Company: DEFI
Filing Date: 2025-03-17
Form Type: S-1/A
Source: 0001387131-25-000058
Chunk: 115

Company: Tidal Commodities Trust I
Filing Date: 2025-03-17
Form: S-1/A
Chunk 115
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 for each ton of GHG emissions they emit. Certain covered entities will be allocated allowances 
 and will be able to buy additional allowances at auction, purchase allowances from others,     
 or purchase offset credits.                                                                    |

Carbon credits issued under the CCA cap-and-trade regime include carbon credits issued by Quebec since the California and Quebec markets were linked pursuant to the Western Climate Initiative in 2014. Currently, carbon credits issued by Quebec each year consist of approximately 17-18% of the carbon credits issued under the CCA cap-and-trade regime. This percentage is subject to change and it is possible for additional markets to be added in the future.

| ● | RGGI:                                                                                       
 The RGGI is a cooperative market-based effort among Connecticut, Delaware, Maine, Maryland, 
 Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont and Virginia      
 to cap and reduce CO2 emissions from the power sector. RGGI was the first cap-and-trade     
 regional initiative implemented in the United States.                                       |

The RGGI is composed of individual CO2 Budget Trading Programs in each participating state. Through independent regulations, based on the RGGI Model Rule, each state's CO2 Budget Trading Program limits emissions of CO2 from electric power plants, issues CO2 allowances and establishes participation in regional CO2 allowance auctions. Within the RGGI states, fossil-fuel-fired electric power generators with a capacity of 25 megawatts1 or greater ("regulated sources") are required to hold allowances equal to their CO2 emissions over a three-year control period.

A CO2 allowance represents a limited authorization to emit one short ton of CO2 from a regulated source, as issued by a participating state. Regulated sources can use a CO2 allowance issued by any participating state to demonstrate compliance in any state. They may acquire allowances by purchasing them at regional auctions, or through secondary markets. For 2024, the RGGI cap for the eleven participating states is 157,184,044 CO2 allowances and the adjusted cap is 142,422,869 CO2 allowances.

The Fund will invest in the Carbon Credit Futures that comprise the Index. Futures contracts are agreements between two parties that are executed on a designated contract market (“DCM”), i.e., a commodity futures exchange, and that are cleared and margined through a derivatives clearing organization (“DCO”), i.e., a clearing house. The DCMs utilized by the Fund will be Chicago Mercantile Exchange (“CME”), Intercontinental Exchange, Inc