Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 10

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 10
---
 INDEX
OR ANY DATA INCLUDED THEREIN. S&P AND CBOE MAKE NO EXPRESS OR IMPLIED WARRANTIES, REPRESENTATIONS OR CONDITIONS, AND EXPRESSLY DISCLAIM
ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE AND ANY OTHER EXPRESS OR IMPLIED WARRANTY
OR CONDITION WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P,
ITS AFFILIATES OR THEIR THIRD PARTY LICENSORS, INCLUDING CBOE, HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL
DAMAGES (INCLUDING LOST PROFITS) RESULTING FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN, EVEN IF NOTIFIED OF THE POSSIBILITY
OF SUCH DAMAGES.

5

Information about Financial Instruments and Commodities Markets

Futures Contracts

A futures contract is a standardized contract
traded on, or subject to the rules of, an exchange that calls for the future delivery of a specified quantity and type of a particular
underlying asset at a specified time and place or alternatively may call for cash settlement. Futures contracts are traded on a wide
variety of underlying assets, including bonds, interest rates, agricultural products, stock indexes, currencies, energy, metals, economic
indicators and statistical measures. The notional size and calendar term futures contracts on a particular underlying asset are identical
and are not subject to any negotiation, other than with respect to price and the number of contracts traded between the buyer and seller.
A Fund generally deposits cash and/or securities with an FCM for its open positions in futures contracts, which may, in turn, transfer
such deposits to the clearinghouse to protect the clearing house against non-payment by the Fund. The clearing house becomes substituted
for each counterparty to a futures contract, and, in effect, guarantees performance. In addition, the FCM may require a Fund to deposit
collateral in excess of the clearing house’s margin requirements for the FCM’s own protection.

Certain futures contracts, including stock index
contracts, VIX futures contracts and certain commodity futures contracts settle in cash. The cash settlement amount reflects the difference
between the contract purchase/sale price and the contract settlement price. The cash settlement mechanism avoids the potential for either
side to have to deliver the underlying asset. For other futures contracts, the contractual obligations of a buyer or seller may generally
be satisfied by taking or making physical delivery of the underlying asset or by making an offsetting sale or purchase of an identical