Item 5. Fees & Compensation
Funds
Strix receives management fees as compensation for performing advisory services to the Funds. Strix will receive
an annual management fee of 2% of the value of each investor’s capital account. The management fees are
payable monthly in arrears, as 1/12th (.1667%) of the annual rate, based on the value of each investor’s capital
account as of the last business day of each month, and are directly deducted from the capital account of each
investor.
While our management fees are not necessarily negotiable, we may, at our sole discretion and without the
consent of the other Fund investors, waive or reduce the management fee for investors, including investors that
are principals, employees or affiliates and/or certain large or other investors we deem to be strategic.
In the case of a termination of our investment management agreement with the Fund prior to the end of a
calendar month, the management fees for such period would be pro-rated to the date of such termination with
any excess payment (if applicable) refunded to the Fund and credited to the Investor’s capital account. In addition,
the Fund is subject to an incentive allocation or performance fee which is allocated to the capital account of Strix
of the Fund. Please refer to Item 6 below for an explanation of this fee.
Other Fees
In addition to the management fee, the Funds will be responsible for reasonable costs and expenses of the Funds
including: i) the Management Fee; (ii) all expenses incurred in connection with the ongoing offer and sale of
Interest, including but not limited to marketing expenses, documentation of performance and the admission of
investors; (iii) all Fund related investment related costs, including research and trading expenses, virtual currency
and token transaction fees and equivalents, commissions, spreads, clearing expenses, foreign exchange costs, the
costs of exchanges, wire transfer and electronic fund fees, and other transactional expenses, whether or not such
transactions are consummated;(iv)) all fees and expenses of the Fund’s custodian(s), wallet(s), and other means
of holding assets, the Fund’s administrator(s), the Fund’s legal counsel (including fees and expenses of such
counsel, which may also be Strix counsel, in advising Strix if directly pertaining to the Fund); (v) all operating
expenses of the Fund such as tax preparation fees, governmental fees and taxes, insurance, administrator fees,
communication with investors, and ongoing legal, accounting, auditing, bookkeeping, consulting and other
professional fees and expenses; (vi) fees and expenses for Fund accounting, valuation, and tax preparation; (vii)
fees and expenses of other consultants; (viii) interest payable by the Fund including on borrowings (if any), margin
interest, and similar interest; (ix) lending fees and expenses; (x) the costs of collecting on loans or similar
transactions; the costs of any insurance obtained for the Fund and for Strix to the extent pertaining directly to the
Fund; (xi) corporate licensing fees; (xii) the costs of errors and omissions insurance for the Fund and, to the extent
pertaining to the Fund, Strix; (xiii) the travel expenses of Strix personnel relating directly to the Fund; (xiv)
indemnification expenses; (xv) taxes (such as withholding or transfer taxes, or entity-level taxes) payable by the
Fund; (xvi) any governmental or regulatory filings or submissions by, or compliance costs of, the Fund, or by or of
Strix to the extent that we determine in good faith that such filings, submission or compliance pertains to the
Fund; (xvii) SEC and U.S. states’ or other jurisdictions’ filing fees pertaining to, and other expenses incurred in, the
offering and sale of interests in the offering; (xviii) other governmental fees and expenses of the Fund; (xix) state
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and local filing costs of forming the Fund and similar ongoing filings; and (xx) all other fees, expenses and charges
not expressly to be borne by Strix. Strix, in its sole discretion, may from time to time pay for any of the foregoing
Fund expenses or waive its right to reimbursement for any such expenses.
Potential investors should review the offering documents of the Funds for a complete disclosure of fees and
expenses.
Conflicts related to Investors – Side Letters
A side letter is an agreement with an investor in the Fund, which establishes different rights or privileges with
respect to withdrawal rights, fees and/or incentive allocations. Strix may enter into such agreements with certain
investors in the Fund.
SMA
Strix receives management fees as compensation for performing advisory services to the SMA. Strix will typically
receive a monthly management fee of 0.1% of the value of each SMA payable monthly in arrears, based on the
value of each SMA as of the last business day of each month, and are directly deducted from the SMA.
Management fees may vary from SMA to SMA in Strix’s sole discretion.
In the case of a termination of our investment management agreement with an SMA prior to the end of a calendar
month, the management fees for such period would be pro-rated to the date of such termination with any excess
payment (if applicable) refunded to the SMA. In addition, SMA are subject to an incentive allocation or
performance fee which is deducted directly from the SMA. Please refer to Item 6 below for an explanation of this
fee.