of future Index levels, the peak-to-valley drawdown periods that the Index has experienced occasionally have been unusually long and have lasted for multi-year drawdown periods.

Tax and financial reporting · Tax compliance and changes in tax law

Shareholders will be subject to U.S. federal income taxation and, in some cases, state, local, or foreign income taxation on their allocable share of the Fund's taxable income, whether or not they receive cash distributions from the Fund. Items of Income, Gain, Loss and Deduction with Respect to Shares Could Be Reallocated if the Internal Revenue Service Does Not Accept the Assumptions or Conventions Used by the Fund in Allocating Such Items.