What does it mean to “re-strike the structure”?

To “re-strike the structure” means to reset the options contracts inside the buffered ETF at the start of a new 12-month outcome period.

In each buffered ETF, the fund holds a combination of put and call options that define the buffer, hurdle, and participation rate. These options have a set expiration date (for ARK's Defined Innovation Exposure Term ETFs one year from the fund’s launch or last reset). At the end of the period, those options expire.

When a new period begins, the buffered ETF re-strikes the structure by:

• Establishing a new “reference price” for the underlying asset (for DIET ARK, ARKK – the ARK Innovation ETF).
• Buying and selling a new set of FLEX options, with strike prices tailored to current market conditions.
• Setting new buffer and upside participation levels, which may be different from the prior year based on volatility, interest rates, and ARKK’s price.

This process ensures that every new 12-month cycle begins with a fresh outcome structure, designed for the current market environment.

For investors who remain in the fund after one term ends, re-striking is automatic—they don’t need to do anything. For investors thinking about investing in a new quarter’s product (like ARKD, ARKI, ARKE, or ARKT), they'll be entering into a freshly re-struck structure.