Company: DEFI
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001999371-25-003249
Chunk: 115

Company: Tidal Commodities Trust I
Filing Date: 2025-03-27
Form: 424B3
Chunk 115
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 with the
LP depositing in the Fund’s Wallet with the Bitcoin Custodian the agreed upon amount of bitcoin until the end of day New
York time of the business day following the transaction date prior to any movement of cash from the Cash Custodian. Upon receipt
of the required amount of bitcoin, the Bitcoin Custodian will notify the Sponsor that the bitcoin has been received. The Sponsor
will then notify the Cash Custodian to transfer the corresponding cash to the LP to complete the settlement of the physical leg
of the EFP Transaction. All purchases or sales of bitcoin related to EFP Transactions executed by the Fund are settled on-chain.

<div align='center'>69</div>

The diagram below illustrates the steps
in the execution of a typical EFP transaction by the Fund to acquire physical bitcoin in exchange for Bitcoin Futures Contracts.

To provide a more concrete
example of an EFP transaction that the Fund would undertake to acquire spot bitcoin, assume that the Fund needs to buy 50 bitcoins
in exchange for 10 units of the next maturity of BTC Contracts. The Sponsor will select an LP that it believes will provide the
best execution opportunity for the proposed EFP trade. The LP will provide bid/ask quotes for the EFP transaction as a basis spread
against the settlement price of the BTC Contract to determine the price of the physical bitcoin that will be exchanged in the physical
leg of the EFP. Then, assume that the Sponsor determines that the best option for the Fund is a bid of +25 bps. Assuming that the
daily settlement price of the relevant BTC Contract was $26,060, the price for the physical leg of the EFP transaction agreed upon
by the Fund and the LP is $25,995.01. Upon completion of the EFP transaction, the Fund and the LP will have different positions,
but the same financial exposure:

| ● | Before the transaction, the Fund was long 10 BTC Contracts; after the transaction, it has converted this exposure into 50 physical 
 bitcoins.                                                                                                                          |

| ● | Before the transaction, the LP had 50 bitcoins; after the transaction, it holds an equivalent position long in 10 BTC Contracts. |

The table below illustrates
the steps in this EFP transaction:

| Steps                                                                                              | LP                                                     | Fund              |
| 1. Starting position                                                                               | 50 bitcoins                                            | 10 BTC Contracts  |
| 2. EFP transaction is negotiated between the LP and the Fund                                       | The LP and the Fund agree to