Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 208

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 208
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 are lost, destroyed, or otherwise compromised and no backup of the private keys are accessible, the Trust may be unable to access the SOL held in the associated addresses and the private keys will not be capable of being restored. The processes by which SOL transactions are settled are dependent on the SOL peer-to-peer network, and as such, the Trust is subject to operational risk. Unknown technical vulnerabilities, unanticipated disruptions to the Trust’s operations or the operations of its service providers, and cybersecurity events also may also adversely affect the value of SOL.

As digital assets like SOL have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the digital assets industry. Regulators are concerned such a large unregulated person-to-person global economy could be exploited by bad actors and used to evade taxes or launder money. To the extent future regulatory actions or policies limit the ability to exchange SOL or utilize SOL for payments, the demand for SOL could be reduced.

Furthermore, regulatory actions may limit the ability of end-users to convert SOL into fiat currency or use SOL to pay for goods and services. Such regulatory actions or policies could result in a reduction of demand, and in turn, a decline in the underlying unit price of SOL. The effect of any future regulatory change on the Trust or SOL in general is not possible to predict, but such change could be substantial and adverse to the Trust and the value of the Trust’s investments in SOL.

The Custodian

The digital assets owned by the Trust are controlled by the Custodian and secured in a segregated custody account. The segregated custody account allows for the transfer of ownership or control ofthe Trust’s digital assets, on the Trust’s
behalf, including the withdrawal of digital assets to pay the Trust’s expenses. All digital asset private keys are stored in
offline storage, or “cold” storage. “Cold” storage is a safeguarding method by which the private keys
corresponding to digital assets are disconnected and/or deleted entirely from the internet. As a result of digital assets being
stored in “cold” storage, any withdrawal and subsequent transaction request to the Custodian by the Trust requires up to
twenty-four (24) hour notice to process. Such time delay between the withdrawal request and processing of the withdrawal may
negatively impact the price of the digital asset upon sale. The Custodian provides the Trust with monthly account statements. The
Custodian is independent from the Sponsor.

| 7. | Indemnifications |

In the normal course of business, the Trust enters