SmartX Advisory Solutions LLC

ITEM 5 - FEES AND COMPENSATION
Clients utilizing SMArtX pay a fee to SMArtX (“Client Fee”) that is charged to the Client’s Advisor
for access to and use of the Platforms and related services. SMArtX will pay, in cases where
Clients utilize Model Managers, a portion of the Client Fee to the selected Model Manager(s).
Additionally, a Client’s Advisor can use SMArtX to bill the Advisor’s fee as well. In such cases,
SMArtX will pay the Client’s Advisor a portion of the Client Fee. The Client Fee contains the
following components: 1) a Platform Fee, 2) a Model Fee and Model Maintenance Fee, and 3)
an Advisor Fee (where applicable). The following is a description of these three fees:

Platform Fee and Referral‑Related Compensation
SMArtX will charge a fee for the services provided by SMArtX for access to and use of the
Platforms and includes the cost of administration of UMAs established for the Advisor’s Clients
(“Platform Fee”). The Platform Fee typically ranges from 0.05% to 0.70% per annum. The
Platform Fee will be calculated on the value of the assets held in the UMA less any amounts owed
by the UMA (“Net Account Value”). The Platform Fee will vary based on the composition of the
Models and APM in the UMA. The Platform Fee will be set forth in the Agreements with each
Advisor firm. Platform Fees will be negotiated by Advisors and SMArtX. From time to time, SMArtX
may introduce unaffiliated advisory firms to existing clients when SMArtX determines that the
unaffiliated firm does not meet SMArtX’s minimum criteria for a direct engagement. If the
unaffiliated firm affiliates with an existing client and subsequently utilizes the SMArtX platform,
SMArtX may receive increased platform fees with respect to the additional assets or accounts
serviced. These increased fees are reflected in an addendum to the existing client agreement.
Clients should be aware that this fee structure creates a financial incentive for SMArtX to make
such introductions.

*Model Fee and Model Maintenance Fee
SMArtX charges a fee for the services provided by the Model Manager and for SMArtX’s
administration of the Model (“Model Fee”). The Model Fee ranges from 0.00%* to 2.00% per
annum. SMArtX retains a portion of the Model Fee for the costs associated with administering
the Model (the “Model Maintenance Fee”), which ranges between 0.00% and 0.50% per
annum. The Model Fee, inclusive of any Model Maintenance Fee, will be calculated on the value
of the assets held in the UMA attributable to a particular Model, less any amounts owed by the
UMA attributable to that Model (“Net Model Sleeve Value”). The Model Maintenance Fee is not
charged separately to Clients and certain managers have elected to factor this into their model
pricing, which increases the Model Fee that would otherwise apply without the Model
Maintenance Fee. The Model Fee will vary from Model to Model based on the Model Manager
and the type of the Model. Users should consult the Platforms to find specific Model Fees. Model
Fees are negotiated by Advisors and Model Managers in conjunction with SMArtX.

*For Models with a 0.00% Model Fee, the Model Manager is typically receiving
compensation from the individual securities held by the Model.

Advisor Fee
An Advisor can engage SMArtX to administer the fees charged by Advisor to the Advisor’s
Client(s) (“Advisor Fee”). The Advisor Fee covers the services provided by the Advisor to the

Client(s). Each Client should consult his, her or its Advisor to understand what services are
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covered by the Advisor Fee and what, if any, are the additional fees. Each Client should also

Form ADV - Part 2A Disclosure Brochure
review the Advisor’s Disclosure Brochure for a more detailed description of the Advisor’s Fee.
The Advisor Fee will be calculated on the Net Account Value.

Investment Solutions/Market Research Fee
SMArtX charges a Fee for market research agreements with certain Advisors. Such Advisors
shall pay SMArtX a negotiated fee on a calendar quarter basis, to be paid in advance.

Fee Calculation
SMArtX uses an average daily balance calculation to calculate the Platform Fee, Model Fee, and
typically the Advisor Fee*. The daily balance for each day will reflect the starting assets plus any
gains and losses and any additional assets contributed or withdrawn to determine the Net
Account Value or the Net Model Sleeve Value. SMArtX will sum the Net Account Values or the
Net Model Sleeve Values over the specified period of time (“Measurement Period”). The sum is
subsequently divided by the number of days in the Measurement Period to get the daily average
balance (“Average Daily Balance”). The Average Daily Balance is multiplied by the appropriate
fee which is adjusted for the number of trading days in the Measurement Period and the number
of trading days in the calendar year. SMArtX uses the New York Stock Exchange’s schedule to
determine trading days.

*Advisor Fees are calculated on a different methodology as specified by the Advisor.
Please consult the Advisor’s Disclosure Brochure for more details.

Fee Processing
SMArtX typically calculates fees monthly in arrears. SMArtX typically sends an invoice to
the Advisor's custodian(s). Each custodian may have different procedures but will typically debit
the fees directly and remit payment to SMArtX automatically. SMArtX modifies its methodology
of processing fees based on an Advisor’s request. Some Advisors can request that Client Fees
be paid in advance. If the relationship with SMArtX is terminated by the Advisor and the Client
Fees were paid in advance, SMArtX will use its standard method of calculating Client Fees to
calculate the overpaid portion of the Client Fee. SMArtX will calculate the refund, if
applicable, and will process the refund, if applicable, upon the Advisor(s) request. If the Client
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ITEM 7 - TYPES OF CLIENTS
SMArtX provides sub-advisory services to Advisors who use the platform for the benefit of the
Advisor’s Clients. Services of SMArtX are offered through other registered investment advisers.
Generally, SMArtX requires a minimum of $30,000 to open a UMA (“Account Minimum”). The
Account Minimum can be waived by SMArtX in certain cases. References in this Brochure to
“Client” generally refer to the Advisor’s Client that is the UMA account holder, unless context
requires otherwise.