Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 21

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 21
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 deposit does not satisfy maintenance margin requirements,
a margin call is made by the commodity broker. If the margin call is not met within a reasonable time, the broker may close out the customer’s
position.

Creation and Redemption of Shares

Each Fund creates and redeems Shares from time
to time, but only in one or more Creation Units. A Creation Unit is a block of at least 10,000 Shares. Except when aggregated in Creation
Units, the Shares are not redeemable securities.

The manner by which Creation Units are purchased
and redeemed is governed by the terms of the Authorized Participant Agreement and Authorized Participant Procedures Handbook, and all
such procedures are at the discretion of the Sponsor. By placing a purchase order, an Authorized Participant agrees to deposit cash or
Financial Instruments with the Custodian of a Fund (unless as provided otherwise by this Prospectus). Purchases and redemptions made
by Authorized Participants primarily in cash rather than through in-kind delivery of Financial Instruments, if not offset by a transaction
fee (as described below), may cause a Fund to incur certain costs, including brokerage costs or taxable capital gains or losses, that
may decrease the Fund’s net asset value.

If permitted by the Sponsor in its sole discretion
with respect to a Fund, an Authorized Participant may also agree to enter into or arrange for an exchange of a futures contract for related
position (“EFCRP”) or block trade with the Fund whereby the Authorized Participant would also transfer to the Fund a number
and type of exchange-traded futures contracts at or near the closing settlement price for such contracts on the purchase order date.
Similarly, the Sponsor in its sole discretion may agree with an Authorized Participant to use an EFCRP to effect an order to redeem Creation
Units.

An EFCRP is a technique permitted by the rules
of certain futures exchanges that, as utilized by a Fund in the Sponsor’s discretion, would allow the Fund to take a position in
a futures contract from an Authorized Participant, or give futures contracts to an Authorized Participant, in the case of a redemption,
rather than to enter the futures exchange markets to obtain such a position. An EFCRP by itself will not change either party’s
net risk position materially. Because the futures position that a Fund would otherwise need to take in order to meet its investment objective
can be obtained without unnecessarily impacting the financial or futures markets or their pricing, EFCRPs can generally be viewed as
transactions beneficial to the Fund. A block trade is a technique that permits a