SEC Filing Document

Company: VanEck BNB ETF
Ticker: 
CIK: 2066824
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2025-10-30
Accession Number: 0001628280-25-047581
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2066824/000162828025047581/vaneckbnbs-1a1.htm

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exceptional and requires going through additional authentication mechanisms; private keys are stored in an encrypted, non-exportable format in dedicated resources. Operational redundancy is achieved through services being run in a redundant, high availability mode across geographically redundant facilities, accompanied by regular system backups, thus protecting against service disruptions and single points of failure. [ ] maintains a commercial crime insurance policy of up to $320 million, which is intended to cover the loss of client assets held by [ ], including from employee collusion or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained by [ ] is shared among all of [ ]'s customers, is not specific to the Trust or to customers holding BNB with the Additional BNB Custodian and may not be available or sufficient to protect the Trust from all possible losses or sources of losses.

In the event of a fork, the Additional BNB Custody Agreement provides that the Additional BNB Custodian may temporarily suspend services, and may, in their sole discretion, determine whether or not to support (or cease supporting) either branch of the forked protocol entirely, provided that the Additional BNB Custodian shall use commercially reasonable efforts to avoid ceasing to support both branches of such forked protocol and will support, at a minimum, the original digital asset. The Additional BNB Custody Agreement provides that, other than as set forth therein, and provided that the Additional BNB Custodian shall make commercially reasonable efforts to assist the Trust to retrieve and/or obtain any assets related to a fork, airdrop or similar event the Additional BNB Custodian shall have no liability, obligation or responsibility whatsoever arising out of or relating to the operation of the underlying software protocols relating to the BNB Chain or an unsupported branch of a forked protocol and, accordingly, The Trust acknowledges and assumes the risk of the same. The Additional BNB Custody Agreement further provides that, unless specifically communicated by the Additional BNB Custodian and its affiliates through a written public statement on the [     ] website, the Additional BNB Custodian does not support airdrops, metacoins, colored coins, side chains, or other derivative, enhanced or forked protocols, tokens or coins, which supplement or interact with BNB. The Sponsor has committed to cause the Trust to permanently and irrevocably abandon any Incidental Rights and IR Virtual Currency to which the Trust may become entitled in the future. The Trust has no right to receive any Incidental Right or IR Virtual Currency. Furthermore, the Additional BNB Custodian has no authority, pursuant to the Additional BNB Custody Agreement or otherwise, to exercise, obtain or hold, as the case may be, any such abandoned Incidental Right or IR Virtual Currency on behalf of the Trust or to transfer any such abandoned Incidental Right or IR Virtual Currency to the Trust if the Trust terminates its custodial arrangement with the Additional BNB Custodian. For more information on the Trust's and Sponsor's policies on forked or airdropped assets, see "Risk Factors— a temporary or permanent "fork" of the BNB Chain could adversely affect an investment in the trust." Neither the Additional BNB Custodian nor any other [     ] entity is permitted to withdraw the Trust's BNB from the Trust's Additional BNB Vault Balance, or loan, hypothecate, pledge or otherwise encumber the Trust's BNB, without the consent of the Trust.

The Additional BNB Custodian's "Force Majeure Provision" provides that: Neither the Additional BNB Custodian nor the Client shall be liable to the other for delays, suspension of operations, whether temporary or permanent, failure in performance of the Additional BNB Custody Agreement, or interruption of service in each case to the extent it is directly due to a cause or condition beyond the reasonable control of the party whose performance is affected by it, including, to the extent beyond its reasonable control, any act of God; embargo; natural disaster; act of civil or military authorities; act of terrorists; hacking (provided that the Additional BNB Custodian has taken reasonable precautions and acts in a manner consistent with its applicable policies and procedures with respect to hacking risks and in doing so is not negligent); government prohibitions; civil disturbance; war; strike or other labor dispute; fire; severe weather; interruption in telecommunications, Internet

services, or network provider services; unavailability of Fedwire, SWIFT or banks' payment processes; outbreaks of infectious disease or any other public health crises, including quarantine or other required employee restrictions; or any other catastrophe or material event which is beyond the reasonable control of the party affected by it.

