Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 229

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 229
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 a result of the Bitcoin Custodian losing control of the Trust’s bitcoins or failing to properly execute instructions
on behalf of the Trust, the Bitcoin Custodian’s liability with respect to the Trust will be subject to certain limitations
which may allow it to avoid liability for potential losses or may be insufficient to cover the value of such potential losses.
Furthermore, the insurance maintained by the Bitcoin Custodian may be insufficient to cover its liabilities to the Trust. Both
the Trust and the Bitcoin Custodian are required to indemnify each other under certain circumstances.

Subject to the Force Majeure provision and as limited
by the limitations of liability in the Custody Agreement, the Bitcoin Custodian shall be liable to the Trust for the Loss (defined
below) of any of the Trust’s bitcoin or fiat currency to the extent that such Loss was caused by the negligence, fraud,
willful or reckless misconduct of the Bitcoin Custodian or breach by the Bitcoin Custodian of its Standard of Care. The Custody
Agreement provides that “Loss” means if, at any time the Trust’s Bitcoin Account or Fiat Account, as applicable,
does not hold the bitcoin or fiat currency that had been (1) received by Bitcoin Custodian in connection with the Trust’s
Bitcoin Account or Fiat Account pursuant to the Custody Agreement, or (2) duly sent to the Bitcoin Custodian by the Trust or Authorized
Participants in connection with the Trust’s Bitcoin Account pursuant to the Custody Agreement but not received because of
a failure caused by the Bitcoin Custodian. The Custody Agreement provides that “Loss” shall include situations where
the Bitcoin Custodian fails to execute a valid withdrawal request, bitcoin are withdrawn from the Trust’s Bitcoin Account
other than

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pursuant to a withdrawal request, or the Trust is not
able to timely withdraw bitcoin from the Bitcoin Account pursuant to a withdrawal request, in each case due to a failure caused
by the Bitcoin Custodian; provided, however, that the Bitcoin Custodian’s failure to permit timely withdrawals because it
has determined that it cannot do so due to the requirements of applicable laws and regulations or because of the operation of
its fraud detection controls shall not be considered a Loss, provided the Bitcoin Custodian is acting reasonably and in good faith.
The Custody Agreement provides that should a Loss of the Trust’s bitcoin or fiat currency due to the negligence, fraud,
willful or reckless misconduct of the Bitcoin Custodian or a breach by the Bitcoin Custodian of its Standard of Care occur, the