Item 5. Fees and Compensation
New clients have five days from signing the agreement to cancel without penalty or fees.
Thereafter, either client or the Advisor may terminate with a 30-day written notice and unearned
prepaid fees, if any, will be refunded on a daily pro-rata basis.
Asset Management Fees
Asset management fees are a standard annualized fee of 1.5% of assets under our management, and
subject to a 15% performance fee. Fees are negotiable at the sole discretion of the Firm.
Serenity’s Asset management fees are paid monthly in advance by direct deduction from client
account(s), if available through the respective custodian, or by invoice. Assets are valued as of the last
business day of the prior month. Performance fees are calculated in arrears quarterly and subject to
high-water mark limitation.
Please refer to Item 6 for more information about performance-based fees.
Please refer to Item 15 for more information about direct fee deduction.
Clients will incur other fees and expenses outside of Serenity, including transaction fees, and other
related costs and expenses that may be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, and other third parties such as custodial fees, transaction commissions,
odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. Such charges, fees and commissions are exclusive of and
in addition to Serenity’s fee, and Serenity does not receive any portion of these external fees and
expenses.
Institutional Signal Selling/Advisory Recommendation Fees
Fees for signal selling and advisory recommendations not involving asset management are negotiated
directly with institutional entities. These flat-rate fees are paid quarterly in arrears within 60 days
following the calendar quarter end and range from $7,500 to $25,000.
Private Fund Management Fees: Asset management fees are paid to Serenity as the fund’s advisor, and
performance fees are paid to Serenity Alternative Investments GP, LLC as the General Partner of the
fund. Serenity Alternative Investments GP, LLC is an affiliate under common ownership with Serenity
Alternative Investment Management, LLC, which is the entity providing this disclosure Brochure and
investment manager for the Fund.
Please refer to Item 6 for more information about performance-based fees.
Other Compensation for Sale of Securities
Neither Serenity nor any associates accept compensation for the sale of securities or other investment
products.