Company: SVIX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044385
Chunk: 280

Company: VS Trust
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 280
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 total amounts
of unrecognized tax benefits will significantly change in the next twelve months. On an ongoing basis, management monitors its tax positions
taken under the interpretation to determine if adjustments to conclusions are necessary based on factors including, but not limited to,
on-going analysis of tax law, regulation, and interpretations thereof.

NOTE 3 – INVESTMENTS

Short-Term Investments

The Funds may purchase U.S. Treasury Bills, agency
securities, and other high-credit quality short-term fixed income or similar securities with original maturities of one year or less.
A portion of these investments may be posted as collateral in connection with swap agreements, futures, and/or forward contracts.

Accounting for Derivative Instruments

In seeking to achieve each Fund’s investment
objective, the Sponsor uses a mathematical approach to investing. Using this approach, the Sponsor determines the type, quantity and mix
of investment positions, including derivative positions, which the Sponsor believes in combination, should produce returns consistent
with a Fund’s objective.

All open derivative positions at period end are
reflected on each respective Fund’s Schedule of Investments. Certain Funds utilized a varying level of derivative instruments in
conjunction with investment securities in seeking to meet their investment objectives during the period. While the volume of open positions
may vary on a daily basis as each Fund transacts derivatives contracts in order to achieve the appropriate exposure to meet its investment
objective, the volume of these open positions relative to the net assets of each respective Fund at the date of this report is generally
representative of open 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.

F-16

Upon entering into a futures contract, each Fund
is required to deposit and maintain as