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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key employees with respect to their activities on behalf of other funds, if the need for indemnification arises. This potential indemnification could cause the Sponsor’s assets to decrease. If the Sponsor’s other sources of income are not sufficient to compensate for the indemnification, it could cease operations, which could in turn result in Trust losses and/or termination of the Trust. Resolution of Conflicts Procedures The Trust Agreement will provide that whenever a conflict of interest exists between the Sponsor or any of its affiliates, on the one hand, and the Trust or any Shareholders or any other person, on the other hand, the Sponsor will resolve such conflict of interest considering the relative interest of each party (including its own interest) and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable accepted accounting practices or principles. Issues Relating to Valuations of Assets

To the extent
it is required to do so, the Sponsor will value the Trust’s assets in accordance with the valuation policies of the Sponsor; however,
the manner in which the Sponsor exercises its discretion with respect to valuation decisions will impact the valuation of assets of the
Trust. To the extent that fees are based on valuations, the exercise of discretion in valuation by the Sponsor will give rise to conflicts
of interest including in connection with the calculation of Sponsor Fees. In addition, various divisions and units within the Sponsor
and its affiliates are required to value assets, including in connection with managing or advising other accounts for clients, such as
registered and unregistered funds and owners of separately managed accounts. These various divisions, units and affiliated entities may,
but are under no obligation to, share information regarding valuation techniques and models or other information relevant to the valuation
of a specific asset or category of assets. Regardless of whether or not the Sponsor has access to such information, to the extent the
Sponsor values the assets held by the Trust, the Sponsor will value investments according to its valuation policies, and may value an
identical asset differently than such other divisions, units or affiliated entities.

DUTIES OF
THE SPONSOR

The
general fiduciary duties that would otherwise be imposed on the Sponsor (which would make its operation of the Trust as described herein
impracticable due to the strict prohibition imposed by such duties on, for example, conflicts of interest on behalf of a fiduciary in
its dealings with its beneficiaries), will be replaced entirely by the terms of the Trust Agreement (to which terms all Shareholders,
by subscribing to the Shares, are deemed to consent).

Additionally,
under the Trust Agreement, the Sponsor will have the following obligations as a sponsor of the Trust:

•	Execute, file, record and/or publish all certificates, statements and other documents
and do any and all other things as may be appropriate for the formation, qualification and operation of the Trust and for the conduct
of its business in all appropriate jurisdictions;

•	Retain independent public accountants to audit the accounts of
the Trust;

•	Employ attorneys to represent the Trust;

•	Select the Trust’s Trustee, Administrator, Transfer Agent, Custodian, Distributor,
Benchmark Provider, insurer(s) and any other service provider(s) and cause the Trust to enter into contracts with such service provider(s);

•	Provide for the safekeeping and use of the Trust’s assets;

•	Not employ or permit others to employ the Trust’s assets in any manner except
for the benefit of the Trust;

•	At all times act with integrity and good faith and exercise due diligence in all
activities relating to the Trust and in resolving conflicts of interest;

•	Enter into directly or through its delegates an Authorized Participant Agreement
with each Authorized Participant and discharge the duties and responsibilities of the Trust and the Sponsor thereunder;

•	Receive directly or through its delegates from Authorized Participants and process
or cause its delegates to process properly submitted purchase orders, as will be described in the Trust Agreement and in the Authorized
Participant Agreement;

•	In connection with purchase orders, receive directly or through its delegates the
amount of cash in a Basket;

•	In connection with purchase orders, after accepting a purchase order and receiving
the corresponding amount of cash, either directly or through its delegates, direct the Trust’s Transfer Agent to credit the Baskets
to fill the Authorized Participant’s purchase order;

•	Receive directly or through its delegates from Authorized Participants and process
or cause its delegates to process properly submitted redemption orders, as will be described in the Trust Agreement and in the Authorized
Participant Agreement;

•	In connection with redemption orders, after receiving a redemption order specifying
the number of Baskets that the Authorized Participant wishes to redeem and after the Transfer Agent’s DTC account has been credited
with the Baskets to be redeemed, directly or through its delegates transfer to the redeeming Authorized Participant the quantity of TRX
attributable to the Shares redeemed;

•	Interact with the TRX Custodian and any other party as required;

•	Select one or more Staking Providers;

•	Cause the Trust to comply with all rules, orders and regulations of the Exchange,
and take all such other actions that may reasonably be taken and are necessary for the Shares to remain listed, quoted or traded on the
Exchange until the Trust is terminated or the Shares are no longer listed, quoted or traded on the Exchange;

•	Assist in the preparation and filing of reports and proxy statements (if any) to
the Shareholders, the periodic updating of the Registration Statement and Prospectus and other reports and documents for the Trust required
to be filed by the Trust with the SEC and other governmental bodies;

•	Perform such other services as the Sponsor believes the Trust
may from time to time require; and

•	In general, to carry out any other business in connection with or incidental to
any of the foregoing powers, to do everything necessary, suitable or proper for the accomplishment of any purpose or the attainment of
any object or the furtherance of any power herein set forth, either alone or in association with others, and to do every other act or
thing incidental or appurtenant or growing out of or connected with the aforesaid business or purposes, objects or powers.

the extent that a law (common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating
thereto to the Trust, the Shareholders or to any other person, the Sponsor will not be liable to the Trust, the Shareholders or to any
other person for its good faith reliance on the provisions of the Trust Agreement or this Prospectus unless such reliance constitutes
gross negligence, bad faith, or willful misconduct on the part of the Sponsor.

LIABILITY
AND INDEMNIFICATION

Trustee

The
Trustee will not be liable for the acts or omissions of the Sponsor, nor will the Trustee be liable for supervising or monitoring the
performance and the duties and obligations of the Sponsor or the Trust under the Trust Agreement. The Trustee will not be personally liable
under any circumstances, except for its own fraud, willful misconduct, bad faith or gross negligence. In particular, but not by way of
limitation:

the Trustee will not be personally liable for any error of judgment made in good faith except to the extent such error of judgment constitutes
gross negligence on its part;

no provision of the Trust Agreement will require the Trustee to expend or risk its personal funds or otherwise incur any financial liability
in the performance of its rights or powers under the Trust Agreement;

under no circumstances will the Trustee be personally liable for any representation, warranty, covenant, agreement, or indebtedness of
the Trust;

the Trustee will not be personally responsible for or in respect of the validity or sufficiency of the Trust Agreement or for the due
execution hereof by the Sponsor;

the Trustee will incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by
the proper party or parties. The Trustee may accept a certified copy of a resolution of any governing body of any corporate party as conclusive
evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter
the manner of ascertainment of which is not specifically prescribed herein, the Trustee may for all purposes hereof rely on a certificate,
signed by an authorized officer of the Sponsor or any other corresponding directing party, as to such fact or matter, and such certificate
will constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon;