Company: DEFI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001999371-25-011381
Chunk: 31

Company: Tidal Commodities Trust I
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 31
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 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”) in an orderly transaction
between market participants at the measurement date.

In
determining fair value, the Fund uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs
is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring
that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing
the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s
assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information
available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level
1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the
ability to access. Valuation adjustments and block discounts are not applied to Level 1 financial instruments. Since valuations
are based on quoted prices that are readily and regularly available in an active market, valuation of these financial