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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Trust is not a named insured under the BNB Custodian's insurance policies, though the BNB Custodian has represented to the Sponsor that the insurance covers customer losses, including losses suffered by the Trust, arising from specified events, including fraud, theft, and cybersecurity breaches. In addition, the BNB insurance market is limited, and the level of insurance maintained by the BNB Custodian may be substantially lower than the assets of the Trust, or the amount of claims against the BNB Custodian of all of the customers whose losses are covered by the BNB Custodian's insurance coverage. While the BNB Custodian maintains certain capital reserve requirements depending on the assets under custody, and such capital reserves may provide additional means to cover client asset losses, the Trust cannot be assured that the BNB Custodian will maintain capital reserves sufficient to cover actual or potential losses with respect to the Trust's digital assets.

Furthermore, under the Custody Agreement, the BNB Custodian's liability is limited in various ways, including that the BNB Custodian cannot be held responsible for any failure or delay to act by the BNB Custodian, its service providers, or its banks that is within the time limits permitted by the Custody Agreement, or that is caused by the Trust's negligence or is required to comply with applicable laws and regulations. The BNB Custodian is not liable for any System Failure or Downtime (both as defined in the Custody Agreement), which prevents the BNB Custodian from fulfilling its obligations under the Custody Agreement, provided that BNB Custodian took reasonable care and used commercially reasonable efforts to prevent or limit such System Failures or Downtime and otherwise complied with the Custody Agreement. The Custody Agreement provides that "Downtime" means scheduled maintenance and a "System Failure" shall mean a failure of any computer hardware, software, computer systems, or telecommunications lines or devices used by the BNB Custodian, or interruption, loss, or malfunction of utility, data center, Internet or network provider services used by the BNB Custodian; provided, however, that a cybersecurity attack, data breach, hack, or other intrusion, or unauthorized disclosure by a third party, the BNB Custodian, a service provider to the BNB Custodian, or an agent or subcontractor of the BNB Custodian, shall not be deemed a System Failure, to the extent such events or any losses arising therefrom are due to the BNB Custodian's failure to comply with its obligations under the Custody Agreement. The BNB Custodian cannot be held responsible for any circumstances beyond the BNB Custodian's reasonable control, provided the BNB Custodian took reasonable care and used commercially reasonable efforts in executing its responsibilities to the Trust pursuant to the Custody Agreement, which includes exercising the degree of care, diligence and skill that a prudent and competent professional provider of services similar to the custodial services would exercise in the circumstances, or such higher care where required by law or the Custody Agreement (collectively, the "Standard of Care"). The BNB Custodian makes no guarantees regarding the BNB Chain's security, functionality, or availability, and will not be liable for or in connection with any acts, decisions, or omissions made by developers of the BNB Chain. The BNB Custodian is not liable for any losses or claims arising out of actions that are in the Trust's control and related to the Trust's use of the BNB Custodian's online platform, including but not limited to, the Trust's failure to follow security protocols, the BNB Custodian's platform controls, improper instructions, failure to secure the Trust's credentials from third parties, or anything else in the Trust's control and is also not liable for any amount greater than the value of the assets on deposit in Trust's account at the BNB Custodian at the time of, and directly relating to, the events giving rise to the liability occurred, the value of which shall be determined in accordance with the Chicago Mercantile Exchange [     ] or any successor thereto. The BNB Custodian is not liable to the Trust (whether under contract, tort (including negligence) or otherwise) for any indirect, incidental, special, punitive or consequential losses suffered or incurred by the Trust (whether or not any such losses were foreseeable). The BNB Custodian is not liable to the Trust or anyone else for any loss or injury resulting directly or indirectly from any damage or interruptions caused by any computer viruses, spyware, scamware, trojan horses, worms, or other malware that may affect the Trust's computer or other equipment, provided such malware did not originate from the BNB Custodian or its agents. The Custody Agreement's "Force Majeure" provision provides that the BNB Custodian is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control of the BNB Custodian including, but not limited to, any act of God, nuclear or natural disaster, epidemic, action or inaction of civil or military authorities, act of war, terrorism, sabotage, civil disturbance, strike or other labor dispute, accident, or state of emergency; provided, however, that for the avoidance of doubt, the Custody Agreement's Force Majeure provision shall not apply in respect of System Failures or Downtime, which are subject to other respective provisions of the Custody Agreement. The occurrence of an event described in the Force Majeure provision shall not affect the validity and enforceability of any remaining provisions of the Custody Agreement.

In the event of potential losses incurred by the Trust as a result of the BNB Custodian losing control of the Trust's BNB or failing to properly execute instructions on behalf of the Trust, the BNB Custodian's liability with respect to the Trust will be subject to certain limitations which may allow it to avoid liability for potential losses or may be insufficient to cover the value of such potential losses. Furthermore, the insurance maintained by the BNB

Custodian may be insufficient to cover its liabilities to the Trust. Both the Trust and the BNB Custodian are required to indemnify each other under certain circumstances.