Compounding Effects Risk: Due to its daily rebalancing objective, TBT's performance over periods longer than a single day will likely deviate significantly from -2x the inverse performance of its underlying index, especially in volatile markets.

Interest Rate Movement Risk: TBT is designed to profit from a rise in long-term interest rates (or a fall in bond prices). If long-term interest rates decline, the fund's value will decrease, leading to losses for investors.

Leverage Amplification Risk: The fund's 2x leveraged nature means that any adverse movement in the underlying bond market will result in magnified losses for investors, potentially leading to rapid erosion of capital.