Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 3

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 3
---
 an opinion received by Tidal from their independent legal counsel and a Commodity Futures Trading Commission
determination that treats bitcoin as a commodity under the Commodity Exchange Act, the Fund intends to take the position that bitcoin
and Bitcoin Futures Contracts consist of futures on commodities for purposes of the qualifying income exception under section 7704
of the Code. Accordingly, the Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist
of qualifying income and that the Fund will be taxed as a partnership for U.S. federal income tax purposes. Therefore, the Fund
does not record a provision for income taxes because the shareholders report their share of the Fund’s income or loss on
their income tax returns.

The Fund is required to determine whether
a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution
of any related appeals or litigation processes, based on the technical merits of the position. The Fund will file income tax returns
in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions.

The Fund may be subject to potential examination
by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may
include among other things questioning the tax classification of the Fund, the timing and amount of deductions, the nexus of income
among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws.

Creation and Redemptions

Authorized Purchasers may purchase
Creation Baskets consisting of 10,000 Shares from the Fund. The amount of the proceeds required to purchase a Creation Basket
will be equal to the NAV of the Shares in the Creation Basket determined as of 4:00 p.m. (ET) on the day the order to create the
basket is received in good order.

Authorized Purchasers may redeem Shares
from the Fund only in blocks of 10,000 Shares called “Redemption Baskets.” The amount of the redemption proceeds for
a Redemption Basket will be equal to the NAV of the Shares in the Redemption Basket determined as of 4:00 p.m. (ET) on the day
the order to redeem the basket is received in good order.

The Fund will receive the proceeds from
Shares sold or will pay for redeemed Shares within three business days after the trade date of the purchase or redemption, respectively.
The amounts due from Authorized Purchasers will be reflected in