Company: DEFI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001999371-25-011381
Chunk: 32

Company: Tidal Commodities Trust I
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 32
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 instruments
does not entail a significant degree of judgment.

Level
2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either
directly or indirectly.

Level
3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The
availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected
by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet
established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based
on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.
Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future
circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may
be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed.
Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized
in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.
In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its
entirety falls, is determined based on the lowest level input that is significant to the fair value measurement.

The
Fund and records derivative activities at fair value. Gains and losses from derivative contracts are included in the statement
of operations. Derivative contracts include futures contracts related to cryptocurrency prices. Futures, which are listed on a
national securities exchange, such as the CME, or reported on another national market, are generally categorized in Level 1 of
the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending
on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy.

Brokerage
Commissions

The
Fund recognizes brokerage commissions on a full trade basis.

Derivative
Counterparty Margin

Margin
is the minimum amount of funds that must be deposited by a cryptocurrency interest trader with the trader’s broker to initiate
and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the