Company: DEFI
Filing Date: 2025-03-25
Form Type: POS AM
Source: 0001999371-25-003118
Chunk: 110

Company: Tidal Commodities Trust I
Filing Date: 2025-03-25
Form: POS AM
Chunk 110
---
 the basis spread between Bitcoin Futures Prices and Physical Bitcoin Price is 0bps in the EFP Transaction)
to achieve at least 95% allocation to bitcoin. Assuming a margin requirement equal to 32% of the notional amount based on the previous
settlement price of the BTC Contracts and MBT Contracts, the Fund would be required to deposit approximately $2,408.32 in cash
with the FCM through which the Bitcoin Futures Contracts were purchased as margin for the final long position in 2 MBT Contracts;
and $239,136.5 with the trading counterparty of the EFP Transaction through which the bitcoins were purchased as the cash settlement
of the spot leg (Fund buys 6.4 BTC from trading counterparty for $239,136.5). The remainder of the proceeds from the sale of the
Creation Basket, approximately $8,455.18 would remain invested in cash and/or cash equivalents, as determined by the Sponsor from
time to time based on factors such as potential calls for margin or anticipated redemptions.

The Bitcoin Futures Contracts are cash-settled.
Positions may also be closed out to meet orders for Redemption Baskets, in which case the proceeds from closing the positions will
not be reinvested. The Fund may from time to time trade in other exchange listed bitcoin interests based on the spot price of bitcoin.

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Futures Contracts

Futures contracts are agreements between
two parties that are executed on a designated contract market (“DCM”), i.e., a commodity futures exchange, and that
are cleared and margined through a derivatives clearing organization (“DCO”), i.e., a clearing house. Bitcoin Futures
Contacts are financially settled, which means that one party agrees to buy a commodity such as bitcoin from the other party at
a later date at a price and quantity agreed upon when the contract is made, but instead of taking physical delivery of the commodity
at such later date, settlement occurs in a dollar amount that is equivalent to the amount of bitcoin agreed to in the contract.
In market terminology, a party who purchases a futures contract is long in the market and a party who sells a futures contract
is short in the market. The contractual obligations of a buyer or seller may generally be satisfied by financial settlement or
by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange before the designated
date of delivery. The difference between the price at which the futures contract is purchased or sold and the