Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 30

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 30
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 cash and cash equivalents, such as short-term Treasury Securities,
demand deposits, money market funds and investments in commercial paper. A portion of these investments may be posted as collateral
in connection with Bitcoin Futures Contracts. The percentage that cash and cash equivalents bear to the shareholders’ equity
of the Fund varies from period to period as the market values of the Bitcoin Futures Contracts change. The Fund earned $712 and
$1,524, respectively, in interest income during the three months ended September 30, 2025 and 2024.

If the Fund’s ability to
obtain exposure to Bitcoin Futures Contracts in accordance with its investment objective is disrupted for any reason, including
limited liquidity in the bitcoin futures market, a disruption to the bitcoin futures market, or as a result of margin requirements
or position limits imposed by the Fund’s futures commission merchants, the CME, or the CFTC, the Fund may not be able to
achieve its investment objective and may experience significant losses. Any disruption in the Fund’s ability to obtain exposure
to Bitcoin Futures Contracts will cause the Fund’s performance to deviate from the performance of Bitcoin Futures Contracts.
In addition, the Fund might grow to a size where a lack of liquidity in the futures market meant that the Fund could not sell enough
futures contracts to honor redemption requests.

A market disruption, such as a government
taking regulatory or other actions that disrupt the market in bitcoin, can also make it difficult to liquidate a position. Unexpected
market illiquidity may cause major losses to investors at any time or from time to time. In addition, the Fund does not intend
at this time to establish a credit facility, which would provide an additional source of liquidity, but instead will rely only
on the cash and cash equivalents that it holds to meet its liquidity needs. The anticipated value of the positions in Benchmark
Component Futures Contracts that the Sponsor will acquire or enter into for the Fund increases the risk of illiquidity. Because
Benchmark Component Futures Contracts may be illiquid, the Fund’s holdings may be more difficult to liquidate at favorable
prices in periods of illiquid markets and losses may be incurred during the period in which positions are being liquidated.

Critical Accounting Policies

The Trust’s critical accounting policies for the Fund
is as follows:

Basis of Presentation

Preparation of the financial statements
and related disclosures in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the application
of appropriate accounting rules and guidance, as well as the