Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 197

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 197
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 remaining time until the options expire, or any combination thereof. The value of the options should not
be expected to increase or decrease at the same rate as the level of the Fund’s underlying benchmark, which may contribute to tracking
error. Options may be less liquid than certain other securities. A Fund’s ability to trade options will be dependent on the willingness
of counterparties to trade such options with the Fund. In a less liquid market for options, a Fund may have difficulty closing out certain
option positions at desired times and prices. A Fund may experience substantial downside from specific option positions and certain option
positions may expire worthless. Over-the-counter options generally are not assignable except by agreement between the parties concerned,
and no party or purchaser has any obligation to permit such assignments. The over-the-counter market for options is relatively illiquid,
particularly for relatively small transactions. The use of options transactions exposes a Fund to liquidity risk and counterparty credit
risk, and in certain circumstances may expose the Fund to unlimited risk of loss. The Funds may buy and sell options on futures contracts,
which may present even greater volatility and risk of loss.

The following table indicates the average volume when in use for the year ended December 31, 2024:

    -1x Short VIX Futures ETF  
    2x Long VIX Futures ETF 
  
    Average notional value of purchased options contracts: 
    $40,945,769  
    $            - 

The following table indicates the average volume
when in use for the year ended December 31, 2023:

    -1x
    Short VIX
    Futures ETF

    2x
    Long VIX
    Futures ETF

    Average notional value of purchased
    options contracts
     
    $
    33,997,000

    $
             -

There were no transactions in purchased option
contracts during the period ended December 31, 2022.

F-28

Swap Agreements

The Funds may enter into swap agreements for
purposes of pursuing their investment objectives or as a substitute for investing directly in (or shorting) an underlying Index or to
create an economic hedge against a position. Swap agreements are two-party contracts that have traditionally been entered into primarily
with institutional investors in over-the-counter (“OTC”) markets for a specified period, ranging from a day to more than
one year. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the