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Advisory Fee (2% Management Fee)

 

The following are used to calculate the advisory fee for QQFund.com Alpha Beta Program.

 

1.To avoid conflicts of interest, neither QQFund.com nor its principal will receive or participate in any commissions or any fees charged by the Client FCM or any other third party (if applicable).

2.For its advisory services, as the compensation, QQFund.com will receive an annualized percentage asset-based management fee equal to two percent (2%) of the Client Account's Net Liquidation Value (NLV). Besides that, QQFund.com does not receive any performance fee, incentive fee, accounting fee, commission and any other fee, etc.

3.The management fee will be applied on a DAILY basis (X business days per year and X is 252 normally). The DAILY management fee is 1/X of two percent (2% annually) of the Client Account’s Daily Net Liquidation Value (“DNLV”) which is calculated by the Client FCM.

4.For any given day, DNLV is defined as the total BEGINNING assets of the Client Account of such day (including all cash (which also includes the profit and loss of all futures open positions, etc.), market value of all other open positions, interest and accrued interest, etc.) less the total BEGINNING liabilities of the Client Account of such day (including all accrued advisory fees, commissions, etc.) BEFORE the current DAILY management fee for such day is deducted.

5.Example: Assuming BEFORE the current DAILY management fee for a given business day is deducted, the total BEGINNING assets of the Client Account of such day is $100,000 USD and the total BEGINNING liabilities of the Client Account of such day is $0 USD, the advisory fee for such day will be $7.93 USD (=(($100,000 - $0)*2%)/252).

6.The DAILY management fee will be paid by the Client FCM to QQFund.com directly from funds in the Client Account.

7.The advisory fee as described herein will be continually charged starting from THE FIRST DAY to THE LAST DAY regardless of the status of the Client Account, the size of the Client Account or whether there is any trading activity (and/or any position) in the Client Account or not.

8.THE FIRST DAY is defined as the first day when QQFund.com can access the Client Account to manage the Client Account for Client (even BEFORE any actual trade is performed by QQFund.com).

9.THE LAST DAY is defined as the day the Advisory Agreement is officially terminated according to the PROCESS to Terminate the Advisory Agreement as specified in the Advisory Agreement.

10.    All DAILY management fees are payable in full at the BEGINNING of the day to which such fees apply.

11.    Normally, DNLV and the advisory fee will be calculated and the billing will be handled automatically by the Client FCM. The advisory fee will be paid automatically by the Client FCM to QQFund.com directly from funds in the Client Account. After the advisory fee is paid to QQFund.com, QQFund.com will be entitled to retain all of such advisory fee previously paid by Client regardless of the performance of the Client Account before, currently or in the future.

12.    Client agrees to assure payment to QQFund.com of applicable fees within five (5) business days of the date such fees become due and payable. QQFund.com has the right to start the PROCESS to STOP/RESUME Trading the Client Account and/or the PROCESS to Terminate the Advisory Agreement should such fees become overdue.

13.    The advisory fee structures and the calculation/payment operations as described in this section above are subject to change at the sole discretion of QQFund.com. QQFund.com reserves the right to increase or decrease the advisory fees it charges Client, to change the method of calculation/payment of these fees, and to charge different fees for different client accounts it manages. However, Client will be informed of any changes to the previously agreed upon fee structure. Client must agree on such new fee structure in writing before it can become effective for the Client Account.