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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or other deficiencies in service may occur due to a variety of factors, some of which are outside of our control. These factors can contribute to delays, errors in service, or system outages, creating difficulties in accessing the Trust's account, withdrawing fiat currency or BNB, depositing fiat currency or BNB, and/or placing and/or canceling orders. Under the User Agreement, [ ] is not liable for any delays, failure in performance or interruption of service which result directly or indirectly from any cause or condition, whether or not foreseeable, beyond [ ]'s reasonable control, 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, state of emergency or interruption, loss, or malfunction of equipment or utility, communications, computer (hardware or software), Internet or network provider services.

Except to the extent required by law, [     ] is not liable under the User Agreement, whether in contract or tort, for any punitive, special, indirect, consequential, incidental, or similar damages, including lost trading or other profits, diminution in asset value, or lost business opportunities (even if [     ] have been advised of the possibility thereof) in connection with the transactions subject to the User Agreement. [     ]'s total liability for breach of the User Agreement shall be limited by the value of any of the Trust's allegedly lost fiat currency and digital assets in the custody of [     ] at the time of loss. Under the User Agreement, [     ] is not liable for delays or interruptions in service caused by automated or other compliance checks or for other reasonable delays or interruptions in service, by definition to include any delay or interruption shorter than one week, or delays or interruptions in service beyond the control of [     ] or its service providers. The limitation on liability under the User Agreement includes, but is not limited to 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, or any phishing, spoofing, domain typosquatting, or other attacks, failure of mechanical or electronic equipment or communication lines, telephone or other interconnect problems (e.g., you cannot access your internet service provider), unauthorized access, theft, operator errors, strikes or other labor problems, or any force majeure. [     ] does not guarantee continuous, uninterrupted, or secure access to [     ]. [     ] is not responsible for any failure or delay to act by any [     ] service provider, including [     ]'s banks, or any other participant that is within the time limits permitted by the User Agreement or prescribed by law, or that is caused by the Trust's negligence.

Under the User Agreement, [     ] is not responsible for any "System Failure" (defined as a failure of any computer hardware or software used by [     ], a [     ] service provider, or any telecommunications lines or devices used by [     ] or a [     ] service provider), or scheduled or unscheduled maintenance or downtime, which prevents [     ] from fulfilling its obligations under the User Agreement, provided that [     ] used commercially reasonable efforts to prevent or limit such System Failures, or downtime. [     ] cannot be held responsible for any other circumstances beyond [     ]'s reasonable control.

The Additional BNB Custodian's parent, [     ] maintains a commercial crime insurance policy of up to $320 million, which is intended to cover the loss of client assets held by [     ] and all of its subsidiaries, including the Additional BNB Custodian (collectively, [     ] and its subsidiaries are referred to as the "[     ]"), 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 of the Additional BNB Custodian and may not be available or sufficient to protect the Trust from all possible losses or sources of losses. [     ]'s insurance may not cover the type of losses experienced by the Trust. Alternatively, the Trust may be forced to share such insurance proceeds with other clients or customers of the [     ], which could reduce the amount of such proceeds that are available to the Trust. In addition, the BNB insurance market is limited, and the level of insurance maintained by [     ] may be substantially lower than the assets of the Trust. While the Additional BNB Custodian maintains certain capital reserve requirements depending on the assets under custody, and such capital reserves may provide additional means to cover Trust asset losses, the Trust cannot be assured that the Additional BNB Custodian will maintain capital reserves sufficient to cover actual or potential losses with respect to the Trust's digital assets.

Additionally, 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).

In general, the Additional BNB Custodian is not liable under the Additional BNB Custody Agreement unless in the event of its negligence, fraud, material violation of applicable law or willful misconduct. The Additional 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 Additional BNB Custodian. Furthermore, the insurance maintained by the Additional BNB Custodian may be insufficient to cover its liabilities to the Trust.