Compound Advisors LLC

Item 5 – Fees and Compensation

A.      Fee Schedule
Fees payable to Compound are set forth in detail in the Governing Documents of each
applicable Client. A brief summary of those fees is provided below.

Management Fee

The Firm or its affiliate, commonly a General Partner, is entitled to receive a “Management
Fee” generally equal to between 0.5% - 0.6% of the aggregate capital commitments of the
Investors on a quarterly basis (2.0% - 2.4% annual). Following the investment period or
upon specified events, the management fee rate may be reduced in accordance with the
applicable Client’s Governing Documents.

The Management Fee is typically subject to offsets for certain fees received by the Firm or its
affiliates, including transaction, consulting, advisory, or similar fees received from portfolio
companies.

The SPVs are not subject to a Management Fee.

Investors are encouraged to review a specific Client’s Governing Documents to confirm the
fees charged to a specific Client.

Performance-based Compensation

The General Partner generally receives a “Performance-Based Compensation” equal to a
percentage of the net profit or loss allocated to each Investor in a particular Client. Generally,
net profit and loss will be allocated eighty percent (80%) to the Investors, pro rata in
proportion to their relative capital commitments, and twenty percent (20%) to the General
Partner. For certain Clients Performance-Based Compensation may be allocated as noted
above until such time as a Client has returned distributions that equal or exceed an identified
“Performance Target”. Once a Client’s specific Performance Target is achieved, net profit
and loss will be allocated seventy-five percent (75%) to the Investors and twenty-five percent
(25%) to the General Partner; provided that to the extent that cumulative net losses of the
Fund exceed the cumulative net profits, net profit or loss will be allocated to all investors in
proportion to their capital commitments.

The SPVs are subject to a Performance-Based Compensation ranging between 10%-20%,
calculated in the same manner as described above. The SPVs and certain future Clients are
not and will not be subject to a Performance Target or adjustment of Performance-Based
Compensation.

The performance-based compensation will only be charged to accounts of those Investors
who are “qualified clients” as defined in Rule 205-3 of the Investment Advisers Act of 1940,
as amended (“Advisers Act”).

Any new Client launched by Compound after the date of this Brochure may have
materially different terms than those summarized above and any terms for any
existing Client may be amended from time to time.

B.      Manner of Payment
All Management Fees or Carried Interest received by Compound with respect to Investors of
a Client are deducted from the capital accounts of such Investors at the frequency described
in 5.A.
C.      Other Fees and Expenses

The Firm shall bear all normal operating expenses incurred in connection with the
management of the Clients. Such normal operating expenses to be borne by the Firm shall
include, without limitation, expenditures on account of salaries, wages, travel, and other
expenses of the employees of the Firm, overhead and rentals payable for space used by the
Firm, office expenses, expenses for clerical services, bookkeeping services and equipment,
and expenses incurred by the employees of the Firm in investigating and evaluating
investment opportunities and in managing investments of the Clients.

Each Clients shall bear all costs and expenses incurred in the investigation, holding, purchase,
sale or exchange of securities or Digital Assets (whether or not ultimately consummated),
including, but not by way of limitation, private placement fees, finder’s fees, interest on
borrowed money, real property or personal property taxes on investments, including
documentary, recording, stamp and transfer taxes, brokerage fees or commissions, legal fees,
expenses incurred in connection with the investigation, prosecution or defense of any claims
by or against the Client, including claims by or against a governmental authority, audit and
accounting fees, consulting fees relating to investments or proposed investments, taxes
applicable to the Client on account of its operations, fees incurred in connection with the
maintenance of bank or custodian accounts, and all expenses incurred in connection with the
registration of the Client’s securities under applicable securities laws or regulations, and
Micro-Grants up to an aggregate of $400,000. Each Client shall also bear expenses incurred
by the General Partner in serving as the Client’s representative, the cost of liability and other
premiums for insurance protecting the Client, the General Partner, the managing directors,
the Firm and its employees from liability to third parties, legal fees and expenses associated
with reporting, registration or compliance requirements of the General Partner or the Firm
imposed by the SEC or state regulatory agency (excluding any incremental costs associated
with the Firm (or an Affiliate thereof) becoming a registered investment adviser), all out-of-
pocket expenses of preparing and distributing reports to Investors, expenses associated with
Client communications with Investors, including preparation of annual or other reports to
the Investors, out-of-pocket costs associated with Client meetings (including the Client’s
annual meeting) or advisory committee matters, all legal, bookkeeping, and accounting fees
relating to each Client and its activities (including up to 25% of the salary of one employee of

the General Partner or the Firm performing internal bookkeeping and accounting services for
the Client), all costs and expenses arising out of each Client’s indemnification obligation
pursuant to each limited partnership agreement, and all expenses that are not normal
operating expenses.
...

Item 7 – Types of Clients

Compound provides discretionary investment advice to the Clients, as described in Item 4.B.
above. Investors are generally “accredited investors” within the meaning of Rule 501(a)
under the Securities Act of 1933, as amended, and “qualified clients” within the meaning of
the Advisers Act, and with respect to certain Clients, “qualified purchasers” as defined in
Section 2(a)(51) of the Investment Company Act of 1940 (the “Investment Company Act”).
Investment in the Clients is generally offered to high-net-worth individuals, funds-of-funds,
pension funds, endowments, and other institutional investors that meet the applicable
investor suitability requirements. Each Client generally has a minimum investment amount
for third-party Investors, as provided in each Client’s Governing Documents. Such minimum
investment amounts may be waived by Compound at its sole discretion.