Fees for portfolio and supervisory services, including most transactional charges, are charged as a percentage of assets under
management, and are calculated, accrued and due monthly in arrears. The account management fees for portfolio advice and supervisory
services are calculated and billed, as follows:
Account management fees are based on the account's fair market value as reported by our custodians as of the preceding month's end.
Our account management fees may be lower than this rate schedule, but only in limited circumstances. For example, in determining
fees, rates, and minimums, we may aggregate related accounts and, for billing purposes, treat them like one account. This is
done at our discretion and should not be considered the normal order of business. We may also reduce fees for employees and employees'
family members. A Portformula's maximum fee may be lower than the fees listed, however, none of USA Financial Formulas' models will
charge fees that exceed those referenced in the above fee schedule. Specific fee schedules, if different, will be provided as part
of the informational documents that are generated when you select a specific Portformula or combination of Portformulas.
The maximum annual fee you will pay, based on your account value, is reflected in the column labeled Combined Total Fee. The
AUM Formula Fee is the portion of the combined total fee paid to USA Financial Formulas. The Portfolio Fee is the portion of
the combined total fee that is paid to the solicitor. The combined total fee is calculated by adding the AUM Formula Fee,
Portfolio Fee, Platform Fee, and Custody Fees.
EAS, TD, and Pershing handle the account billing. Each custodian bills account management fees monthly and will deduct the fees
directly from your account. EAS, TD, and Pershing are also responsible for sending you account statements. Your statements
will show your account value and the fee charged. TD and Pershing send statements monthly; EAS sends statements quarterly.
You may object to the fee deduction by notifying us at the address or telephone number shown on each billing invoice or by
notifying your custodian. Please keep in mind that in addition to the quarterly paper statements you receive, you also have
24-hour online access to your account and statements. Please review your account statements carefully and contact us if you have questions.
All clients may incur regulatory fees charged by the SEC to the sellers of equity securities that are exchange traded, and charges
for other account services provided not directly related to the execution and clearing of transactions, including, but not limited to,
IRA custodial fees, safekeeping fees, and fees for transfers of securities. Adviser's Fee also does not include certain costs or
charges imposed by third parties, including odd-lot differentials, exchanges fees, and transfer taxes mandated by law. Also,
the Custodian may impose additional charges for special services elected by Client, including without limitation periodic distribution
fees, electronic fund and wire transfer fees, certificate delivery fees, and reorganization fees.
The more assets that are in your advisory account, the more you will pay in fees, and we may therefore have an inventive to encourage
you to increase the assets in your account. You pay fees and costs whether you make or lose money on your investments. Fees and costs
reduce your investment over time. Please make sure you understand what fees and costs you are paying.
USA Financial Formulas and its affiliate, USA Financial Exchange, utilize JUST Capital for research and marketing-support services.
Specifically, USA Financial relies on JUST Capital's research to create our ESG models. For additional information regarding our
relationship with JUST Capital
USA Financial Formulas' ESG models do not participate on the standard fee schedule, as indicated above. The fee charged on USA Financial's
ESG models — whether the account is through USA Financial Formulas or USA Financial Exchange — is 50 basis points, or 0.50%,
of the total assets in the ESG account.
EAS's service fees are assessed on transaction activities and services outside standard asset custody and trading. The Account Service
Fees are charged to you should you utilize any of the services, as follows:
USA Financial Formulas does not charge performance fees — that is, fees based on a share of capital gains or capital
appreciation of the assets in your account.
Side-by-side management occurs when an investment adviser manages both performance-based fee and accounts non-performance-based
fee accounts at the same time. Side-by-side management can result in conflicts of interest because there is an incentive to
direct clients to performance-based fee accounts because the firm will, most likely, receive more fees. However, because USA
Financial Formulas does not charge performance fees, we do not engage in side-by-side management and have no conflicts of
interest as a result.
The firm requires a minimum account size of $35,000 for EAS and TD accounts and a $50,000 minimum for Pershing accounts.
Exceptions may be made, solely in our discretion, based on a variety of factors, including but not limited to, prior or
anticipated investment activity and family or employment relationships. We may also, in our discretion, aggregate related
accounts in the same household in determining whether the account minimum has been met. Minimums may be negotiated depending
on your personal circumstances. Furthermore, we also require that clients invest at least $15,000 in each model.
USA Financial Formulas may have clients that are trusts governed by the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"). We will not have any responsibility with respect to the administration of the employee benefit plan
or its periodic reporting. We do not maintain bonding coverage described by Section 412 of ERISA because we do not have
actual or constructive custody or possession of any client's assets. Our Investment Management Agreement does not permit
us to transfer assets into any person's name or account other than your own. We believe that, under these circumstances,
bonding may not be required based upon the nature of our services to be rendered and the limitations on our authority
in the Investment Management Agreement, but each employee benefit plan trustee must make that determination for itself
under ERISA. If there is any doubt, existing bonding arrangements for a plan’s trustees may provide coverage if the
bonding company is advised in writing in advance of our investment management services. Bonding coverage is the plan
rustee(s)'s responsibility, though we will try to help in any way we can upon your request.
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The information, data and opinions contained herein (1) include confidential and
proprietary information belonging to USA Financial Formulas, (2) may not be copied or redistributed,
(3) do not constitute investment advice by USA Financial Formulas, (4) are provided solely
for informational purposes only and therefore are not an offer to buy or sell, and
(5) are not warranted to be correct, complete or accurate. Past performance is not
an indication of future results and actual results may vary. Investing carries an
inherent element of risk. No investment should be made in a USA Financial Formulas account without receiving
and reviewing the USA Financial Formulas ADV. SEC File No. 801-68276. SEC Registration does not imply a certain level of skill or training.