Company: SVIX
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109885
Chunk: 303

Company: VS Trust
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 303
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 realized if the investments were sold and the differences could be material to the financial statements.

Options are valued using the last traded price
as of the close of regular trading hours on the CBOE Options Exchange.

Investment Transactions and Related Income

Investment transactions are recorded on the trade
date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation (depreciation)
on open contracts are reflected in the Statements of Financial Condition and changes in the unrealized appreciation (depreciation) between
periods are reflected in the Statements of Operations.

Interest income is recognized on an accrual basis
and includes, where applicable, the amortization of premium or discount, and is reflected as Interest Income in the Statement of Operations.

Brokerage Commissions and Futures Account Fees

Each Fund pays its respective brokerage commissions,
including applicable exchange fees, National Futures Association (“NFA”) fees, give-up fees, pit brokerage fees and other
transaction related fees and expenses charged in connection with trading activities for each Fund’s investment in U.S. Commodity
Futures Trading Commission (“CFTC”) regulated investments. The effects of trading spreads, financing costs/fees associated
with Financial Instruments, and costs relating to the purchase of U.S. Treasury securities or similar high credit quality short-term fixed-income
would also be borne by the Funds. Brokerage commissions on futures contracts are recognized on a half-turn basis (e.g., the first half
is recognized when the contract is purchased (opened) and the second half is recognized when the transaction is closed).

Federal Income Tax

Each Fund is registered as a series of a Delaware
statutory trust and is treated as a partnership for U.S. federal income tax purposes. Accordingly, no Fund expects to incur U.S. federal
income tax liability; rather, each beneficial owner of a Fund’s Shares is required to take into account its allocable share of its
Fund’s income, gain, loss, deductions and other items for its Fund’s taxable year ending with or within the beneficial owner’s
taxable year.

Management of the Funds has reviewed all open tax
years and major jurisdictions (i.e., the last four tax year ends and the interim tax period since then, as applicable) and concluded that
there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be
taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts