Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 101

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 101
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 that Sponsor is not able to find a suitable party willing
to serve as an XRP Custodian or the Prime Broker, as applicable, the Sponsor may be required to terminate the Trust and liquidate the
Trust’s XRP. In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified custodial services
agreement or prime broker agreement that costs more, the value of the Shares could be adversely affected.

Lack of recourse.

The XRP Custodians have limited
liability, impairing the ability of the Trust to recover losses relating to its XRP and any recovery may be limited, even in the event
of fraud. In addition, the XRP Custodians may not be liable for any delay in performance of any of its custodial obligations by reason
of any cause beyond its reasonable control, including force majeure events, war or terrorism, and may not be liable for any system failure
or third-party penetration of its systems. As a result, the recourse of the Trust to Custodian may be limited.

Under the Coinbase Custodial
Services Agreement, the Coinbase Custodian’s liability is limited to the greater of (i) the market value of the Trust’s
XRP held by the Coinbase Custodian at the time the events giving rise to the liability occurred and (ii) the fair market value of
the Trust’s XRP held by the Coinbase Custodian at the time that the Coinbase Custodian notifies the Sponsor or Trustee in writing,
or the Sponsor or the Trustee otherwise has actual knowledge of the events giving rise to the liability.

Under the BitGo Custodial Services Agreement, the BitGo Custodian and its affiliates, including their officers, directors, agents, and employees, are not liable for any lost profits, special, incidental, indirect, intangible, or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor’s site or services. This includes damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if the BitGo Custodian was previously advised of, knew, or should have known about the possibility of such damages. However, this exclusion of liability does not extend to cases of the BitGo Custodian’s fraud, willful misconduct, or gross negligence. In situations of gross negligence, the BitGo Custodian’s liability is specifically limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally, the total liability of the BitGo Custodian for direct damages