Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 1411

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 1411
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 and changes in the unrealized appreciation (depreciation) between
periods are reflected in the Statements of Operations.

Interest income is recognized on an accrual basis
and includes, where applicable, the amortization of premium or discount, and is reflected as Interest Income in the Statement of Operations.

F-25

Brokerage Commissions and Futures Account Fees

Each Fund pays its respective brokerage commissions,
including applicable exchange fees, National Futures Association (“NFA”) fees, give-up fees, pit brokerage fees and other
transaction related fees and expenses charged in connection with trading activities for each Fund’s investment in U.S. Commodity
Futures Trading Commission (“CFTC”) regulated investments. The effects of trading spreads, financing costs/fees associated
with Financial Instruments, and costs relating to the purchase of U.S. Treasury securities or similar high credit quality short-term
fixed-income would also be borne by the Funds. Brokerage commissions on futures contracts are recognized on a half-turn basis (e.g.,
the first half is recognized when the contract is purchased (opened) and the second half is recognized when the transaction is closed).

Federal Income Tax

Each Fund is registered as a series of a Delaware
statutory trust and is treated as a partnership for U.S. federal income tax purposes. Accordingly, no Fund expects to incur U.S. federal
income tax liability; rather, each beneficial owner of a Fund’s Shares is required to take into account its allocable share of
its Fund’s income, gain, loss, deductions and other items for its Fund’s taxable year ending with or within the beneficial
owner’s taxable year.

Management of the Funds has reviewed all open
tax years and major jurisdictions (i.e., the last four tax year ends and the interim tax period since then, as applicable) and concluded
that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected
to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the 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-