# EDGAR Filing Document

**Accession Number:** 0001103243
**File Stem:** 0001413042-25-000896
**Filing Date:** 2025-10
**Character Count:** 706351
**Document Hash:** 5dac1a8b53f9d508e7e709af62b315c0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001413042-25-000896.hdr.sgml**: 20251028

**ACCESSION NUMBER**: 0001413042-25-000896

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 33

**FILED AS OF DATE**: 20251028

**DATE AS OF CHANGE**: 20251028

**EFFECTIVENESS DATE**: 20251101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PFS FUNDS
- **CENTRAL INDEX KEY:** 0001103243

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-09781
- **FILM NUMBER:** 251421702

**BUSINESS ADDRESS:**
- **STREET 1:** 1939 FRIENDSHIP DRIVE
- **STREET 2:** STE C
- **CITY:** EL CAJON
- **STATE:** CA
- **ZIP:** 92020
- **BUSINESS PHONE:** 6185889700

**MAIL ADDRESS:**
- **STREET 1:** 1939 FRIENDSHIP DRIVE
- **STREET 2:** STE C
- **CITY:** EL CAJON
- **STATE:** CA
- **ZIP:** 92020

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PREMIER FUNDS TRUST
- **DATE OF NAME CHANGE:** 20100119

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WIRELESS FUND
- **DATE OF NAME CHANGE:** 20000113
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PFS FUNDS
- **CENTRAL INDEX KEY:** 0001103243

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-94671
- **FILM NUMBER:** 251421701

**BUSINESS ADDRESS:**
- **STREET 1:** 1939 FRIENDSHIP DRIVE
- **STREET 2:** STE C
- **CITY:** EL CAJON
- **STATE:** CA
- **ZIP:** 92020
- **BUSINESS PHONE:** 6185889700

**MAIL ADDRESS:**
- **STREET 1:** 1939 FRIENDSHIP DRIVE
- **STREET 2:** STE C
- **CITY:** EL CAJON
- **STATE:** CA
- **ZIP:** 92020

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PREMIER FUNDS TRUST
- **DATE OF NAME CHANGE:** 20100119

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WIRELESS FUND
- **DATE OF NAME CHANGE:** 20000113

## Series and Classes Contracts Data

### Potomac Defensive Bull Fund (Series ID: S000068707)

| Class ID   | Class Name                  | Ticker Symbol   |
|:---|:---|:---|
| C000219677 | Potomac Defensive Bull Fund | CRDBX           |

### Potomac Managed Volatility Fund (Series ID: S000068708)

| Class ID   | Class Name                      | Ticker Symbol   |
|:---|:---|:---|
| C000219678 | Potomac Managed Volatility Fund | CRMVX           |

### Potomac Tactical Opportunities Fund (Series ID: S000068709)

| Class ID   | Class Name                          | Ticker Symbol   |
|:---|:---|:---|
| C000219679 | Potomac Tactical Opportunities Fund | CRTOX           |

### Potomac Tactical Rotation Fund (Series ID: S000068710)

| Class ID   | Class Name                     | Ticker Symbol   |
|:---|:---|:---|
| C000219680 | Potomac Tactical Rotation Fund | CRTBX           |

?xml version='1.0' encoding='ASCII'?

As filed with the Securities and Exchange Commission on October 28, 2025

Securities Act File No. 333-94671

Investment Company Act File No. 811-09781

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

___________________

**FORM N-1A**

---

| | | |
|:---|:---|:---|
| **REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933** | **REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933** | [X] |
|  | Pre-Effective Amendment No. ___ | [ ] |
|  | Post-Effective Amendment No. 264 | [X] |
|  | and/or |  |
| **REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940** | **REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940** | [X] |
|  | Amendment No. 264 | [X] |

---

**<u>PFS Funds</u>**

(Exact Name of Registrant as Specified in Charter)

<u>1939 Friendship Drive, Suite C, El Cajon, California 92020</u>

(Address of Principal Executive Offices, Zip Code)

Registrant's Telephone Number, including Area Code: <u>(619) 588-9700</u>

CT Corporation

<u>155 Federal St., Suite 700, Boston, MA 02110</u>

(Name and Address of Agent for Service)

**<u>With Copies to</u>:**

James D. Craft PFS Funds 1939 Friendship Drive, Suite C El Cajon, California 92020 John H. Lively Practus, LLP 11300 Tomahawk Creek Parkway, Ste. 310 Leawood, KS 66211

It is proposed that this filing will become effective:

[ ] immediately upon filing pursuant to paragraph (b);

[X] on November 1, 2025 pursuant to paragraph (b);

[ ] 60 days after filing pursuant to paragraph (a)(1);

[ ] on (date) pursuant to paragraph (a)(1);

[ ] 75 days after filing pursuant to paragraph (a)(2); or

[ ] on (date) pursuant to paragraph (a)(2) of rule 485.

If appropriate, check the following box:

[ ] This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

**Potomac Funds**

**Potomac Managed Volatility Fund Ticker CRMVX**

**Potomac Tactical Rotation Fund**

**Ticker CRTBX**

**Potomac Tactical Opportunities Fund**

**Ticker CRTOX**

**Potomac Defensive Bull Fund**

**Ticker CRDBX**

**Prospectus**

November 1, 2025

**As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved of these securities, nor has the Commission determined that this Prospectus is complete or accurate. Any representation to the contrary is a criminal offense.** 

**Table of Contents**

---

| | |
|:---|:---|
| Summary Section – Potomac Managed Volatility Fund | 1 |
| Investment Objective | 1 |
| Fees and Expenses of the Fund | 1 |
| The Principal Investment Strategy of the Fund | 2 |
| The Principal Risks of Investing in the Fund | 3 |
| Performance History | 9 |
| Summary Section – Potomac Tactical Rotation Fund | 11 |
| Investment Objective | 11 |
| Fees and Expenses of the Fund | 11 |
| The Principal Investment Strategy of the Fund | 12 |
| The Principal Risks of Investing in the Fund | 13 |
| Performance History | 19 |
| Summary Section – Potomac Tactical Opportunities Fund | 21 |
| Investment Objective | 21 |
| Fees and Expenses of the Fund | 21 |
| The Principal Investment Strategy of the Fund | 22 |
| The Principal Risks of Investing in the Fund | 23 |
| Performance History | 29 |
| Summary Section – Potomac Defensive Bull Fund | 31 |
| Investment Objective | 31 |
| Fees and Expenses of the Fund | 31 |
| The Principal Investment Strategy of the Fund | 32 |
| The Principal Risks of Investing in the Fund | 33 |
| Performance History | 37 |
| General Summary Information | 39 |
| Purchase and Sale of Fund Shares | 39 |
| Tax Information | 39 |
| Payments to Broker-Dealers and Other Financial Intermediaries | 39 |
| Investment Objective, Principal Investment Strategies, Related Risks, and Disclosure of Portfolio Holdings | 39 |
| The Investment Selection Process Used by the Funds | 40 |
| The Principal Risks of Investing in the Funds | 47 |
| Management | 54 |
| The Investment Advisor | 54 |
| Shareholder Information | 55 |
| Instructions for Opening and Adding to an Account | 58 |
| Instructions for Selling Fund Shares | 61 |
| Dividends and Distributions | 64 |
| Market Timing | 65 |
| Taxes | 65 |
| Glossary of Terms | 67 |
| Other Fund Service Providers | 68 |
| Financial Highlights | 68 |
| PRIVACY NOTICE | 73 |

---

**Summary Section – Potomac Managed Volatility Fund**

**Investment Objective**

The Potomac Managed Volatility Fund (the "Fund") seeks total return.

**Fees and Expenses of the Fund**

The following table describes the expenses and fees that you may pay if you buy and hold shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.**

**Shareholder Fees** (fees paid directly from your investment)

<br> Redemption Fees<br>**Annual Fund Operating Expenses** (expenses that you pay each year as a percentage of the value of your investment)<br>

---

| | |
|:---|:---|
| Management Fees | 1.19% |
| Distribution 12b-1 Fees | 0.00% |
| Other Expenses | 0.25% |
| Acquired Fund Fees and Expenses | 0.22% |
| Total Annual Fund Operating Expenses | 1.66% |

---

<sup>

</sup>

**Expense Example**

The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% annual return each year and that the Fund's operating expenses remain the same each year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | |
|:---|:---|:---|:---|
| One Year | Three Years | Five Years | Ten Years |
| $169 | $523 | $902 | $1965 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 665.24% of the average value of its portfolio.

**The Principal Investment Strategy of the Fund**

This Fund seeks total return by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies), and derivatives, and/or cash and cash equivalents. The ETFs and mutual funds, as well as other exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures, in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities and fixed income securities, including high-yield fixed income securities (also known as "junk bonds") and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in real estate investment trusts ("REITs"), commodities and cryptocurrencies. The Fund has broad discretion to use leverage and inverse strategies through investing in underlying funds that use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. The Fund may invest directly in derivatives, such as futures contracts. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing. The Fund may also invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments are intended to provide the Fund with exposure to the price movements of Bitcoin.

Potomac Fund Management, Inc., the investment advisor to the Fund (the "Advisor"), utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into

sophisticated algorithmic composites that guide the Advisor's decision-making process.

The Advisor actively allocates the Fund's assets across fixed income and alternative underlying funds that demonstrate low volatility and favorable risk adjusted returns. The Fund's investments in alternative underlying funds generally provide exposure to assets that are not designed to closely track or correlate to the performance of the general equity and/or fixed-income markets. The alternative underlying funds in which the Fund will invest may engage in strategies such as long/short and they may use derivatives and utilize techniques such as short selling to effect their objectives. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

**The Principal Risks of Investing in the Fund**

 ****

***Risks of Exchange Traded Funds and Mutual Funds.*** To the extent that the Fund invests in ETFs and mutual funds, the Fund will indirectly bear its proportionate share of any expenses (such as operating expenses and advisory fees) that may be paid by the underlying funds. These expenses would be in addition to the advisory fee and other expenses that the Fund bears in connection with its own operations. Investment in an ETF carries security specific risk and the market risk. Also, if the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the Fund's investment in the ETF may decline. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index. The other Principal Risks described below may also be associated with any of the underlying ETFs and mutual funds, and, as a result, to the extent that the Fund invests in ETFs and mutual funds, the Fund will be exposed to any risks specifically associated with such underlying ETF or mutual fund.

