Once the Unicorn Pairs Fund, LP has ended its Incubation Period (§ 2.2), Unicorn Capital Partners, LLC will begin to charge fees. All fees are based on the AUM of the Limited Partner(s) (§ 6.11). The fee structure is based upon the High Water Mark (§ 3.4) of the Limited Partner. The High Water Mark only affects the Performance Fee (§ 3.6).

The Management Fee is annualized on a monthly basis for the AUM of the Limited Partner (§ 6.11), and the Management Fee is paid on the last day of the month, beginning with the month of the Limited Partner’s first Next Main Trade (§ 5.9) and ending on the month of Redemption (§ 4.3). The Performance Fee is calculated and paid on an annual basis at Fiscal Year, end of the Fiscal Year (§ 1.5) or upon Redemption. For investments made during the Fiscal Year the Performance Fee is calculated on the number of months from the Limited Partners first trade to Fiscal Year end or to Redemption, whichever is shorter. After each Fiscal Year the High Water Mark is set for the Limited Partners.

Fees are calculated on the following basis using Capital Accounts (§ 6.3):

• in all cases a monthly annualized 2% Management Fee will be charged the AUM of the Limited Partner;


• if the annualized Performance of the Limited Partner (§ 6.13) in their Capital Accounts is greater than the High Water Mark, the Investment Manager will receive a 20% of the Performance of the Limited Partner above the High Water Mark.