Company: DEFI
Filing Date: 2025-02-21
Form Type: POS AM
Source: 0001839882-25-010345
Chunk: 108

Company: Tidal Commodities Trust I
Filing Date: 2025-02-21
Form: POS AM
Chunk 108
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 The Fund will use Bitcoin Futures Contracts for the primary purpose of using such
Bitcoin Futures Contracts to acquire physical bitcoin through EFP transactions and to offset cash and receivables for better tracking
the benchmark index. The EFP transactions, although facilitated by the infrastructure and under the regulatory oversight of the
CME, a CFTC-regulated market, are executed off-exchange and may not carry the same regulatory requirements and level of oversight
as on-exchange transactions. Under normal market conditions, the Fund has established a policy to maximize its investments in physical
bitcoin such that it’s expected at least 95% of the Fund’s assets will be invested in bitcoin, and up to 5% may be
invested in Bitcoin Futures Contracts and in cash and cash equivalents, such as short-term Treasury bills, money market funds,
and demand deposit accounts. The Sponsor does not have discretion in choosing the Fund’s investments. See “Use of Proceeds.”
The term “normal market conditions” includes, but is not limited to, the absence of: trading halts in the applicable
financial markets generally; operational issues (e.g., systems failure) causing dissemination of inaccurate market information;
or force majeure type events such as natural or man-made disaster, act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance. Similarly, the Fund will use bitcoin to acquire Bitcoin Futures Contracts through
EFP transactions, so the Fund can then sell the Bitcoin Futures Contracts for cash in order to satisfy redemption orders.

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The percentage allocation to Bitcoin Futures
Contracts is determined daily such that the Fund may maintain Bitcoin Futures Contracts positions (with related cash reserves to
meet applicable margin requirements) to hedge the cash balance that the Sponsor deems necessary to meet the Fund’s liquidity
needs for the cash payment of Share redemption settlements and of other applicable expenses borne by the Fund.

When the Fund needs to increase or decrease
its allocation to physical bitcoin it will do so through EFP transactions, by exchanging a physical bitcoin holding for an equivalent
Bitcoin Futures Contracts position.

The Fund invests in bitcoin and Bitcoin
Futures Contracts without being leveraged or unable to satisfy its expected current or potential margin or collateral obligations
with respect to its investments. After fulfilling such margin and collateral requirements, the Fund invests the remainder of its
proceeds from the sale of baskets in short term financial instruments of the type commonly known as “cash and cash equivalents.”

The Sponsor employs