Company: DEFI
Filing Date: 2025-02-21
Form Type: POS AM
Source: 0001839882-25-010345
Chunk: 113

Company: Tidal Commodities Trust I
Filing Date: 2025-02-21
Form: POS AM
Chunk 113
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Impact of Position Limits, Accountability Levels, and Price Fluctuation Limits.

Position limits, accountability levels,
and dynamic price fluctuation limits may potentially cause a tracking error between the price of the Shares and the Benchmark.
This may in turn prevent you from being able to effectively use the Fund as a way to hedge against bitcoin related losses or as
a way to indirectly invest in bitcoin.

The Fund does not intend to limit the size
of the offering and will attempt to expose substantially all of its proceeds to bitcoin and Bitcoin Futures Contracts and cash
and cash equivalents. If the Fund encounters position limits, accountability levels, or price fluctuation limits for Bitcoin Futures
Contracts, it could force the Fund to limit the number of Creation Baskets that it sells.

Price Volatility

Despite dynamic price limits, the price
volatility of bitcoin and Bitcoin Futures Contracts generally has been historically greater than that for traditional securities
such as stocks and bonds. Price volatility often is greater day to day as opposed to intra-day. Economic factors that may cause
volatility in bitcoin include but are not limited to cost of electricity, regulation, market disruptions, cyber-attacks, political
events and existing and future technological developments. There are also various other factors now known and unknown, any and
all of which can have an impact on the supply, demand, and price fluctuations in the bitcoin markets. See “Risks Related
to Bitcoin and the Bitcoin Network.” Because the Fund invests in bitcoin and Bitcoin Futures Contracts, the assets of the
Fund, and therefore the price of the Fund’s Shares, may be subject to greater volatility than traditional securities.

Term Structure of Futures Contracts and the Impact on Total Return

Over time, the price of bitcoin fluctuates
based on a number of market factors, including demand for bitcoin. The value of Bitcoin Futures Contracts likewise fluctuates in
reaction to a number of market factors. Because the Fund seeks to maintain part of its holdings in Bitcoin Futures Contracts, the
Fund must periodically “roll” futures contract positions, closing out soon to expire contracts that will no longer
be part of the Benchmark and entering into subsequent to expire contracts. One factor determining the total return from investing
in futures contracts is the price relationship between soon to expire contracts and later to expire contracts.

If the futures market is in a state of backwardation
(i.e., when the price of bitcoin in the future is expected to be less than the current price), the Fund will buy later to expire
contracts for a lower price than the sooner to expire