Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 1641

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 12
Chunk 1641
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 positions throughout the reporting period.

Following is a description of the derivative
instruments used by the Funds during the reporting period, including the primary underlying risk exposures related to each instrument
type.

Futures Contracts

The Funds may enter into futures contracts to
gain exposure to changes in the value of, or as a substitute for investing directly in (or shorting), an underlying benchmark. A futures
contract obligates the seller to deliver (and the purchaser to accept) the future delivery of a specified quantity and type of asset
at a specified time and place. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical
delivery of the underlying commodity, if applicable, or by making an offsetting sale or purchase of an identical futures contract on
the same or linked exchange before the designated date of delivery, or by cash settlement at expiration of contract.

Upon entering into a futures contract, each Fund
is required to deposit and maintain as collateral at least such initial margin as required by the exchange on which the transaction is
affected. The initial margin is segregated as cash and/or securities balances with brokers for futures contracts, as disclosed in the
Statements of Financial Condition, and is restricted as to its use. The Funds that enter into futures contracts maintain collateral at
the broker in the form of cash and/or securities. Pursuant to the futures contract, each Fund generally agrees to receive from or pay
to the broker(s) an amount of cash equal to the daily fluctuation in value of the futures contract. Such receipts or payments are known
as variation margin and are recorded by each Fund as unrealized gains or losses. Each Fund will realize a gain or loss upon closing of
a futures transaction.

F-26

Futures contracts involve, to varying degrees,
elements of market risk (specifically exchange rate sensitivity, commodity price risk or equity market volatility risk) and exposure
to loss in excess of the amount of variation margin. The face or contract amounts reflect the extent of the total exposure each Fund
has in the particular classes of instruments. Additional risks associated with the use of futures contracts are imperfect correlation
between movements in the price of the futures contracts and the market value of the underlying Index or commodity and the possibility
of an illiquid market for a futures contract. With futures contracts, there is minimal but some counterparty risk to the Funds since
futures contracts are exchange-traded and the credit risk resides with the Funds’ clearing broker or clearinghouse itself. Many
futures exchanges and boards of