Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 19

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 19
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C rules or regulations. Suspension, restriction or termination of the Sponsor’s registration
as a commodity pool operator would prevent it, until such time (if any) as such registration were to be reinstated, from managing, and
might result in the termination of the Fund. If the Sponsor were unable to provide services and/or advice to the Fund, the Fund would
be unable to pursue its investment objective unless and until the Sponsor’s ability to provide services and advice to the Fund
was reinstated or a replacement for the Sponsor as commodity pool operator could be found. Such an event could result in termination
of the Fund.

The CEA requires all FCMs to meet and maintain
specified fitness and financial requirements, segregate customer funds from proprietary funds and account separately for all customers’
funds and positions, and to maintain specified books and records open to inspection by the staff of the CFTC.

The CEA also gives the states certain powers
to enforce its provisions and the regulations of the CFTC.

Under certain circumstances, the CEA grants shareholders
the right to institute a reparations proceeding before the CFTC against the Sponsor (as a registered commodity pool operator), an FCM,
as well as those of their respective employees who are required to be registered under the CEA. Shareholders may also be able to maintain
a private right of action for certain violations of the CEA.

Pursuant to authority in the CEA, the NFA has
been formed and registered with the CFTC as a registered futures association. At the present time, the NFA is the only self-regulatory
organization for commodities professionals other than exchanges. As such, the NFA promulgates rules governing the conduct of commodity
professionals and disciplines those professionals that do not comply with such standards. The CFTC has delegated to the NFA responsibility
for the registration of commodity pool operators, FCMs, swap dealers, commodity trading advisors, introducing brokers and their respective
associated persons and floor brokers. The Sponsor is a member of the NFA (each Fund itself is not required to become members of the NFA).
As an NFA member, the Sponsor is subject to NFA standards relating to fair trade practices, financial condition, and consumer protection.

The CEA and CFTC regulations prohibit market
abuse and generally require that all futures exchange-based trading be conducted in compliance with rules designed to ensure the integrity
of market prices and without any intent to manipulate prices. CFTC regulations