BANK OF MONTREAL /CAN/

# Bank of Montreal /CAN/ (WTIU)

WTIU represents a structured investment product rather than an operating company. The notes are designed to provide daily leveraged exposure to an underlying index, with a target of 3x long performance on a daily basis. The product mechanics involve daily rebalancing to maintain the leverage ratio, which means returns over longer time periods typically diverge materially from three times the index return due to compounding effects.

The notes' returns are reduced by three ongoing costs: a Daily Investor Fee, a Daily Financing Charge, and a Redemption Fee Amount when applicable. These fees accumulate continuously and meaningfully diminish net performance relative to the gross index exposure. The daily resetting mechanism means volatility in the underlying index directly impacts the notes' value in ways that differ substantially from unleveraged or buy-and-hold investments in the same index.

This product is listed on the NYSE and incorporated in Ontario, Canada, reflecting its cross-border structure. Investors in WTIU assume risks associated with leverage decay, daily rebalancing, and the cumulative drag from multiple fee categories, in addition to standard market risk tied to the underlying index performance.