Dragonfly Digital Management LLC

Item 5: Fees and Compensation

Item 5.A.

Fees and Compensation of the Funds

Dragonfly or an affiliate is compensated for its advisory services through a management fee, which is
calculated for its venture funds as a percentage of the annual rate and based on each Limited Partners’ total
capital commitment in a Fund, and is calculated for its hedge funds as a percentage of the annual rate and
based on the account balance of each Limited Partner in a Fund as of the first day of the month (collectively,
the “Management Fee”). Dragonfly or an affiliate may, in its discretion, reduce, waive or calculate
differently the Management Fee with respect to any Limited Partner.

Dragonfly or an affiliate, in its role as General Partner of a Fund, is entitled to receive an allocation of the
net income allocated to each Limited Partner’s account (the “Performance Allocation”). For the venture
funds, the General Partners receive Performance Allocation on distributions to Limited Partners, only to
the extent that distributions exceed the Limited Partners’ capital contribution. For the non venture funds,
the General Partners receive Performance Allocation, generally annually, as of the end of the calendar year.
A Performance Allocation is also made to amounts withdrawn, as of the effective time of the withdrawal
or redemption by Limited Partners.

These Performance Allocations are subject to a “high water mark” under which the General Partner
receives a Performance Allocation only to the extent the net income allocated to a Limited Partner’s capital
amount exceeds any net losses previously allocated to it since the date the last Performance Allocation
was assessed (or the original date of contribution if no Performance Allocation has previously been
assessed).

Dragonfly may cause certain of the Funds to purchase interests in other Funds, in order to gain exposure to
certain Digital Assets. Dragonfly may have an incentive to make such purchases in order to receive
additional Management Fees and Performance Allocations. To mitigate this potential conflict of interest,
the Funds have entered into agreements whereby a Fund’s investment will not be subject to the Management
Fees or Performance Allocation of the Fund in which an interest was purchased. However, prior to
Dragonfly’s acquisition of Meta Stable, LLC, certain Dragonfly Funds invested in (and are still invested
in) a Fund managed by Meta Stable, LLC. Those Dragonfly Funds are subject to the standard Management
Fees and Performance Allocation of such Meta Stable Fund.

It should be noted that any Fund launched by Dragonfly after the date of this brochure may have
materially different terms than those summarized above and any terms for any existing Funds may
be amended from time to time. The fees for each Fund are described in more detail in each Fund’s
Governing Documents.

Item 5.B.

Dragonfly or an affiliate deducts its fees and compensation from the Funds’ accounts by instructing the
Funds’ administrator to facilitate such deductions. Fees and compensation from the Funds are collected at
the frequency discussed above for the Management Fee and Performance Allocation in response to Item
5.A.

Item 5.C.

Except as disclosed in the Funds’ Governing Documents, Dragonfly or the General Partner bears its own
separate expenses arising out of its services to the Fund, including all of its general overhead expenses

including the rent of its offices, compensation and benefits of its staff, maintenance of its books and records,
and its fixed expenses, telephones, and general-purpose office equipment, but are not responsible for any
expenses of the Funds.

Organizational Expenses

Each Fund will bear its own organizational expenses, which, in certain of the Funds, are subject to specific
thresholds.

Expenses of the Funds

The Funds will bear all expenses that are incidental to the operations and business and its pro rata share, as
a Limited Partner of the Funds, which generally include, but are not limited to:

    (i) Expenses incurred in the buying, selling and holding of portfolio investments for the Funds’
    investment programs, such as all taxes, legal and administrative expenses, as well as all expenses that
    Dragonfly reasonably determines to be directly related to the evaluation, acquisition, holding or
    disposition of the Funds’ assets (whether incurred by the Firm or others), such as: (A) brokerage and
    commission expenses (including clearing and settlement charges); (B) margin, premium and interest
    expenses; (C) out-of-pocket expenses related to investments and potential investments, including legal
    and travel expenses; (D) research (including related travel expenses and any expenses associated with
    participation at industry conferences), monitoring, data, software and related equipment expenses; (E)
    expenses, if any, incurred directly or indirectly through a service provider in connection with any
    Digital Asset mining or staking operations, including the costs of hardware, software, energy
    consumption, internet connections, leasing of space and maintenance and other operating and
    replacement costs and any fees or compensation paid to such service provider; (F) consultant expenses
    (including the remuneration of members of the advisory board of the Firm); (G) fees, charges and
    disbursements of custodians, sub-custodians, and secure wallet providers; (H) fees, charges and
    disbursements of escrow agents; (I) fees and expenses relating to any special purpose investment
    vehicle or other subsidiary used to facilitate a transaction; (J) fees and expenses relating to investment
    transactions not consummated; and (K) fees and expenses relating to reorganizations, restructurings
    and workouts involving the Funds’ investments;

    (ii) The cost of maintaining the Firm’s and the Funds’ registered office;
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