Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 2

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 2
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 of Authorized Participant Agreement
sets forth the terms and conditions under which an Authorized Participant may purchase or redeem a Creation Unit. Authorized Participants
will not receive from the Fund, the Sponsor, or any of their affiliates, any fee or other compensation in connection with their
sale of Shares to the public. An Authorized Participant may receive commissions or fees from investors who purchase Shares through
their commission or fee-based brokerage accounts.

Significant accounting policies of the Fund are as follows:

Use of Estimates

The preparation of financial statements
in conformity with U.S. Generally Accepted Accounting Principles (the “U.S. GAAP”) requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual
results could differ from those estimates.

Indemnifications

In the normal course of business, the Fund enters into
contracts that contain a variety of representations which provide general indemnifications. The Fund’s maximum exposure under
these arrangements cannot be known; however, the Fund expects any risk of loss to be remote.

    F-13 

Cash

Cash includes money market funds held.

Income Taxes

For U.S. federal
income tax purposes, the Fund will be classified as a publicly traded partnership. A publicly traded partnership is generally taxable
as a corporation for U.S. federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income
for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code
of 1986, as amended (the “Code”). Qualifying income is defined as generally including, in pertinent part, interest
(other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production
of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities,
other than as inventory, or of futures, forwards, and options with respect to commodities, qualifying income also includes income
and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader
or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. There is very
limited authority on the U.S. federal income tax treatment of bitcoin and no direct authority on bitcoin derivatives, such as Bitcoin
Futures Contracts. Based on