Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 101

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 101
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 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 is capped at the fees paid or payable to them under the relevant agreement during the twelve-month period immediately preceding the first incident that caused the liability.

In addition, the BitGo Custodian shall not be liable for delays, suspension of operations, whether temporary or permanent, failure in performance, or interruption of service which results directly or indirectly from any cause or condition beyond the reasonable control of the BitGo Custodian, including, but not