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3. RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2019

NOTE 3 - RELATED PARTY TRANSACTIONS

A. General Partner Management Fee

The General Partner receives a monthly management fee from the Partnership equal to 0.104% (1.25% annually) for Class A and Class B, and 0.0625% (0.75% annually) for Institutional Interests of the Partnership's net asset value apportioned to each Partner’s capital account at the beginning of the month, before deduction of any accrued incentive fees related to the current quarter (the “management fee net asset value”). The General Partner may declare any Limited Partner a “Special Limited Partner” and the management fees or incentive fees charged to any such partner may be different than those charged to other Limited Partners. For the three and nine months ended September 30, 2019 and 2018, there were no Special Limited Partners.

Total management fees earned by the General Partner for the three and nine months ended September 30, 2019 and 2018 are shown on the Statements of Income (Loss) as Management Fee.

B. Administrative Fee

The General Partner receives a monthly administrative fee from the Partnership equal to 0.0275% (0.33% annually) of the Partnership's management fee net asset value attributable to Class A and Class B Interests. For the three and nine months ended September 30, 2019, administrative fees for Class A Interests were $7,632 and $26,558, respectively, and administrative fees for Class B Interests were $3,679 and $11,805, respectively. For the three and nine months ended September 30, 2018, administrative fees for Class A Interests were $14,647 and $46,937, respectively, and administrative fees for Class B Interests were $5,617 and $17,415, respectively.

C. Altegris Investments, L.L.C. and Altegris Clearing Solutions, L.L.C.

Altegris Investments, L.L.C. (“Altegris Investments”), an affiliate of the General Partner, is registered as a broker-dealer with the SEC and a Delaware limited liability company. Altegris Clearing Solutions, L.L.C. (Altegris Clearing Solutions), an affiliate of the General Partner and an introducing broker registered with the CFTC, is the Partnership’s introducing broker.

Altegris Investments has entered into a selling agreement with the Partnership whereby it receives 2% per annum as continuing compensation for Class A Interests sold by Altegris Investments that are outstanding at month end. The Partnership’s introducing broker receives a portion of the commodity brokerage commissions paid by the Partnership to the Clearing Broker and interest income retained by the Clearing Broker. Additionally, the Partnership pays to its clearing brokers and its introducing broker, at a minimum, brokerage charges at a flat rate of 0.125% (1.5% annually) of the Partnership’s management fee net asset value. Brokerage charges may exceed the flat rate described above, depending on commission and trading volume levels, which may vary.

At September 30, 2019 and December 31, 2018, respectively, the Partnership had charges for brokerage-related services payable to Altegris Clearing Solutions of $12,266 and $17,509, respectively, and service fees payable to Altegris Investments of $2,591 and $3,525, respectively. The following tables show the fees paid to Altegris Investments and Altegris Clearing Solutions for the three and nine months ended September 30, 2019 and 2018, respectively:

	Three months ended		Nine months ended		Three months ended		Nine months ended
	September 30, 2019		September 30, 2019		September 30, 2018		September 30, 2018
Altegris Clearing Solutions - Brokerage Commission fees	$	23,896	$	110,949	$	41,154	$	164,265
Altegris Investments- Service fees		8,227		26,246		12,734		40,006
Total	$	32,123	$	137,195	$	53,888	$	204,271

The amounts above are included in Brokerage Commissions and Service Fees on the Statements of Income (Loss), respectively. The amounts shown on the Statements of Income (Loss) include fees paid to non-related parties.