Musaffa LLC

Item 5: Fees and Compensation

A. Recommendation Advisory Service Fees

Fee Schedule

MUSAFFA’s asset-based fees are calculated based upon the client’s total assets under
advisement (“Total AUA”), defined as the aggregate market value of all assets held in
the client's account(s) as of the close of each calendar day. Fees accrue daily and are
charged monthly in arrears, typically as of the first business day following the end of
each calendar month. Fees may be charged pursuant to a tiered fee schedule (the “Fee
Schedule”). Fees are calculated using the daily closing value of the client's account; for
the flat-fee tier, the daily rate equals the applicable monthly flat fee divided by the
number of calendar days in the applicable month; for percentage-based tiers, the daily
rate equals the applicable annual percentage rate divided by 365 (or 366 in a leap year).

If a client's Total AUA crosses a tier boundary during a billing period, each day's fee
will be calculated based on the tier applicable to the client's Total AUA as of the close of
that day. As a result, the total monthly fee may vary based on the client's daily account
balance throughout the month.

The Fee Schedule is as follows:

Assets Under Advisement (AUA)                   Fee Tiers

$0 – $23,999                                    $5 per month

$24,000 – $99,999                               0.25% annually

$100,000 - $499,999                             0.20% annually

$500,000 – $999,999                             0.15% annually

$1,000,000 and above                            0.10% annually

Tier Transitions

Fees accrue on a daily basis using the Client's Total AUA as of the close of each calendar
day. If the Client's Total AUA crosses a tier boundary on any day during a billing period,
the fee for that day will be calculated at the rate applicable to the tier into which the
Client's Total AUA falls on that day. For example, if a Client's Total AUA is $23,500 on
a given day, the applicable fee for that day is the daily equivalent of the $5 per month
flat fee. If the same Client's Total AUA rises to $24,500 the following day, the applicable
fee for that day is the daily equivalent of 0.25% annually applied to the $24,500 balance.
Accordingly, the total monthly fee may be higher or lower depending on the Client's
daily closing account balance throughout the billing period.

Fee Collection

Fees are deducted directly from the available cash balance in the Client's Account held
at the qualified custodian, pursuant to the written authorization granted by the Client in
the Self-directed Recommendation Advisory Agreement. At account opening,
MUSAFFA will designate a portion of the available cash in the Client's Account as an
initial fee reserve equal to three (3) months of estimated fees, based on the Account's
then-current value and the applicable Fee Schedule, but not less than fifteen dollars ($15)
at any given time (the "Fee Reserve"). Each successive three (3) month period is a "Fee
Collection Cycle" (the initial period being the "Initial 36-Month Cycle" and each later
period a "Subsequent 3-Month Cycle"). Following establishment of the initial Fee Reserve
at account opening, fees accrue daily and are deducted monthly in arrears from available
cash in the Client's Account. If, at any time during a Fee Collection Cycle, the available
cash then held in the Client’s Account is sufficient to replenish the Fee Reserve in whole

or in part, such cash will be applied for that purpose. Accordingly, MUSAFFA has the
right to replenish the Fee Reserve at any time available cash exists in the Client's Account,
without waiting until the end of the then-current Fee Collection Cycle. If sufficient cash
is not otherwise available to replenish the Fee Reserve, then during the second (2nd) and
third (3rd) months each Fee Collection Cycle, MUSAFFA will send the Client reminders
approximately every fifteen (15) days requesting that the Client make available sufficient
cash to replenish the Fee Reserve for the Subsequent 3-Month Cycle. If the Client
thereafter makes available sufficient cash, whether by deposit or by liquidation of
holdings, MUSAFFA has the right to immediately apply such cash to replenish the Fee
Reserve for the Subsequent 3-Month Cycle. The Fee Reserve is not a prepayment of the
fees. Cash designated as the Fee Reserve remains the Client's property at all times,
continues to be held in the Client's Account at the qualified custodian, and remains
subject to the Client's right to withdraw available cash upon termination of the advisory
relationship as described in this Item 5. Because the Fee Reserve does not constitute
prepaid fees, it does not affect the disclosures in Item 18 of this Brochure. Clients with
smaller account balances should be aware that the fifteen-dollar ($15) minimum Fee
Reserve may represent a significant portion of a small Account.

If, at any time, the available cash in the Client's Account is insufficient to pay accrued
advisory fees when due, MUSAFFA will notify the Client electronically through the
Musaffa Platform and/or by email and request that the Client deposit sufficient cash to
pay the fees and, if applicable, replenish the Fee Reserve. If the Client fails to deposit
sufficient cash within ten (10) days after such notice, MUSAFFA may, at its discretion and
as it deems appropriate under the circumstances, pursue one or more of the following
remedies: (i) restrict or suspend certain features of the Musaffa Platform in accordance
with the Self-directed Recommendation Advisory Agreement; and/or (ii) pursuant to the
authorization granted by the Client in the Self-directed Recommendation Advisory
Agreement at the time of account opening, instruct the qualified custodian to liquidate a
portion of the Client's holdings in an amount reasonably necessary to generate the cash
required to satisfy the outstanding advisory fee. MUSAFFA will elect to liquidate
...

Item 7: Types of Clients

MUSAFFA generally provides advisory services to the following types of clients:

       ❖       Individuals
       ❖       High-Net-Worth Individuals

The Recommendation Advisory Service requires a minimum account balance of $100 to invest through
the Platform. The Managed Portfolio service has an account minimum of $500. MUSAFFA may waive
either minimum in its discretion.