Company: SVIX
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109885
Chunk: 339

Company: VS Trust
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 339
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 Fund at any time in its sole discretion. In addition, an FCM generally will have the discretion to set margin requirements
and/or position limits that would be in addition to any margin requirements and/or position limits required by applicable law, set by
the exchange, or set by the clearing house that clears the futures contracts in which a Fund transacts. As a result, a Fund’s ability
to engage in futures transactions or maintain open positions in such contracts will be dependent on the willingness of its FCMs to continue
to accept or maintain such transactions on terms that are economically appropriate for a Fund’s investment strategy.

When a Fund has an open futures contract position,
it is subject to at least daily variation margin calls by an FCM that could be substantial in the event of adverse price movements. Because
futures contracts may require only a small initial investment in the form of a deposit or margin, they may involve a high degree of leverage.
A Fund with open positions is subject to maintenance or variance margin on its open positions. If a Fund has insufficient cash to meet
daily variation margin requirements, it may need to sell Financial Instruments at a time when such sales are disadvantageous. Futures
markets are highly volatile and the use of or exposure to futures contracts may increase volatility of a Fund’s NAV.

Margin posted by a Fund to an FCM typically will
be held by relevant exchange’s clearing house (in the case of clearing house-required margin) or the FCM (in the case of “house”
margin requirements of the FCM). In the event that market movements favorable to a Fund result in the Fund having posted more margin than
is required, the Fund typically would have a right to return of margin from the FCM. However, the timing of such return may be uncertain.
As a result, it is possible that a Fund may face liquidity constraints including potential delays in its ability to pay redemption proceeds,
where margin is not immediately returned by an FCM.

In the event that a Fund fails to comply with its
obligations under a Futures Account Agreement (including, for example, failing to deliver the margin required by an FCM on a timely basis),
the Futures Account Agreement typically will provide the FCM with broad discretion to take remedial action against the Fund. Among other
things, the FCM typically will have the right, upon the occurrence of such a failure by a Fund, to terminate any or all futures contracts
in the Fund’s account with that FCM, to sell the collateral posted as margin by