Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 227

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 227
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 the Bitcoin Custodian will maintain
capital reserves sufficient to cover actual or potential losses with respect to the Trust’s digital assets.

Furthermore, under the Custody Agreement, the Bitcoin
Custodian’s liability is limited in various ways, including that the Bitcoin Custodian cannot be held responsible for any
failure or delay to act by the Bitcoin Custodian, its service providers, or its banks that is within the time limits permitted
by the Custody Agreement, or that is caused by the Trust’s negligence or is required to comply with applicable laws and
regulations. The Bitcoin Custodian is not liable for any System Failure or Downtime (both as defined in the Custody Agreement),
which prevents the Bitcoin Custodian from fulfilling its obligations under the Custody Agreement, provided that Bitcoin Custodian
took reasonable care and used commercially reasonable efforts to prevent or limit such System Failures or Downtime and otherwise
complied with the Custody Agreement. The Custody Agreement provides that “Downtime” means scheduled maintenance and
a “System Failure” shall mean a failure of any computer hardware, software, computer systems, or

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telecommunications lines or devices used by the Bitcoin
Custodian, or interruption, loss, or malfunction of utility, data center, Internet or network provider services used by the Bitcoin
Custodian; provided, however, that a cybersecurity attack, data breach, hack, or other intrusion, or unauthorized disclosure by
a third party, the Bitcoin Custodian, a service provider to the Bitcoin Custodian, or an agent or subcontractor of the Bitcoin
Custodian, shall not be deemed a System Failure, to the extent such events or any losses arising therefrom are due to the Bitcoin
Custodian’s failure to comply with its obligations under the Custody Agreement. The Bitcoin Custodian cannot be held responsible
for any circumstances beyond the Bitcoin Custodian’s reasonable control, provided the Bitcoin Custodian took reasonable
care and used commercially reasonable efforts in executing its responsibilities to the Trust pursuant to the Custody Agreement,
which includes exercising the degree of care, diligence and skill that a prudent and competent professional provider of services
similar to the custodial services would exercise in the circumstances, or such higher care where required by law or the Custody
Agreement (collectively, the “Standard of Care”). The Bitcoin Custodian makes no guarantees regarding the Bitcoin
network’s security, functionality, or availability, and will not be liable for or in connection with any acts, decisions,
or o