ParaFi Capital LP

ITEM 5: FEES AND COMPENSATION
Item 5.A. Description of Compensation Arrangements

Management Fees

With respect to an Investor in each of PDO and PQS, ParaFi will generally receive a monthly
management fee calculated at an annual rate of 2.0% (for PDO) and 1.0% - 2.0% (for PQS), on
such Investor’s capital account. The management fee is calculated and paid monthly in advance,
based on the value of each Investor’s capital account as of the first day of the month. If capital
contributions are made at any time other than at the beginning of a calendar month, a pro rata
portion of the management fee will be paid to ParaFi in respect of such capital contribution (based
on the actual number of days remaining in such partial month).

Investors in PSI do not bear a management fee.

With respect to an Investor in the Main Venture Funds, ParaFi will generally receive a quarterly
management fee calculated at an annual rate of 2.5%. The management fee will be reduced by
0.25% per year, but not lower than 1.5%, beginning with the full fiscal year following the earlier
of the fifth anniversary of an Investor’s initial contribution or suspension period as provided in
each Main Venture Fund’s Governing Documents. The management fee shall be payable in equal
quarterly installments in advance, with the management fee for any partial fiscal quarter prorated
based on the number of business days in such fiscal quarter.

With respect to an Investor in certain PPO Series, ParaFi will generally receive an upfront
management fee equal to a percentage (ranging from 0%-2%) of such Investor’s initial and/or
additional capital commitment as set forth in each applicable PPO Series’ Governing Documents.
The management fee payable to ParaFi is separate from, and in addition to, any management fee
payable to the underlying portfolio company as described in the applicable PPO Series’ Governing
Documents.

ParaFi, in its sole discretion, has and in the future may reduce, otherwise modify, or waive the
management fee with respect to any Investor.

Performance-Based Compensation

PDH and PQSGP are entitled to receive an allocation, generally annually or quarterly, equal to
20% of the net income allocated for the year or quarter to each Investor’s capital account, for
Investors in each of PDO and PQS, respectively (the “Incentive Allocation”). An Incentive
Allocation is also made as to amounts withdrawn, as of the effective time of the withdrawal by
Investors. Incentive Allocations are generally subject to a “high water mark”, as more fully set
forth in the Governing Documents of PDO and PQS.

Investors in PSI are not subject to any performance-based compensation.

Subject to the terms and limitations set forth in applicable Governing Documents for each PPO
Series, PDH generally is entitled to receive carried interest (“Carried Interest”) distributions
equal to a percentage (generally, ranging from 0% to 20%) of the net profits derived from
disposition of investments, following the return of capital contributions attributable to disposed
assets. Carried Interest due to PDH is separate from, in addition to, and calculated after the
deduction of any carried interest paid by the relevant PPO Series to any underlying fund’s general
partner.

Subject to the terms and limitations set forth in each Main Venture Fund’s Governing Documents,
the relevant General Partner generally is entitled to receive Carried Interest distributions equal to
20% of the net profits derived from the disposition of investments, following the return of capital
contributions attributable to disposed assets.

The applicable General Partner, in its sole discretion, has and in the future may reduce, otherwise
modify (but not increase), or waive the Incentive Allocation or Carried Interest with respect to any
Investor.

It should be noted that any fund launched by ParaFi 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.

Item 5.B. Manner of Payment

ParaFi deducts its fees and compensation from the Funds’ accounts by instructing the Funds’
administrator. Fees and compensation from the Funds are collected at the frequency discussed
above for the management fee, transaction fee, Incentive Allocation, and Carried Interest in
response to Item 5.A. above.

Item 5.C. Other Fees and Expenses Clients May Be Charged

As set forth more fully in each Fund’s Governing Documents, each Fund generally bears and is
responsible for its own expenses (whether incurred directly or by ParaFi, the applicable General
Partner, or their respective affiliates), including, but not limited to, (i) the management fee
applicable to that Fund; (ii) that Fund’s organizational expenses; (iii) all fees, costs, and expenses
incurred in connection with (A) identifying, investigating, evaluating, acquiring, consummating,
holding, maintaining, monitoring, and disposing of the investments (including, but not limited to,
legal, accounting, auditing, custodial, consulting, investment banking and other fees and expenses,
brokerage commissions and other trading expenses, lending platform transaction fees, costs and
expenses; currency exchange fees; data processing costs and expenses; network and smart contract
gas costs, appraisal fees, taxes, finders fees, merger fees, registration fees, due diligence and
similar fees and expenses, third party research tools and software, investment related consultants,
fees for attendance of industry conferences, and all reasonable out-of-pocket travel and related
expenses (including, but not limited to, air travel, car services, hotel accommodations, and meals
(collectively, “Travel Expenses”)), in each case, incurred by employees and/or other agents of
ParaFi, the General Partners, or their respective affiliates in connection with the foregoing,
regardless of whether such investment and disposition opportunities are or are not consummated,
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ITEM 7: TYPES OF CLIENTS
ParaFi provides discretionary investment advice to the Funds, as described in Item 4.B. above.
Investors in the Funds are generally “accredited investors” within the meaning of Rule 501(a)
under the Securities Act of 1933, as amended (the “Securities Act”), “qualified clients” within the
meaning of Rule 205-3 under the Investment Advisers Act of 1940, amended (the “Advisers
Act”), and/or “qualified purchasers” within the meaning of Section 2(a)(51) of the Investment
Company Act of 1940, as amended (the “Investment Company Act”). The Funds’ interests may
generally be offered to high net worth individuals, funds of funds, pension funds, endowments,
and other institutions. Each Fund generally has a minimum investment amount for potential
Investors as provided in each Fund’s Governing Documents. Such minimum investment amounts
may be waived by ParaFi or the applicable General Partner at their sole discretion.