Company: DEFI
Filing Date: 2025-03-17
Form Type: S-1/A
Source: 0001387131-25-000058
Chunk: 252

Company: Tidal Commodities Trust I
Filing Date: 2025-03-17
Form: S-1/A
Chunk 252
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 CFTC currently imposes speculative position limits
on cryptocurrencies and a number of commodities (e.g., corn, oats, wheat, soybeans and cotton) and US futures exchanges currently
impose speculative position limits on many other commodities. The Fund could be required to liquidate positions it holds in order
to comply with position limits or may not be able to fully implement trading instructions in order to track its index, the 7RCC
Kaiko Bitcoin Carbon Credit Index (the “Index”) in order to comply with position limits. Any such liquidation or limited
implementation could result in substantial costs to the Fund and the Fund’s performance to deviate from that of the Index.

The Dodd-Frank Act
significantly expanded the CFTC’s authority to impose position limits with respect to futures contracts and options on futures
contracts, swaps that are economically equivalent to futures or options on futures, and swaps that are traded on a regulated exchange
and certain swaps that perform a significant price discovery function. The aggregate position limits currently in place under the
current position limits and the Aggregation Requirements are as follows for each of the carbon credit futures contracts traded
by the Fund:

| Carbon Credit Futures Contract                                                       | Spot Month Position Limit | All Month and Single Month (excluding spot month) Aggregate Accountability Level |
| Intercontinental Exchange (“ICE”) EUA (Carbon Emission Allowances) futures contracts |                           |                                                                                  |
| ICE California Carbon Allowance Vintage Future contracts                             |                           |                                                                                  |
| ICE RGGI (CO2 allowances) futures contracts                                          |                           |                                                                                  |

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The CFTC has attempted
to exercise authority to enact additional and more restricted speculative position limits with respect to futures and options on
futures on so-called “exempt commodities” (which includes most energy and metals contracts) and with respect to agricultural
commodities, but those proposed limits were vacated by a United States District Court. The CFTC has once again attempted to enact
additional and more restrictive limits. For a discussion generally regarding the risks that position limits may pose for the Fund,
see the “RISK FACTORs” section and related disclosure regarding position limits, accountability levels and dynamic
price fluctuation limits.

With the exception
of the nine legacy agricultural contracts, the CFTC’s position limits would apply only in the spot month. These limits would
generally be set at 25 percent of the deliverable supply but may be higher or lower for certain contracts. With