Innovative Family Office LLC

Fees and Compensation - Item 5

    Family Office Services Fees
    Family office Services fees are billed monthly, in advance, and are based on the value of your portfolio at the end
    of the preceding month. Terms of payment are stated in the Family Office Services Agreement signed by the client
    and the firm. Generally, the portfolio management fee will be deducted from the client’s account held with a non-
    affiliated, qualified custodian. The qualified custodian will provide the client with an account statement. This
    statement will detail all account activity, including any fees deducted from the account(s). We may deduct the
    fee from a single, client-designated account to facilitate billing. IFO will also receive a copy of your account
    statements from the custodian. Please review each statement for accuracy. Please let us know immediately if you
    have questions about or if you did not receive a statement. In our sole discretion, we may also negotiate other

Innovative Family Office LLC
Form ADV Part 2A Brochure

    fee payment arrangements with clients. These payment arrangements will be clearly set forth in the Family Office
    Services Agreement signed by the client and the firm.

    On an annualized basis, IFO typically charges an annual fee, based upon a percentage of the market value of the
    assets being managed, ranging up to 1.50% of assets under management. We may also negotiate other fee
    schedules, such as an annual fixed fee or an annual percentage of assets under management fee based on a tiered
    fee schedule. For all investments in Unaffiliated Private Funds, the management fee is set at a flat rate of 1.00%
    of assets under management. IPWM receives a management fee as the manager and investment adviser to the
    Innovative Funds. These fees are separate from and in addition to the advisory fee we charge you for the
    management of your portfolio. If a client of our firm invests in the Funds, we will receive a portfolio management
    fee and IPWM will receive a separate management fee for the management of the Innovative Funds.

    IFO will not charge a management fee for any assets invested in TEFs and the Related Funds because IFO’s
    affiliated entities will receive fees for those investments. Clients should read the offering materials of the TEFs
    and the Related Funds to determine the fees that will be incurred in conjunction with those investments.

    Portfolio management fees are negotiable depending on factors such as the amount of assets under
    management, range of investments, and complexity of the client’s financial circumstances, among others. The
    exact fee to be paid by the client will be clearly stated in the Family Office Services Agreement signed by the client
    and the firm.

    At the inception of portfolio management services, the first pay period’s fees will be calculated on a pro-rata
    basis. The Family Office Services Agreement between the client and IFO will continue in effect until either party
    terminates the agreement in accordance with the terms of the agreement. IFO’s annual fee will be pro-rated
    through the date of termination and any pre-paid, unearned fees will be promptly refunded to the client.

    Our annual fee is exclusive of, and in addition to, brokerage commissions, transaction fees, and other related
    costs and expenses. You are responsible for brokerage costs incurred. However, IFO will not receive any portion
    of the commissions, fees, and costs. Please see Item 12 – Brokerage Practices for further information on brokerage
    and transaction costs. We urge clients to review this section in detail to familiarize themselves with the custodial
    fee billing arrangements negotiated with Charles Schwab & Co., Inc. and Digital Trust.

    Individual Retirement Account Rollover Disclosures
    As a normal extension of financial advice, we provide education or recommendations related to the rollover of an
    employer-sponsored retirement plan. A plan participant leaving employment has several options. Each choice
    offers advantages and disadvantages, depending on desired investment options and services, fees and expenses,
    withdrawal options, required minimum distributions, tax treatment, and the investor's unique financial needs and
    retirement plans. The complexity of these choices may lead an investor to seek assistance from us.

    An Associated Person who recommends an investor roll over plan assets into an Individual Retirement Account
    (“IRA”) may earn an asset-based fee as a result, but no compensation if assets are retained in the plan. Thus, we
    have an economic incentive to encourage an investor to roll plan assets into an IRA. In most cases, fees and
    expenses will increase to the investor as a result because the above-described fees will apply to assets rolled over
    to an IRA and outlined ongoing services will be extended to these assets.

    We are fiduciaries under the Investment Advisers Act of 1940 and when we provide investment advice to you
    regarding your retirement plan account or individual retirement account, we are also fiduciaries within the
    meaning of Title I of the Employee Retirement Income Security Act and/or the Internal Revenue Code, as
    applicable, which are laws governing retirement accounts. We have to act in your best interests and not put our
    interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests.

