Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 53

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 53
---
 may not cover the type of losses experienced
by the Trust. Alternatively, the Trust may be forced to share such insurance proceeds with other clients or customers of the XRP Custodian,
which could reduce the amount of such proceeds that are available to the Trust. In addition, the XRP insurance market is limited, and
the level of insurance maintained by the XRP Custodian may be substantially lower than the assets of the Trust. While the XRP Custodian
maintains certain capital reserve requirements depending on the assets under custody, and such capital reserves may provide additional
means to cover client asset losses, the Trust cannot be assured that the XRP Custodian will maintain capital reserves sufficient to cover
actual or potential losses with respect to the Trust’s digital assets. The insurance maintained by the XRP Custodian is shared among
all of the XRP Custodian’s customers, is not specific to the Trust or to customers holding XRP with the XRP Custodian, and may not
be available or sufficient to protect the Trust from all possible losses or sources of losses.

Furthermore, under the Custodial
Services Agreement, the XRP Custodian’s liability is limited as follows, among others: (i) other than with respect to claims
and losses arising from spot trading of XRP, or fraud or willful misconduct, the Mutually Capped Liabilities (defined below), the XRP
Custodian’s aggregate liability under the Custodial Services Agreement shall not exceed the greater of (A) the greater of (x) $100 million
and (y) the aggregate fees paid by the Trust to the XRP Custodian in the 12 months prior to the event giving rise to the XRP
Custodian’s liability, and (B) the value of the affected XRP or cash giving rise to the XRP Custodian’s liability; (ii) the
XRP Custodian’s aggregate liability in respect of each cold storage address shall not exceed $100 million; (iii) in respect
of the XRP Custodian’s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent
arising out of or relating to, among others, the XRP Custodian’s gross negligence, violation of its confidentiality, data protection
and/or information security obligations, or violation of any law, rule or regulation with respect to the provision of its services (the
“Mutually Capped Liabilities”), the XRP Custodian’s liability shall not exceed the greater of (