Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 110

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 110
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 understands the consequences of seeking daily leveraged or daily inverse investment results. Shareholders
who invest in the Funds should actively manage and monitor their investments, as frequently as daily.

While the Funds seek to meet their investment
objectives, there is no guarantee they will do so. Factors that may affect a Fund’s ability to meet its investment objective include:
(1) the Sponsor’s ability to purchase and sell Financial Instruments in a manner that correlates to a Fund’s objective; (2)
an imperfect correlation between the performance of Financial Instruments held by a Fund and the performance of the applicable benchmark;
(3) bid-ask spreads on such Financial Instruments; (4) fees, expenses, transaction costs, financing costs associated with the use of
Financial Instruments and commission costs; (5) holding or trading instruments in a market that has become illiquid or disrupted; (6)
a Fund’s Share prices being rounded to the nearest cent and/or valuation methodology; (7) changes to a benchmark Index that are
not disseminated in advance; (8) the need to conform a Fund’s portfolio holdings to comply with investment restrictions or policies
or regulatory or tax law requirements; (9) early and unanticipated closings of the markets on which the holdings of a Fund trade, resulting
in the inability of the Fund to execute intended portfolio transactions; (10) accounting standards; and (11) differences caused by a
Fund obtaining exposure to only a representative sample of the components of a benchmark, over weighting or under weighting certain components
of a benchmark or obtaining exposure to assets that are not included in a benchmark.

F-37

A number of factors may affect a Fund’s
ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that a Fund will achieve a high degree
of correlation. Failure to achieve a high degree of correlation may prevent a Fund from achieving its investment objective. In order
to achieve a high degree of correlation with their underlying benchmarks, the Funds seek to rebalance their portfolios daily to keep
exposure consistent with their investment objectives. Being materially under- or over-exposed to the benchmark may prevent such Funds
from achieving a high degree of correlation with such benchmark. Market disruptions or closure, large amounts of assets into or out of
the Funds, regulatory restrictions, extreme market volatility, and other factors will adversely affect such Funds’ ability to adjust
exposure to requisite levels. The target amount of portfolio exposure is impacted dynamically by the benchmarks’ movements during
each day. Other