As a result, if any one secure vault is ever compromised, this event will have no impact on the ability of the Trust to access its assets, other than a possible delay in operations, while one or more of the other secure vaults is used instead. These security procedures are intended to remove single points of failure in the protection of the Trust’s assets. Transfers of SUI to the Vault Balance from the Settlement Balance will be available to the Trust once processed on the Sui Network, subject to the availability of the Prime Broker’s online platform. When SUI is credited to the Settlement Balance, certain movements to allocate the balance among (i) omnibus cold storage wallets and omnibus hot storage wallets on the Prime Broker’s platform; or (ii) omnibus accounts at Coinbase Connected Venues may not be viewable by the Trust via the Prime Broker’s online portal. In addition, on a monthly basis the Custodial Entities will provide the Sponsor with an account statement identifying the amount of cash and SUI in the Trust’s Accounts at the end of the period and listing all account activity during that period. The process of accessing and withdrawing SUI from the Trust to redeem a Basket by an Authorized Participant follows the same general procedure as transferring SUI to the Trust to create a Basket by an Authorized Participant, only in reverse. See “Description of Creation and Redemption of Shares.” The Marketing Agent Foreside Fund Services, LLC (“Foreside”) is the marketing agent of the Shares. Foreside is a registered broker-dealer with the SEC and is a member of FINRA. In its capacity as marketing agent, Foreside provides the following services to the Sponsor: (i) assist the Sponsor in facilitating Participation Agreements between and among Authorized Participants, the Sponsor, on behalf of the Trust, and the Transfer Agent; (ii) provide prospectuses to Authorized Participants; (iii) work with the Transfer Agent to review and approve orders placed by the Authorized Participants and transmitted to the Transfer Agent; (iv) review and file applicable marketing materials with FINRA and (v) maintain, reproduce and store applicable books and records related to the services provided under the Marketing Agent Agreement. The Sponsor may engage additional or successor marketing agents in the future. Valuation of SUI and Determination of NAV The Sponsor will evaluate the SUI held by the Trust and determine the NAV of the Trust in accordance with the relevant provisions of the Trust Documents. The following is a description of the material terms of the Trust Documents as they relate to valuation of the Trust’s SUI and the NAV calculations, which is calculated using non-GAAP methodology and is not used in the Trust’s financial statements. On each business day at 4:00 p.m., New York time, or as soon thereafter as practicable (the “Evaluation Time”), the Sponsor will evaluate the SUI held by the Trust and calculate and publish the NAV of the Trust. To calculate the NAV, the Sponsor will: 1. Determine the Index Price as of such business day. 2. Multiply the Index Price by the Trust’s aggregate amount of SUI owned by the Trust as of 4:00 p.m., New York time, on the immediately preceding day, less the aggregate amount of SUI payable as the accrued and unpaid Sponsor’s Fee as of 4:00 p.m., New York time, on the immediately preceding day. 3. Add the U.S. dollar value of SUI, calculated using the Index Price, receivable under pending creation orders, if any, determined by multiplying the number of the Creation Baskets represented by such creation orders by the Basket Amount and then multiplying such product by the Index Price. 4. Subtract the U.S. dollar amount of accrued and unpaid Additional Trust Expenses, if any. 5. Subtract the U.S. dollar value of the SUI, calculated using the Index Price, which are either (i) to be distributed under pending redemption orders, if any, determined by multiplying the number of Baskets to be redeemed represented by such redemption orders by the Basket Amount and then multiplying such product by the Index Price, or (ii) to be distributed to Shareholders pursuant to a binding obligation of the Trust following the declaration of an in-kind dividend (including through interests in any liquidating trust or other vehicle formed to hold such SUI) (the amount derived from steps 1 through 5 above, the “NAV Fee Basis Amount”). 6. Subtract the U.S. dollar amount of the Sponsor’s Fee that accrues for such business day, as calculated based on the NAV Fee Basis Amount for such business day.
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