Company: DEFI
Filing Date: 2025-03-17
Form Type: S-1/A
Source: 0001387131-25-000058
Chunk: 167

Company: Tidal Commodities Trust I
Filing Date: 2025-03-17
Form: S-1/A
Chunk 167
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 resale of Shares.

Each Authorized Purchaser will be required to be registered as a broker-dealer under the Exchange Act and a member in good standing with FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Purchasers may also be regulated under federal and state banking laws and regulations. Each Authorized Purchaser has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime.

Under the Authorized Purchaser Agreement, the Sponsor, and the Fund under limited circumstances, have agreed to indemnify the Authorized Purchasers against certain liabilities, including liabilities under the Securities Act, and to contribute to the payments the Authorized Purchasers may be required to make in respect of those liabilities.

In connection with any issuance or redemption of a Creation Basket, the Fund deploys assets or liquidates assets, as applicable, in proportion with the Fund’s holdings such that it maintains an 80%/20% ratio of bitcoin and Carbon Credit Futures. In the case of the issuance of a Creation Basket, the Fund will allocation 80% of the proceeds from such Creation Basket and 20% of the proceeds to Carbon Credit Futures in proportion to those represented in the Index. A portion of the assets attributable to the Carbon Credit Futures will be deposited with the FCM, and the remainder would remain deployed in connection with purchasing notional exposure to the respective Carbon Credit Futures in proportion to their weights in the Index. In the case of the redemption of a Creation Basket, the Fund will raise sufficient assets to meet such redemption request. Accordingly, the Sponsor would instruct the sale of bitcoin to represent 80% of such necessary assets, and reduce notional exposure to the applicable Carbon Credit Futures to cover the remaining 20% of such necessary assets. Such notional exposure would be reduced in proportionate amounts to maintain the proper exposure to the Index weights. After such liquidation, the Fund’s holdings would maintain its 80%/20% ratio to bitcoin and Carbon Credit Futures. See“Investment Objective and Investment Strategy—Principal Investment Strategies—Carbon Credit Futures” for additional information.

The following description of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer to the relevant provisions of the Trust Agreement and the form of Authorized Purchaser Agreement for more detail. The Trust Agreement and form of