Tiered Arbitrage Prime

Note

Unless otherwise defined herein, all capitalised terms used herein shall have the same meaning as outlined in the General Conditions, Service Conditions, Fee Schedule, Special Conditions, and all other documents constituting the Agreement.

Investment Policy Statement

This Investment Policy Statement is an integral part of the Management Agreement (the “Agreement”) concluded between the Company and the Client (Investor). It shall be read and interpreted in conjunction with it. Both Parties acknowledge and agree that the terms and conditions outlined in this document are binding and form an essential part of the Agreement.

The Client hereby approves and agrees to the following terms:

1. Name of the Investment Strategy

Tiered Arbitrage Prime

2. List (type) of assets that can be accepted

1. Monetary contributions in CZK, EUR, or USD. The minimum amount for account operation is €125.000 or an equivalent in another currency.

2. Securities with a market value exceeding €125.000 as agreed by the Parties.

3. Recommended Investment (Holding) Period

Recommended Investment (Holding) Period is 3 years.

Withdrawal: No charges apply after the end of the Recommended Investment (Holding) Period. You can withdraw early after six months with the Company’s consent, though this may reduce returns and incur additional costs (see the Exit Fee in the Fee Schedule).

4. Currencies

The Client may open and maintain several Accounts under the same Agreement; however, each Account shall be denominated and operated in a single currency.

Any funds received in currencies other than the Account currency will be subject to the policies, exchange rates, and commissions of the receiving credit or payment institution. If the credit or payment institution chooses not to convert the funds and instead returns them to the Client, any fees, commissions, or deductions applied during this process shall be borne solely by the Client. The Company is not responsible for any costs, losses, delays, or discrepancies arising from such transactions. The Client acknowledges and accepts full responsibility for these potential outcomes.

5. List (type) of assets the Company is entitled to acquire in the course of the performance of its activities under the Agreement

• Shares;
• Units/Shares of Collective Investment Schemes;
• ETFs;
• Futures contracts;
• Options contracts;
• Foreign currency;
• Loans to controlled companies or subsidiaries.

6. Types of transactions the Company is entitled to perform in the course of management

• The Company is entitled to conduct both exchange transactions (through trading arranged by trade organizers) and over-the-counter (OTC) transactions (outside trading arranged by trade organizers) regarding the assets.

• The Company is entitled to use margin lending and to engage in repo-type transactions.

• The Company will conduct only arbitrage transactions, which involve the simultaneous opening of opposing positions to eliminate market risk.

7. Trading venues where the Company is entitled to conduct operations in the course of management

• Any regulated trading venues, except for transactions related to loans to controlled companies or subsidiaries.

8. Key Information Document (KID)

The Key Information Document (KID) for the Investment Strategy is available here.

Fees

The Fee Schedule lists the fees that the Company charges under the Agreement for services provided as part of this Tiered Arbitrage Prime Investment Strategy.

DESCRIPTION	APPLICABLE RATE/TIERS
1. Initial Fee Charged at the time of each deposit (of the amount deposited) of Funds into the Portfolio (whether the initial deposit or any subsequent addition). The Company shall automatically withhold this amount based on the applicable tier from the Funds before they are added to the Portfolio.	Equiv. €125,000: 2.00% Equiv. €250,000: 1.50% Equiv. €500,000: 1.00% Equiv. €1,000,000: 0.75%
2. Management Fee Calculated per annum of the average monthly value of the Portfolio. The Company shall charge this fee monthly at the expense of the Portfolio.	2%
3. Success Fee Calculated as a percentage of the Portfolio’s positive return for each calendar month (annualized), subject to the High-Water Mark (HWM) rule1. The fee is determined by the annualized performance tier reached during the period. The Success Fee must be paid no later than the fifteenth (15th) day of the following month and is charged at the expense of the Portfolio.	0% to 10% return: 10% 10% to 20% return: 20% 20% to 25% return: 50% 25% return and above: 80%
4. Exit Fee If the Client withdraws funds from the Portfolio prior to the expiration of the Recommended Investment Period specified in the Investment Policy Statement, and such early withdrawal is not due to a cause defined in Clause 12.3 of the General Conditions, the Company shall be entitled to charge the Client an Exit Fee. No Exit Fee shall apply to withdrawals made after the Recommended Investment Period has elapsed.	1st year – 2.00% 2nd year – 0.00% 3rd year – 0.00%
5. In-Kind withdrawal (withdrawal in securities) Commission for the organisation and execution of the Withdrawal of Funds in Securities in accordance with the Client’s request2.	5%, min €300

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All fees, charges, expenses, and other amounts payable under the Agreement or incurred during the course of the Client Relationship are exclusive of value-added tax (VAT). Where VAT is chargeable in accordance with applicable tax legislation, it shall be added to the relevant amounts at the prevailing statutory rate. It shall be payable by the Client in addition to such amounts.

Footnotes

1. The High-Water Mark (HWM) Rule is a standard principle used in performance-based fee structures. It ensures that a Success Fee is earned only when the Portfolio’s value exceeds its previous peak value after accounting for any losses. ↩

2. Withdrawal of Funds in Securities constitutes a non-standard transaction, not provided for in the Agreement, which may be carried out by the Company solely at its own discretion and does not fall within the Company’s obligations under the Agreement. The Client does not have the right to demand the execution of a Withdrawal of Funds in Securities, and the Company is entitled to refuse consideration of such a request without providing reasons. ↩