Item 5 — Fees and Compensation
A. Fee Schedule
The Firm charges a single all-inclusive annual wrap fee of 2.50% of assets under management
(“AUM”) for all client accounts. This fee covers:
• Discretionary investment advisory services
• Trade execution through the qualified custodian
• Custody and account administration
• Technology platform access and maintenance
• Ongoing compliance monitoring and suitability reviews
• Automated portfolio rebalancing
There are no additional fees, commissions, or charges imposed by the Firm. Clients do not pay
separate transaction fees, ticket charges, account maintenance fees, technology fees, or any
other charges beyond the single wrap fee.
B. Negotiated Fees
For client accounts with assets under management of $1,000,000 or more, the Firm may negotiate
the annual advisory fee on a case-by-case basis. Any negotiated fee arrangement will be
documented in the client's advisory agreement. The Firm retains sole discretion over whether to
offer a reduced fee and the terms of any such arrangement.
C. Fee Calculation and Billing
The annual advisory fee is calculated based on 252 trading days per year. Fees are billed monthly
in arrears based on the average daily account value during the billing period. Fees are
automatically deducted from the client's account by the qualified custodian. Clients authorize fee
deduction in their advisory agreement.
The Firm will provide clients with an itemized fee statement for each billing period, which will
include the fee amount, the account value used to calculate the fee, and the billing period covered.
Clients should compare the fee information provided by the Firm with the statements received
from the qualified custodian.
D. Other Fees and Expenses
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PILOTAI WEALTH, LLC · FORM ADV PART 2A — FIRM BROCHURE
While the Firm's wrap fee covers the services described above, client accounts may be subject
to certain third-party charges that are outside the Firm's control and are not included in the wrap
fee. These may include:
• Regulatory fees such as SEC fees or FINRA Transaction Activity Fees, if applicable.
• Wire transfer fees, if any, charged by the custodian for incoming or outgoing wires.
• Account transfer fees (ACAT) if a client transfers an account away from the custodian.
The Firm does not receive any portion of these third-party fees.
E. Prepayment and Refunds
Because fees are billed in arrears, no prepayment of fees occurs. If a client's advisory agreement
is terminated during a billing period, the Firm will calculate a prorated fee for the portion of the
billing period during which the account was managed. No penalty is charged for early termination
of the advisory relationship.
F. Compensation for Sale of Securities
Neither the Firm nor any of its supervised persons receives compensation for the sale of securities
or other investment products. The Firm does not sell insurance products, annuities, or other
financial products that would create a compensation conflict. The Firm's sole source of advisory
compensation is the wrap fee described in this Item 5.
G. Wrap Fee Considerations
Under a wrap fee program, clients may pay more or less than they would if they paid separately
for advisory services, brokerage, custody, and other covered services. Whether a wrap fee is
advantageous depends on factors including the size of the account, the frequency of trading
activity, and the costs that would otherwise be incurred for the component services. Clients should
consider whether the wrap fee arrangement is appropriate for their circumstances.
Because the Firm's wrap fee covers transaction costs, the Firm may have a reduced incentive to
trade client accounts. However, the Firm's automated rebalancing system is designed to execute
trades whenever portfolio drift thresholds are triggered, regardless of fee considerations. The
rebalancing system operates according to pre-established parameters approved by the
Investment Committee and is not influenced by the Firm's compensation structure. For additional
information regarding the Firm's brokerage practices, see Item 12 of this Brochure.