The Unicorn Pairs Fund, LP is a limited partnership which for tax purposes is a pass-through vehicle. All of the Unicorn Pairs Fund’s gains and losses are considered short-term for tax purposes. There is no tax at the entity or fund level, but rather the Limited Partner(s) (§ 1.7) will be distributed their proportionate share of the fund’s short-term gains and losses for tax purposes. The Limited Partner(s) will report these gains and losses on their individual tax returns and these will be treated as ordinary income. The only Limited Partner(s) exempt from paying tax on gains and losses of the Fund are Non-Profits who can show the income is related to their business and Foreign Investors that file the IRS Withholding exemption form.

For the General Partner, Unicorn Capital Partners, LLC (§ 1.2), the monthly Management Fees (§ 3.5) are taxed as ordinary income. The annual allocation of the Fund’s profits to the General Partner is considered Carried Interest (§ 7.3) and is taxed when sold. The Fund will provide all the necessary K-1 tax forms to the IRS, the General Partner and Limited Partner(s).