***Portfolio Turnover Risk.*** The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. A portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once during the course of a year. How long the Fund holds a security in its portfolio is generally not a factor in making buy and sell decisions. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions. The distributions may be taxable as short-term capital gains which are taxed at ordinary income tax rates rather than at the lower long-term capital gains tax rates. Some or all of the distributions may be short-term capital gains.

***Leveraged ETF Risks*** *.*** The net asset value and market price of leveraged ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not

use leverage. Leveraged ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions. Most leveraged ETFs are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance of the underlying index during the same period of time. This effect can be magnified in volatile markets.

***Inverse ETF Risks.*** Inverse ETFs seek investment results that are the opposite of the daily performance of an underlying index or basket of stocks. Investors will lose money when the Index rises — a result that is the opposite from traditional funds.

 

***Risk of Non-Diversification.*** The Fund is a non-diversified fund, which means that it has the ability to take larger positions in a smaller number of securities than a fund that is "diversified." Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment. Because the Fund may invest a significant percentage of its assets in a single ETF, mutual fund and/or money market fund, and at times may hold only one such position along with a cash or cash equivalent position, there is a risk that events negatively affecting these fewer positions will have a greater negative impact on the Fund's performance.

 ****

***Sector Risk.*** Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments. The Fund may be overweight in certain sectors at various times.

 ****

***Management Risks*.** The Advisor's implementation of the Fund's strategy may fail to produce the intended results. In circumstances where the Advisor establishes high-conviction positions, it is possible the results of the trend analysis will be incorrect and the high-conviction trade (i.e., the leveraged position) will not produce the desired results; in such circumstances, the losses that the Fund could experience could be greater than they would otherwise be had the Fund not taken the leveraged position. At times, the Advisor may determine to hold significant portions of the Fund's assets in cash and cash equivalents, and in such scenarios may detract from the Fund's ability to achieve its objective.

 ****

***Quantitative/Trend Model Risk.*** The risk that investments selected using quantitative models to identify market trends may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative trend model will enable the Fund to achieve positive returns or outperform the market.

***Securities Lending Risk.*** To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds. Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that the Fund will lose money from the investment of the cash collateral. Borrower default risk is the risk that the Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

**The Fund may invest in ETFs, mutual funds and securities that carry the risks described below:**

 ****

***Risks in General***. Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests. There is a risk that these and other factors may adversely affect the Fund's performance. You could lose money by investing in the Fund.

 ****

***Risks of Fixed Income Securities.*** Fixed income securities fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than the market price of shorter-term securities.

 ****

***High-Yield Securities ("Junk Bond") Risk.*** To the extent that the Fund invests in underlying funds that invest in high-yield securities and unrated securities of similar credit quality (commonly known as "junk bonds"), the Fund may be subject to greater levels of interest rate and credit risk than funds that do not invest in such securities. Junk bonds are considered predominantly speculative with respect to the issuer's continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the underlying funds' ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, an investor may lose its entire investment, which will affect the Fund's return.

***Foreign Risk.*** The Fund may invest in underlying funds that hold foreign securities, including American Depositary Receipts (ADRs). ADRs are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. ADRs are subject to risks similar to those associated with direct investment in foreign securities. Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. These risks include adverse political, social and economic developments, differing auditing and legal standards, war, expropriation and nationalization.

 ****

***Emerging Markets Risk.*** Emerging market issuers may be subject to a greater risk of loss than investments in issuers located or operating in more developed markets. Emerging markets may be more likely to experience inflation, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, less reliable securities valuations and greater risk associated with custody of securities than developed markets.

 ****

***Risks of Equity Securities.*** The risks associated with investing in equity securities of companies include the financial and operational risks faced by individual companies, the risk that the stock markets, sectors and industries in which the Fund invests may experience periods of turbulence and instability, and the general risk that domestic and global economies may go through periods of decline and cyclical change.

 ****

***Risks of Derivatives.*** Underlying funds in the Fund's portfolio may use derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. There is no guarantee such strategies will work. If the underlying fund is not successful in employing such instruments in managing its portfolio, the Fund's performance will be worse than if it did not invest in underlying funds employing such strategies. Successful use by an underlying fund of options on stock indices, index futures contracts (and options thereon) will be subject to its ability to correctly predict movements in the direction of the securities generally or of a particular market segment. In addition, underlying funds will pay commissions and other costs in connection with such investments, which may increase the Fund's expenses and reduce the return. In utilizing certain derivatives, an underlying fund's losses are potentially unlimited. Derivative instruments may also involve the risk that other parties to the derivative contract may fail to meet their obligations, which could cause losses.

***Real Estate Investment Trusts.*** REITs offer investors greater liquidity and diversification than direct ownership of properties. A REIT is a corporation or business trust that invests substantially all of its assets in interests in real estate. Like any investment in real estate, a REITs performance depends on several factors, such as its ability to find tenants, renew leases and finance property purchases and renovations. Other risks associated with REIT investments include the fact that equity and mortgage REITs are dependent upon specialized management skills and are not fully diversified. These characteristics subject REITs to the risks associated with financing a limited number of projects. They are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Additionally, equity REITs may be affected by any changes in the value of the underlying property owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund, but also may indirectly bear similar expenses of some of the REITs in which it invests.

***Commodity Risk.*** Commodity investments will subject the Fund to potentially greater volatility than traditional securities. Commodities will be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. Commodity prices may be volatile, so the risks to investors in the Fund is that unexpected and potentially significant decreases in the value of their commodity holdings would affect the value of an investment in the Fund.

***Cryptocurrency Risk*** *.*** The Fund may invest in underlying funds that hold or have exposure to cryptocurrencies such as Bitcoin, including ETFs and ETPs that invest directly in Bitcoin and Bitcoin futures. Cryptocurrencies (also referred to as "virtual currencies" or "digital assets") are digital assets designed to act as a medium of exchange and represent an emerging and highly speculative asset class. The market price of Bitcoin and other cryptocurrencies has been subject to extreme fluctuations and may experience substantial declines over short periods of time. The price of Bitcoin and other cryptocurrencies could fall sharply (potentially to zero) for various reasons, including, but not limited to, regulatory changes, issues impacting the Bitcoin network, technological developments, events involving entities that facilitate

transactions in Bitcoin, or changes in user preferences in favor of alternative cryptocurrencies.

The market for Bitcoin and related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. The operation of digital asset exchanges and trading venues is largely unregulated, which increases the potential for fraud, security failures, or operational disruptions. Regulatory developments in the United States or abroad, including potential restrictions on the use, exchange, or custody of digital assets, may affect the value, liquidity, or availability of Bitcoin and Bitcoin-related ETFs and ETPs.

***Bitcoin-Related Investment Risk.*** The Fund may invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments expose the Fund to the risks associated with Bitcoin and the Bitcoin futures market. Bitcoin and other digital assets are relatively new and highly speculative asset classes, subject to extreme volatility and unique operational and technological risks. The value of Bitcoin and Bitcoin-related instruments has experienced significant fluctuations, which may result in substantial losses for investors in a short period of time.

The market for Bitcoin and Bitcoin-related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. Market disruptions, trading halts, or disruptions in the infrastructure of digital asset markets may adversely affect the liquidity and value of Bitcoin-related ETFs and ETPs. The price of Bitcoin may be influenced by a variety of factors, including supply and demand dynamics, investor sentiment, government and regulatory actions, technological developments, and the functioning of Bitcoin network protocols.

The regulatory environment for Bitcoin, Bitcoin futures, and digital assets in general is evolving and subject to change. Regulatory developments at the federal, state, or international level may impact the operation of Bitcoin-related ETFs and ETPs or the underlying digital asset markets, potentially affecting their value or liquidity. In addition, the performance of Bitcoin-related ETFs and ETPs may differ from the performance of Bitcoin or Bitcoin futures due to operational inefficiencies, management fees, or market supply and demand conditions.

***Futures Contract Risk.*** The successful use of futures contracts draws upon the Adviser's skill and experience with respect to such instruments and is subject to special risk considerations. The primary risks associated with the use of futures contracts, which may adversely affect the Fund's net asset value and total return, are (a) the imperfect correlation between the change in market value of the futures contract held by the Fund and the price of the futures contract; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the Adviser's inability to predict correctly the direction of securities prices; (e) the possibility that the counterparty will default in the performance of its obligations; and (f) if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements, and the Fund may have to sell securities at a time when it may be disadvantageous to do so. The Fund's use of futures contracts for the purpose of increasing the Fund's long and/or short exposure creates leverage, which can magnify the Fund's potential for

gain or loss and therefore amplify the effect of market volatility on the Fund's share price (see "**Leveraging Risk**").

***Leveraging Risk.*** The Fund's use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying an instrument and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use instruments that have a leveraging effect. Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in the Fund's exposure to an asset class and may cause the Fund's net asset value to be volatile.

**Performance History**

The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the periods indicated compare with those of broad measures of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available by calling 1-888-774-6679.

**Annual Total Returns (calendar years ended 12/31)**

![](fp0095857-1_01.jpg)

For the period January 1, 2025 through September 30, 2025, the total return for the Fund was 4.40%.

Best Quarter (9/30/2022) +5.59%&nbsp;&nbsp;&nbsp;&nbsp; Worst Quarter (3/31/2022) -3.86%

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Since |
| AVERAGE ANNUAL TOTAL RETURN |  | Inception |
| FOR THE PERIODS ENDED 12/31/24 | 1 Year | (7/1/20) |
| Potomac Managed Volatility Fund |  |  |
| Return Before Taxes | 1.22% | 2.31% |
| Return After Taxes on Distributions | -0.28% | 1.38% |
| Return After Taxes on Distributions and Sale of Fund Shares | 0.72% | 1.38% |
| Bloomberg Global-Aggregate Total Return Index (does not reflect deductions for fees, expenses or taxes) | -1.69% | -2.81% |
| S&P Target Risk Conservative Index (does not reflect deductions for fees, expenses or taxes) | 6.59% | 3.27% |

---

The S&P Target Risk Conservative Index is designed to measure the performance of conservative stock-bond allocations to fixed income, seeking to produce a current income stream and avoid excessive volatility of returns. Equities are included to protect long-term purchasing power. The index is made up of 70% fixed income and 30% equities.

After-tax returns are calculated using the historical highest marginal individual U.S. federal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

**Management**

**Investment Advisor**

Potomac Fund Management, Inc.

