Derastone LLC

Item 5: Fees and Compensation
Please note, unless a Client has received this brochure at least 48 hours prior to signing an Advisory
Contract, the Advisory Contract may be terminated by the Client within five (5) business days of signing the
Advisory Contract without penalty.

How we are paid depends on the type of advisory services we perform. Below is a brief description of our
fees, however, you should review your executed Advisory Contract for more detailed information regarding
the exact fees you will be paying.

Asset- Based Fees for Portfolio Management
Fees are calculated by account and not in aggregate across accounts.

Wealth Habits may implement a variety of fee schedules but the total fee shall never surpass an annual
maximum fee of 2.00% (percent) of Assets Under Management (AUM). The fee may be applied on a daily,
monthly, or quarterly basis. These fees are negotiable, at the sole discretion of Wealth Habits.

Wealth Habits may use the following types of fee arrangements:
   1. ​ Single annualized percentage, applied on a daily, monthly or quarterly basis.
   2. ​ Blended Fee - Separate AUM ranges, and an annualized fee percentage for each. These fees are
   essentially using a weighted average blended annual fee rate.
   3. ​ Flat Fee - As an annualized dollar amount, applied on a daily, monthly or quarterly basis.

Fees may be calculated using:

   ●​ Daily Average Balance – The average of daily ending asset values,
   ●​ Period-End Balance – The account value on the last day of the billing period, or
   ●​ Period-End Balance plus Pro-Rated Flows – Adjusting for deposits or withdrawals during the billing
      period.

Daily average balance means that fees are prorated based upon the number of trading days in a billing
period. Usually there are 252 trading days a year, but this might change year over year. Fees will be
apportioned using the previous day ending-equity or today’s starting values (normally, there isn’t a
difference but if there is, the Broker might use whichever is higher).

For example, a client with assets under management of $12,000,000 may be assessed a negotiated
annualized fee of $85,062.50. In this particular case the negotiated blended fee structure is the following:

                     Assets Under Management                    Annual Advisory Fee
                             First $25,000                              1.00%
                            Next 9,975,000                              0.75%
                       $10,000,000 and Above                            0.50%

The calculation of a blended fee is as follows: $25,000 * 1.00% + $9,975,000 * 0.75% + $2,000,000 * 0.50%.
The weighted average rate would be 0.71% which is lower than 2.00% for all assets. Assume there are 252
trading days in that year, then one day of fees would amount to $85,062.50/252 = $337.55. Given that the
AUM is changing daily, this calculation is run every day. Then, the invoiced fee would be the sum of the daily
fees calculated in that billing period (e.g. daily, monthly, quarterly).

The actual asset based fee schedule charged to your account will be specified in the Investment Advisor
Contract which will be executed prior to any services being provided. The actual asset based fee may be

higher or lower than represented above example. These fees are negotiable and the final fee schedule is
attached as an Exhibit to the Investment Advisory Contract. The amount of managed held-away assets and
outside managed assets are included in the total account value that the advisory fee is calculated on. Wealth
Habits will notify the Client electronically 30 days in advance of any other fee increase. If no objection is
made by the Client within thirty (30) days following delivery of such notice, Wealth Habits will assume the
Client’s inaction constitutes consent.

Accounts initiated or terminated during a calendar month will be charged a prorated amount based on the
number of days service is provided during each billing period. These advisory fees are withdrawn directly
from the client’s accounts with client written authorization. Clients may also choose to pay by check or credit
card. Clients may select the method in which they are billed. For purposes of calculating portfolio­ based
fees, the advisor will rely on values reported by the Broker or Custodian.

If you choose to have the investment advisory fees deducted from your account, you must authorize the
qualified custodian(s) of your account to deduct fees from your account and pay such fees directly to Wealth
Habits. Clients are billed in arrears, and may terminate their contracts with thirty calendar days’ written
notice (in advance). Because fees are charged in arrears, no refund policy is necessary.

Clients may terminate their accounts without penalty within 5 business days of signing the advisory
contract. Thereafter, clients may terminate advisory services with thirty (30) days written notice. No increase
in the annual fee shall be effective without agreement from the client by signing a new agreement or
amendment to their current advisory agreement. Fees may be reduced or waived for families, friends,
subscribers of financial planning engagements, and any past, present, and future employees.

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify the
accuracy of the investment advisory fees deducted.

Wealth Habits believes that its annual fee is reasonable in relation to: (1) services provided and (2) the fees
charged by other investment advisers offering similar services/programs. However, the annual investment
advisory fee may be higher than that charged by other investment advisers offering similar
services/programs.

Financial Planning Fees

Financial planning fees will depend on the needs of clients. Subscription plans consist of an upfront charge
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Item 7: Types of Clients
Wealth Habits generally provides management supervisory services to the following Types of Clients:

   ❖​   Individuals
   ❖​   High-Net-Worth Individuals
   ❖​   Pensions and profit sharing plans
   ❖​   Trusts, Estates, or Charitable Organizations
   ❖​   Corporations or Business Entities
   ❖​   Investment Companies

We do not have a minimum account size requirement but there is a minimum annual fee of $500.