Marketocracy Masters Inc

Fees and Compensation
Description
Marketocracy is compensated for its services by charging and receiving a management fee based on the
client’s total assets under management. The management fee is a percentage of client assets, which is
calculated daily based on daily end-of-day market value, billed monthly in arrears based on the accounts
opened online, and deducted directly from the client’s account by the independent custodian,
Interactive Brokers.

The fee schedule is as follows:

 with a minimum of $500 to open an account -                    0.95% annual fee
 with a minimum of $50,000 to open an account -                 0.85% annual fee
 with a minimum of $100,000 to open an account -                0.75% annual fee
 with a minimum of $1,000,000 to open an account -              0.50% annual fee
 with a minimum of $10,000,000 to open an account -             0.25% annual fee

The Firm may reduce or waive its fee at its sole discretion.

Other Fees
Clients should recognize that all fees paid to Marketocracy are separate from the fees and expenses
charged by ETFs and mutual funds. These fees and expenses are described in each fund's prospectus.
These fees will generally include a management fee, other fund expenses, and a possible distribution
fee.

Clients pay costs such as brokerage commissions, transfer taxes, trade away fees, minimum activity fees,
allocation fees and other fees charged by the broker for executing security trades, which are separate
from the fees charged by the Firm. Please see the section entitled "Brokerage Practices" for more
information on how Marketocracy selects its broker-dealers.

Termination of Services
A client, or Marketocracy, may terminate services at any-time, for any reason or no reason, by written
notification through the interactive website. Fees will be pro-rated to the date of termination.

Performance-Based Fees & Side-by-Side
Management
Marketocracy does not charge a performance-based fee.

Types of Clients
Description
As of the date of this brochure, all of Marketocracy’s clients are individuals. However, the services
offered through the interactive website are suitable for both individuals and institutions.

Account Minimums
Marketocracy will recommend a minimum of $500 to invest in one of the Model Portfolios, however,
lesser amounts may be accepted at the discretion of Marketocracy.

Methods of Analysis, Investment
Strategies and Risk of Loss