Note 3. Trust Expenses and Other Agreements

The Trust pays the Sponsor a unified fee (the “Sponsor Fee”) of 0.20% on average daily net assets, that accrues daily and pays monthly. The Sponsor agreed to waive that fee for the first $500 million in net assets up until February 28, 2026. The Sponsor has agreed to pay all operating expenses (except for extraordinary expenses, including but not limited to, non-recurring expenses and costs of services performed by the Sponsor or a service provider on behalf of the Trust to protect the Trust or the interests of Shareholders, such as the Custodian Staking Facilitation Fee, and in connection with any indemnification of 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) out of the Sponsor Fee. Coinbase Crypto Services currently serves as the Staking Service Provider for the Trust and is entitled to a staking fee of 4% of the staking income earned by the Trust’s staked assets as presented in the Statements of Operations. The Sponsor from time to time will sell AVAX, which may be facilitated by one or more liquidity providers and/or the AVAX Custodians or an affiliate thereof, in such quantity as is necessary to permit payment of the Sponsor Fee and Trust expenses and liabilities not assumed by the Sponsor.

The Trustee fee is paid by the Sponsor and is not an expense of the Trust.

The Trust may hold its AVAX at either of the AVAX Custodians, both of which are regulated third-party custodians that carry insurance and are responsible for safekeeping of AVAX owned by the Trust and holding private keys that provide access to the AVAX in the Trust’s AVAX account. As of September 30, 2026 the Trust held all of its AVAX at Coinbase Custody Trust Company, LLC.

State Street Bank and Trust Company serves as the Trust’s administrator, transfer agent and cash custodian.