Teucrium Commodity Trust (BTCK) risk factors, FY2025 10-K

Other

1. 01The risk factors should be read in conjunction with the other information included in this annual report on Form 10-K, including Management’s Discussion and Analysis of Financial Condition and the Results of Operations, as well as the financial statements and the related footnotes for the Trust and the Funds
2. 02There are Risks Related to Fund Structure and Operations of the Funds
3. 03The Funds seek to earn interest on cash balances available for investment. If actual interest rates were to continue to fall, the net investment loss of the Funds could be adversely impacted if the Sponsor were not able to waive expenses sufficient to cover any deficit56% rewritten
4. 04The Sponsor May Have Conflicts of Interest72% rewritten
5. 05The Performance of Each Fund May Not Correlate with the Applicable Benchmark32% rewritten
6. 06The Sponsor’s trading system is quantitative in nature, and it is possible that the Sponsor may make errors. In addition, it is possible that a computer or software program may malfunction and cause an error in computation
7. 07Each Fund seeks to have the changes in its Shares’ NAV in percentage terms track changes in the Benchmark Component Futures Contracts, rather than profit from speculative trading of the specific Commodity Interests, or the commodity interests of the Underlying Funds in the case of TAGS
8. 08In addition to certain fees paid to each Fund’s service providers, each Fund pays the Sponsor a fee of 1.00% of assets under management per annum, regardless of Fund Performance. Over time, a Fund’s assets could be depleted if investment performance does not exceed such fees
9. 09The Funds are not actively managed and are designed to track a benchmark, regardless of whether the price of the Benchmark Component Futures Contracts is flat, declining, or rising
10. 10You will have no rights to participate in the management of any of the Funds and will have to rely on the duties and judgment of the Sponsor to manage the Funds
11. 11Regulatory changes or actions, including the implementation of new legislation, is impossible to predict but may significantly and adversely affect the Funds
12. 12A portion of a Fund’s investments could be illiquid, which could cause large losses to investors at any time or from time to time
13. 13There is Credit Risk Associated with the Operation of the Funds, Service Providers and Counterparties Which May Cause an Investment Loss
14. 14There are Risks Associated with Trading in International Markets
15. 15Risks Specific to the Teucrium Corn Fund
16. 16All of these limits may potentially cause a tracking error between the price of the Shares and the Benchmark. This may in turn prevent you from being able to effectively use the Fund as a way to hedge against correlated losses or as a way to indirectly invest in corn
17. 17Risks Specific to the Teucrium Soybean Fund
18. 18The costs related to soybean production could increase and soybean supply could decrease as a result of restrictions on the use of genetically modified soybeans, including requirements to segregate genetically modified soybeans and the products generated from them from other soybean products
19. 19All of these limits may potentially cause a tracking error between the price of the Shares and the Benchmark. This may in turn prevent you from being able to effectively use the Fund as a way to hedge against soybean‐related losses or as a way to indirectly invest in soybeans
20. 20Risks Specific to the Teucrium Sugar Fund
21. 21All of these limits may potentially cause a tracking error between the price of the Shares and the Benchmark. This may in turn prevent you from being able to effectively use the Fund as a way to hedge against sugar‐related losses or as a way to indirectly invest in sugar
22. 22Risks Specific to the Teucrium Wheat Fund