Company: SVIX
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075845
Chunk: 357

Company: VS Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part II, Item 8
Chunk 357
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 of estimates. The Trust’s and the Funds’ application of these policies involves
judgments and actual results may differ from the estimates used.

Each Fund has significant exposure to Financial
Instruments. The Funds hold a significant portion of their assets in futures, all of which are recorded on a trade date basis and at fair
value in the financial statements, with changes in fair value reported in the Statements of Operations.

The use of fair value to measure
Financial Instruments, with related unrealized gains or losses recognized in earnings in each period, is fundamental to the Trust’s
and the Funds’ financial statements. The fair value of a Financial Instrument is the amount that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).

For financial reporting purposes,
the Funds value investments based upon the closing price in their primary markets. Accordingly, the investment valuations in these financial
statements may differ from those used in the calculation of certain Funds’ final creation/redemption NAV for the period ended June
30, 2025.

Short-term investments are valued at amortized
cost which approximates fair value for daily NAV purposes. For financial reporting purposes, short- term investments are valued at their
market price using information provided by a third-party pricing service or market quotations.

Derivatives (e.g., futures contracts, options,
swap agreements) are generally valued using independent sources and/or agreements with counterparties or other procedures as determined
by the Sponsor. Futures contracts, are generally valued at the last settled price on the applicable exchange on which that future trades.
Futures contracts valuations are typically categorized as Level I in the fair value hierarchy. Swap agreement valuations are typically
categorized as Level II in the fair value hierarchy. The Sponsor may in its sole discretion choose to determine a fair value price as
the basis for determining the market value of such position. Such fair value prices would be generally determined based on available inputs
about the current value of the underlying financial instrument or commodity and would be based on principles that the Sponsor deems fair
and equitable so long as such principles are consistent with normal industry standards. The Sponsor may fair value an asset of a Fund
pursuant to the policies the Sponsor has adopted, which are consistent with normal industry standards. Depending on the source and relevant
significance of valuation inputs, these instruments may be classified as Level II or Level III in the fair value hierarchy.

Fair value pricing may require subjective determinations
about