Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 20

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 20
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 and futures exchange rules also impose limits on the size
of the positions that a person may hold or control as well as standards for aggregating certain positions. The rules of the CFTC and
the futures exchanges also authorize special emergency actions to halt, suspend or limit trading overall or to restrict, halt, suspend
or limit the trading of an individual trader or to otherwise impose special reporting or margin requirements.

Each Fund’s investments in Financial Instruments
will be subject to regulation under the CEA and traded pursuant to CFTC and applicable exchange regulations.

Daily Limits

Most U.S. futures exchanges (but generally not
foreign exchanges or banks or dealers in the cases of swap agreements) limit the amount of fluctuation in some futures contract or options
contract prices during a single day by regulations. These regulations specify what are referred to as “daily price fluctuation
limits” or more commonly “daily limits.” Once the daily limit has been reached in a particular futures contract, no
trades may be made at a price beyond that limit. Currently, CBOE limits daily VIX futures contracts to no more than 50,000 per entity.

10

Margin

“Initial” or “original”
margin is the minimum dollar amount that a counterparty to a cleared derivatives contract must deposit with its commodity broker in order
to establish an open position. “Maintenance” or “variation” margin is the amount (generally less than initial
margin) to which a trader’s account may decline before he must deliver additional margin so as to maintain open positions. A margin
deposit is like a cash performance bond. It helps assure the futures trader’s performance of the futures contracts he purchases
or sells.

The minimum amount of margin required in connection
with a particular futures contract is set by the exchange on which such contract is traded and is subject to change at any time during
the term of the contract. Futures contracts are customarily bought and sold on margins that represent a percentage of the aggregate purchase
or sales price of the contract.

Brokerage firms may require higher amounts of
margin than exchange minimums. These requirements may change without warning.

Margin requirements are computed each day or
intraday by a commodity broker and the relevant exchange. At the close of each trading day or intraday, each open futures contract is
marked to market, that is, the gain or loss on the position is calculated from the prior day’s close. When the market value of
a particular open futures contract position changes to a point where the margin on