Company: SVIX
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075845
Chunk: 54

Company: VS Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 investment objectives
than funds that do not employ leverage. The use of leveraged and/or inverse leveraged positions increases the risk of total loss of an
investor’s investment, even over periods as short as a single day.

For example, because UVIX includes a two times
(2x) multiplier, a single-day movement in the relevant benchmark approaching 50% at any point in the day could result in the total loss
or almost total loss of an investor’s investment if that movement is contrary to the investment objective of the Fund in which an
investor has invested, even if such Fund’s benchmark subsequently moves in an opposite direction, eliminating all or a portion of
the movement. This would be the case with downward single-day or intraday movements in the underlying benchmark of a Fund or upward single-day
or intraday movements in the benchmark of a Fund, even if the underlying benchmark maintains a level greater than zero at all times.

Liquidity Risk

Financial Instruments cannot always be liquidated
at the desired price. It is difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders
in a market. A market disruption can also make it difficult to liquidate a position or find a swap or forward contract counterparty at
a reasonable cost. Market illiquidity may cause losses for the Funds. The large size of the positions which the Funds may acquire increases
the risk of illiquidity by both making their positions more difficult to liquidate and increasing the losses incurred while trying to
do so. Any type of disruption or illiquidity will potentially be exacerbated due to the fact that the Funds will typically invest in Financial
Instruments related to one benchmark, which in many cases is highly concentrated.

“Contango” and “Backwardation” Risk

The Funds typically hold futures contracts. As
the futures contracts near expiration, they are generally replaced by contracts that have a later expiration. Thus, for example, a contract
purchased and held in November 2019 may specify a January 2020 expiration. As that contract nears expiration, it may be replaced by selling
the January 2020 contract and purchasing the contract expiring in March 2020. This process is referred to as “rolling.” Rolling
may have a positive or negative impact on performance. For example, historically, the prices of certain types of futures contracts have
frequently been higher for contracts with shorter-term expirations than for contracts with longer-term expirations