Company: SVIX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044385
Chunk: 58

Company: VS Trust
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 discretion choose to determine a fair value price as
the basis for determining the market value of such position. Such fair value prices would be generally determined based on available inputs
about the current value of the underlying financial instrument or commodity and would be based on principles that the Sponsor deems fair
and equitable so long as such principles are consistent with normal industry standards. The Sponsor may fair value an asset of a Fund
pursuant to the policies the Sponsor has adopted, which are consistent with normal industry standards. Depending on the source and relevant
significance of valuation inputs, these instruments may be classified as Level II or Level III in the fair value hierarchy.

Fair value pricing may require subjective determinations
about the value of an investment. While each Fund’s policy is intended to result in a calculation of the Fund’s NAV that fairly
reflects investment values as of the time of pricing, the Funds cannot ensure that fair values determined by the Sponsor or persons acting
at their direction would accurately reflect the price that the Fund could obtain for an investment if it were to dispose of that investment
as of the time of pricing (for instance, in a forced or distressed sale).

-7-

The prices used by a Fund may differ from the value
that would be realized if the investments were sold and the differences could be material to the financial statements.

The Funds disclose the fair value of their investments
in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Discounts on short-term securities purchased
are amortized and reflected as Interest Income in the Statements of Operations.

Realized gains (losses) and changes in unrealized
gain (loss) on open investments are determined on a specific identification basis and recognized in the Statements of Operations in the
period in which the contract is closed or the changes occur, respectively.

Each Fund pays its respective brokerage commissions,
including applicable exchange fees, NFA fees, give up fees, pit futures account fees and other transaction related fees and expenses charged
in connection with trading activities for each Fund’s investment in U.S. Commodity Futures Trading Commission regulated investments.
Brokerage commissions on futures contracts are recognized on a half-turn basis. The Sponsor is currently paying brokerage commissions
in VIX futures contracts exceed variable create/redeem fees collected by more than 0.02% of the Fund’s average net assets annually.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Quantitative Disclosure

Equity Market Volatility Sensitivity

Each of the Funds is exposed to