Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 1499

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 10
Chunk 1499
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 against non-payment by the Funds. The collateral held in this account
is restricted as to its use. In the event of a default by the counterparty, the Funds will seek withdrawal of this collateral from the
segregated account and may incur certain costs in exercising its right with respect to the collateral. If a counterparty becomes bankrupt
or otherwise fails to perform its obligations due to financial difficulties, the Funds may experience significant delays in obtaining
any recovery in a bankruptcy or other reorganizational proceeding. The Funds may obtain only limited recovery or may obtain no recovery
in such circumstances.

The Funds remain subject to credit risk with respect
to the amount they expect to receive from counterparties. However, the Funds have sought to mitigate these risks in connection with OTC
swaps by generally requiring that the counterparties for each Fund agree to post collateral for the benefit of the Fund, marked to market
daily, in an amount approximately equal to what the counterparty owes the Fund, subject to certain minimum thresholds. In the event of
a bankruptcy of a counterparty, such Fund will have direct access to the collateral received from the counterparty, generally as of the
day prior to the bankruptcy, because there is a one day time lag between the Fund’s request for collateral and the delivery of
such collateral. To the extent any such collateral is insufficient, the Funds will be exposed to counterparty risk as described above,
including the possible delays in recovering amounts as a result of bankruptcy proceedings.

The counterparty/credit risk for cleared derivative
transactions is generally lower than for OTC derivatives since generally a clearing organization becomes substituted for each counterparty
to a cleared derivative contract and, in effect, guarantees the parties’ performance under the contract as each party to a trade
looks only to the clearing organization for performance of financial obligations. In addition, cleared derivative transactions benefit
from daily marking- to-market and settlement, and segregation and minimum capital requirements applicable to intermediaries.

Statements of Assets and Liabilities

Fair values of derivative instruments as of December 31, 2024:

     Statements of          Assets and
Liabilities  Fair Value   -1x Short VIX Futures ETF  Location  Assets   Liabilities   Purchased Option Contracts:             Index   Investments, at value  $1,484,000   $-   Short Futures Contracts:               Index  Unrealized Depreciation*   -