**Portfolio Managers**

Manish Khatta is the lead portfolio manager and has managed the Fund since its inception in July 2020. Mr. Khatta is the CEO and Co-CIO of the Advisor. Dan Russo is the assistant portfolio manager and has helped manage the fund since October 2023. Mr. Russo is a portfolio manager and Co-CIO of the Advisor.

***For important information about purchase and sale of fund shares, tax information and financial intermediary compensation, please turn to the sections of this prospectus entitled "Purchase and Sale of Fund Shares," "Tax Information," and "Payments to Broker-Dealers and Other Financial Intermediaries".***

**Summary Section – Potomac Tactical Rotation Fund**

**Investment Objective**

The Potomac Tactical Rotation Fund (the "Fund") seeks growth and income.

**Fees and Expenses of the Fund**

The following table describes the expenses and fees that you may pay if you buy and hold shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.**

**Shareholder Fees** (fees paid directly from your investment)

<br> Redemption Fees<br>**Annual Fund Operating Expenses** (expenses that you pay each year as a percentage of the value of your investment)<br>

---

| | |
|:---|:---|
| Management Fees | 1.16% |
| Distribution 12b-1 Fees | 0.00% |
| Other Expenses | 0.25% |
| Acquired Fund Fees and Expenses | 0.17% |
| Total Annual Fund Operating Expenses | 1.58% |

---

<sup>

</sup>

**Expense Example**

The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% annual return each year and that the Fund's operating expenses remain the same each year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | |
|:---|:---|:---|:---|
| One Year | Three Years | Five Years | Ten Years |
| $161 | $499 | $860 | $1878 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 917.06% of the average value of its portfolio.

**The Principal Investment Strategy of the Fund**

This Fund seeks growth and income by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies), derivatives, and/or cash and cash equivalents. The ETFs and mutual funds, as well as other exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures, in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities and fixed income securities. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in small and medium capitalization companies and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may invest in real estate investment trusts ("REITs"), commodities and cryptocurrencies. The Fund has broad discretion to use leverage and inverse strategies through investing in underlying funds that use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. The Fund may invest directly in derivatives, such as futures contracts, and may establish both long and short positions. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing. The Fund may also invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments are intended to provide the Fund with exposure to the price movements of Bitcoin.

The Advisor utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into

sophisticated algorithmic composites that guide the Advisor's decision-making process.

The Advisor actively allocates the Fund's assets across equity and fixed income ETF's and mutual funds overweighting those investments that exhibit the best risk-to-reward ratio. If the Advisor's algorithmic composites point to a rising market, the Fund may have a higher proportion of equity ETFs and mutual funds. During downward trending markets, the Advisor will limit the Fund's investments to low volatility ETFs, mutual funds and/or cash in an overall effort to reduce downside exposure. Specialty investments, such as leveraged and inverse ETF's, may be used from time to time to hedge risk and provide for smoother returns. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

**The Principal Risks of Investing in the Fund**

 ****

***Risks of Exchange Traded Funds and Mutual Funds.*** To the extent that the Fund invests in ETFs and mutual funds, the Fund will indirectly bear its proportionate share of any expenses (such as operating expenses and advisory fees) that may be paid by the underlying funds. These expenses would be in addition to the advisory fee and other expenses that the Fund bears in connection with its own operations. Investment in an ETF carries security specific risk and the market risk. Also, if the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the investment in the ETF may decline. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index. The other Principal Risks described below may also be associated with any of the underlying ETFs and mutual funds, and, as a result, to the extent that the Fund invests in ETFs and mutual funds, the Fund will be exposed to any risks specifically associated with such underlying ETF or mutual fund.

***Portfolio Turnover Risk.*** The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. A portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once during the course of a year. How long the Fund holds a security in its portfolio is generally not a factor in making buy and sell decisions. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions. The distributions may be taxable as short-term capital gains which are taxed at ordinary income tax rates rather than at the lower long-term capital gains tax rates. Some or all of the distributions may be short-term capital gains.

***Leveraged ETF Risks.*** The net asset value and market price of leveraged ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not use leverage. Leveraged ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions. Most leveraged ETFs are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance of the underlying index during the same period of time. This effect can be magnified in volatile markets.

***Inverse ETF Risks.*** Inverse ETFs seek investment results that are the opposite of the daily performance of an underlying index or basket of stocks. Investors will lose money when the Index rises — a result that is the opposite from traditional funds.

 

***Risk of Non-Diversification.*** The Fund is a non-diversified fund, which means that it has the ability to take larger positions in a smaller number of securities than a fund that is "diversified." Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment. Because the Fund may invest a significant percentage of its assets in a single ETF, mutual fund and/or money market fund, and at times may hold only one such position along with a cash or cash equivalent position, there is a risk that events negatively affecting these fewer positions will have a greater negative impact on the Fund's performance.

 ****

***Sector Risk.*** Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments. The Fund may be overweight in certain sectors at various times.

 ****

***Management Risks*.** The Advisor's implementation of the Fund's strategy may fail to produce the intended results. In circumstances where the Advisor establishes high-conviction positions, it is possible the results of the trend analysis will be incorrect and the high-conviction trade (i.e., the leveraged position) will not produce the desired results; in such circumstances, the losses that the Fund could experience could be greater than they would otherwise be had the Fund not taken the leveraged position. At times, the Advisor may determine to hold significant portions of the Fund's assets in cash and cash equivalents, and in such scenarios may detract from the Fund's ability to achieve its objective.

***Quantitative/Trend Model Risk.*** The risk that investments selected using quantitative models to identify market trends may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative trend model will enable the Fund to achieve positive returns or outperform the market.

***Securities Lending Risk.*** Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that the Fund will lose money from the investment of the cash collateral. Borrower default risk is the risk that the Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

 ****

**The Fund may invest in ETFs, mutual funds and securities that carry the risks described below:**

***Risks in General***. Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests. There is a risk that these and other factors may adversely affect the Fund's performance. You could lose money by investing in the Fund.

***Risks of Equity Securities.*** The risks associated with investing in equity securities of companies include the financial and operational risks faced by individual companies, the risk that the stock markets, sectors and industries in which the Fund invests may experience periods of turbulence and instability, and the general risk that domestic and global economies may go through periods of decline and cyclical change.

***Risks of Small and Medium Capitalization Companies.*** The underlying funds invest in the stocks of small and medium capitalization companies, which may subject the Fund to additional risks. The earnings and prospects of these companies are more volatile than larger companies. Small and medium capitalization companies may have limited product lines and markets and may experience higher failure rates than do larger companies.

***Risks of Fixed Income Securities.*** Fixed income securities fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than the market price of shorter-term securities.

***High-Yield Securities ("Junk Bond") Risk.*** To the extent that the Fund invests in underlying funds that invest in high-yield securities and unrated securities of similar credit quality (commonly known as "junk bonds"), the Fund may be subject to greater levels of interest rate and credit risk than funds that do not invest in such securities. Junk bonds are considered predominantly speculative with respect to the issuer's continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the underlying funds' ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, an investor may lose its entire investment, which will affect the Fund's return.

 ****

***Foreign Risk.*** The Fund may invest in underlying funds that hold foreign securities, including American Depositary Receipts (ADRs). ADRs are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. ADRs are subject to risks similar to those associated with direct investment in foreign securities. Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. These risks include adverse political, social and economic developments, differing auditing and legal standards, war, expropriation and nationalization.

***Emerging Markets Risk.*** Emerging market issuers may be subject to a greater risk of loss than investments in issuers located or operating in more developed markets. Emerging markets may be more likely to experience inflation, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets

often have less uniformity in accounting and reporting requirements, less reliable securities valuations and greater risk associated with custody of securities than developed markets.

 ****

***Risks of Derivatives.*** Underlying funds in the Fund's portfolio may use derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. There is no guarantee such strategies will work. If the underlying fund is not successful in employing such instruments in managing its portfolio, the Fund's performance will be worse than if it did not invest in underlying funds employing such strategies. Successful use by an underlying fund of options on stock indices, index futures contracts (and options thereon) will be subject to its ability to correctly predict movements in the direction of the securities generally or of a particular market segment. In addition, underlying funds will pay commissions and other costs in connection with such investments, which may increase the Fund's expenses and reduce the return. In utilizing certain derivatives, an underlying fund's losses are potentially unlimited. Derivative instruments may also involve the risk that other parties to the derivative contract may fail to meet their obligations, which could cause losses.

***Real Estate Investment Trusts.*** REITs offer investors greater liquidity and diversification than direct ownership of properties. A REIT is a corporation or business trust that invests substantially all of its assets in interests in real estate. Like any investment in real estate, a REITs performance depends on several factors, such as its ability to find tenants, renew leases and finance property purchases and renovations. Other risks associated with REIT investments include the fact that equity and mortgage REITs are dependent upon specialized management skills and are not fully diversified. These characteristics subject REITs to the risks associated with financing a limited number of projects. They are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Additionally, equity REITs may be affected by any changes in the value of the underlying property owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund but also may indirectly bear similar expenses of some of the REITs in which it invests.

***Commodity Risk.*** Commodity investments will subject the Fund to potentially greater volatility than traditional securities. Commodities will be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. Commodity prices may be volatile, so the risks to investors in the Fund is that unexpected and potentially significant decreases in the value of their commodity holdings would affect the value of an investment in the Fund.

***Cryptocurrency Risk.*** The Fund may invest in underlying funds that hold or have exposure to cryptocurrencies such as Bitcoin, including ETFs and ETPs that invest directly in Bitcoin and Bitcoin futures. Cryptocurrencies (also referred to as "virtual currencies" or "digital assets") are digital assets designed to act as a medium of exchange and represent an emerging and highly speculative asset class. The market price of Bitcoin and other cryptocurrencies has been subject to extreme fluctuations

and may experience substantial declines over short periods of time. The price of Bitcoin and other cryptocurrencies could fall sharply (potentially to zero) for various reasons, including, but not limited to, regulatory changes, issues impacting the Bitcoin network, technological developments, events involving entities that facilitate transactions in Bitcoin, or changes in user preferences in favor of alternative cryptocurrencies.

The market for Bitcoin and related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. The operation of digital asset exchanges and trading venues is largely unregulated, which increases the potential for fraud, security failures, or operational disruptions. Regulatory developments in the United States or abroad, including potential restrictions on the use, exchange, or custody of digital assets, may affect the value, liquidity, or availability of Bitcoin and Bitcoin-related ETFs and ETPs.

