The custodian is JP Morgan Chase Bank N.A., London branch. Both the trustee and custodian oversee deposits of silver and at times may hold cash from the proceeds of the sale of silver to pay the trust’s expenses. If there is more cash than needed to pay expenses, it’s distributed to shareholders’ brokerage accounts.
Any investment involves a measure of risk. The value of the shares will be adversely affected if the silver held in the trust is lost or damaged in a situation where the trust isn’t able to recover the loss. The custodian of the trust doesn’t have an obligation to replace lost silver under circumstances beyond their control.
There are situations in which the fund’s authorized participant isn’t able to redeem a basket of shares, which will reduce the liquidity of silver for all of the shareholders in the secondary market.
The FAQ and prospectus for the fund can be found on the iShares website.