Company: SVIX
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075845
Chunk: 358

Company: VS Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part II, Item 8
Chunk 358
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 the value of an investment. While each Fund’s policy is intended to result in a calculation of the Fund’s NAV that fairly
reflects investment values as of the time of pricing, the Funds cannot ensure that fair values determined by the Sponsor or persons acting
at their direction would accurately reflect the price that the Fund could obtain for an investment if it were to dispose of that investment
as of the time of pricing (for instance, in a forced or distressed sale).

-6-

The prices used by a Fund may differ from the value
that would be realized if the investments were sold and the differences could be material to the financial statements.

The Funds disclose the fair value of their investments
in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Discounts on short-term securities purchased
are amortized and reflected as Interest Income in the Statements of Operations.

Realized gains (losses) and changes in unrealized
gain (loss) on open investments are determined on a specific identification basis and recognized in the Statements of Operations in the
period in which the contract is closed or the changes occur, respectively.

Each Fund pays its respective brokerage commissions,
including applicable exchange fees, NFA fees, give up fees, pit futures account fees and other transaction related fees and expenses charged
in connection with trading activities for each Fund’s investment in U.S. Commodity Futures Trading Commission regulated investments.
Brokerage commissions on futures contracts are recognized on a half-turn basis. The Sponsor is currently paying brokerage commissions
in VIX futures contracts exceed variable create/redeem fees collected by more than 0.02% of the Fund’s average net assets annually.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Quantitative Disclosure

Equity Market Volatility Sensitivity

Each of the Funds is exposed to certain risks pertaining
to the use of Financial Instruments. Each Fund is exposed to equity market volatility risk through its holdings of Financial Instruments.

The tables below provide information about each
Fund’s Financial Instruments. As of June 30, 2025 (Unaudited) and December 31, 2024, each of the Fund’s positions were as
follows:

-1x Short VIX Futures ETF

As of June 30, 2025, SVIX was exposed to inverse
equity market volatility risk through its holding of VIX futures contracts. The following tables provide information about the Fund’s
positions in VIX futures contracts as of June 30, 2025 (Un