Company: DEFI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001999371-25-011381
Chunk: 28

Company: Tidal Commodities Trust I
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 28
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 deposits, money market funds and
investments in commercial paper. These interest rate levels may be lower or higher than the projected interest rates stated in
the prospectuses and thus will impact your breakeven point.

The
decrease in management fee paid to the Sponsor for the three months ended June 30, 2025, compared to the three months ended June
30, 2024, despite higher Fund average net assets overall, is a result of the Sponsor lowering the management fee from 0.90% to
0.25% per annum of the daily NAV of the Fund effective February 10, 2025. Other than the management fee to the Sponsor, the Fund
incurred total gross fees and other expenses excluding management fees and brokerage commissions, which were significantly lower
than during the three months ended June 30, 2024, where the Fund incurred brokerage commissions. Brokerage commissions are recognized
on a per-trade basis to each futures contract’s or bitcoin share’s cost basis. Trading fees for the Fund are recorded
in the statement of operations as broker expenses. The actual amount of trading fees to be incurred will vary based upon the trading
frequency of the Fund.

For
the three months ended March 31, 2024, most of the expenses incurred by the Predecessor Fund were associated with the management
fee and day-to-day operation of the Fund and the necessary functions related to regulatory compliance. Those were generally based
on contracts, which extend for some period of time and up to one year, or commitments regardless of the level of assets under
management. The Sponsor has not elected to waive management fees or other expenses. These factors also explain the decrease in
total gross fees and other expenses excluding management fees, as well as the decrease in total gross expense ratio for the three
months ended March 31, 2025.

The
decrease in total brokerage commissions for the three months ended June 30, 2025, compared to the nine months ended June 30, 2024,
was primarily due to a decrease in futures contracts purchased, liquidated, and rolled given the Fund’s current policy to
maximize its holdings of physical bitcoin instead of CME-traded bitcoin futures contracts.

The
graph below shows the actual shares outstanding, total net assets (or AUM) and net asset value per share (NAV per share) for the
Fund from inception to June 30 , 2025 and serves to illustrate the relative changes of these components.

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