Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 84

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 84
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 the Trust, which the Sponsor will seek to manage through a range of risk management methods.

Due to the time involved in “exiting” the staking process, there is a risk that the Trust could become unable to timely meet excessive redemption requests in amounts that are greater than the portion of the Trust’s SOL that remains un-staked, leading to temporary delays in settlement and, in extreme scenarios, the temporary unavailability of the Trust’s redemption program. Moreover, any staked SOL which must be un-staked in order to fulfill a redemption (to the extent such redemption cannot be fulfilled utilizing the portion of the Trust’s SOL that has not been staked, or through another mechanism to manage liquidity in connection with Redemption Orders in respect of which the Trust has received an opinion of a Tax Advisor or a Tax Ruling) will be un-staked only after the redemption request is approved by the Trust, the Sponsor executes an un-stake or withdrawal transaction through the SOL Custodian, and such transaction is processed by the Solana Network. The Staking Provider will not be able to transfer unstaked SOL or Staking Consideration to another address on the Solana Network.

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Although the Sponsor anticipates that the Trust may enter into financing arrangements to borrow SOL in order to fulfill redemption requests if the Trust’s unstaked SOL is insufficient to do so, there can be no assurance that such arrangements will be available as intended or provide sufficient liquidity to satisfy redemption requests.

Staking Rewards earned by the Trust are paid to the Sponsor.

The Trust’s SOL is currently delegated to a single Staking Provider for staking and an affiliate of the Sponsor has a 6.95% investment in the Staking Provider. The amount of Staking Rewards that the Trust’s staking activity will generate will be dependent on the performance of the Staking Provider, including the adequacy and reliability of the hardware and software utilized by the Staking Provider, and the yield provided. Since the Sponsor is authorized to permit staking in its discretion, select the third-party Staking Providers and the Staking Rewards that the Trust receives are paid only to the Sponsor, the Sponsor may be incentivized to select Staking Providers solely based on the amount of Staking Rewards that could be earned and/or other factors that may present conflicts of interest with the Trust.

The regulatory landscape surrounding Staking is uncertain.

The regulatory landscape surrounding Staking is highly uncertain, and may expose the Sponsor, SOL Custodian, third-party Staking Providers and the Trust and its shareholders to unforeseen