Ternary Intelligence charges all users of the Hedged Bitcoin application a fee (“Assets Fee”) of 1% of each user’s assets under management by the application annually, charged on a daily basis at the corresponding rate of 0.0027397%. The Assets Fee is collected at the end of each day (universal standard UTC time) for as long as user’s funds remain under management of the Hedged Bitcoin application.
In addition to the Assets Fee, Ternary Intelligence charges all users of the Hedged Bitcoin application a 20% fee of gains realized above the principal (net amount of deposits and withdrawals) as a result of using the Hedged Bitcoin application during the preceding calendar month (“Gains Fee”). The Gains Fee is applied effective as of the final day of each calendar month for each user who had funds managed by the Hedged Bitcoin application during the entire calendar month. No Gains Fee will be charged for a given calendar month for users who did not have funds managed by the Hedged Bitcoin application during that entire calendar month.