***Bitcoin-Related Investment Risk.*** The Fund may invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments expose the Fund to the risks associated with Bitcoin and the Bitcoin futures market. Bitcoin and other digital assets are relatively new and highly speculative asset classes, subject to extreme volatility and unique operational and technological risks. The value of Bitcoin and Bitcoin-related instruments has experienced significant fluctuations, which may result in substantial losses for investors in a short period of time.

The market for Bitcoin and Bitcoin-related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. Market disruptions, trading halts, or disruptions in the infrastructure of digital asset markets may adversely affect the liquidity and value of Bitcoin-related ETFs and ETPs. The price of Bitcoin may be influenced by a variety of factors, including supply and demand dynamics, investor sentiment, government and regulatory actions, technological developments, and the functioning of Bitcoin network protocols.

The regulatory environment for Bitcoin, Bitcoin futures, and digital assets in general is evolving and subject to change. Regulatory developments at the federal, state, or international level may impact the operation of Bitcoin-related ETFs and ETPs or the underlying digital asset markets, potentially affecting their value or liquidity. In addition, the performance of Bitcoin-related ETFs and ETPs may differ from the performance of Bitcoin or Bitcoin futures due to operational inefficiencies, management fees, or market supply and demand conditions.

***Futures Contract Risk.*** The successful use of futures contracts draws upon the Adviser's skill and experience with respect to such instruments and is subject to special risk considerations. The primary risks associated with the use of futures contracts, which may adversely affect the Fund's net asset value and total return, are (a) the imperfect correlation between the change in market value of the futures contract held by the Fund and the price of the futures contract; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the Adviser's inability to predict correctly the direction of securities prices; (e) the possibility that the counterparty will default in the performance of its obligations; and (f) if the Fund has insufficient cash, it may have to

sell securities from its portfolio to meet daily variation margin requirements, and the Fund may have to sell securities at a time when it may be disadvantageous to do so. The Fund's use of futures contracts for the purpose of increasing the Fund's long and/or short exposure creates leverage, which can magnify the Fund's potential for gain or loss and therefore amplify the effect of market volatility on the Fund's share price (see "**Leveraging Risk**").

***Leveraging Risk.*** The Fund's use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying an instrument and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use instruments that have a leveraging effect. Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in the Fund's exposure to an asset class and may cause the Fund's net asset value to be volatile.

***Short Exposure Risk.*** The Fund may take short positions in futures contracts. A short position in a futures contract will profit from a decline in the value of the underlying asset or equity index. The Fund may lose significant value quite rapidly in a rising market if the derivative or equity index increases in value. This is the opposite of traditional "long" investments where the value of the Fund increases as the value of a portfolio security or instrument increases. The risk of loss on a short position is potentially unlimited unlike the risk of loss on a long position, which is limited to the amount paid for the investment plus transaction costs.

**Performance History**

The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the periods indicated compare with those of broad measures of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available by calling 1-888-774-6679.

**Annual Total Returns (calendar years ended 12/31)**

![](fp0095857-1_02.jpg)

For the period January 1, 2025 through September 30, 2025, the total return for the Fund was 5.98%.

Best Quarter (3/31/2021) +7.08%&nbsp;&nbsp;&nbsp;&nbsp; Worst Quarter (3/31/2022) -7.36%

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Since |
| AVERAGE ANNUAL TOTAL RETURN |  | Inception |
| FOR THE PERIODS ENDED 12/31/24 | 1 Year | (7/1/20) |
| Potomac Tactical Rotation Fund |  |  |
| Return Before Taxes | 10.18% | 7.72% |
| Return After Taxes on Distributions | 7.98% | 5.25% |
| Return After Taxes on Distributions and Sale of Fund Shares | 6.00% | 4.91% |
| S&P 500<sup>®</sup> Index (does not reflect deductions for fees, expenses or taxes) | 25.02% | 17.06% |
| S&P Target Risk Moderate Index (does not reflect deductions for fees, expenses or taxes) | 7.97% | 4.67% |

---

The S&P Target Risk Moderate Index is designed to measure the performance of moderate stock-bond allocations to fixed income while seeking to increase opportunities for higher returns through equities. The index is made up of 60% fixed income and 40% equities.

After-tax returns are calculated using the historical highest marginal individual U.S. federal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

**Management**

**Investment Advisor**

Potomac Fund Management, Inc.

**Portfolio Managers**

Manish Khatta is the lead portfolio manager and has managed the Fund since its inception in July 2020. Mr. Khatta is the CEO and Co-CIO of the Advisor. Dan Russo is the assistant portfolio manager and has helped manage the fund since October 2023. Mr. Russo is a portfolio manager and Co-CIO of the Advisor.

***For important information about purchase and sale of fund shares, tax information and financial intermediary compensation, please turn to the sections of this prospectus entitled "Purchase and Sale of Fund Shares," "Tax Information," and "Payments to Broker-Dealers and Other Financial Intermediaries".***

**Summary Section – Potomac Tactical Opportunities Fund**

**Investment Objective**

The Potomac Tactical Opportunities Fund (the "Fund") seeks long-term capital appreciation.

**Fees and Expenses of the Fund**

The following table describes the expenses and fees that you may pay if you buy and hold shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.**

**Shareholder Fees** (fees paid directly from your investment)

<br> Redemption Fees<br>**Annual Fund Operating Expenses** (expenses that you pay each year as a percentage of the value of your investment)<br>

---

| | |
|:---|:---|
| Management Fees | 1.21% |
| Distribution 12b-1 Fees | 0.00% |
| Other Expenses | 0.26% |
| Acquired Fund Fees and Expenses | 0.27% |
| Total Annual Fund Operating Expenses | 1.74% |

---

<sup>

</sup>

**Expense Example**

The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% annual return each year and that the Fund's operating expenses remain the same each year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | |
|:---|:---|:---|:---|
| One Year | Three Years | Five Years | Ten Years |
| $177 | $548 | $944 | $2052 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 2,273.53% of the average value of its portfolio.

**The Principal Investment Strategy of the Fund**

This Fund seeks long-term capital appreciation by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies) derivatives, and/or cash and cash equivalents. The ETFs and mutual funds, as well as other exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures, in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in small and medium capitalization companies and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may invest in real estate investment trusts ("REITs"), commodities and cryptocurrencies. The Fund has broad discretion to use leverage and inverse strategies through investing in underlying funds that use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. The Fund may invest directly in derivatives, such as futures contracts, and may establish both long and short positions. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing. The Fund may also invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments are intended to provide the Fund with exposure to the price movements of Bitcoin.

Potomac Fund Management, Inc., the investment advisor to the Fund (the "Advisor"), utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best

indication of market direction. The technical trading indicators are then combined into sophisticated algorithmic composites that guide the Advisor's decision-making process.

The Advisor actively allocates the Fund's assets across equity ETF's and mutual funds that hold a broad-based basket of equity securities. If the Advisor's algorithmic composites point to a rising market, the Fund may have a higher proportion of aggressive equity ETFs and mutual funds. During downward trending markets, the Advisor will limit the Fund's investments to low volatility ETFs, mutual funds and/or cash and cash equivalents in an overall effort to reduce downside exposure. The Advisor may also invest in fixed income securities with longer maturities. Specialty investments, such as leveraged and inverse ETF's, may be used from time to time to hedge risk and provide for smoother returns. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

**The Principal Risks of Investing in the Fund**

***Risks of Exchange Traded Funds and Mutual Funds.*** To the extent that the Fund invests in ETFs and mutual funds, the Fund will indirectly bear its proportionate share of any expenses (such as operating expenses and advisory fees) that may be paid by the underlying funds. These expenses would be in addition to the advisory fee and other expenses that the Fund bears in connection with its own operations. Investment in an ETF carries security specific risk and the market risk. Also, if the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the Fund's investment in the ETF may decline. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index. The other Principal Risks described below may also be associated with any of the underlying ETFs and mutual funds, and, as a result, to the extent that the Fund invests in ETFs and mutual funds, the Fund will be exposed to any risks specifically associated with such underlying ETF or mutual fund.

***Portfolio Turnover Risk.*** The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. A portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once during the course of a year. How long the Fund holds a security in its portfolio is generally not a factor in making buy and sell decisions. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions. The distributions may be taxable as short-term capital gains which are taxed at ordinary income tax rates rather than at the lower long-term capital gains tax rates. Some or all of the distributions may be short-term capital gains.

***Leveraged ETF Risks.*** The net asset value and market price of leveraged ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not use leverage. Leveraged ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions. Most leveraged ETFs are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance of the underlying index during the same period of time. This effect can be magnified in volatile markets.

***Inverse ETF Risks.*** Inverse ETFs seek investment results that are the opposite of the daily performance of an underlying index or basket of stocks. Investors will lose money when the Index rises — a result that is the opposite from traditional funds.

 

***Risk of Non-Diversification.*** The Fund is a non-diversified fund, which means that it has the ability to take larger positions in a smaller number of securities than a fund that is "diversified." Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment. Because the Fund may invest a significant percentage of its assets in a single ETF, mutual fund and/or money market fund, and at times may hold only one such position along with a cash or cash equivalent position, there is a risk that events negatively affecting these fewer positions will have a greater negative impact on the Fund's performance.

 ****

***Sector Risk.*** Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments. The Fund may be overweight in certain sectors at various times.

 ****

***Management Risks*.** The Advisor's implementation of the Fund's strategy may fail to produce the intended results. In circumstances where the Advisor establishes high-conviction positions, it is possible the results of the trend analysis will be incorrect and the high-conviction trade (i.e., the leveraged position) will not produce the desired results; in such circumstances, the losses that the Fund could experience could be greater than they would otherwise be had the Fund not taken the leveraged position. At times, the Advisor may determine to hold significant portions of the Fund's assets in cash and cash equivalents, and in such scenarios may detract from the Fund's ability to achieve its objective.

 ****

***Quantitative/Trend Model Risk.*** The risk that investments selected using quantitative models to identify market trends may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative trend model will enable the Fund to achieve positive returns or outperform the market.

***Securities Lending Risk.*** To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds. Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that the Fund will lose money from the investment of the

cash collateral. Borrower default risk is the risk that the Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

 **

**The Fund may invest in ETFs, mutual funds and securities that carry the risks described below:**

 

***Risks in General***. Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests. There is a risk that these and other factors may adversely affect the Fund's performance. You could lose money by investing in the Fund.

 ****

***Risks of Equity Securities.*** The risks associated with investing in equity securities of companies include the financial and operational risks faced by individual companies, the risk that the stock markets, sectors and industries in which the Fund invests may experience periods of turbulence and instability, and the general risk that domestic and global economies may go through periods of decline and cyclical change.

