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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services performed under the Trust Agreement. The Administrator will calculate the Sponsor Fee in respect of each day by reference to the prior day’s TRX Holdings. Except for periods during which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily in TRX and be payable monthly in TRX or cash. To the extent there are any on-chain transaction fees incurred in connection with the transfers of TRX to pay the Sponsor Fee, the Sponsor, and not the Trust, shall bear such fees. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor Fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver.

partial consideration for its receipt of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees
and other expenses incurred by the Trust in the ordinary course of its affairs, excluding taxes, but including: (i) the fees of the Trust’s
third-party service providers including, but not limited to, the Distributor, the Administrator, the TRX Custodian, the Cash Custodian,
the Transfer Agent, the Benchmark Provider, and the Trustee, (ii) the fees and expenses related to the listing, quotation or trading of
the Shares on the Exchange (including customary legal, marketing and audit fees and expenses), (iii) legal fees and expenses incurred
in the ordinary course, (iv) audit fees, (v) regulatory fees, including, if applicable, any fees relating to the registration of the Trust
and Shares, including any ongoing filings related to the offering of Shares, under the 1933 Act or the 1934 Act, (vi) printing and mailing
costs, (vii) costs of maintaining the Trust’s website and (viii) applicable license fees (each, a “Sponsor-paid Expense”
and collectively, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Extraordinary Expense (as defined
below) will not be deemed to be a Sponsor-paid Expense. There is no cap on the amount of Sponsor-paid Expenses. The Sponsor has also assumed
all fees and expenses related to the organization and offering of the Trust and the Shares.

The
Trust may incur certain extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to, brokerage
and transaction costs associated with the sale or transfer of TRX, taxes and governmental charges, expenses and costs of any extraordinary
services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust, the Trust’s assets,
or the interests of Shareholders, any indemnification of the TRX Custodian or other agents, service providers or counterparties of the
Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory
enforcement or investigation matters (collectively, “Extraordinary Expenses”). To the extent on-chain transaction fees are
incurred in connection with transfers or sales of TRX to pay Extraordinary Expenses, the Trust will bear such fees.

the extent it does not have cash readily available, the Sponsor shall cause the transfer or sale of TRX in such quantity as may be necessary
to permit the payment of Trust expenses and liabilities not assumed by the Sponsor or for payment of redemption proceeds to Authorized
Participants. The Trust will not bear any costs associated with the transfer or sale of TRX to pay the Sponsor Fee. To the extent the
Trust incurs any Extraordinary Expenses, the Trust will bear the costs of any transfers or sales of TRX to pay such expenses. The Trust
will seek to transfer TRX at such times and in the smallest amounts required to permit such payments as they become due. With respect
to transfers or sales necessary to pay Trust expenses and liabilities that are denominated other than in TRX, the amount of TRX transferred
or sold may vary from time to time depending on the actual sales price of TRX relative to the Trust’s expenses and liabilities (e.g.,
if the price of TRX falls, the amount of TRX needed to be transferred or sold to pay an expense denominated in U.S. dollars will increase).
To the extent the Trust must buy or sell TRX, the Trust may do so through a third-party digital asset broker or dealer. When the Trust
buys or sells TRX, the Sponsor seeks quotes from its TRX trading counterparties. Such transactions are typically conducted over the counter
rather than over a trading platform or similar order matching service. The Sponsor will select third party brokers or dealers that it
believes have implemented adequate anti-money laundering, know-your-customer and other legal compliance policies and procedures.

Under
the terms of each Authorized Participant Agreement, the Authorized Participants will be responsible for any brokerage or transaction costs
associated with the sale or transfer of TRX incurred in connection with the fulfillment of a creation or redemption order.

Termination of the Trust

The
Sponsor will notify Shareholders at least thirty (30) days before the date for termination of the Trust Agreement and the Trust if any
of the following occurs:

•	Shares are delisted from the Exchange and are not approved for listing on another
national securities exchange within five business days of their delisting;

•	180 days have elapsed since the Trustee notified the Sponsor of the Trustee’s
election to resign or since the Sponsor removed the Trustee, and a successor trustee has not been appointed and accepted its appointment;

•	the SEC determines that the Trust is an investment company under the 1940 Act, and
the Sponsor has made the determination that termination of the Trust is advisable;

•	the CFTC determines that the Trust is a commodity pool under the Commodity Exchange
Act, and the Sponsor has made the determination that termination of the Trust is advisable;

•	the Trust is determined to be a “money service business” under the regulations
promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder
or is determined to be a “money transmitter” (or equivalent designation) under the laws of any state in which the Trust operates
and is required to seek licensing or otherwise comply with state licensing requirements, and the Sponsor has made the determination that
termination of the Trust is advisable;

•	a United States regulator requires the Trust to shut down or forces the Trust to
liquidate its TRX or seizes, impounds or otherwise restricts access to the Trust Estate (as defined in the Trust Agreement);

•	any ongoing event exists that either prevents the Trust from making or makes impractical
the Trust’s reasonable efforts to make a fair determination of the price of TRX for purposes of determining the NAV of the Trust;

•	the Sponsor determines that the aggregate net assets of the Trust in relation to
the operating expenses of the Trust make it unreasonable or imprudent to continue the business of the Trust;

•	60 days have elapsed since DTC or another depository has ceased to act as depository
with respect to the Shares, and the Sponsor has not identified another depository that is willing to act in such capacity;

•	the Trustee elects to terminate the Trust after the Sponsor is conclusively deemed
to have resigned effective immediately as a result of the Sponsor being adjudged bankrupt or insolvent, or a receiver of the Sponsor or
of its property being appointed, or a trustee or liquidator or any public officer taking charge or control of the Sponsor or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation and a successor sponsor has not been appointed; or

•	the Sponsor elects to terminate the Trust after the Trustee, Administrator or the
TRX Custodian (or any successor trustee, administrator or custodian) resigns or otherwise ceases to be the trustee, administrator or custodian
of the Trust, as applicable, and no replacement trustee, administrator and/or custodian acceptable to the Sponsor is engaged.