Kynikos Advisors LLC

Item 5: Fees and Compensation

See Item 6 below. It is expected that fees from private funds will be deducted from clients’
assets. Fees from managed accounts or sub-advisory relationship will either be deducted from
clients’ assets or paid by the relevant investment manager or investment advisor.

Item 7: Types of Clients

The Adviser currently provides discretionary investment advisory services to managed accounts
and may, in the future, provide discretionary investment advisory services to domestic and
offshore private funds. At present, managed account clients include registered investment
companies. It is expected that managed account clients and investors in the private funds will
include, in addition to registered investment companies, individuals, pension and profit-sharing
plans, trusts, charitable organizations, corporations, business entities, endowments, foreign
sovereign wealth funds, and UCITS.

The Adviser does not require a minimum dollar value of assets for starting or maintaining a
managed account or single-investor fund. The Adviser reserves the right to impose in the future
a minimum dollar value of assets or other conditions for starting and maintaining managed
accounts or single-investor funds. It is anticipated that each hedge fund will have a minimum

initial subscription requirement of $1 million, subject to the discretion of the Adviser to accept
lesser amounts.