***Risks of Small and Medium Capitalization Companies.*** The underlying funds invest in the stocks of small and medium capitalization companies, which may subject the Fund to additional risks. The earnings and prospects of these companies are more volatile than larger companies. Small and medium capitalization companies may have limited product lines and markets and may experience higher failure rates than do larger companies.

***Risks of Fixed Income Securities.*** Fixed income securities fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than the market price of shorter-term securities.

***High-Yield Securities ("Junk Bond") Risk.*** To the extent that the Fund invests in underlying funds that invest in high-yield securities and unrated securities of similar credit quality (commonly known as "junk bonds"), the Fund may be subject to greater levels of interest rate and credit risk than funds that do not invest in such securities. Junk bonds are considered predominantly speculative with respect to the issuer's continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the underlying funds' ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, an investor may lose its entire investment, which will affect the Fund's return.

 ****

***Foreign Risk.*** The Fund may invest in underlying funds that hold foreign securities, including American Depositary Receipts (ADRs). ADRs are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. ADRs are subject to risks similar to those associated with direct investment in foreign securities. Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. These risks include adverse political, social and economic developments, differing auditing and legal standards, war, expropriation and nationalization.

***Emerging Markets Risk.*** Emerging market issuers may be subject to a greater risk of loss than investments in issuers located or operating in more developed markets. Emerging markets may be more likely to experience inflation, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, less reliable securities valuations and greater risk associated with custody of securities than developed markets.

 ****

***Risks of Derivatives.*** Underlying funds in the Fund's portfolio may use derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. There is no guarantee such strategies will work. If the underlying fund is not successful in employing such instruments in managing its portfolio, the Fund's performance will be worse than if it did not invest in underlying funds employing such strategies. Successful use by an underlying fund of options on stock indices, index futures contracts (and options thereon) will be subject to its ability to correctly predict movements in the direction of the securities generally or of a particular market segment. In addition, underlying funds will pay commissions and other costs in connection with such investments, which may increase the Fund's expenses and reduce the return. In utilizing certain derivatives, an underlying fund's losses are potentially unlimited. Derivative instruments may also involve the risk that other parties to the derivative contract may fail to meet their obligations, which could cause losses.

***Real Estate Investment Trusts.*** REITs offer investors greater liquidity and diversification than direct ownership of properties. A REIT is a corporation or business trust that invests substantially all of its assets in interests in real estate. Equity REITs are those which purchase or lease land and buildings and generate income primarily from rental income. Equity REITs may also realize capital gains (or losses) when selling property that has appreciated (or depreciated) in value. Mortgage REITs are those that invest in real estate mortgages and generate income primarily from interest payments on mortgage loans. Hybrid REITs generally invest in both real property and mortgages. Unlike corporations, REITs do not pay income taxes if they meet certain IRS requirements. Real estate related equity securities also include those insured by real estate developers, companies with substantial real estate holdings (for investment or as part of their operations), as well as companies whose products and services are directly related to the real estate industry, such as building supply manufacturers, mortgage lenders or mortgage servicing companies. Like any investment in real estate, though, a REITs performance depends on several factors, such as its ability to find tenants, renew leases and finance property purchases and renovations. Other risks associated with REIT investments include the fact that equity and mortgage REITs are dependent upon specialized management skills and are not fully diversified. These characteristics subject REITs to the risks associated with financing a limited number of projects. They are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Additionally, equity REITs may be affected by any changes in the value of the underlying property owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund but also may indirectly bear similar expenses of some of the REITs in which it invests.

***Commodity Risk.*** Commodity investments will subject the Fund to potentially greater volatility than traditional securities. Commodities will be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. Commodity prices may be volatile, so the risks to investors in the Fund is that unexpected and potentially significant decreases in the value of their commodity holdings would affect the value of an investment in the Fund.

***Cryptocurrency Risk.*** The Fund may invest in underlying funds that hold or have exposure to cryptocurrencies such as Bitcoin, including ETFs and ETPs that invest directly in Bitcoin and Bitcoin futures. Cryptocurrencies (also referred to as "virtual currencies" or "digital assets") are digital assets designed to act as a medium of exchange and represent an emerging and highly speculative asset class. The market price of Bitcoin and other cryptocurrencies has been subject to extreme fluctuations and may experience substantial declines over short periods of time. The price of Bitcoin and other cryptocurrencies could fall sharply (potentially to zero) for various reasons, including, but not limited to, regulatory changes, issues impacting the Bitcoin network, technological developments, events involving entities that facilitate transactions in Bitcoin, or changes in user preferences in favor of alternative cryptocurrencies.

The market for Bitcoin and related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. The operation of digital asset exchanges and trading venues is largely unregulated, which increases the potential for fraud, security failures, or operational disruptions. Regulatory developments in the United States or abroad, including potential restrictions on the use, exchange, or custody of digital assets, may affect the value, liquidity, or availability of Bitcoin and Bitcoin-related ETFs and ETPs.

***Bitcoin-Related Investment Risk.*** The Fund may invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments expose the Fund to the risks associated with Bitcoin and the Bitcoin futures market. Bitcoin and other digital assets are relatively new and highly speculative asset classes, subject to extreme volatility and unique operational and technological risks. The value of Bitcoin and Bitcoin-related instruments has experienced significant fluctuations, which may result in substantial losses for investors in a short period of time.

The market for Bitcoin and Bitcoin-related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. Market disruptions, trading halts, or disruptions in the infrastructure of digital asset markets may adversely affect the liquidity and value of Bitcoin-related ETFs and ETPs. The price of Bitcoin may be influenced by a variety of factors, including supply and demand dynamics, investor sentiment, government and regulatory actions, technological developments, and the functioning of Bitcoin network protocols.

The regulatory environment for Bitcoin, Bitcoin futures, and digital assets in general is evolving and subject to change. Regulatory developments at the federal, state, or international level may impact the operation of Bitcoin-related ETFs and ETPs or the

underlying digital asset markets, potentially affecting their value or liquidity. In addition, the performance of Bitcoin-related ETFs and ETPs may differ from the performance of Bitcoin or Bitcoin futures due to operational inefficiencies, management fees, or market supply and demand conditions.

***Futures Contract Risk.*** The successful use of futures contracts draws upon the Adviser's skill and experience with respect to such instruments and is subject to special risk considerations. The primary risks associated with the use of futures contracts, which may adversely affect the Fund's net asset value and total return, are (a) the imperfect correlation between the change in market value of the futures contract held by the Fund and the price of the futures contract; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the Adviser's inability to predict correctly the direction of securities prices; (e) the possibility that the counterparty will default in the performance of its obligations; and (f) if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements, and the Fund may have to sell securities at a time when it may be disadvantageous to do so. The Fund's use of futures contracts for the purpose of increasing the Fund's long and/or short exposure creates leverage, which can magnify the Fund's potential for gain or loss and therefore amplify the effect of market volatility on the Fund's share price (see "**Leveraging Risk**").

***Leveraging Risk.*** The Fund's use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying an instrument and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use instruments that have a leveraging effect. Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in the Fund's exposure to an asset class and may cause the Fund's net asset value to be volatile.

***Short Exposure Risk.*** The Fund may take short positions in futures contracts. A short position in a futures contract will profit from a decline in the value of the underlying asset or equity index. The Fund may lose significant value quite rapidly in a rising market if the derivative or equity index increases in value. This is the opposite of traditional "long" investments where the value of the Fund increases as the value of a portfolio security or instrument increases. The risk of loss on a short position is potentially unlimited unlike the risk of loss on a long position, which is limited to the amount paid for the investment plus transaction costs.

**Performance History**

The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the periods indicated compare with those of broad measures of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available by calling 1-888-774-6679.

**Annual Total Returns (calendar years ended 12/31)**

![](fp0095857-1_03.jpg)

For the period January 1, 2025 through September 30, 2025, the total return for the Fund was 9.64%.

Best Quarter (3/31/2023) +15.35% Worst Quarter (3/31/2022) -18.26%

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Since |
| AVERAGE ANNUAL TOTAL RETURN |  | Inception |
| FOR THE PERIODS ENDED 12/31/24 | 1 Year | (7/1/20) |
| Potomac Tactical Opportunities Fund |  |  |
| Return Before Taxes | 8.36% | 5.25% |
| Return After Taxes on Distributions | 6.29% | 3.20% |
| Return After Taxes on Distributions and Sale of Fund Shares | 4.87% | 3.16% |
| S&P 500<sup>®</sup> Index (does not reflect deductions for fees, expenses or taxes) | 25.02% | 17.06% |
| S&P Target Risk Growth Index (does not reflect deductions for fees, expenses or taxes) | 10.73% | 7.46% |

---

The S&P Target Risk Growth Index (changed names to the S&P Target Risk Balanced Index effective 02/19/2025) is designed to measure the performance of equity allocations, while seeking to provide limited fixed income exposure to diversify risk. The index is made up of 60% equities and 40% fixed income.

After-tax returns are calculated using the historical highest marginal individual U.S. federal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

**Management**

**Investment Advisor**

Potomac Fund Management, Inc.

**Portfolio Managers**

Manish Khatta is the lead portfolio manager and has managed the Fund since its inception in July 2020. Mr. Khatta is the CEO and Co-CIO of the Advisor. Dan Russo is the assistant portfolio manager and has helped manage the fund since October 2023. Mr. Russo is a portfolio manager and Co-CIO of the Advisor.

***For important information about purchase and sale of fund shares, tax information and financial intermediary compensation, please turn to the sections of this prospectus entitled "Purchase and Sale of Fund Shares," "Tax Information," and "Payments to Broker-Dealers and Other Financial Intermediaries".***

**Summary Section – Potomac Defensive Bull Fund**

**Investment Objective**

The Potomac Defensive Bull Fund (the "Fund") seeks long-term capital appreciation.

**Fees and Expenses of the Fund**

The following table describes the expenses and fees that you may pay if you buy and hold shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.**

**Shareholder Fees** (fees paid directly from your investment)

<br> Redemption Fees<br>**Annual Fund Operating Expenses** (expenses that you pay each year as a percentage of the value of your investment)<br>

---

| | |
|:---|:---|
| Management Fees | 0.93% |
| Distribution 12b-1 Fees | 0.00% |
| Other Expenses | 0.21% |
| Acquired Fund Fees and Expenses | 0.25% |
| Total Annual Fund Operating Expenses | 1.39% |

---

<sup>

</sup>

**Expense Example**

The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% annual return each year and that the Fund's operating expenses remain the same each year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | |
|:---|:---|:---|:---|
| One Year | Three Years | Five Years | Ten Years |
| $142 | $440 | $761 | $1669 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 1,352.76% of the average value of its portfolio.

**The Principal Investment Strategy of the Fund**

This Fund seeks long-term capital appreciation by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies), derivatives, and/or cash and cash equivalents. The ETFs and mutual funds in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities and derivatives. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in small and medium capitalization companies and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. The Fund may invest directly in derivatives, such as futures contracts, and may establish both long and short positions. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing.

Potomac Fund Management, Inc., the investment advisor to the Fund (the "Advisor"), utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into sophisticated algorithmic composites that guide the Advisor's decision-making process.

The Fund will generally use funds that hold a broad-based basket of equity securities. If the Advisor's algorithmic composites point to a rising market, the Fund will invest in ETFs that provide leveraged exposure of a particular market index, such as the S&P®

500 Index. During downward trending markets, the Advisor will attempt to reduce downside exposure by limiting the Fund's investments to cash and cash equivalents. The Advisor may also invest in fixed income securities with longer maturities. If the trend is, in the Advisor's view, weak enough the Fund's assets may be invested in ETFs that provide inverse exposure of a particular market index, such as the S&P® 500 Index.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

**The Principal Risks of Investing in the Fund**

***Risks of Exchange Traded Funds and Mutual Funds.*** To the extent that the Fund invests in ETFs and mutual funds, the Fund will indirectly bear its proportionate share of any expenses (such as operating expenses and advisory fees) that may be paid by the underlying funds. These expenses would be in addition to the advisory fee and other expenses that the Fund bears in connection with its own operations. Investment in an ETF carries security specific risk and the market risk. Also, if the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the Fund's investment in the ETF may decline. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index. The other Principal Risks described below may also be associated with any of the underlying ETFs and mutual funds, and, as a result, to the extent that the Fund invests in ETFs and mutual funds, the Fund will be exposed to any risks specifically associated with such underlying ETF or mutual fund.

***Portfolio Turnover Risk.*** The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. A portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once during the course of a year. How long the Fund holds a security in its portfolio is generally not a factor in making buy and sell decisions. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions. The distributions may be taxable as short-term capital gains which are taxed at ordinary income tax rates rather than at the lower long-term capital gains tax rates. Some or all of the distributions may be short-term capital gains.

***Leveraged ETF Risks.*** The net asset value and market price of leveraged ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not use leverage. Leveraged ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions. Most leveraged ETFs are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance of the underlying index during the same period of time. This effect can be magnified in volatile markets.

***Inverse ETF Risks.*** Inverse ETFs seek investment results that are the opposite of the daily performance of an underlying index or basket of stocks. Investors will lose money when the Index rises — a result that is the opposite from traditional funds.

 

***Risk of Non-Diversification.*** The Fund is a non-diversified fund, which means that it has the ability to take larger positions in a smaller number of securities than a fund that is "diversified." Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment. Because the Fund may invest a significant percentage of its assets in a single ETF, mutual fund and/or money market fund, and at times may hold only one such position along with a cash or cash equivalent position, there is a risk that events negatively affecting these fewer positions will have a greater negative impact on the Fund's performance.

 ****

***Sector Risk.*** Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments. The Fund may be overweight in certain sectors at various times.

 ****

***Management Risks*.** The Advisor's implementation of the Fund's strategy may fail to produce the intended results. In circumstances where the Advisor establishes high-conviction positions, it is possible the results of the trend analysis will be incorrect and the high-conviction trade (i.e., the leveraged position) will not produce the desired results; in such circumstances, the losses that the Fund could experience could be greater than they would otherwise be had the Fund not taken the leveraged position. At times, the Advisor may determine to hold significant portions of the Fund's assets in cash and cash equivalents, and in such scenarios may detract from the Fund's ability to achieve its objective.

 ****

***Quantitative/Trend Model Risk.*** The risk that investments selected using quantitative models to identify market trends may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative trend model will enable the Fund to achieve positive returns or outperform the market.

***Securities Lending Risk.*** To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds. Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that the Fund will lose money from the investment of the cash collateral. Borrower default risk is the risk that the Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

 **

**The Fund may invest in ETFs, mutual funds and securities that carry the risks described below:**

 

***Risks in General***. Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests. There is a risk that these and other factors may adversely affect the Fund's performance. You could lose money by investing in the Fund.

***Risks of Equity Securities.*** The risks associated with investing in equity securities of companies include the financial and operational risks faced by individual companies, the risk that the stock markets, sectors and industries in which the Fund invests may experience periods of turbulence and instability, and the general risk that domestic and global economies may go through periods of decline and cyclical change.

***Risks of Derivatives.*** Underlying funds in the Fund's portfolio may use derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. There is no guarantee such strategies will work. If the underlying fund is not successful in employing such instruments in managing its portfolio, the Fund's performance will be worse than if it did not invest in underlying funds employing such strategies. Successful use by an underlying fund of options on stock indices, index futures contracts (and options thereon) will be subject to its ability to correctly predict movements in the direction of the securities generally or of a particular market segment. In addition, underlying funds will pay commissions and other costs in connection with such investments, which may increase the Fund's expenses and reduce the return. In utilizing certain derivatives, an underlying fund's losses are potentially unlimited. Derivative instruments may also involve the risk that other parties to the derivative contract may fail to meet their obligations, which could cause losses.

***Risks of Small and Medium Capitalization Companies.*** The underlying funds invest in the stocks of small and medium capitalization companies, which may subject the Fund to additional risks. The earnings and prospects of these companies are more volatile than larger companies. Small and medium capitalization companies may have limited product lines and markets and may experience higher failure rates than do larger companies.

***Risks of Fixed Income Securities.*** Fixed income securities fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than the market price of shorter-term securities.

***High-Yield Securities ("Junk Bond") Risk.*** To the extent that the Fund invests in underlying funds that invest in high-yield securities and unrated securities of similar credit quality (commonly known as "junk bonds"), the Fund may be subject to greater levels of interest rate and credit risk than funds that do not invest in such securities. Junk bonds are considered predominantly speculative with respect to the issuer's continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the underlying funds' ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, an investor may lose its entire investment, which will affect the Fund's return.

 ****

***Foreign Risk.*** The Fund may invest in underlying funds that hold foreign securities, including American Depositary Receipts (ADRs). ADRs are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in

their national markets and currencies. ADRs are subject to risks similar to those associated with direct investment in foreign securities. Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. These risks include adverse political, social and economic developments, differing auditing and legal standards, war, expropriation and nationalization.

***Emerging Markets Risk.*** Emerging market issuers may be subject to a greater risk of loss than investments in issuers located or operating in more developed markets. Emerging markets may be more likely to experience inflation, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, less reliable securities valuations and greater risk associated with custody of securities than developed markets.

***Futures Contract Risk.*** The successful use of futures contracts draws upon the Adviser's skill and experience with respect to such instruments and is subject to special risk considerations. The primary risks associated with the use of futures contracts, which may adversely affect the Fund's net asset value and total return, are (a) the imperfect correlation between the change in market value of the futures contract held by the Fund and the price of the futures contract; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the Adviser's inability to predict correctly the direction of securities prices; (e) the possibility that the counterparty will default in the performance of its obligations; and (f) if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements, and the Fund may have to sell securities at a time when it may be disadvantageous to do so. The Fund's use of futures contracts for the purpose of increasing the Fund's long and/or short exposure creates leverage, which can magnify the Fund's potential for gain or loss and therefore amplify the effect of market volatility on the Fund's share price (see "**Leveraging Risk**").

***Leveraging Risk.*** The Fund's use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying an instrument and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use instruments that have a leveraging effect. Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in the Fund's exposure to an asset class and may cause the Fund's net asset value to be volatile.

***Short Exposure Risk.*** The Fund may take short positions in futures contracts. A short position in a futures contract will profit from a decline in the value of the underlying asset or equity index. The Fund may lose significant value quite rapidly in a rising market if the derivative or equity index increases in value. This is the opposite of traditional "long" investments where the value of the Fund increases as the value of a portfolio security or instrument increases. The risk of loss on a short position is potentially unlimited unlike the risk of loss on a long position, which is limited to the amount paid for the investment plus transaction costs.

**Performance History**

The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the periods indicated compare with those of broad measures of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available by calling 1-888-774-6679.

**Annual Total Returns (calendar years ended 12/31)**

![](fp0095857-1_04.jpg)

For the period January 1, 2025 through September 30, 2025, the total return for the Fund was17.14%.

Best Quarter (3/31/2021) +19.51%&nbsp;&nbsp;&nbsp;&nbsp; Worst Quarter (3/31/2022) -21.09%

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Since |
| AVERAGE ANNUAL TOTAL RETURN |  | Inception |
| FOR THE PERIODS ENDED 12/31/24 | 1 Year | (7/1/20) |
| Potomac Defensive Bull Fund |  |  |
| Return Before Taxes | 19.82% | 17.62% |
| Return After Taxes on Distributions | 14.17% | 13.01% |
| Return After Taxes on Distributions and Sale of Fund Shares | 11.62% | 11.84% |
| S&P 500<sup>®</sup> Index (does not reflect deductions for fees, expenses or taxes) | 25.02% | 17.06% |
| S&P Target Risk Aggressive Index (does not reflect deductions for fees, expenses or taxes) | 13.50% | 10.25% |

---

S&P 500® Index (does not reflect deductions for fees, expenses or taxes)

The S&P Target Risk Aggressive Index is designed to measure the performance of aggressive stock-bond allocations to equities, seeking to maximize opportunities for long-term capital accumulation. It may include small allocations to fixed income to enhance portfolio efficiency. The index is made up of 80% equities and 20% fixed income.

After-tax returns are calculated using the historical highest marginal individual U.S. federal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

**Management**

**Investment Advisor**

Potomac Fund Management, Inc.

**Portfolio Managers**

Manish Khatta is the lead portfolio manager and has managed the Fund since its inception in July 2020. Mr. Khatta is the CEO and Co-CIO of the Advisor. Dan Russo is the assistant portfolio manager and has helped manage the fund since October 2023. Mr. Russo is a portfolio manager and Co-CIO of the Advisor.

***For important information about purchase and sale of fund shares, tax information and financial intermediary compensation, please turn to the sections of this prospectus entitled "Purchase and Sale of Fund Shares," "Tax Information," and "Payments to Broker-Dealers and Other Financial Intermediaries".***

**General Summary Information**

**Purchase and Sale of Fund Shares**

The minimum initial and subsequent investment amounts for various types of accounts offered by the Funds are shown below.

---

| | | |
|:---|:---|:---|
|  | Initial | Additional |
| Regular Account | $5000 | $100 |
| Automatic Investment Plan | $1000 | $100\* |
| IRA Account | $1000 | $100 |

---

\*An Automatic Investment Plan requires a $100 minimum automatic monthly investment.

Investors may purchase or redeem Fund shares on any business day through a financial intermediary, by mail (Potomac Funds, c/o Paralel Technologies, LLC, 1700 Broadway, No. 1850, Denver, CO 8029), by wire, or by telephone at 1-888-774-6679. Purchases and redemptions by telephone are only permitted if you previously established this option on your account.

**Tax Information**

Each Fund's distributions are taxable and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account where distributions may be taxed when withdrawn from the tax deferred arrangement.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Funds through a broker-dealer or other financial intermediary (such as a bank), the Funds and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Funds over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

**Investment Objective, Principal Investment Strategies, Related Risks, and Disclosure of Portfolio Holdings**

**Investment Objective**

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Potomac Managed Volatility Fund seeks total return.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Potomac Tactical Rotation Fund seeks growth and income.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Potomac Tactical Opportunities Fund seeks long-term capital appreciation.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Potomac Defensive Bull Fund seeks long-term capital appreciation.

Each Fund's investment objective is not fundamental, and it may be changed without shareholder approval, although a Fund will provide 60 days' advance notice of any such change. The Funds are classified as "non-diversified" funds, which means they can invest in fewer securities at any one time than a diversified fund and can invest more of their assets in securities of a single issuer than a diversified fund. The Funds may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

**The Investment Selection Process Used by the Funds**

Under normal market conditions, the Funds invests in exchange traded funds ("ETFs"), mutual funds, derivatives, and/or cash and cash equivalents. The underlying ETFs and mutual funds generally invest in equity securities, fixed income securities and derivatives.

*<u>Potomac Managed Volatility Fund</u>*

This Fund seeks total return by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies) registered under the Investment Company Act of 1940, derivatives, such as futures contracts, and/or cash and cash equivalents. The ETFs and mutual funds, as well as other exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures, in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in fixed income securities and equity securities. The underlying funds may invest in high-yield fixed income securities (also known as "junk bonds") and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in real estate investment trusts ("REITs"), commodities and cryptocurrencies. The Fund has broad discretion to use leverage and inverse strategies through investing in underlying funds that use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. These underlying funds may make investments in futures contracts, options, and other derivative instruments that provide the economic effect of financial leverage by creating additional investment exposure to the underlying asset. An underlying fund that follows an inverse strategy is investing so that it performs opposite of its underlying index. The Fund may invest directly in derivatives, such as futures contracts. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing. The Fund may also invest up to 15% of its assets in ETFs and

ETPs that hold Bitcoin and Bitcoin futures. These investments are intended to provide the Fund with exposure to the price movements of Bitcoin.

Potomac Fund Management, Inc., the investment advisor to the Fund (the "Advisor"), utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund. The systems utilized by the Fund attempt to assess the level of market risk that exist at any particular time, which, in turn, guides the Advisor's determinations as to whether the Fund should be fully invested in the market or hold more significant cash positions.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into sophisticated algorithmic composites that guide the Advisor's decision-making process. The raw data used in our systems include, but are not limited to: S&P 500, Dow Jones Industrial Average, Russell 2000, S&P 400 Mid Cap, NASDAQ 100, Dow Transports, Dow Utilities, Dow Corporate Bonds, Index Advance Decline, Trading Volume and High/Lows, Prime Rate, Discount Rate, Treasury Bill Rate, Fed Funds Rate, Commodity Research Bureau, Commercial Longs and Shorts, NYSE Short Interest, AAII Bullish and Bearish Percentages. The raw data is analyzed using technical tools, such as *moving averages*, *Bollinger bands*, *relative strength*, *stochastics*, *oscillators*, *intermarket analysis*, *trend following,* and *counter trend analysis*.

The Advisor actively allocates the Fund's assets across fixed income and alternative underlying funds that demonstrate low volatility and favorable risk adjusted returns. The Fund's investments in alternative underlying funds generally provide exposure to assets that are not designed to closely track or correlate to the performance of the general equity and/or fixed-income markets. The alternative underlying funds in which the Fund will invest may engage in strategies such as long/short and they may use derivatives and utilize techniques such as short selling to effect their objectives. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.

To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. The Fund may invest a significant percentage of its assets in a limited number of securities. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

*<u>Potomac Tactical Rotation Fund</u>*

This Fund seeks growth and income by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies) registered under the Investment Company Act of 1940, derivatives, such as futures contracts, and/or cash and cash equivalents. The ETFs and mutual funds, as well as other exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures, in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities and fixed income securities. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in small and medium capitalization companies and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may invest in real estate investment trusts ("REITs"), commodities and cryptocurrencies. The Fund has broad discretion to use leverage and inverse strategies through investing in underlying funds that use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. These underlying funds may make investments in futures contracts, options and other derivative instruments that provide the economic effect of financial leverage by creating additional investment exposure to the underlying asset. An underlying fund that follows an inverse strategy is investing so that it performs opposite of its underlying index. The Fund may invest directly in derivatives, such as futures contracts, and may establish both long and short positions. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing. The Fund may also invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments are intended to provide the Fund with exposure to the price movements of Bitcoin.

The Advisor utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund. The systems utilized by the Fund attempt to assess the level of market risk that exist at any particular time, which, in turn, guides the Advisor's determinations as to whether the Fund should be fully invested in the market or hold more significant cash positions.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into

sophisticated algorithmic composites that guide the Advisor's decision-making process. The raw data used in our systems include, but are not limited to: S&P 500, Dow Jones Industrial Average, Russell 2000, S&P 400 Mid Cap, NASDAQ 100, Dow Transports, Dow Utilities Dow Corporate Bonds, Index Advance Decline, Trading Volume and High/Lows, Prime Rate, Discount Rate, Treasury Bill Rate, Fed Funds Rate, Commodity Research Bureau, Commercial Longs and Shorts, NYSE Short Interest, AAII Bullish and Bearish Percentages. The raw data is analyzed using technical tools, such as *moving averages*, *Bollinger bands*, *relative strength*, *stochastics*, *oscillators*, *intermarket analysis*, *trend following* and *counter trend analysis*.

The Advisor actively allocates the Fund's assets across equity and fixed income ETF's and mutual funds overweighting those investments that exhibit the best risk-to-reward ratio. If the Advisor's algorithmic composites point to a rising market, the Fund may have a higher proportion of equity ETFs and mutual funds. During downward trending markets, the Advisor will limit the Fund's investments to low volatility ETFs, mutual funds and/or cash in an overall effort to reduce downside exposure. Specialty investments, such as leveraged and inverse ETF's, may be used from time to time to hedge risk and provide for smoother returns. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.

To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. The Fund may invest a significant percentage of its assets in a limited number of securities. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

*<u>Potomac Tactical Opportunities Fund</u>*

This Fund seeks long-term capital appreciation by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies) registered under the Investment Company Act of 1940, derivatives, such as futures contracts, and/or cash and cash equivalents. The ETFs and mutual funds, as well as other exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures, in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in small and medium capitalization companies and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may invest in real estate investment trusts ("REITs"), commodities and cryptocurrencies. The Fund has

broad discretion to use leverage and inverse strategies through investing in underlying funds that use leverage and inverse strategies, including strategies that seek to earn multiples of the returns of a particular segment of the investment market or the markets as a whole. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. These underlying funds may make investments in futures contracts, options and other derivative instruments that provide the economic effect of financial leverage by creating additional investment exposure to the underlying asset. An underlying fund that follows an inverse strategy is investing so that it performs opposite of its underlying index. The Fund may invest directly in derivatives, such as futures contracts and may establish both long and short positions. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing. The Fund may also invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments are intended to provide the Fund with exposure to the price movements of Bitcoin.

Potomac Fund Management, Inc., the investment advisor to the Fund (the "Advisor"), utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund. The systems utilized by the Fund attempt to assess the level of market risk that exist at any particular time, which, in turn, guides the Advisor's determinations as to whether the Fund should be fully invested in the market or hold more significant cash positions.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into sophisticated algorithmic composites that guide the Advisor's decision-making process. The raw data used in our systems include, but are not limited to: S&P 500, Dow Jones Industrial Average, Russell 2000, S&P 400 Mid Cap, NASDAQ 100, Dow Transports, Dow Utilities Dow Corporate Bonds, Index Advance Decline, Trading Volume and High/Lows, Prime Rate, Discount Rate, Treasury Bill Rate, Fed Funds Rate, Commodity Research Bureau, Commercial Longs and Shorts, NYSE Short Interest, AAII Bullish and Bearish Percentages. The raw data is analyzed using technical tools, such as *moving averages*, *Bollinger bands*, *relative strength*, *stochastics*, *oscillators*, *intermarket analysis*, *trend following* and *counter trend analysis*.

The Advisor actively allocates the Fund's assets across equity ETF's and mutual funds that hold a broad-based basket of equity securities. If the Advisor's algorithmic composites point to a rising market, the Fund may have a higher proportion of

aggressive equity ETFs and mutual funds. During downward trending markets, the Advisor will limit the Fund's investments to low volatility ETFs, mutual funds and/or cash and cash equivalents in an overall effort to reduce downside exposure. The Advisor may also invest in fixed income securities with longer maturities. Specialty investments, such as leveraged and inverse ETF's, may be used from time to time to hedge risk and provide for smoother returns. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.

