Company: DEFI
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001999371-25-003249
Chunk: 114

Company: Tidal Commodities Trust I
Filing Date: 2025-03-27
Form: 424B3
Chunk 114
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 V., JSCT, LLC, XBTO International Ltd.,
DV Chain, LLC, GSR Markets Ltd., B2C2 USA, Inc. and Nonco LLC have been approved as LPs. Jane Street Capital, LLC, one of the Authorized
Purchasers, is an affiliate of JSCT, LLC, one of the LPs. Current or future LPs may be affiliates or, or have material relationships
with, the Fund’s current or future Authorized Purchasers.

The Fund and the LP will simultaneously
exchange a futures position for a corresponding, economically offsetting position in physical bitcoin. Specifically, when the Sponsor
intends to increase the Fund’s bitcoin holdings, the Fund participates in an EFP transaction to sell futures contracts and
buy physical bitcoin, while the LP participating in such transaction will buy futures contracts and sell physical bitcoin. Similarly,
when the Sponsor seeks to decrease the Fund’s bitcoin holdings, the Fund will participate in an EFP transaction to buy futures
contracts and sell physical bitcoin, while the LP on the other side of the transaction will sell futures contracts and buy physical
bitcoin.

In order to ensure best execution and ensure
that transactions are executed at commercially reasonable prices when the Fund needs to purchase or sell spot bitcoin, the Sponsor
will conduct a Request-for-Quote (“RFQ”) auction with multiple LPs using the current day settlement price as the reference
for the Futures Contracts. The Sponsor may use electronic means such as the Directed Request for Quote (DRFQ) available in the
CME Direct, chat services or any other communication mechanism that is compatible with CME’s and CFTC guidance around recordkeeping
of EFP transactions. The LPs will present their quotes in terms of basis points (1 bps = 0.01%) difference between the current
day’s settlement price of the futures contract and bitcoin. The Fund will then confirm the trade with the LP that offered
the best quote. After the CME publishes the daily settlement price of the relevant Futures Contract, the Sponsor and the selected
LP calculate and confirm the price of the futures leg of the transaction as being the published settlement price and the price
of physical bitcoin leg of the transaction by applying the agreed upon basis spread and submit the transaction to one of its FCMs
that subsequently reports the transaction to the CME.

After the EFP Transaction is confirmed by
the CME, the futures leg of the transaction is cleared by CME Clearing, while the physical leg is settled bilaterally