Company: DEFI
Filing Date: 2025-03-17
Form Type: S-1/A
Source: 0001387131-25-000058
Chunk: 248

Company: Tidal Commodities Trust I
Filing Date: 2025-03-17
Form: S-1/A
Chunk 248
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 Investment                            | 5 |
| Interest Income and Expense.                                  | 5 |
| Fund Performance                                              | 5 |

Regulation

Futures Market Regulation

The regulation of
futures markets, futures contracts, and futures exchanges has historically been comprehensive. The CFTC and the exchanges are authorized
to take extraordinary actions in the event of a market emergency including, for example, the retroactive implementation of speculative
position limits, increased margin requirements, the establishment of daily price limits and the suspension of trading on an exchange
or trading facility.

Pursuant to authority
in the Commodity Exchange Act (“CEA”), the National Futures Association (“NFA”) has been formed and registered
with the Commodity Futures Trading Commission (“CFTC”) as a registered futures association. At the present time, the
NFA is the only self-regulatory organization (“SRO”) for commodity interest professionals, other than futures exchanges.
The CFTC has delegated to the NFA responsibility for the registration of CPOs and FCMs and their respective associated persons.
The Sponsor and the Fund’s clearing broker are members of the NFA. As such, they will be subject to NFA standards relating
to fair trade practices, financial condition and consumer protection. The NFA also arbitrates disputes between members and their
customers and conducts registration and fitness screening of applicants for membership and audits of its existing members. Neither
the Trust nor the Fund is required to become a member of the NFA. The regulation of commodity interest transactions in the United
States is a rapidly changing area of law and is subject to ongoing modification by governmental and judicial action. Considerable
regulatory attention has been focused on non-traditional investment pools that are publicly distributed in the United States. There
is a possibility of future regulatory changes within the United States altering, perhaps to a material extent, the nature of an
investment in the Fund, or the ability of the Fund to continue to implement its investment strategy. In addition, various national
governments outside of the United States have expressed concern regarding the disruptive effects of speculative trading in the
commodities markets and the need to regulate the derivatives markets in general. The effect of any future regulatory change on
the Fund is impossible to predict but could be substantial and adverse.

The CFTC possesses
exclusive jurisdiction to regulate the activities of commodity pool operators and commodity trading advisors with respect to “commodity
interests,” such as futures, swaps, and options, and has adopted regulations with