Company: DEFI
Filing Date: 2025-02-21
Form Type: POS AM
Source: 0001839882-25-010345
Chunk: 114

Company: Tidal Commodities Trust I
Filing Date: 2025-02-21
Form: POS AM
Chunk 114
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 contracts that it sells. Hypothetically, and assuming no changes to either
prevailing bitcoin prices or the price relationship between soon to expire contracts and later to expire contracts, the value of
a contract will rise as it approaches expiration. Over time, if backwardation remained constant, the differences would continue
to increase. If the futures market is in contango, the Fund will buy later to expire contracts for a higher price than the sooner
to expire contracts that it sells. Hypothetically, and assuming no other changes to either prevailing bitcoin prices or the price
relationship between the spot price, soon to expire contracts and later to expire contracts, the value of a contract will fall
as it approaches expiration. Over time, if contango remained constant, the difference would continue to increase. All other things
being equal, a situation involving prolonged periods of contango may adversely impact the returns of the Fund; conversely a situation
involving prolonged periods of backwardation may positively impact the returns of the Fund. By way of example, during the period
from 6/30/2020 to 6/30/2023, the market for Bitcoin Futures Contracts were in contango approximately 87% of the time, which resulted
in an average annual negative roll yield of approximately 7%.

<div align='center'>67</div>

Margin Requirements and Marking to Market Futures Positions

“Initial margin” is an amount
of funds that must be deposited by a bitcoin interest trader with the trader’s broker to initiate an open position in futures
contracts. A margin deposit is like a cash performance bond. It helps assure the trader’s performance of the futures contracts
that he or she purchases or sells. Futures contracts are customarily bought and sold on initial margin that represents a small
percentage of the aggregate purchase or sales price of the contract. The amount of margin required in connection with a particular
futures contract is set by the exchange on which the contract is traded. Brokerage firms, such as the Fund’s clearing broker,
carrying accounts for traders in bitcoin interest contracts may require higher amounts of margin as a matter of policy to further
protect themselves.

Futures contracts are marked to market at
the end of each trading day and the margin required with respect to such contracts is adjusted accordingly. This process of marking
to market is designed to prevent losses from accumulating in any futures account. Therefore, if the Fund’s futures positions
have declined in value, the Fund may be required to post “variation margin”