Limited Partnership Agreement

SECTION 5
TRADING
§5.0 Overview
In trading the Methodology §5.1, the Unicorn Macro Fund, LP maintains strict Risk Management §5.4 and Money Management §5.5 disciplines for each trade. The Instruments §5.2 used for trading the Methodology §5.1 are limited to liquid markets that are open around the clock, Monday through Friday. Given the funding requirements of the Instruments used for trading the Fund’s Methodology, the Fund rarely has more than two full Positions §5.3 open at any one time. Each full Position rarely risks more than 5% of the AUM of the Fund §6.8. Risk Management is meant to both protect profits and mitigate losses and each trade has a unique hard-stop and a trailing-stop. Money Management determines the quantity of Instruments needed to risk no more than 5% of the AUM of the Fund.

A Main Trade §5.6 is identified by the Methodology and is chosen and implemented by the Investment Manager. The Trade Participation §5.10 percentages are determined by the AUM of the Limited Partner §6.11 at the time of the Main Trade. Any new money waiting to be invested through Additions and Subscriptions §6.1 is included in the Next Main Trade §5.9. A Synthetic Straddle §5.7 is created subsequent to and counter to an existing Main Trade and is used to protect profits in the Main Trade and free-up capital. A Synthetic Extra Trade §5.8 is created when the capital freed-up by a Synthetic Straddle is invested in a new trade.

A Next Main Trade §5.9 occurs when a new Main Trade is initiated. Any Additions and Subscriptions on deposit in the Escrow Account §2.2 are transferred and credited to new Annualized Capital Account(s) §6.5 making them part of the Fund’s Assets under Management §6.6. The distinction made between an existing Main Trade and a New Main Trade is so new money does not dilute the AUM of the Limited Partner §6.11, the AUM of the Fund §6.8 and maintains the disciplines of the Trading Methodology, Risk Management and Money Management. Trade Participation is the ratio used in the Capital Accounts to represent percentage ownership of each trade for the Limited Partner. Withdrawal and Redemption §5.11 trades liquidate the necessary Instruments §5.2 to maintain the Limited Partners’ §1.7 portion of each trade.