I looked at the dgaz prospectus to see what the conditions are for VelocityShares to effectively close/halt the fund. Not sure I am using proper language, but I believe this is the key criterion (language copied from the prospectus):
"It is possible that the ETNs may be accelerated due to a fall in the Intraday Indicative Value to 15% or less than the prior day’s Closing Indicative Value for such series of ETNs and your investment will be lost before the scheduled maturity of the ETNs"
This means the price would have to drop 85% or more in a single day to trigger the "acceleration event." There are other criteria for an acceleration event (lots of legal descriptions), but this is the one related to collapse in the price.
Hope that this will help alleviate concerns over failure/closure of dgaz. I believe this is accurate, but If anyone has a different understanding, please share info from the prospectus to clarify what other conditions would allow them to shut down the etn.
-Tim
Market Data 
Markets 
AI
