Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 31

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 31
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 use of estimates, and requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, revenue and expense and related disclosure of contingent assets and
liabilities during the reporting period of the combined financial statements and accompanying notes. The Trust’s application
of these policies involves judgments and actual results may differ from the estimates used.

Cryptocurrency Derivative Transactions

The Sponsor has determined that the valuation
of cryptocurrency interests that are not traded on a U.S. or internationally recognized futures exchange (such as swaps and other
over the counter contracts) involves a critical accounting policy. The values which are used by the Fund for futures contracts
will be provided by the broker who will use market prices when available, while over the counter contracts will be valued based
on the present value of estimated future cash flows that would be received from or paid to a third party in settlement of these
derivative contracts prior to their delivery date. Values will be determined on a daily basis.

Cryptocurrency futures contracts held by
the Fund are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily.
Unrealized appreciation or depreciation on commodity or cryptocurrency futures contracts are reflected in the statement of operations
as the difference between the original contract amount and the fair market value as of the last business day of the year or as
of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the
statement of operations. Interest on cash equivalents and deposits are recognized on an accrual basis. The Fund earns interest
on funds held at the custodian or other financial institutions at prevailing market rates for such investments.

F-26 

Cash and cash Equivalents

Cash and cash equivalents are cash held
at financial institutions in demand-deposit accounts or highly liquid investments with original maturity dates of three months
or less at inception. The Fund reports cash equivalents in the statements of assets and liabilities at market value, or at carrying
amounts that approximate fair value, because of their highly liquid nature and short-term maturities. The Fund has a substantial
portion of assets on deposit with banks. Assets deposited with financial institutions may, at times, exceed federally insured limits.

Fair Value - Definition and Hierarchy

In accordance with U.S. Generally Accepted
Accounting Principles (the “U.S. GAAP”), fair value is defined as the price that would be received to sell an asset
or paid to transfer a liability (i.e., the “exit price”)