Under the Additional BNB Custody Agreement, the Additional BNB Custodian's liability is limited as follows, among others: (i) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Additional BNB Custodian is not liable, even if the Additional BNB Custodian has been advised of or knew or should have known of the possibility thereof; (ii) the Additional BNB Custodian, its affiliates or its respective officers, directors, agents, employees and representatives shall in no event have any liability with respect to any breach of its obligations under the Additional BNB Custody Agreement which does not result from its negligence, fault, fraud or willful misconduct; and (iii) except for the: (i) Excluded Liabilities; (ii) fraud; or (iii) willful misconduct, in no event shall any [     ] entity's aggregate liability with respect to any breach of its obligations under the Additional BNB Custody Agreement exceed the greater of (a) the value of the BNB involved in the transaction giving rise to such liability and (b) the aggregate amount of fees paid by the Trust to such [     ] entity in respect of services relating to custody, trade execution, lending or post-trade credit (if applicable) and other services in the 12-month period prior to the event giving rise to such liability, and solely in respect of custodial services provided pursuant to the Additional BNB Custody Agreement, the liability of the Additional BNB Custodian shall not exceed the greater of (i) the aggregate amount of fees paid by the Trust to the Additional BNB Custodian in respect of the custodial services in the 12-month period prior to the event giving rise to such liability; or (ii) the value of the BNB on deposit in Trust's Additional BNB Account(s) involved in the event giving rise to such liability; provided, that in no event shall the Additional BNB Custodian's aggregate liability in respect of each cold storage address exceed one hundred million US dollars ($100,000,000.00 USD).

"Excluded Liabilities" means (x) with respect to the Trust, (1) the Trust's defense and indemnity obligations under the Additional BNB Custody Agreement; (2) any outstanding commissions or fees owed by the Trust under the Additional BNB Custody Agreement and (3) the Trust's breach of representations and warranties under the Additional BNB Custody Agreement; and (y) with respect to the Additional BNB Custodian, its defense and indemnity obligations under the Additional BNB Custody Agreement.

With respect to the Excluded Liabilities, the Additional BNB Custodian's liability to the Trust for any losses arising out of or in connection with the Additional BNB Custodian's defense and indemnity obligations under the Additional BNB Custody Agreement will be limited, in the aggregate, to an amount equal to five million U.S. dollars ($5,000,000.00 USD).

The Additional BNB Custodian requires up to twenty-four (24) hours between any request to withdraw BNB from the Trust's Additional BNB Account and submission of the Trust's withdrawal to the BNB Chain. It may be necessary to retrieve certain information from offline storage in order to facilitate a withdrawal in accordance with the Trust's instructions, which may delay the initiation or crediting of such withdrawal from the Trust's Additional BNB Account. BNB shall not be deposited or withdrawn upon less than twenty-four (24) hours' notice initiated from the Trust's Additional BNB Account. The time of such request shall be the time such notice is transmitted from the Trust's Additional BNB Account. In the context of the foregoing and during such twenty-four (24) hours' notice period, the Additional BNB Custodian makes no representations or warranties with respect to the availability and/or accessibility of (1) the BNB, (2) a Custody Transaction (as defined in the Additional BNB Custody Agreement, which includes a deposit or withdrawal), (3) the Additional BNB Account, or (4) the Custodial Services (as defined in the Additional BNB Custody Agreement). While the Additional BNB Custodian will make reasonable efforts to process client initiated deposits in a timely manner, the Additional BNB Custodian makes no representations or warranties regarding the amount of time needed to complete processing of deposits as such processing is dependent upon many factors outside of the Additional BNB Custodian's control.