Item 5: Fees and Compensation
Item 5.A.
Fees and Compensation of the Funds
LedgerPrime generally receives a management fee (the “Management Fee”), payable quarterly in arrears,
equal to 2.0% per annum of the net asset value of the Funds, calculated as a percentage of each Investor’s
capital account as of the last calendar day of each quarter. The Management Fee is adjusted on a pro rata
basis to account for any contributions and withdrawals made by Members during a calendar quarter. The
Firm also will generally receive a performance allocation (the “Performance Allocation”) at the end of each
fiscal year equal to 20% of the net profits (other than those assets attributable to Side Pocket Investments
(as defined in Item 8 below)), if any, attributable to each Investor. The Performance Allocation is subject
to a highwater mark applicable to each Member.
There are currently two (2) classes of Investors in the Funds, a founder class, comprised of the Funds’ initial
investors, and an investor class comprised of all other Investors. Investors have been admitted to the Funds
at different times; therefore, different economic terms, including the Management Fee and the Performance
Allocation, apply consistent with the Governing Documents.
LedgerPrime may waive or reduce the Management Fee and/or Performance Allocation applicable to any
Investor and may otherwise vary the terms of the Management Fee and/or Performance Allocation
applicable to an Investor by agreement with that Member as permitted by the Governing Documents.
Any Fund launched by LedgerPrime 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.
LedgerPrime deducts its fees and compensation from the Funds’ assets 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.
LedgerPrime bears its own overhead and ordinarily recurring operating expenses arising out of its services
to the Funds, including all of its general overhead expenses including the rent of its offices, utilities,
supplies, secretarial expenses, employee compensation and benefits, including insurance, payroll, and other
taxes and related costs, and charges for furniture, fixtures, and equipment, maintenance of its books and
records, and its fixed expenses, telephones, and general-purpose office equipment.
Expenses of the Funds
The Fund bears or reimburses LedgerPrime for all expenses incurred in connection with the organization
of the Fund and the continuing offering of interests. The Fund pays all of its ordinary and extraordinary
expenses, including (i) all costs and expenses associated with the offering of interests; (ii) brokerage
commissions and other transaction costs and investment-related expenses incurred in connection with the
Fund’s investment and trading activities, including fees charged by electronic communication networks in
executing certain transactions, research expenses and the costs of any independent accountants or other
experts or consultants engaged by the Firm in connection with specific investments; (iii) operational costs
such as legal, accounting, bookkeeping, auditing, consulting and other professional expenses,
administration and tax preparation expenses, all taxes, if any, costs and expenses related to regulatory
compliance matters, fees payable to governments or agencies, and costs associated with any other third
party risk management service provider retained by the Fund; (iv) any interest, fees, and costs of Fund-
related borrowings; (v) its pro rata portion of any E&O insurance; (vi) research-related travel expenses of
the Firm, if any (vii) exchange, board of trade or other trading or execution facility membership or
participation expenses and (viii) extraordinary expenses (e.g., litigation costs, indemnification obligations,
and costs incurred in connection with a reorganization or restructuring of the Fund), if any.
Item 5.D.
As discussed above in response to Item 5.A., the Management Fee is payable quarterly in arrears.
Item 5.E.
Neither LedgerPrime, nor any of its supervised persons accepts compensation for the sale of securities,
Digital Assets, or other investment products outside of its association with LedgerPrime.