Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 34

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 34
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 requirements
imposed on the selling of options, although adjusted to reflect the probability that out of the money options will not be exercised,
can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads
and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in
the underlying interest.

Ongoing or “maintenance”
margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures
contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made
by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With
respect to the Fund’s trading, the Fund (and not its shareholders personally) are subject to margin calls.

Finally, many major U.S. exchanges have
passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an
account would, in the case of some accounts, be aggregated, and margin requirements would be assessed on a portfolio basis, measuring
the total risk of the combined positions.

Sponsor Fee Allocation of Expenses

The Sponsor is responsible for investing the assets of the Fund
in accordance with the objectives and policies of the Fund.

The Fund pays the Sponsor a management
fee, monthly in arrears, in an amount equal to 0.25% per annum of the daily NAV of the Fund (the “Management Fee”).
Prior to February 10, 2025, the annualized rate was 0.90%. The Management Fee is paid in consideration of the Sponsor’s services
related to the management of the Fund’s business and affairs, including the provision of commodity futures trading advisory
services. Creation with cash may cause the Fund to incur certain costs including brokerage commissions and redemptions of creation
units with cash may result in the recognition of gains or losses that the Fund might not have incurred if it had made redemptions
in-kind. The Fund pays all of its respective brokerage commissions, including applicable exchange fees, National Futures Association
fees and give-up fees, and other transaction related fees and expenses charged in connection with trading activities for the Fund’s
investments in CFTC regulated investments. The Fund also pays all fees and commissions related to the EFP transactions for the
sale and purchase of spot bitcoin, including any bitcoin transaction fees for on-chain transfers of bitcoin.