Company: DEFI
Filing Date: 2025-03-25
Form Type: POS AM
Source: 0001999371-25-003118
Chunk: 116

Company: Tidal Commodities Trust I
Filing Date: 2025-03-25
Form: POS AM
Chunk 116
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 The Fund can exchange
any maturities of either BTC or MBT Contracts in which the Fund has an open long position to engage in EFP trade to purchase bitcoin.
When selling bitcoin, the Fund will normally exchange it for a long position on the first to expire BTC Contracts and/or MBT Contracts.

Governed by CME Exchange Rule 538, EFP transactions
must be executed at commercially reasonable prices mutually agreed upon by the parties involved. All parties to an EFP are required
to prepare and maintain all documents related to both the futures and the corresponding physical bitcoin position, in accordance
with Commodity Futures Trading Commission (CFTC) Regulation 1.35. CME has the authority to obtain records related to EFRP transactions
and has a surveillance program in place to appropriately monitor and enforce compliance with its Market Regulation to prevent fraud
and manipulation.

Given that both sides of the trade track
the same benchmark (Bitcoin), an EFP is a market-neutral transaction. Therefore, the pricing of the EFP is quoted in terms of
the basis between the price of the futures contract and the level of the underlying bitcoin.

When the Sponsor decides to increase or
decrease its holdings of physical bitcoin, it will cause the Fund to execute an EFP trade with a liquidity provider (an “LP”).
The selection of those LPs is based on the objective of achieving the best execution for each transaction, in line with the Fund’s
investment strategy. As of the date of this prospectus, Cumberland DRW LLC, Flow Traders B. V., JSCT, LLC, XBTO International Ltd.,
DV Chain, LLC, GSR Markets Ltd., B2C2 USA, Inc. and Nonco LLC have been approved as LPs. Jane Street Capital, LLC, one of the Authorized
Purchasers, is an affiliate of JSCT, LLC, one of the LPs. Current or future LPs may be affiliates or, or have material relationships
with, the Fund’s current or future Authorized Purchasers.

The Fund and the LP will simultaneously
exchange a futures position for a corresponding, economically offsetting position in physical bitcoin. Specifically, when the Sponsor
intends to increase the Fund’s bitcoin holdings, the Fund participates in an EFP transaction to sell futures contracts and
buy physical bitcoin, while the LP participating in such transaction will buy futures contracts and sell physical bitcoin. Similarly,
when the Sponsor seeks to decrease the Fund’s bitcoin holdings, the Fund will participate in an EFP