Company: DEFI
Filing Date: 2025-11-04
Form Type: POS AM
Source: 0001999371-25-016766
Chunk: 74

Company: Tidal Commodities Trust I
Filing Date: 2025-11-04
Form: POS AM
Chunk 74
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 income tax treatment of bitcoin and no direct authority on bitcoin derivatives. The Fund has not requested and will not request any ruling from the IRS with respect to its classification as a publicly traded partnership not taxable as a corporation for U.S. federal income tax purposes. If the IRS were to successfully assert that the Fund is a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes in any taxable year, rather than passing through its income, gains, losses and deductions proportionately to Shareholders, the Fund would be subject to U.S. federal income tax on its net income for such taxable year imposed at the U.S. federal corporate income tax rate. In addition, although the Sponsor does not currently intend to make distributions with respect to Shares, any such distributions would be taxable to Shareholders as dividend income to the extent of the Fund’s current and accumulated earnings and profits. To the extent that the amount of the distribution exceeded the Fund’s current and accumulated earnings and profits, the excess would be treated as a tax-free return of capital to the extent of the Shareholder’s adjusted basis in the Shares and, to the extent the amount of the distribution exceeded both the Fund’s current and accumulated earnings and profits and the Shareholder’s adjusted tax basis in such Shares, such excess would be treated as a capital gain for such Shareholders who hold their Shares as capital assets. Taxation of the Fund as a corporation could materially reduce the after-tax return on an investment in Shares and could substantially reduce the value of your Shares.] Your tax liability from holding Shares may exceed the amount of distributions, if any, on your Shares. Cash or property will be distributed by the Fund at the sole discretion of the Sponsor, and the Sponsor currently does not intend to make cash or other distributions with respect to Shares. Assuming the Fund qualifies to be taxed as a partnership for U.S. federal income tax purposes, you will be required to pay U.S. federal income tax and, in some cases, state, local, or foreign income tax, on your allocable share of the Fund’s taxable income, without regard to whether you receive distributions or the amount of any distributions. Therefore, the tax liability resulting from your ownership of Shares may exceed the amount of cash or value of property (if any) distributed. Your allocable share of income or loss for U.S. federal income tax purposes may differ from your economic income or loss on your Shares. Due to the application of the assumptions and conventions applied by the Fund in making allocations for U.S. federal income tax purposes