COSTS, FEES AND EXPENSES

9 Months Ended

Sep. 30, 2016

Note 3.

COSTS, FEES AND EXPENSES

Operating Expenses

Operating expenses of the Company are paid for by the Company, subject to an operating expense cap of 1.5% of the Company’s Net Asset Value per annum. Operating expenses include legal, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.

Trading Advisor Management and Incentive Fees

The Company indirectly through its investment in Affiliated Investment Funds pays the following Trading Advisor management fees (based on the Company’s Allocated Assets as of each standard allocation date) and incentive fees for achieving “New High Net Trading Profits”, in the Company’s capital accounts within the Affiliated Investment Funds as defined in their respective advisory agreements:

Affiliated Investment Fund	Management Fee	Incentive Fee
CTA Choice ISAT	0.25%	30.00%
CTA Choice KEY	1.00%	20.00%
CTA Choice QNTM**	1.00%	25.00%
CTA Choice EGLG*	2.00%	25.00%
CTA Choice WTN**	1.50%	20.00%

The Company fully redeemed from CTA Choice EGLG as of April 30, 2015.

The Company fully redeemed from CTA Choice QNTM and CTA Choice WTN as of December 31, 2015.

For the Third Quarter 2016, Third Quarter 2015, Year-To-Date 2016 and Year-To-Date 2015, the Trading Advisor management fees paid indirectly within each Affiliated Investment Fund based on the Company’s Allocated Assets as of each standard allocation date, totaled $11,478, $32,548, $37,785 and $120,979, respectively.

For the Third Quarter 2016, Third Quarter 2015, Year-To-Date 2016 and Year-To-Date 2015, the Trading Advisor incentive fees paid indirectly within the Company’s investment in Affiliated Investment Funds totaled $0, $405, $31,826 and $68,155, respectively.

Commissions

The Company, indirectly through the commodity trading activity of the Affiliated Investment Funds, is obligated to pay all floor brokerage expenses, give-up charges and NFA clearing and exchange fees. These activities are reflected within the respective net asset value of each of the Affiliated Investment Funds.

KMP Futures Fund I LLC 10-Q