Company: DEFI
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001999371-25-003249
Chunk: 109

Company: Tidal Commodities Trust I
Filing Date: 2025-03-27
Form: 424B3
Chunk 109
---
 transfer the credit risk arising from the trading of contracts
on an exchange. The clearing organization effectively becomes the other party to the trade, and each clearing member party to the
trade looks only to the clearing organization for performance.

Bitcoin Futures Contracts

CME began offering trading in BTC Contracts
in 2017 (and in MBT Contracts in 2021). The CME needed a transparent and readily available way to determine the price of bitcoin
for its futures contract customers. However, there are numerous exchanges on which one can buy and sell bitcoin, and the prices
of bitcoin can differ greatly from exchange to exchange. CME wanted to use pricing information from what it considered to be reputable
bitcoin exchanges to calculate a once-a-day reference rate of the U.S. dollar price of bitcoin.

The CME developed the CME CF Bitcoin Reference
Rate (the “BRR”) to serve these purposes. Each of the BTC and MBT contract’s final daily cash settlement is based
on the BRR. It serves as a once-a-day reference rate of the U.S. dollar price of bitcoin and is used as the rate on which bitcoin
futures contracts are cash-settled in U.S. dollars at the close of CME daily trading. The BRR is calculated by collecting purchase
and sale transactions from specified constituent bitcoin exchanges, which currently include Bitstamp, Coinbase, Gemini, itBit,
Kraken, and Bullish Exchange LMAX Digital, during a calculation window between 3:00 p.m. and 4:00 p.m. London time. It is published
at 4:00 p.m. London time each day.

The CME selects constituent exchanges for
the BRR on the basis of the following criteria, which each exchange must demonstrate that it continues to fulfill on an ongoing
basis:

| ● | The exchange has policies to ensure fair and transparent market conditions at all times and has processes in place to identify 
 and impede illegal, unfair or manipulative trading practices.                                                                  |

<div align='center'>66</div>

| ● | The exchange does not impose undue barriers to entry or restrictions on market participants, and utilizing the venue does not 
 expose market participants to undue credit risk, operational risk, legal risk or other risks.                                 |

| ● | The exchange complies with applicable law and regulation, including, but not limited to capital markets regulations, money     
 transmission regulations, client money custody regulations, know-your-client (KYC) regulations and anti-money-laundering (