Company: SVIX
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004207
Chunk: 1429

Company: VS Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 1429
---
1x) or two times (2x) the return of the Fund’s benchmark for
the period. A Fund will lose money if its benchmark performance is flat over time, and it is possible for a Fund to lose money over time
even if the performance of its benchmark increases in the case of UVIX (or decreases in the case of SVIX), as a result of daily rebalancing,
the benchmark’s volatility, compounding, and other factors. Compounding is the cumulative effect of applying investment gains and
losses and income to the principal amount invested over time. Gains or losses experienced over a given period will increase or reduce
the principal amount invested from which the subsequent period’s returns are calculated. The effects of compounding will likely
cause the performance of a Fund to differ from the Fund’s stated multiple times the return of its benchmark for the same period.
The effect of compounding becomes more pronounced as benchmark volatility and holding period increase. The impact of compounding will
impact each shareholder differently depending on the period of time an investment in a Fund is held and the volatility of the benchmark
during the holding period of an investment in the Fund. Longer holding periods, higher benchmark volatility, inverse exposure and greater
leverage each affect the impact of compounding on a Fund’s returns. Daily compounding of a Fund’s investment returns can
dramatically and adversely affect its longer-term performance during periods of high volatility. Volatility may be at least as important
to a Fund’s return for a period as the return of the Fund’s underlying benchmark.

Each Fund uses leverage and should produce daily
returns that are more volatile than that of its benchmark. For example, the daily return of UVIX should be approximately two times as
volatile on a daily basis as is the return of a fund with an objective of matching the same benchmark. The daily return of SVIX is designed
to return the inverse (-1x) of the return that would be expected of a fund with an objective of matching the same benchmark. The
Funds are not appropriate for all investors and present significant risks not applicable to other types of funds. The Funds use
leverage and are riskier than similarly benchmarked exchange-traded funds that do not use leverage. An investor should only consider
an investment in a Fund if he or she understands the consequences of seeking daily leveraged or daily inverse investment results. Shareholders
who invest in the Funds should actively manage and monitor their investments, as frequently as daily.

While the Funds seek