Company: DEFI
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001999371-25-003249
Chunk: 117

Company: Tidal Commodities Trust I
Filing Date: 2025-03-27
Form: 424B3
Chunk 117
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 are stored on the blockchain,
which serves as the decentralized transaction ledger for the Bitcoin Network. All transactions, including the creation of new bitcoins
through mining, are recorded on the blockchain, ensuring the verification of each bitcoin’s location in specific digital
wallets (“Bitcoin Account”).

The responsibility for safekeeping all the
bitcoin owned by the Fund in a multi-layer, multi-party cold storage or similarly secure technology, and maintaining the Bitcoin
Account, lies with the Bitcoin Custodian. The digital wallets can be accessed using their respective private keys, which are held
by the Bitcoin Custodian in cold storage at various vaulting locations. The locations of these vaulting premises are kept confidential
to enhance security. The Bitcoin Custodian is authorized to accept bitcoin on behalf of the Fund from pre-approved trading counterparties
accounts, transferring them to the Bitcoin Account, and then depositing them into digital wallets with existing keys in cold storage.
When the Fund needs to withdraw bitcoins for sale, the Bitcoin Custodian will ensure that the private keys associated with those
bitcoins sign the withdrawal transaction, following a reverse procedure similar to the deposit process.

“Cold storage” refers to a safeguarding
method where private keys associated with bitcoins are kept offline, away from internet-connected devices. This could involve storing
the private keys on a non-networked computer or electronic device. To send bitcoins from a digital wallet with private keys in
cold storage, the private keys must be retrieved and entered into a bitcoin software program for transaction signing, or the unsigned
transaction is sent to a “cold” server where the private keys are held for signature. Private keys are generated in
offline computers so that they are more resistant to being hacked, thus the keys used to carry out transactions are generated and
stored by the Bitcoin Custodian in security devices not connected to the internet. The Bitcoin Custodian may receive deposits of
bitcoin but may not send bitcoin without use of the corresponding private keys.

In order to send bitcoin when the private
keys are kept in cold storage, either the private keys must be retrieved from cold storage and entered into a software program
to sign the transaction, or the unsigned transaction must be sent to the “cold” server in which the private keys are
held for signature by the private keys. Such private keys are stored in cold storage facilities within the United States and Europe,
exact locations of which are not disclosed for security reasons. This procedure mitigates the risks of cyber-attacks by hackers,
as it adds several layers of manual checks and confirmations