Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 51

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 51
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 theft, such loss could adversely affect the value of the Shares.

The lack of full insurance and shareholders’ limited rights of legal recourse against the Trust, Trustee, Sponsor, Transfer Agent and Custodial Entities expose the Trust and its shareholders to the risk of loss of the Trust’s SOL for which no person or entity is liable.

The Trust is not a banking institution or otherwise a member of the FDIC or Securities Investor Protection Corporation (“SIPC”) and, therefore, deposits held with or assets held by the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. In addition, neither the Trust nor the Sponsor insure the Trust’s SOL.

While the SOL Custodian is required under the Prime Execution Agent Agreement to maintain insurance coverage that is commercially reasonable for the custodial services it provides, and the Custodial Entities have advised the Sponsor that they maintain insurance at commercially reasonable amounts for the digital assets custodied on behalf of clients, including the Trust’s SOL, resulting from theft, shareholders cannot be assured that the SOL Custodian or the Prime Execution Agent will maintain adequate insurance or that such coverage will cover losses with respect to the Trust’s SOL. Moreover, while the SOL Custodian maintains certain capital reserve requirements depending on the assets under custody and to the extent required by applicable law, and such capital reserves may provide additional means to cover client asset losses, the Sponsor does not know the amount of such capital reserves, and neither the Trust nor the Sponsor have access to such information. The Trust cannot be assured that the Custodial Entities will maintain capital reserves sufficient to cover losses with respect to the Trust’s digital assets.

Furthermore, the Custodial Entities’ aggregate maximum liability with respect to breach of their obligations under the Prime Execution Agent Agreement will not exceed the greater of: (i) the value of the SOL or cash involved in the event, including but not limited to transaction(s) or deliveries(s), giving rise to such liability at the time of the event giving rise to such liability; (ii) the aggregate amount of fees paid by the Trust to the Custodial Entities in respect of the Custodial and Prime Execution Agent Services in the 12-month period prior to the event giving rise to such liability; or (iii) five million U.S. dollars. The SOL Custodian’s total liability under the Prime Execution Agent Agreement will not exceed the greater of: (i) the aggregate amount of fees paid by the Trust to the SOL Custodian in respect of the custodial services in the 12-month period prior to the