CYA
Simplify Tail Risk Strategy ETF
stock NYSE

Mostly boilerplate, but not imaginary. The basic point is your fund assets should be segregated, so manager failure is not meant to wipe out investors, but operational failure, fraud or a messy insolvency at the depositary chain can still create some loss or delay risk at the edges. So I would read that wording as legal CYA around low-probability plumbing risk, not as a sign that plain vanilla ETFs are suddenly unsafe.

One bit of received wisdom is that there is no need to worry about any counterparty (custodian, manager, depositary) default risk causing losses in my ETF holding. However, I am looking at a KID (for MVOL in this case) which uses the following language:
"What happens if BlackRock Asset Management Ireland Limited is unable to pay out?
The assets of the Fund are held in safekeeping by its depositary, State Street Custodial Services (Ireland) Limited (the “Depositary”). In the event of the insolvency of the Manager, the Fund’s assets in the safekeeping of the Depositary will not be affected. However, in the event of the Depositary’s insolvency, or someone acting on its behalf, the Fund may suffer a financial loss. However, this risk is mitigated to a certain extent by the fact the Depositary is required by law and regulation to segregate its own assets from the assets of the Fund. "

The depositary part seems a bit weaselly, especially "to a certain extent". Is that just boilerplate legal CYA or is there a real risk that something may go wrong and funds may in practice not have been fully segregated after all? Leaving, of course, aside any considerations that a default of State Street would definitely mean something has gone wrong already...I notice that anyone "acting on (State Street Ireland)'s behalf" is included in this as well.

Somehow either I did not mention it ( I thought I had) or y'all mised the checks I wright are to my credit union. Pretty secure hand to teller or hand to machine at the actual credit union. FYI. I've been involved in two (2) I'd scams. They have both been unexplainable, out of my control, and one took years to finally feel done with it. So, yah, CYA.