PERFORMANCE FEE: McKinley Capital
charges a Performance fee of 25% of the New Trading Profits
generated for the account during the month, payable each month. As used herein, new
trading profits means, for any calendar month, the sum of the net of any profits and
losses realized on all trades and positions in futures interests (Commodity Futures & Foreign Currencies) closed out for the account
during such month (if no positions were closed out, then there is no performance fee),
plus any loss carry-forward, provided this sum is positive. If the sum is negative, that
amount becomes the new loss carry-forward for the next month. If New Trading Profits are
positive, the new loss carry-forward becomes zero. If capital withdrawals are made when the
loss carry-forward is not zero, the loss carry-forward is multiplied by the value of the
account immediately after the withdrawal and divided by the value of the account immediately
before the withdrawal. The result is the new adjusted loss carry-forward. If any
performance fee shall have been paid to McKinley Capital, and the account shall thereafter
incur a net loss for any subsequent month, McKinley Capital shall be entitled to retain
the performance fee previously paid from the account. However, no subsequent performance
fee shall be paid to McKinley Capital until the account has again experienced new
appreciation.
MANAGEMENT FEE: The monthly management fee equals 1/6 of 1% of the account value as of the end of each month or 2% per annum, without reduction for any withdrawals from the account during such month or any performance fees payable as of such date. For purposes of calculating the management fee, account value will mean total assets including all cash and cash equivalents, committed funds, and the market value of all open positions maintained in the account less all liabilities of the account, inclusive of brokerage commissions on open trades, and shall be determined in accordance with accounting principles generally accepted in the United States of America under the accrual basis of accounting.
McKinley Capital NFA ID # 0355946. Registration is not current.