Company: DEFI
Filing Date: 2025-03-25
Form Type: POS AM
Source: 0001999371-25-003118
Chunk: 129

Company: Tidal Commodities Trust I
Filing Date: 2025-03-25
Form: POS AM
Chunk 129
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 Exchanges regular
volume, RV k, by examining the previous 30 (T-(1-30)) trading days volume to determine median traded volume
(a volume measure that reflects regular exchange trading activity is akin to information utility of historical volatility calculations).
The 30-day variable represents a month per a 360 day-count year.

| - | Step 2: Calculate abnormal price penalty factor for exchange weighting |

In the absence of a global marketplace “best
bid / best offer”, a penalty factor (abnormal price adjustment) is calculated to delineate anomalous trading activity.

This adjustment is based purely on price.
When examining Core Exchanges, those with prices within one standard deviation variance from the median digital asset price are
not penalized (penalty factor equals one). For Core Exchanges with prices outside one standard deviation from the median (across
all the Core Exchanges), a penalty factor is calculated proportional to its absolute distance to the median point.

For example, if one exchange’s price
is 2.5 standard deviations from the median (across all the Core Exchanges), the penalty factor will be a 1/2.5 multiplier. The
abnormal price adjustment factor is defined as:

where C k,price is the adjustment
for abnormal price of the k-th exchange, Price k is its price, and Med price and
σprice are the median and standard deviation of the prices across all the exchanges.

<div align='center'>76</div>

| - | Step 3: Calculate abnormal volatility penalty factor for exchange weighting |

A penalty factor for volatile price series
resulting from market effects of wide bid-ask spreads, or the opposite effect, nil market volatility is calculated to delineate
anomalous trading activity.

This adjustment is based purely on price
volatility. When examining the Core Exchanges, those with volatility within one standard deviation away from the median volatility
(across all the Core Exchanges) are not penalized (penalty factor equals one). For exchanges with price volatility outside one
standard deviation from the median (across all the Core Exchanges), a penalty factor is calculated proportional to its absolute
distance to the median point.

For example, if one exchange is 2.5 standard
deviations from the volatility median (across all the Core Exchanges), the penalty factor will be a 1/2.5 multiplier. The abnormal
price adjustment factor is defined as:

where C k,volatility is the adjustment
for abnormal volatility of the