Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 10

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 10
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 on the statements
of operations as total brokerage commissions.

    Three Months Ended September 30, 2025  
    $
    — 

    Three Months Ended September 30, 2024  
    $50 

    Nine Months Ended September 30, 2025  
    $148 

    Nine Months Ended September 30, 2024  
    $6,336 

The amount recorded by the Fund for the
amount due from and to the clearing broker includes, but is not limited to, cash held by the broker, amounts payable to the clearing
broker related to open transactions, payables for cryptocurrency futures accounts liquidating to an equity balance on the clearing
broker’s records and amounts of brokerage commissions paid and recognized as unrealized losses.

Margin is the minimum amount of funds that
must be deposited by a cryptocurrency interest trader with the trader’s broker to initiate and maintain an open position
in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold.
Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase
or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may
create profits and losses that, in relation to the amount invested, are greater than customary in other forms of investment or
speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed
the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time
to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of
the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts
generally require higher amounts of margin as a matter of policy to further protect themselves. Over the counter trading generally
involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by
one or both parties to address credit exposure.

When a trader purchases
an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on
the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the
underlying interest and, in addition, an amount substantially equal to the current premium