Company: SVIX
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075845
Chunk: 26

Company: VS Trust
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 at amortized cost.

Fair value pricing may require subjective determinations
about the value of an investment. While the Funds’ policies are intended to result in a calculation of its respective Fund’s
NAV that fairly reflects investment values as of the time of pricing, such Fund cannot ensure that fair values determined by the Sponsor
or persons acting at their direction would accurately reflect the price that a Fund could obtain for an investment if it were to dispose
of that investment as of the time of pricing (for instance, in a forced or distressed sale). The prices used by such Fund may differ from
the value that would be realized if the investments were sold and the differences could be material to the financial statements.

Options are valued using the last traded price
as of the close of regular trading hours on the CBOE Options Exchange.

F-17

Investment Transactions and Related Income

Investment transactions are recorded on the trade
date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation (depreciation)
on open contracts are reflected in the Statements of Financial Condition 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.

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