Company: SVIX
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109885
Chunk: 325

Company: VS Trust
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 325
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 Funds' net asset value is calculated.

(4)Percentages are not annualized for the period ended September
30, 2025 and September 30, 2024.

(5)Percentages are annualized.

(6)The expense ratio would be 1.74% and 1.95% respectively, for
the three months ended September 30, 2025, and 1.61% and 2.29% for the three months ended September 30, 2024 if brokerage commissions
and futures and futures account fees were excluded.

(7)Adjusted to reflect a 1:10 reverse stock split on January 15,
2025, as if it occured at the commencement of operations.

See accompanying notes to financial statements.

F-32

NOTE 8 - RISK

Correlation and Compounding Risk

The Funds do not seek to achieve their stated investment
objective over a period of time greater than a single day (as measured from NAV calculation time to NAV calculation time). The return
of a Fund for a period longer than a single day is the result of its return for each day compounded over the period and usually will differ
in amount and possibly even direction from the inverse (-1x) or two times (2x) the return of the Fund’s benchmark for the period.
A Fund will lose money if its benchmark performance is flat over time, and it is possible for a Fund to lose money over time even if the
performance of its benchmark increases in the case of UVIX (or decreases in the case of SVIX), as a result of daily rebalancing, the benchmark’s
volatility, compounding, and other factors. Compounding is the cumulative effect of applying investment gains and losses and income to
the principal amount invested over time. Gains or losses experienced over a given period will increase or reduce the principal amount
invested from which the subsequent period’s returns are calculated. The effects of compounding will likely cause the performance
of a Fund to differ from the Fund’s stated multiple times the return of its benchmark for the same period. The effect of compounding
becomes more pronounced as benchmark volatility and holding period increase. The impact of compounding will impact each shareholder differently
depending on the period of time an investment in a Fund is held and the volatility of the benchmark during the holding period of an investment
in the Fund. Longer holding periods, higher benchmark volatility, inverse exposure and greater leverage each affect the impact of compounding