Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 29

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 29
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 with the management fee and day-to -day operation
of the Fund and the necessary functions related to regulatory compliance. Those were generally based on contracts, which extend
for some period of time and up to one year, or commitments regardless of the level of assets under management. The Sponsor has
not elected to waive management fees or other expenses. These factors also explain the decrease in total gross fees and other expenses
excluding management fees, as well as the decrease in total gross expense ratio for the three months ended September 30, 2025.

The decrease in total brokerage
commissions for the three months ended September 30, 2025, compared to the nine months ended September 30, 2024, was primarily
due to a decrease in futures contracts purchased, liquidated, and rolled given the Fund’s current policy to maximize its
holdings of physical bitcoin instead of CME-traded bitcoin futures contracts.

The graph below shows the actual
shares outstanding, total net assets (or AUM) and net asset value per share (NAV per share) for the Fund from inception to September
30, 2025 and serves to illustrate the relative changes of these components.

F-25 

Off Balance Sheet Financing

The Trust or Fund has no obligations, assets
or liabilities which would be considered off-balance sheet arrangements as of September 30, 2025. Neither the Trust nor the Fund
participates in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to
as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.
Neither the Trust nor the Fund have entered into any off-balance sheet financing arrangements, established any special purpose
entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

Liquidity and Capital Resources

The Fund does not anticipate making use
of borrowings or other lines of credit to meet its obligations. The Fund meets its liquidity needs in the normal course of business
from the proceeds of the sale of its investments, from the cash and cash equivalents that it intends to hold, and/or from the fee
waivers provided by the Sponsor. The Fund’s liquidity needs include redeeming its Shares, providing margin deposits for existing
Bitcoin Futures Contracts or the purchase of additional Bitcoin Futures Contracts, posting collateral for over-the-counter contracts,
and paying expenses.

In order to collateralize positions in
Bitcoin Futures Contracts, a portion of the NAV of the Fund is held in