Bonfire Financial LLC

ITEM 5 - FEES AND COMPENSATION
Investment Management Fees and Compensation
Bonfire Financial charges a fee as compensation for providing Investment Management
services on your account. These services include advisory services, trade entry, investment

             Bonfire Financial, LLC – 5755 Mark Dabling Blvd Ste 220 Colorado Springs, CO 80919
                                           FORM ADV 2A Brochure

supervision, and other account-maintenance activities. Our recommended custodian
charges may include transaction costs, custodial fees, redemption fees, retirement plan
and administrative fees or commissions. See Additional Fees and Expenses below for
additional details.

The fees for portfolio management are based on an annual percentage of assets under
management and are applied to the account asset value on a pro-rata basis and billed
monthly in advance. The initial fee will be based upon the date the account is accepted for
management by execution of the advisory agreement by Bonfire Financial or when the
assets are transferred through the last day of the current month. Thereafter, the monthly
fee will be calculated on an average daily balance of the prior month and billed in advance
for the upcoming month. The average daily balance will be determined as reported by the
Custodian. Fees are assessed on all assets under management, including securities, cash
and money market balances. When applicable and noted in Appendix A of the Investment
Management Agreement, legacy positions will also be excluded from the fee calculation.

Our maximum investment advisory fee is 1.20% or we may negotiate a flat dollar fee. The
specific advisory fees are set forth in your Investment Advisory Agreement. Fees may vary
based on the size of the account, complexity of the portfolio, extent of activity in the
account or other reasons agreed upon by us and you as the client. Our employees and
their family related accounts are charged a reduced fee for our services.

Unless otherwise instructed by the client, we will aggregate asset amounts in accounts
from your same household together to determine the advisory fee for all your accounts.
We would do this, for example, where we also service accounts on behalf of your minor
children, individual and joint accounts for a spouse, and/or other types of related accounts.
This consolidation practice is designed to allow you the benefit of an increased asset total,
which could potentially cause your account(s) to be assessed a lower advisory fee.

The independent qualified custodian holding your funds and securities will debit your
account directly for the advisory fee and pay that fee to us. You will provide written
authorization permitting the fees to be paid directly from your account held by the qualified
custodian. Further, the qualified custodian agrees to deliver an account statement at least
quarterly directly to you indicating all the amounts deducted from the account including
our advisory fees. At our discretion, you may pay the advisory fees by check. You are
encouraged to review your account statements for accuracy.

The investment advisory Agreement may be terminated by the client without penalty. upon
written notice to the other party. The management fee will be pro-rated to the date of
termination, for the month in which the cancellation notice was given and the unearned
fee refunded to you. Upon termination, you are responsible for monitoring the securities
in your account, and we will have no further obligation to act or advise with respect to

             Bonfire Financial, LLC – 5755 Mark Dabling Blvd Ste 220 Colorado Springs, CO 80919
                                           FORM ADV 2A Brochure

those assets. In the event of client’s death or disability, Bonfire Financials will continue
management of the account until we are notified of client’s death or disability and given
alternative instructions by an authorized party.

Held Away Discretionary Accounts Relationship with Pontera
We charge an annual advisory fee for services provided to these held away accounts, which
is deducted on a quarterly basis. Fees are based on the value of the assets within these
held away accounts.

All advisory fee calculations for the held away discretionary account services are facilitated
through a third-party nonaffiliated service, Pontera. Bonfire Financial is responsible for
sending the final invoice to the Client and the Client sends advisory fee payment directly to
Bonfire Financial via check.

Financial Planning Fees
Bonfire Financial will negotiate the planning fees with you. Fees may vary based on the
extent and complexity of your individual or family circumstances and the amount of your
assets under our management. We will determine your fee for the designated financial
advisory services based on a fixed fee arrangement described below.

Under our fixed fee arrangement, any fee will be agreed in advance of services being
performed. The fee will be determined based on factors including the complexity of your
financial situation, agreed upon deliverables, and whether or not you intend to implement
any recommendations through Bonfire Financial. Fixed fees for financial plans range from
$1,000 to $10,000.

Typically, we complete a plan within a month and will present it to you within 90 days of
the contract date, provided that you have provided us all information needed to prepare
the financial plan. Fees are billed fifty percent (50%) of the estimated fee will be due and
payable at the time you enter into the financial planning agreement, with the balance due
and payable at the time the financial plan is delivered. You may terminate the financial
planning agreement by providing us with written notice. Upon termination, fees will be
prorated to the date of termination and any unearned portion of the fee will be refunded
to you based on an hourly rate of $350.00. Services provided up to date of termination but
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ITEM 7 - TYPES OF CLIENTS
We provide investment advice to individuals, high-net-worth individuals, small business
owners, pensions, trusts and retirement plans. We do not have a minimum initial account
value.