Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 106

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 106
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| ● | limitations on our flexibility in planning for and reacting to changes in our 
 business and in the industry in which we operate;                             |

| ● | increased vulnerability to adverse changes in general economic, industry and 
 competitive conditions and adverse changes in government regulation; and     |

| ● | limitations on our ability to borrow additional amounts for expenses, capital                                                        
 expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared 
 to our competitors who have less debt.                                                                                               |

Our directors may decide not to enforce indemnification obligations against our Sponsor, resulting in a reduction in the amount of funds in the trust account available for distribution to our public shareholders.

In the event that the proceeds
in the trust account are reduced below $10.00 per share (whether or not the underwriter’s over-allotment option is exercised in
full) and our Sponsor asserts that it is unable to satisfy obligations or that it has no indemnification obligations related to a particular
claim, our independent directors would determine on our behalf whether to take legal action against our Sponsor to enforce its indemnification
obligations. While we currently expect that our independent directors would take legal action on our behalf against our Sponsor to enforce
its indemnification obligations to us, it is possible that our independent directors in exercising their business judgment may choose
not to do so. If our independent directors choose not to enforce these indemnification obligations on our behalf, the amount of funds
in the trust account available for distribution to our public shareholders may be reduced below $10.00 per share.

We may not have sufficient funds to satisfy indemnification claims of our directors and executive officers.

We will agree to indemnify our
officers and directors to the fullest extent permitted by law. However, our officers and directors will agree to waive any right, title,
interest or claim of any kind in or to any monies in the trust account and to not seek recourse against the trust account for any reason
whatsoever. Accordingly, any indemnification provided will be able to be satisfied by us only if (i) we have sufficient funds outside
of the trust account or (ii) we consummate an initial business combination. Our obligation to indemnify our officers and directors may
discourage shareholders from bringing a lawsuit against our officers or directors for breach of their fiduciary duty. These provisions
also may have the effect of reducing the likelihood of derivative litigation against our officers and directors, even though such an
action, if successful