Company: DEFI
Filing Date: 2025-03-17
Form Type: S-1/A
Source: 0001387131-25-000058
Chunk: 148

Company: Tidal Commodities Trust I
Filing Date: 2025-03-17
Form: S-1/A
Chunk 148
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 offsets from emission reduction or removal projects. In these markets, the private organization defines how emission (reduction or removal) credits can be generated by activities/projects that reduce or remove GHG emissions from the atmosphere compared to a reference scenario (baseline) that reflects the counterfactual situation without such activities. The difference between the baseline emissions and the emissions of the activity determines how many credits can be issued. To generate emission credits, verification of the reduction/removal by an officially recognized institution (a verifier) is necessary to calculate the reduction/removal of emissions into its carbon-dioxide (“CO2”) equivalent (“CO2e”). The carbon credit represents one metric-ton of CO2e and can then be used as offsets against mandatory or voluntary GHG emission targets or other policy instruments aiming at GHG mitigation. The Fund will not invest in any Carbon Credit Futures that provide exposure to VCMs.

<div align='center'>Description of the index</div>

The following is a summary of the 7RCC Kaiko Bitcoin Carbon Credit Index. The Index aims to track the financial performance of investing in a portfolio with an 80% allocation to bitcoin and a 20% allocation to Carbon Credit Futures. The purpose of the Index is to obtain exposure to bitcoin for environmentally-focused investors.

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The Carbon Credit Futures component of the Index is built with a combination of three carbon credit indices: (i) Solactive Future Series European Carbon Credit Rolling Futures Index, which tracks Intercontinental Exchange (“ICE”) EUA (Carbon Emission Allowances) futures; (ii) Solactive Future Series California Carbon Rolling Futures Index, which tracks ICE California Carbon Allowance Vintage Future contracts; and (iii) Solactive Futures Series Regional Greenhouse Gas Rolling Futures Index, which tracks ICE RGGI (CO2 allowances) futures contracts. For additional information regarding the Sub-Indexes, see “Investment Objective and Investment Strategy—Principal Investment Strategies—the Index—Carbon Credit Futures Sub-indexes” on page [ ].

The Sub-indexes include only Carbon Credit Futures that mature in the upcoming December. Specifically, each Sub-index includes front-month futures contracts that are rolled over a five-day period prior to the expiration of such contracts in December to new contracts that expire in the December of the subsequent year. The Index does not equally weight its exposure to the Carbon Credit Futures that comprise the Sub-indexes. Rather the Index provides exposure to the reference carbon credits proportional to the trading volume of the back-month Carbon Credit Futures over the last 22 trading