Innovative Family Office LLC
Form ADV Part 2A Brochure

    Additional Fees and Expenses
    Fees are negotiable based on the amount of assets under management, complexity of client goals and objectives,
    and level of services rendered. As described above, the fees are charged as described and are not based on a
    share of capital gains of the funds of any advisory client.
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Types of Clients – Item 7

    We generally offer investment advisory services to individuals, trusts, estates, charitable organizations,
    corporations and other business entities.

    IFO generally requires clients to be “Qualified Clients” who have a net worth greater than $2,200,000 (exclusive
    of the value of primary residence), or those for whom we manage a minimum of $1,100,000, from the beginning
    of our agreement for services. However, from time-to-time, in its sole discretion, IFO may accept smaller accounts
    based on various criteria, such as anticipated future assets, related accounts, and other factors.

                          Methods of Analysis, Investment Strategies and Risk of Loss – Item 8

    Our investment strategies and advice may vary depending on your specific financial situation. As such, we
    determine investments and allocations based on your predefined objectives, risk tolerance, time horizon, financial
    horizon, financial information, liquidity needs, and other various suitability factors. Your restrictions and
    guidelines may affect the composition of your portfolio.

Innovative Family Office LLC
Form ADV Part 2A Brochure

 We may use one or more of the following methods of analysis when providing investment advice to you:

     •    Fundamental Analysis – Fundamental analysis is a method of evaluating a company or security by
          attempting to measure its intrinsic value. In other words, trying to determine a company’s or a security’s
          true value by looking at all aspects of the business, including both tangible factors (e.g., machinery
          buildings, land, etc.) and intangible factors (e.g., patents, trademarks, “brand” names, etc.). Fundamental
          analysis also involves examining related economic factors (e.g., overall economy and industry conditions,
          etc.), financial factors (e.g., company debt, interest rates, management salaries, and bonuses, etc.),
          qualitative factors (e.g., management expertise, industry cycles, labor relations, etc.), and quantitative
          factors (e.g., debt-to-equity and price-to-equity ratios). The end goal of performing fundamental analysis
          is to produce a value that an investor can compare with the security's current price in hopes of
          determining what sort of position to take with that security (underpriced = buy, overpriced = sell or
          short). This method of security analysis is considered the opposite of technical analysis. Fundamental
          analysis is about using real data to evaluate a security’s value. Although most analysts use fundamental
          analysis to value stocks, this method of valuation can be used for just about any type of security. The risk
          associated with fundamental analysis is that information obtained may be incorrect and the analysis may
          not provide an accurate estimate of earnings, which may be the basis for a stock’s value. If securities
          prices adjust rapidly to new information, utilizing fundamental analysis may not result in favorable
          performance.

      • Technical Analysis – Technical analysis is a technique that relies on the assumption that current market
        data (such as charts of price, volume, and open interest) can help predict future market trends, at least
        in the short term. It assumes that market psychology influences trading and can predict when stocks will
        rise or fall. Technical trading models are mathematically driven based on historical data and trends of
        domestic and foreign market trading activity, including various industry and sector trading statistics
        within such markets. Technical trading models, through mathematical algorithms, attempt to identify
        when markets are likely to increase or decrease and identify appropriate entry and exit points. The
        primary risk of technical trading models is that historical trends and past performance cannot predict
        future trends, and there is no assurance that the mathematical algorithms employed are designed
        properly, updated with new data, and can accurately predict future market, industry, and sector
        performance.

     •    Cyclical Analysis – Cyclical analysis is similar to technical analysis in that it involves the analysis of market
          conditions at a macro (entire market/economy) or micro (company specific) level, rather than the overall
          fundamental analysis of the health of the particular company. The primary risks with cyclical analysis are
          similar to those of technical analysis.

     •    Charting Analysis – Charting analysis involves the gathering and processing of price and volume pattern
          information for a particular security, sector, broad index, or commodity. This price and volume pattern
          information is analyzed. The resulting pattern and correlation data is used to detect departures from
          expected performance and diversification and predict future price movements and trends. The primary
          risk of charting analysis is that it may not accurately detect anomalies or predict future price movements.
          Current prices of securities may reflect all information known about the security and day-to-day changes
          in market prices of securities may follow random patterns and may not be predictable with any reliable
          degree of accuracy.

     •    Private Funds Due Diligence. IFO’s due diligence of potential investment opportunities in Private Fund
          entails a review of the factors described below:
              a.   Quantitative factors – IFO evaluates each potential investment opportunity on the basis of its
                   historical performance, historical risk profile and, where we believe warranted, the investment
                   opportunity’s drawdown patterns.

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