Company: SVIX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044385
Chunk: 57

Company: VS Trust
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 general
business indemnifications are not expected to have a material impact on a Fund’s financial position.

Management fee payments made to the Sponsor are
calculated as a fixed percentage of each Fund’s NAV. As such, the Sponsor cannot anticipate the payment amounts that will be required
under these arrangements for future periods as NAVs are not known until a future date. The agreement with the Sponsor may be terminated
by either party upon 30 days written notice to the other party.

Critical Accounting Policies

Preparation of the financial statements and related
disclosures in compliance with accounting principles generally accepted in the United States of America requires the application of appropriate
accounting rules and guidance, as well as the use of estimates. The Trust’s and the Funds’ application of these policies involves
judgments and actual results may differ from the estimates used.

Each Fund has significant exposure to Financial
Instruments. The Funds hold a significant portion of their assets in futures, all of which are recorded on a trade date basis and at fair
value in the financial statements, with changes in fair value reported in the Statements of Operations.

The use of fair value to measure Financial Instruments,
with related unrealized gains or losses recognized in earnings in each period, is fundamental to the Trust’s and the Funds’
financial statements. The fair value of a Financial Instrument is the amount that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date (the exit price).

For financial reporting purposes, the Funds value
investments based upon the closing price in their primary markets. Accordingly, the investment valuations in these financial statements
may differ from those used in the calculation of certain Funds’ final creation/redemption NAV for the period ended March 31, 2025.

Short-term investments are valued at amortized
cost which approximates fair value for daily NAV purposes. For financial reporting purposes, short- term investments are valued at their
market price using information provided by a third-party pricing service or market quotations.

Derivatives (e.g., futures contracts, options,
swap agreements) are generally valued using independent sources and/or agreements with counterparties or other procedures as determined
by the Sponsor. Futures contracts, are generally valued at the last settled price on the applicable exchange on which that future trades.
Futures contracts valuations are typically categorized as Level I in the fair value hierarchy. Swap agreement valuations are typically
categorized as Level II in the fair value hierarchy. The Sponsor may in its sole