1.	Organization

LV Futures Fund L.P. ("LV" or the "Partnership") is one of the partnerships in the Managed Futures Multi-Strategy Profile Series, comprised of the Partnership and Meritage Futures Fund L.P. (collectively, the "Profile Series"), and was formed on February 22, 2007, under the Delaware Revised Uniform Limited Partnership Act, as a multi-advisor commodity pool created to profit from the speculative trading of domestic commodities, and foreign commodity futures contracts, forward contracts, foreign exchange commitments, options on physical commodities and futures contracts, spot (cash) commodities and currencies, exchange of futures contracts for physicals transactions, exchange of physicals for futures contracts transactions, and any rights pertaining thereto (collectively, "Futures Interests") (refer to Note 6. Financial Instruments of the Trading Companies). The Partnership indirectly allocates substantially all of its assets in multiple affiliated Trading Companies (each a "Trading Company" or collectively, the "Trading Companies"), each of which allocates substantially all of its assets in the trading program of an unaffiliated commodity trading advisor (each a "Trading Advisor" or collectively, the "Trading Advisors"), each of which, except for GAM International Management Limited ("GAM") and GLC Ltd. ("GLC"), is registered with the Commodity Futures Trading Commission, and which makes investment decisions for each respective Trading Company. Prior to May 1, 2011, Polaris Futures Fund L.P. was also one of the partnerships in the Profile Series.

The Partnership commenced trading operations on August 1, 2007, in accordance with the terms of the limited partnership agreement of the Partnership (the "Limited Partnership Agreement").

Ceres Managed Futures LLC, a Delaware limited liability company, serves as the Partnership's general partner and commodity pool operator and as each Trading Company's trading manager and commodity pool operator (the "General Partner," "Ceres" or the "Trading Manager" as the context requires). Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC ("MSSBH"). Morgan Stanley is the indirect majority owner of MSSBH and Citigroup Inc. is the indirect minority owner of MSSBH. Morgan Stanley Smith Barney LLC, doing business as Morgan Stanley Wealth Management ("Morgan Stanley Wealth Management") and also serves as the placement agent (the "Placement Agent") to the Partnership. Morgan Stanley & Co. LLC ("MS&Co.") acts as each Trading Company's primary clearing commodity broker. Morgan Stanley & Co. International plc ("MSIP") acts as each Trading Company's commodity broker to the extent it trades on the London Metal Exchange (collectively, MS&Co. and MSIP are referred to as the "Commodity Brokers"). Each Trading Company's over-the-counter foreign exchange spot, options, and forward contract counterparty is either MS&Co. and/or Morgan Stanley Capital Group Inc. ("MSCG") to the extent a Trading Company trades options on over-the-counter foreign currency forward contracts.

Prior to February 29, 2012, units of limited partnership interest ("Units") of the Partnership were offered in four classes in a private placement pursuant to Regulation D under the Securities Act of 1933, as amended. Depending on the aggregate amount invested in the Partnership, limited partners received class A, B, C or D Units in the Partnership (each a "Class" and collectively the "Classes"). Certain limited partners who are not subject to the ongoing placement agent fee are deemed to hold Class Z Units. Ceres received Class Z Units with respect to its investment in the Partnership. Effective February 29, 2012, Class B and Class C Units are no longer being offered to new investors but continue to be offered to existing Class B and Class C investors.

Effective January 4, 2012, Morgan Stanley Smith Barney Kaiser I, LLC ("Kaiser I, LLC") uses MS&Co. as its clearing commodity broker.

Effective October 31, 2011, State Street Bank and Trust Company ("State Street") ceased to serve as the administrator to the Partnership and each Trading Company. Effective November 1, 2011, the administrative services previously provided by State Street are provided by Morgan Stanley Wealth Management.

On August 18, 2011, Ceres notified DKR Fusion Management L.P. ("DKR") that the Advisory Agreement dated as of April 30, 2007, and any amendments or revisions subsequently made thereto, among Morgan Stanley Smith Barney DKR Fusion I, LLC ("DKR" I, LLC"), the General Partner and DKR (the "DKR Advisory Agreement"), pursuant to which DKR traded a portion of the Trading Company's (and, indirectly, the Partnership's) assets in futures interests, will be terminated effective August 31, 2011. Consequently, DKR ceased all futures interest trading on behalf of the Trading Company (and, indirectly, the Partnership) effective August 31, 2011.

Effective June 1, 2011, the Partnership through its investment in Morgan Stanley Smith Barney WNT I, LLC ("WNT I, LLC") added Winton Capital Management Limited as a Trading Advisor to the Partnership.

Effective May 31, 2011, Morgan Stanley & Co., Incorporated changed its name to Morgan Stanley & Co. LLC.

Effective May 18, 2011, Ceres changed the name of Managed Futures Profile LV, L.P. to LV Futures Fund L.P. The name change did not have any impact on the operation of the Partnership or its limited partners.

The financial statements have been prepared using the "Fund of Funds" approach and accordingly all revenue and expense information from the Trading Companies is reflected as a total realized/net change in unrealized appreciation (depreciation) on investments on the Statements of Income and Expenses. The Partnership maintains sufficient cash balances on hand to satisfy ongoing operating expenses for the Partnership. As of December 31, 2012 and 2011, the Partnership's cash balances were zero.

Ceres is not required to maintain any investment in the Partnership, and may withdraw any portion of its interest in the Partnership at any time, as permitted by the Limited Partnership Agreement. In addition, Class Z shares are only being offered to certain individuals affiliated with Morgan Stanley at Ceres' sole discretion. Class Z Unit holders are not subject to paying the placement agent fee (as defined in Note 2. Summary of Significant Accounting Policies).