Item 5: Fees and Compensation
Item 5.A.
Fees and Compensation of the Meta Stable Funds
With respect to an Investor in the Meta Stable Balanced Funds, Meta Stable will generally receive a monthly
management fee, calculated at an annual rate of such Investor’s capital account (the “Meta Stable Balanced
Management Fee”). With respect to an Investor in the Meta Stable Edge Funds, Meta Stable will generally
receive a monthly management fee, calculated at an annual rate of such Investor’s capital account (together
with the Meta Stable Balanced Management Fee, the “Management Fee”). The Management Fee will be
calculated and paid monthly in advance, based on the value of each Investor’s capital account, as of the first
day of the month. Meta Stable may elect to reduce, otherwise modify or waive the Management Fee with
respect to any Investor.
Meta Stable or an affiliate, in its role as General Partner, is entitled to receive an allocation, generally
annually in the case of the Meta Stable Balanced Funds, and Meta Stable Edge Funds, of the net income
allocated for the year to each Investor’s account (and each Investor’s interest participating through the
Feeder Fund) as of the end of each calendar year (“Incentive Allocation”). An Incentive Allocation is also
made as to amounts withdrawn, as of the effective time of the withdrawal or redemption by Investors.
Incentive Allocations are subject to a “high water mark” under which the General Partner receives an
Incentive Allocation only to the extent the net income allocated to an Investor’s capital amount exceeds any
net losses previously allocated to it since the date the last Incentive Allocation was assessed (or the original
date of contribution if no Incentive Allocation has previously been assessed).
The General Partner (and/or Board of Directors with respect to the Balanced Feeder Fund and the Edge
Feeder Fund) may elect to reduce, otherwise modify or waive the Incentive Allocation with respect to any
Investor.
Meta Stable may cause the Meta Stable Balanced Fund, L.P. to purchase interests in the Meta Stable Edge,
L.P., in order to gain exposure to smaller cryptographic assets. Meta Stable may have incentive to make
such purchases in order to receive management and performance fees on investments in Meta Stable Edge,
L.P., in addition to the fees it receives from that same investment Meta Stable Balanced Fund, L.P. To
mitigate this potential conflict of interest, the Funds have entered into agreement whereby Meta Stable
Balanced Fund, L.P.’s investment will not be subject to any management fees or performance allocations
of Meta Stable Edge, L.P.
It should be noted that any fund launched by Meta Stable after the date of this brochure may have
materially different terms than those summarized above and any terms for any existing Fund may
be amended from time to time. The fees for each Fund are described in more detail in each Fund’s
offering documents.
Item 5.B.
Meta Stable 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 Incentive Allocation in response to Item 5.A..
Item 5.C.
Except as disclosed in the Funds’ offering documents, Meta Stable bears its own expenses, including office
space and utilities, computer equipment and software and secretarial, clerical, employee related andother
personnel, except as assumed by the Funds.
Organizational Expenses
Each Fund will bear its own organizational expenses, which, in the case of the Balanced Funds, did not
exceed $10,000 and which, in the case of the Edge Funds, did not exceed $15,000.
Expenses of the Funds
The Funds are generally responsible for the following costs and expenses: (i) Management Fees; (ii) all
general investment expenses (i.e., exchange commissions and charges, research expenses, data processing
costs and expenses, quotation and news services, bank service fees, spreads, interest expenses, custodial
expenses and other investment expenses); (iii) all administrative, legal, accounting, auditing, record-
keeping, tax form preparation, compliance and consulting costs and expenses; (iv) all fees, costs and
expenses related to middle office operations which may include daily reconciliation of cash, cost,positions
and valuations, dividends and interest accruals, trade break identification and resolution and corporation
action management; (v) fees, costs and expenses of third-party service providers that provide such services;
(vi) costs and expenses associated with preparing investor communications, printing and mailing costs; (vii)
insurance costs and expenses; (viii) taxes and other governmental charges payable by a Fund; (ix)
governmental licensing, filing and exemption fees (including Blue Sky filing fees); (x) indemnification
obligations; (xi) all expenses (including reasonable attorneys’ fees) incurred in connection with any
threatened, pending, or anticipated litigation, U.S. Internal Revenue Service (examination or audit, or
similar audit or examination by any state or local taxing authority, or other legal proceeding; and (xii) any
extraordinary expenses.
The Funds will incur brokerage and transaction costs, which are discussed in Item 12 below.
Item 5.D.
As discussed above in response to Item 5.A., the Management Fee of each of the Funds is payable monthly
in advance.
Item 5.E.
Neither Meta Stable, nor any of its supervised persons, are compensated for the sale of securities or other
investment products or mutual funds. Additionally, Meta Stable does not charge advisory fees in addition
to commissions or markup fees for the purchase and sale of securities for the Funds’ portfolios.