2026 Employer up to $3m AUM Fee Reimbursement Program Terms and Conditions
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Program Overview
Frec Advisers LLC ('Frec') offers this Employer AUM Fee Waiver Program ('the Program') to eligible employees at SpaceX. Qualified participants will have direct index AUM fees charged to their account and reimbursed on the same day for assets invested in Frec's Diversify and/or Long Short strategies, for the duration of 2026 from the date of funding, subject to a $3,000,000 asset cap.
AUM fees on assets exceeding the applicable tier cap or invested in Frec's classic direct index strategies will be charged at Frec's standard AUM rate and are not covered by this Program.
Eligibility Requirements
To qualify for this Program, you must meet all of the following criteria at the time of enrollment and throughout the fee waiver period:
- You must be actively employed by SpaceX at the time you fund your account and claim your spot in the Program.
- You must invest in one of Frec's leveraged direct index strategies: Diversify or Long Short direct index strategy.
- You must not have previously participated in any other Frec AUM Fee Reimbursement/Waiver Program.
- You must not be currently enrolled in any other Frec AUM fee reimbursement program.
How the Fee Reimbursement Works
Frec charges direct index AUM fees on a monthly basis. The fee is calculated by multiplying the applicable fee rate by the net market value of your assets invested in the direct index strategy, based on the close of trading on the New York Stock Exchange ("NYSE"), or as of the close of the immediately preceding trading day for any day the NYSE is closed, divided by 365 (or 366 in a leap year).
During the 2026 reimbursement period, AUM fees on assets up to your tier's cap will be charged to your account and credited back as a reimbursement on the same day they are charged. AUM fees on assets exceeding your tier's cap will be charged at Frec's standard AUM rate and will not be reimbursed. Your account will still be charged for any applicable financing costs associated with your strategy; financing costs are not reimbursed under this Program.
The fee reimbursement period begins on the date you first fund a qualifying Diversify or Long Short strategy under this Program and runs through December 31st 2026. The reimbursement period cannot be paused or extended.
Combination with Other Offers
This Program may be combined with one (1) referral cash bonus offer you receive from a friend. It cannot be combined with any other Frec AUM fee reimbursement program. In all cases, a customer may apply only one referral cash bonus and one AUM fee reimbursement program at any given time. Any attempt to enroll in multiple AUM reimbursement programs will result in only one being applied.
One Account per Participant
This Program applies to one Frec brokerage account per eligible employee. If you have multiple Frec accounts (e.g., an individual account and an entity or trust account), the fee reimbursement will apply to only one qualifying account. An account is identified by a separate account number beginning with "3FR" or "3FV." The fee reimbursement will not apply to more than one Frec brokerage account where the individual is the accountholder and also a trustee, beneficial owner, or entity officer.
Employment Verification
Frec reserves the right to verify your employment at a participating company at the time of enrollment and at any point during the fee reimbursement period. You may be required to provide documentation confirming active employment. Frec will not be responsible for any delays arising from the verification process.
If your employment at a participating company ends prior to the end of your one-year fee reimbursement period, you will forfeit the remainder of the reimbursement period. You are responsible for notifying Frec promptly if your employment status changes.
Forfeiture
You will forfeit the remainder of your fee reimbursement period if any of the following occur:
- Your active employment at the participating company ends for any reason.
- You fail to successfully verify or reconfirm your employment status when asked to do so by Frec.
- You close your qualifying Diversify or Long Short direct index strategy.
- You transfer your qualifying Diversify or Long Short direct index strategy from one Frec brokerage account to another Frec brokerage account.
- You are found to be ineligible for this Program at any time.
Program Limitations and Modifications
Frec may, in its sole discretion and without prior notice to you, impose certain limitations or restrictions in connection with this Program, such as maximum number or value of reimbursements available in a designated period. Frec reserves the right to change the terms of the Program, or to discontinue the Program, with or without notice, to the extent permitted by applicable law.
Conflict of Interest Disclosure
This Program is a promotional incentive designed to encourage new clients to invest in Frec's advisory strategies. As a result, Frec has a financial incentive for clients to participate in this Program, which creates a conflict of interest. There is no guarantee of investment performance or outcomes.
Tax Considerations
Fee reimbursements may have tax implications. Frec does not provide tax advice. Clients should consult their own tax advisor regarding the tax treatment of any fee reimbursement received under this Program.
General Disclosures
Investing involves risk, including the risk of loss. Frec's Diversify and Long Short strategies utilize short positions and margin, which increases your investment risk. Brokerage services are provided by Frec Securities LLC, member FINRA/SIPC. Advisory services are provided by Frec Advisers LLC, an SEC-registered investment adviser. Both are wholly owned subsidiaries of Frec Markets, Inc. Please see Frec Advisers' Form ADV Part 2A for additional information, including details on the direct indexing strategies.
There is a $100,000 minimum investment for the Diversify and 140/40 Long Short strategies, and a $500,000 minimum for the 200/100 and 250/150 Long Short strategies. The applicable tier cap under this Program does not reduce or replace these minimums.
Representations
By participating in this Program, you accept these terms and conditions and represent that:
- You are actively employed by one of the participating companies listed in the Program tier table.
- You are not being compensated in connection with this Program other than as described herein.
- You are not a government entity or an agent of such entity acting on its behalf.
- You will comply with all requirements of the Program and any applicable securities laws.
- You will promptly notify Frec if any of the above representations change.
Frec may conduct due diligence to confirm any of the above information.