Deimos Asset Management LLC

Item 5.

The Adviser faces a conflict of interest to the extent that it manages a Client account for which it receives
performance-based compensation at the same time as it manages one or more other Client accounts for
which it does not receive performance-based compensation or receives a different level of performance-
based compensation. The Adviser has the potential to receive higher compensation from a Client account
for which is it paid performance-based compensation than for a Client account that is not charged
performance-based compensation or is charged lower performance-based compensation. The Adviser
may have an incentive to favor a Client account or take increased investment risk on behalf of a Client
account for which it receives performance-based compensation or greater performance-based
compensation because it could receive greater compensation from such Client account. The Adviser has
implemented policies and procedures to address these conflicts of interest, including policies designed to
allocate trades and investment opportunities in a fair and equitable manner. These policies and
procedures are described in more detail below under Item 12, “Brokerage Practices.”

Form ADV Part 2A                                  6

TYPES OF CLIENTS

The Adviser’s Clients are the Managed Accounts and may, in the future, include Private Funds.

Generally, the anticipated minimum initial investment in the Private Funds is $10,000,000. The Private
Funds may accept initial and additional subscriptions for lesser amounts in the sole discretion of the
managing member, directors, or manager, as applicable.

The Adviser has not set a minimum account size for Managed Accounts, but generally seeks account
sizes in excess of $50,000,000.

Form ADV Part 2A                               7