Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 231

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 231
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 to settle a bitcoin transaction
through the Clearing Services for any reason necessary to comply with applicable laws and regulations or in connection with its
fraud or other compliance controls and systems, and the Bitcoin Custodian shall have no liability whatsoever to the Trust, any
transaction counterparty or any other party in connection with or arising out of the Bitcoin Custodian rejecting, refusing or
otherwise not completing the settlement of a transaction through the Clearing Services. The Bitcoin Custodian will not settle
transactions through the Clearing Services: (i) if either party to a Clearing Transaction has not fully funded its accounts held
with the Bitcoin Custodian and used in connection with the Clearing Services (in the Trust’s case, the Clearing Account
and Fiat Account), as applicable, with the required fiat currency amount or bitcoin amount, as applicable, prior to the agreed
expiration time; (ii) if either party to a Clearing Transaction has not confirmed its acceptance of the clearing request to the
Bitcoin Custodian prior to the agreed expiration time; (iii) if either party to a transaction is not a Gemini customer; or (iv)
for any other reason as determined by the Bitcoin Custodian in its sole discretion to comply with applicable laws and regulation
or in connection with the Bitcoin Custodian’s fraud or other compliance controls and systems. Although the Bitcoin Custodian
has represented to the Sponsor that Clearing Transactions ordinarily settle automatically within minutes once the bitcoin and
cash have been funded by both the Trust and the Liquidity Provider in their respective accounts at the Bitcoin Custodian used
in connection with the Clearing Services (in the Trust’s case, the Clearing Account and Fiat Account), the Bitcoin Custodian
is not required by the Clearing Agreement to settle the Clearing Transaction that quickly. These and the other limitations on
the Bitcoin Custodian’s liability may allow it to avoid liability for potential losses, even if the Bitcoin Custodian directly
caused such losses.

The Clearing Agreement provides that it is subject
to Gemini’s user agreement (the “User Agreement”). Pursuant to the User Agreement, Gemini agrees to take reasonable
care and use commercially reasonable

57

efforts in executing Gemini’s responsibilities
to the Trust pursuant to the User Agreement, or such higher care where required by law or as specified by the User Agreement.
Gemini uses commercially reasonable efforts to provide the Trust with a reliable and secure platform. From time to time, interruptions,
errors or other deficiencies in service may occur due to a variety of factors