SEC Filing Document

Company: Canary Staked TRX ETF
Ticker: 
CIK: 2064768
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-04-18
Accession Number: 0001999371-25-004423
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2064768/000199937125004423/canary-s1_041825.htm

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in its capacity as Transfer Agent. Governing Law The Transfer Agency and Services Agreement shall be construed and the provisions thereof interpreted under and in accordance with the laws of ________. [Cash Custody Agreement Under the Cash Custody Agreement, the Cash Custodian will keep safely all cash and other non-TRX assets of the Trust delivered to the Cash Custodian and, on behalf of the Trust, the Cash Custodian shall, from time to time, accept delivery of cash and other non-TRX assets for safekeeping. Amounts received in connection with the sale of TRX shall be deposited into the Cash Account.] Standard of Care; Limitations of Liability The Cash Custodian shall exercise reasonable care, prudence and diligence and shall be liable to the Trust for all loss, damage and expense suffered or incurred by the Trust resulting from the failure of the Cash Custodian to exercise such reasonable care, prudence and diligence.

The
Cash Custodian shall not be liable if the Cash Custodian (or any sub-custodian) is prevented, forbidden or delayed from performing,
or omits to perform, any act or thing which the Cash Custody Agreement provides shall be performed or omitted to be performed, by
reason of: (i) any provision of any present or future law or regulation or order of the United States of America, or any state
thereof, or of any foreign country, or political subdivision thereof or of any court of competent jurisdiction; or (ii) any act of
God or war or other similar circumstance beyond the control of the Cash Custodian, unless, in each case, such delay or
nonperformance is caused by the breach by the Cash Custodian of its standard care or a malfunction or failure of equipment operated
or utilized by the Cash Custodian other than a malfunction or failure beyond the Cash Custodian’s control and which could not
reasonably be anticipated and/or prevented.

Indemnity

Under
the Cash Custody Agreement, the Trust agrees to indemnify and hold harmless the Cash Custodian and its nominees from all loss, damage
and expense (including reasonable attorneys’ fees) suffered or incurred by the Cash Custodian or its nominee caused by or arising
from actions taken by the Cash Custodian on behalf of the Trust in the performance of its duties and obligations under the Cash Custody
Agreement; provided however, that such indemnity shall not apply to loss, damage and expense occasioned by or resulting from the Cash
Custodian’s breach of its standard of care.

Cash
Custodian’s Fee

Pursuant
to the Trust’s unitary fee structure, the Cash Custodian’s fees are paid by the Sponsor in accordance with the Cash Custody
Agreement.

Governing
Law

The
Cash Custody Agreement is governed by the laws of the State of ________.

Termination
of the Cash Custody Agreement

With
respect to the Trust, the Cash Custody Agreement shall continue in full force and effect until the first to occur of: (a) termination
by the Cash Custodian by an instrument in writing delivered or mailed to the Trust, such termination to take effect not sooner than ninety
(90) days after the date of such delivery; (b) termination by the Trust by an instrument in writing delivered or mailed to the Cash Custodian,
such termination to take effect not sooner than thirty (30) days after the date of such delivery; or (c) termination by the Trust by written
notice delivered to the Cash Custodian, based upon the Trust’s determination that there is a reasonable basis to conclude that the
Cash Custodian is insolvent or that the financial condition of the Cash Custodian is deteriorating in any material respect, in which case
termination shall take effect upon the Cash Custodian’s receipt of such notice or at such later time as the Trust shall designate.

UNITED STATES
FEDERAL INCOME TAX CONSEQUENCES

The
following discussion describes the material U.S. federal income tax consequences associated with the purchase, ownership and
disposition of Shares by a U.S. Shareholder (as defined below), and certain U.S. federal income consequences that may apply to an
investment in Shares by a Non-U.S. Shareholder (as defined below). The discussion below is based on the Code, Treasury Regulations
promulgated thereunder and judicial and administrative interpretations of the Code, all as in effect on the date of this Prospectus
and all of which are subject to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending
upon their own particular circumstances. Except where noted, this discussion only deals with Shares held as capital assets
(generally, property held for investment), and does not address special situations, including those of banks, financial
institutions, insurance companies, regulated investment companies, real estate investment trusts, dealers in securities, currencies,
or commodities, tax-exempt organizations, tax-exempt or tax-advantaged retirement plans or accounts, traders using a mark-to-market
method of accounting, entities that are partnerships for U.S. federal income tax purposes, persons holding Shares as a position in a
“hedging,” “straddle,” “conversion,” “constructive sale” or other integrated
transaction for U.S. federal income tax purposes, persons whose “functional currency” is not the U.S. dollar, persons
required for U.S. federal income tax purposes to accelerate the recognition of any item of gross income with respect to the Shares
as a result of such income being recognized on an applicable financial statement, or persons subject to the federal alternative
minimum tax. Moreover, the discussion below does not address the effect of any state, local or foreign tax law consequences that may
apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers with respect to all federal,
state, local and foreign tax law considerations potentially applicable to their investment in Shares.

For
purposes of this discussion, a “U.S. Shareholder” is a Shareholder that is:

•	an individual who is treated as a citizen or resident of the United States for U.S.
federal income tax purposes;

•	a corporation (or entity treated as a corporation for U.S. federal income tax purposes)
created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

•	an estate, the income of which is includible in gross income for U.S. federal income
tax purposes regardless of its source; or

•	a trust, if a court within the United States is able to exercise primary supervision
over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of
the trust.

a partnership or other entity or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment
of a partner generally depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership
holding Shares, the discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income
tax implications of the purchase, ownership and disposition of such Shares.

Taxation of the Trust

The Trust is expected to be
classified as a domestic corporation for U.S. federal income tax purposes and as such is expected to be obligated to pay U.S. federal
and applicable state corporate taxes on its taxable income. This differs from investment companies that elect to be treated as “regulated
investment companies” under the Internal Revenue Code of 1986, as amended (the “Code”), to avoid paying entity-level
income taxes. In pursuing its investment objective, the Trust will not be required to comply with the diversification requirements of
a regulated investment company.

The amount of taxes currently
paid by the Trust will vary depending on the amount of income and gains derived from its investments. Taxes paid by the Trust will reduce
your return from an investment in the Fund.

The Trust will be
subject to U.S. federal income tax at the regular corporate tax rate, currently 21%, on any gain recognized by the Trust on any sale of
assets by the Trust.

Taxation of U.S. Shareholders

The
Trust may periodically make distributions to its Shareholders. To the extent such distributions are out of the Trust’s earnings
and profits such distributions will be treated as dividends to the Shareholders. Such dividends may be eligible to be treated as “qualified
dividends” for individual Shareholders or eligible for a dividends received deduction by corporate Shareholders depending other
factual circumstances. If a distribution is not paid out of earnings and profits it will be treated, first, as a reduction of the Shareholder’s
basis, and, to the extent the distribution exceeds the Shareholder’s basis as gain from the sale or disposition of the Shares. A
distribution that reduces a Shareholder’s basis is not currently taxable but will increase the amount of gain or reduce the amount
of loss recognized on an ultimate sale or disposition of the Shares.