Company: DEFI
Filing Date: 2025-02-21
Form Type: POS AM
Source: 0001839882-25-010345
Chunk: 120

Company: Tidal Commodities Trust I
Filing Date: 2025-02-21
Form: POS AM
Chunk 120
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 the Bitcoin Custodian will ensure that the private keys associated with those
bitcoins sign the withdrawal transaction, following a reverse procedure similar to the deposit process.

“Cold storage” refers to a safeguarding
method where private keys associated with bitcoins are kept offline, away from internet-connected devices. This could involve storing
the private keys on a non-networked computer or electronic device. To send bitcoins from a digital wallet with private keys in
cold storage, the private keys must be retrieved and entered into a bitcoin software program for transaction signing, or the unsigned
transaction is sent to a “cold” server where the private keys are held for signature. Private keys are generated in
offline computers so that they are more resistant to being hacked, thus the keys used to carry out transactions are generated and
stored by the Bitcoin Custodian in security devices not connected to the internet. The Bitcoin Custodian may receive deposits of
bitcoin but may not send bitcoin without use of the corresponding private keys.

In order to send bitcoin when the private
keys are kept in cold storage, either the private keys must be retrieved from cold storage and entered into a software program
to sign the transaction, or the unsigned transaction must be sent to the “cold” server in which the private keys are
held for signature by the private keys. Such private keys are stored in cold storage facilities within the United States and Europe,
exact locations of which are not disclosed for security reasons. This procedure mitigates the risks of cyber-attacks by hackers,
as it adds several layers of manual checks and confirmations and makes it unlikely for private keys to be stolen through internet
attacks. For any transaction involving the transfer of bitcoin, multiple distinct private keys must sign the transaction, residing
in geographically dispersed vault locations known as “signing vaults.” This multi-layered approach ensures that even
if one signing vault is compromised, the bitcoins can be accessed with minimal disruption. By contrast, in hot storage, the private
keys are held online, making them more accessible but potentially more vulnerable to hacking.

In the context of EFP transactions, all
purchases or sales of bitcoin executed by the Fund are settled on-chain through the Bitcoin Custodian. In these transactions, the
LP transfers the corresponding bitcoins directly to the Fund’s wallet in Bitcoin Custodian when the Fund is buying, and conversely,
when the Fund is selling bitcoin, the Sponsor instructs the Bitcoin Custodian transfers bitcoins from the Fund’s wallet to
the LP’s wallet, thus ensuring the on-chain settlement final