Company: DEFI
Filing Date: 2025-03-25
Form Type: POS AM
Source: 0001999371-25-003118
Chunk: 152

Company: Tidal Commodities Trust I
Filing Date: 2025-03-25
Form: POS AM
Chunk 152
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 Suite
1531A, Chicago, Illinois 60604. In the normal course of its business, Phillip Capital is involved in various legal actions incidental
to its commodities business. None of these actions are expected either individually or in aggregate to have a material adverse
impact on Phillip Capital. Except for the below, neither Phillip Capital nor any of its principals have been the subject of any
material administrative, civil or criminal actions within the past five years.

On September 12, 2019, the U.S. Commodity
Futures Trading Commission issued an order settling charges against Phillip Capital Inc. (PCI) for allowing cyber criminals to
breach PCI email systems, access customer information, and successfully withdrawing $1 million in PCI customer funds. The order
found that PCI failed to disclose the cyber breach to its customers in a timely manner and that PCI failed to supervise its employees
with respect to cybersecurity policy and procedures, a written information systems security program, and customer disbursements.
The order imposed monetary sanctions totaling $1.5 million, which includes a civil monetary penalty of $500,000, and $1 million
in restitution. PCI was credited the $1 million restitution based on its prompt reimbursement of the customer funds when the fraud
was discovered. The order also required PCI to, among other things, provide reports to the Commission on its remediation efforts.

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On June 11, 2021, pursuant to an offer of
settlement in which Phillip Capital Inc. neither admitted nor denied the rule violation upon which the penalty is based, the Clearing
House Risk Committee found that Phillip Capital Inc. violated CME Rule 980.A – Required Records and Reports. In accordance
with the settlement offer, the Committee imposed a $50,000 fine for non-current books and records due to an issue with the firm’s
middleware provider. In a related matter, the CME Group had previously fined Phillip Capital Inc. on March 19, 2021, for its violation
of Rule 811 and 561. During the month of February 2021, Phillip Capital Inc. inaccurately reported its open interest and large
trader positions in several instances of CME, CBT, NYMEX, and COMEX contracts due to the aforementioned middleware issue. A fine
in the amount of $5,000 was assessed against Phillip Capital Inc.

Commodity Trading Advisor

Currently, the Sponsor does not employ commodity
trading advisors. If, in the