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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the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified. The lack of active trading markets for the Shares may result in losses on Shareholders’ investments at the time of disposition of Shares. Although Shares of the Trust are expected to be publicly listed and traded on an exchange, there can be no guarantee that an active trading market for the Shares will develop or be maintained. If Shareholders need to sell their Shares at a time when no active market for them exists, the price Shareholders receive for their Shares, assuming that Shareholders are able to sell them, may be lower than the price that Shareholders would receive if an active market did exist and, accordingly, a Shareholder may suffer losses. Several factors may affect the Trust’s ability to achieve its investment objective on a consistent basis.

There
can be no assurance that the Trust will achieve its investment objective. Prospective investors should read this entire Prospectus and
consult with their own advisers before subscribing for Shares. Factors that may affect the Trust’s ability to meet its investment
objective include: (1) Authorized Participants’ ability to purchase and sell TRX in an efficient manner to effectuate creation and
redemption orders; (2) transaction fees associated with the Tron Network; (3) the TRX market becoming
illiquid or disrupted; (4) the need to conform the Trust’s portfolio holdings to comply with investment restrictions or policies
or regulatory or tax law requirements; (5) early or unanticipated closings of the markets on which TRX trades, resulting in the inability
of Authorized Participants to execute intended portfolio transactions; and (6) accounting standards.

The
amount of TRX represented by the Shares will decline over time.

Each
outstanding Share represents a fractional, undivided interest in the TRX held by the Trust. The Trust does not generate any income and
transfers TRX to pay for the Sponsor Fee and other liabilities. Therefore, the amount of TRX represented by each Share will gradually
decline over time. Assuming a constant TRX price, the trading price of the Shares is expected to gradually decline relative to the price
of TRX as the amount of TRX represented by the Shares gradually declines.

Shareholders
should be aware that the gradual decline in the amount of TRX represented by the Shares will occur regardless of whether the trading price
of the Shares rises or falls in response to changes in the price of TRX.

The
development and commercialization of the Trust is subject to competitive pressures.

The
Trust and the Sponsor face competition with respect to the creation of competing products. The Sponsor’s competitors may have greater
financial, technical and human resources than the Sponsor. Smaller or early-stage companies may also prove to be effective competitors,
particularly through collaborative arrangements with large and established companies. In addition, the timing of the Trust in reaching
the market and the fee structure of the Trust relative to similar products may have a detrimental effect on the scale and sustainability
of the Trust. The Sponsor’s competitors may be able to launch similar products to the Trust before the launch of the Trust due to,
for example, the satisfaction of all regulatory requirements required to launch before the Trust is able to do so. Accordingly, the Sponsor’s
competitors may commercialize a product involving TRX more rapidly or effectively than the Sponsor is able to, which could adversely affect
the Sponsor’s competitive position, the likelihood that the Trust will achieve initial market acceptance and the Sponsor’s
ability to generate meaningful revenues from the Trust (i.e., revenues that would commercially justify the Sponsor continuing to devote
time and resources to the operation of the Trust), which in turn could cause the Sponsor to dissolve and terminate the Trust.

addition, to the extent that the Trust incurs transaction expenses in connection with the creation and redemption process, litigation
expenses, indemnification obligations under the Trust’s service provider agreements and other Extraordinary Expenses that are not
Sponsor-paid Expenses, such expenses will be borne by the Trust. To the extent that the Trust fails to attract a sufficiently large amount
of investors, the effect of such expenses on the value of the Shares may be significantly greater than would be the case if the Trust
had attracted more assets.

The
Sponsor may need to find and appoint a replacement custodian quickly, which could pose a challenge to the safekeeping of the Trust’s
TRX.

The
Sponsor could decide to replace the TRX Custodian as the custodian of the Trust’s TRX, or the TRX Custodian may cease
providing the custodial services necessary for the Trust’s normal operations. For example, the Trust’s custodian may
become insolvent and enter bankruptcy or receivership proceedings, or discontinue business operations with little or no warning to
the Sponsor or the Trust. Transferring maintenance responsibilities of the Trust’s account with the TRX Custodian to another
party will likely be complex and could subject the Trust’s TRX to the risk of
loss during the transfer, which could have a negative impact on the performance of the Shares or result in loss of the Trust’s
assets.

The
Sponsor may not be able to find a party willing to serve as the custodian under the same terms as the current Custodial Services Agreement.
To the extent that Sponsor is not able to find a suitable party willing to serve as the custodian, the Sponsor may be required to terminate
the Trust and liquidate the Trust’s TRX.

Limited
recourse.

The
TRX Custodian has limited liability for any loss, claim, or damage to the Trust, impairing the ability of the Trust to recover losses
relating to its TRX and any recovery may be limited, except to the extent of a final, non-appealable judicial determination that such
loss, claim or damage directly resulted from the gross negligence, willful misconduct or fraud of the TRX Custodian. In addition, the
TRX Custodian is generally not be liable for any loss caused, directly or indirectly, by the failure of the Trust to adhere to the TRX
Custodian’s policies and procedures that have been disclosed to the Trust, a force majeure event or certain actions determined by
the TRX Custodian to be necessary or advisable to inspect and protect the security of the Trust’s assets. Furthermore, the TRX Custodian
is generally not liable for a loss caused, directly or indirectly, by any failure or delay to act by any service provider to the TRX Custodian
or any system failure (other than a system failure caused by the gross negligence, willful misconduct or fraud of the TRX Custodian or
the TRX Custodian’s affiliates), that prevents the TRX Custodian from fulfilling its obligations.

Under
the Trust Agreement, the Trustee and the Sponsor will not be liable for any liability or expense incurred absent fraud, gross negligence,
bad faith or willful misconduct on the part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case
may be. As a result, the recourse of the Trust or the Shareholder to Trustee or the Sponsor may be limited.

The
Benchmark Provider has limited liability relating to the use of the Pricing Benchmark, impairing the ability of the Trust to recover losses
relating to its use of the Pricing Benchmark. The Benchmark Provider does not guarantee the accuracy, completeness, or performance of
the Pricing Benchmark or the data included therein and shall have no liability in connection with the Pricing Benchmark or index calculation,
errors, omissions or interruptions of any index or any data included therein. The Pricing Benchmark could be calculated now or in the
future in a way that adversely affects an investment in the Trust.

The
calculation agent also has limited liability, impairing the ability of the Trust to recover losses relating to the calculation of the
Pricing Benchmark.

The
value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor, the Trustee, the Transfer Agent or the
TRX Custodian.

Each
of the Sponsor, the Trustee, the Transfer Agent and the TRX Custodian has a right to be indemnified by the Trust for certain liabilities
or expenses that it incurs without gross negligence, bad faith or willful misconduct on its part. Therefore, the Sponsor, Trustee, Transfer
Agent or the TRX Custodian may require that the assets of the Trust be sold in order to cover losses or liability suffered by it. Any
sale of that kind would reduce the TRX holdings of the Trust and the value of the Shares.

Intellectual
property rights claims may adversely affect the Trust and the value of the Shares.