Company: SVIX
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075845
Chunk: 312

Company: VS Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part II, Item 8
Chunk 312
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VS Trust

NOTES TO FINANCIAL STATEMENTS

June 30, 2024 (Unaudited)

NOTE 1 - ORGANIZATION

VS Trust (the “Trust”) is a Delaware
statutory trust formed on October 24, 2019, and is currently organized into separate series (each, a “Fund” and collectively,
the “Funds”). As of June 30, 2025, the following two series of the Trust have commenced investment operations: -1x Short VIX
Futures ETF (“SVIX”) and 2x Long VIX Futures ETF (“UVIX”). Each of the Funds listed above issues common units
of beneficial interest (“Shares”), which represent units of fractional undivided beneficial interest in and ownership of only
that Fund. The Shares of each Fund are listed on the Cboe BZX Exchange (“Cboe BZX”).

The Funds’ inception of operation was March
28, 2022. Neither the Trust nor the Funds had any operations prior to March 28, 2022, other than matters relating to its organization
and the registration of each series under the Securities Act of 1933.

Each Fund’s investment exposure to VIX futures
contracts will cause each to be deemed a commodity pool, thereby subjecting each Fund to regulation under the Commodity Exchange Act of
1934 (“CEA”) and Commodity Futures Trading Commission (“CFTC”) rules. The Sponsor is registered as a Commodity
Pool Operator (“CPO”) and the Fund will be operated in accordance with applicable CFTC rules. Registration as a CPO imposes
additional compliance obligations on the Sponsor and the Funds related to additional laws, regulations, and enforcement policies, which
could increase compliance costs and may affect the operations and financial performance of the Funds.

Volatility Shares LLC (the “Sponsor”)
is the sponsor of the Trust and the Funds. The Sponsor also will serve as the Trust’s commodity pool operator. The Funds are commodity
pools, as defined under the Commodity Exchange Act (the “CEA”), and the applicable regulations of the CFTC and are operated
by the Sponsor, which is registered as a commodity pool operator with the CFTC. The Trust is not an investment company registered under
the Investment Company Act of 1940.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Each Fund is an investment company, as defined
by Financial Accounting Standards Board (“FASB”) Accounting