Company: SVIX
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109885
Chunk: 27

Company: VS Trust
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 loss, deductions and other items for its Fund’s taxable year ending with or within the beneficial owner’s
taxable year.

Management of the Funds has reviewed all open tax
years and major jurisdictions (i.e., the last four tax year ends and the interim tax period since then, as applicable) and concluded that
there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be
taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts
of unrecognized tax benefits will significantly change in the next twelve months. On an ongoing basis, management monitors its tax positions
taken under the interpretation to determine if adjustments to conclusions are necessary based on factors including, but not limited to,
on-going analysis of tax law, regulation, and interpretations thereof.

F-18

NOTE 3 - INVESTMENTS

Short-Term Investments

The Funds may purchase U.S. Treasury Bills, agency
securities, and other high-credit quality short-term fixed income or similar securities with original maturities of one year or less.
A portion of these investments may be posted as collateral in connection with swap agreements, futures, and/or forward contracts.

Accounting for Derivative Instruments

In seeking to achieve each Fund’s investment
objective, the Sponsor uses a mathematical approach to investing. Using this approach, the Sponsor determines the type, quantity and mix
of investment positions, including derivative positions, which the Sponsor believes in combination, should produce returns consistent
with a Fund’s objective.

All open derivative positions at period end are
reflected on each respective Fund’s Schedule of Investments. Certain Funds utilized a varying level of derivative instruments in
conjunction with investment securities in seeking to meet their investment objectives during the period. While the volume of open positions
may vary on a daily basis as each Fund transacts derivatives contracts in order to achieve the appropriate exposure to meet its investment
objective, the volume of these open positions relative to the net assets of each respective Fund at the date of this report is generally
representative of open positions throughout the reporting period.

Following is a description of the derivative instruments
used by the Funds during the reporting period, including the primary underlying risk exposures related to each instrument type.

Futures Contracts

The Funds may enter into futures contracts to gain
exposure to changes in the value of, or as a substitute for investing directly in (or shorting), an underlying benchmark. A futures contract
obligates the seller