Company: DEFI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001999371-25-011381
Chunk: 2

Company: Tidal Commodities Trust I
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 2
---
 Agreement with
the Trust and the Sponsor. Shares are offered on a continuous basis to Authorized Participants in Creation Units at NAV. Authorized
Participants may then offer to the public, from time to time, shares from any Creation Unit they create at a per-share market
price. The form of Authorized Participant Agreement sets forth the terms and conditions under which an Authorized Participant
may purchase or redeem a Creation Unit. Authorized Participants will not receive from the Fund, the Sponsor, or any of their affiliates,
any fee or other compensation in connection with their sale of Shares to the public. An Authorized Participant may receive commissions
or fees from investors who purchase Shares through their commission or fee-based brokerage accounts.

Significant
accounting policies of the Fund are as follows:

Use
of Estimates

The
preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (the “U.S. GAAP”)
requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses
during the reporting period. Actual results could differ from those estimates.

Indemnifications

In
the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general
indemnifications. The Fund’s maximum exposure under these arrangements cannot be known; however, the Fund expects any risk
of loss to be remote.

    F-13 

Cash

Cash
includes money market funds held.

Income
Taxes

For
U.S. federal income tax purposes, the Fund will be classified as a publicly traded partnership. A publicly traded
partnership is generally taxable as a corporation for U.S. federal income tax purposes unless 90% or more of the publicly
traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in
section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). Qualifying income is defined as
generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale
or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a
principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards, and options
with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards