Company: DEFI
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001999371-25-003249
Chunk: 106

Company: Tidal Commodities Trust I
Filing Date: 2025-03-27
Form: 424B3
Chunk 106
---
 align='center'>64</div>

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 a passive investment
strategy intended to track the changes in the Benchmark regardless of whether the Benchmark goes up or goes down, meaning that
the Sponsor will not try to “beat” the Benchmark. The Fund’s passive investment strategy is designed to permit
investors generally to purchase and sell the Fund’s Shares for the purpose of investing indirectly in the bitcoin market
in a cost-effective manner. The Sponsor endeavors to manage the Fund’s investments so that the Fund’s average daily
tracking error against the Benchmark will be less than 10 percent over any period of 30 trading days. However, the Fund incurs
certain expenses in connection with its operations, which cause imperfect correlation between changes in the Fund’s NAV and
changes in the Benchmark because the Benchmark does not reflect expenses or income. As a result, investors may incur a partial
or complete loss of their investment even when the performance of the Benchmark is positive.

As an example, assume that a Creation Basket
is sold by the Fund, and that the Fund’s closing NAV per Share is $25.00. In that case, the Fund would receive $250,000 in
proceeds from the sale of the Creation Basket ($25.00 NAV per Share multiplied by 10,000 Shares and ignoring the Creation Basket
fee of $300). If one were to assume further that in accordance with the Fund’s policy, the Sponsor wants to invest at least
95% of the entire proceeds from the Creation Basket in bitcoin and up to 5% in Bitcoin Futures Contracts and that the market value