To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. The Fund may invest a significant percentage of its assets in a limited number of securities. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

 

*<u>Potomac Defensive Bull Fund</u>*

This Fund seeks long-term capital appreciation by constructing a portfolio that is comprised, under normal market conditions, of exchange traded funds ("ETFs"), mutual funds (open-end investment companies) registered under the Investment Company Act of 1940, derivatives, such as futures contracts, and/or cash and cash equivalents. The ETFs and mutual funds in which the Fund may invest are referred to as "underlying funds" throughout this Prospectus. The underlying funds generally invest in equity securities and derivatives. The underlying funds may invest in both domestic and international securities, including securities from emerging markets. The underlying funds may invest in small and medium capitalization companies and derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. The underlying funds may use leverage and inverse strategies. When an underlying fund uses leverage, it is seeking to increase the potential return on its investment in a particular asset. These underlying funds may make investments in futures contracts, options and other derivative instruments that provide the economic effect of financial leverage by creating additional investment exposure to the underlying asset. An underlying fund that follows an inverse strategy is investing so that it performs opposite of its underlying index. The Fund may invest directly in derivatives, such as futures contracts, and may establish both long and short positions. The Fund expects to rebalance its investments in underlying funds that use leverage and/or inverse strategies on an ongoing basis as market movements dictate and there is no limitation on the amount of the Fund's assets that may be invested in these types of underlying funds. However, the Fund is subject to limits designed to comply with applicable regulatory requirements, including Rule 18f-4 under the Investment Company Act of 1940. The Fund employs risk management procedures in connection with its derivatives strategies, including monitoring of notional exposure and stress testing.

Potomac Fund Management, Inc., the investment advisor to the Fund (the "Advisor"), utilizes technical analysis based quantitative systems to guide its decision-making process for the Fund. The systems utilized by the Fund attempt to assess the level of market risk that exist at any particular time, which, in turn, guides the Advisor's determinations as to whether the Fund should be fully invested in the market or hold more significant cash positions.

The Advisor's investment process seeks to identify trends to determine the strength or weakness in the current market environment. This part of the Advisor's process analyzes over 100 technical trading indicators built through a multitude of programming platforms. Each indicator is rigorously tested on an individual basis to determine the combinations that provide what the Advisor perceives to be the best indication of market direction. The technical trading indicators are then combined into sophisticated algorithmic composites that guide the Advisor's decision-making process. The raw data used in our systems include, but are not limited to: S&P 500, Dow Jones Industrial Average, Russell 2000, S&P 400 Mid Cap, NASDAQ 100, Dow Transports, Dow Utilities Dow Corporate Bonds, Index Advance Decline, Trading Volume and High/Lows, Prime Rate, Discount Rate, Treasury Bill Rate, Fed Funds Rate, Commodity Research Bureau, Commercial Longs and Shorts, NYSE Short Interest, AAII Bullish and Bearish Percentages. The raw data is analyzed using technical tools, such as *moving averages*, *Bollinger bands*, *relative strength*, *stochastics*, *oscillators*, *intermarket analysis*, *trend following* and *counter trend analysis*.

The Fund will generally use funds that hold a broad-based basket of equity securities. If the Advisor's algorithmic composites point to a rising market, the Fund will invest in ETFs that provide leveraged exposure of a particular market index, such as the S&P® 500 Index. During downward trending markets, the Advisor will attempt to reduce downside exposure by limiting the Fund's investments to cash and cash equivalents. The Advisor may also invest in fixed income securities with longer maturities. If the trend is, in the Advisor's view, weak enough the Fund's assets may be invested in ETFs that provide inverse exposure of a particular market index, such as the S&P® 500 Index.

To generate additional income, the Fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Fund may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds.

The Fund is a "non-diversified" fund, which means it can invest in fewer securities at any one time than a diversified fund and can invest more of its assets in securities of a single issuer than a diversified fund. The Fund may invest a significant percentage of its assets in a limited number of securities. Also, the Fund may invest in a limited number of sectors but has no intention to concentrate its investments in any particular industry. The Fund may also engage in short-term trading and have a portfolio turnover rate significantly in excess of 100%.

**Defensive Positions**

The Funds may hold all or a portion of its assets in cash or cash-equivalents like money market funds, certificates of deposit, short-term debt obligations, and repurchase agreements, either due to pending investments, when investment opportunities are limited or market conditions are adverse. Under these circumstances, the Funds may not participate in stock market advances or declines to the same extent it would, had it remained more fully invested in common stocks. If the Funds invests in shares of a money market fund, shareholders of the Fund generally will be subject to duplicative management and other fees and expenses. As a result of engaging in these temporary measures, the Funds may not achieve its investment objective.

**The Principal Risks of Investing in the Funds**

 ***Risks of Exchange Traded Funds and Mutual Funds.*** To the extent a Fund invests in ETFs and mutual funds, the Fund will indirectly bear its proportionate share of any expenses (such as operating expenses and advisory fees) that may be paid by the underlying funds. These expenses would be in addition to the advisory fee and other expenses that the Fund bears in connection with its own operations. Investment in an exchange traded fund (ETF) carries security specific risk and the market risk. Also, if the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the Fund's investment in the ETF may decline. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index. Each Fund will indirectly pay its proportionate share of any fees and expenses paid by the ETF in which it invests in addition to the fees and expenses paid directly by the Fund, many of which may be duplicative. Each Fund will also incur brokerage costs when it purchases ETFs. As a result, the cost of investing in the Funds generally will be higher than the cost of investing directly in ETFs. Additionally, ETFs are subject to the following risks: (i) the market price of an ETF's shares may be above or below its net asset value; (ii) an active trading market for an ETF's shares may not develop or be maintained; (iii) the ETF may employ an investment strategy that utilizes high leverage ratios; (iv) trading of an ETF's shares may be halted if the listing exchange's officials deem such action appropriate; and (v) underlying ETF shares may be de-listed from the exchange or the activation of market-wide "circuit breakers" (which are tied to large decreases in stock prices) temporarily stop stock trading.

 ****

***Portfolio Turnover Risk*.** Each Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. A portfolio turnover rate of 100% is equivalent to a fund buying and selling all the securities in its portfolio once during the course of a year. How long the Fund holds a security in its portfolio is generally not a factor in making buy and sell decisions. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions. The distributions may be taxable as short-term capital gains which are taxed at ordinary income taxation rates rather than at the currently lower long-term capital gains taxation rates. It is likely that all or most of the distributions will be short-term capital gains.

***Leveraged ETF Risks.*** The net asset value and market price of leveraged ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not use leverage. Leveraged ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions. Most leveraged ETFs are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance of the underlying index during the same period of time. This effect can be magnified in volatile markets. The compounding effect has a significant impact on leveraged ETFs. As a result of compounding leveraged ETFs have a single day investment objective. A leveraged ETF's performance for periods greater than one day is likely to be either greater than or less than the index performance times the stated multiple in the ETF's objective. This effect becomes more pronounced for leveraged ETFs as market volatility increases. Investments by each Fund in leveraged ETFs may magnify changes in the Funds' share price and thus result in increased volatility of returns.

***Inverse ETF Risks.*** Inverse ETFs seek investment results that are the opposite of the daily performance of an underlying index or basket of stocks. Investors will lose money when the Index rises — a result that is the opposite from traditional funds.

 ****

***Risk of Non-Diversification.*** The Funds are non-diversified fund, which means that the Funds have the ability to take larger positions in a smaller number of securities than a fund that is "diversified." Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment. Because the Fund may invest a significant percentage of its assets in a single ETF, mutual fund and/or money market fund, and at times may hold only one such position along with a cash or cash equivalent position, there is a risk that events negatively affecting these fewer positions will have a greater negative impact on the Fund's performance.

 ****

***Sector Risk*.** Sector risk is the possibility that stocks within the same group of industries will decline in price due to sector-specific market or economic developments. If the Advisor invests a significant portion of its assets in ETFs in a particular sector, the Funds are subject to the risk that companies in the same sector are likely to react similarly to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that market segment. The sectors in which the Funds may be overweight will vary.

 ****

***Management Risks*.** The Advisor's implementation of the Funds' strategy may fail to produce the intended results. In circumstances where the Advisor establishes high-conviction positions, it is possible the results of the trend analysis will be incorrect and the high-conviction trade (i.e., the leveraged position) will not produce the desired results; in such circumstances, the losses that the Funds could experience could be greater than they would otherwise be had the Funds not taken the leveraged position. At times, the Advisor may determine to hold significant portions of a Fund's assets in cash and cash equivalents, and in such scenarios may detract from the Fund's ability to achieve its objective.

***Quantitative/Trend Model Risk.*** The risk that investments selected using quantitative models to identify market trends may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a

quantitative trend model will enable the Funds to achieve positive returns or outperform the market.

***Securities Lending Risk.*** To generate additional income, the Funds may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the Funds may invest in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds. Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that the Funds will lose money from the investment of the cash collateral. Borrower default risk is the risk that the Funds will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

***Cybersecurity Risk.*** Underlying funds that hold or have exposure to cryptocurrencies such as Bitcoin, including ETFs and ETPs that invest directly in Bitcoin and Bitcoin futures subject the Funds to additional risks. Cryptocurrencies (also referred to as "virtual currencies" or "digital assets") are digital assets designed to act as a medium of exchange and represent an emerging and highly speculative asset class. The market price of Bitcoin and other cryptocurrencies has been subject to extreme fluctuations and may experience substantial declines over short periods of time. The price of Bitcoin and other cryptocurrencies could fall sharply (potentially to zero) for various reasons, including, but not limited to, regulatory changes, issues impacting the Bitcoin network, technological developments, events involving entities that facilitate transactions in Bitcoin, or changes in user preferences in favor of alternative cryptocurrencies.

The market for Bitcoin and related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. The operation of digital asset exchanges and trading venues is largely unregulated, which increases the potential for fraud, security failures, or operational disruptions. Regulatory developments in the United States or abroad, including potential restrictions on the use, exchange, or custody of digital assets, may affect the value, liquidity, or availability of Bitcoin and Bitcoin-related ETFs and ETPs.

**Bitcoin-Related Investment Risk.** A Fund may invest up to 15% of its assets in ETFs and ETPs that hold Bitcoin and Bitcoin futures. These investments expose the Fund to the risks associated with Bitcoin and the Bitcoin futures market. Bitcoin and other digital assets are relatively new and highly speculative asset classes, subject to extreme volatility and unique operational and technological risks. The value of Bitcoin and Bitcoin-related instruments has experienced significant fluctuations, which may result in substantial losses for investors in a short period of time.

The market for Bitcoin and Bitcoin-related instruments may be less liquid, more volatile, and more susceptible to manipulation than traditional securities markets. Market disruptions, trading halts, or disruptions in the infrastructure of digital asset markets may adversely affect the liquidity and value of Bitcoin-related ETFs and ETPs. The price of Bitcoin may be influenced by a variety of factors, including supply and demand dynamics, investor sentiment, government and regulatory actions, technological developments, and the functioning of Bitcoin network protocols.

The regulatory environment for Bitcoin, Bitcoin futures, and digital assets in general is evolving and subject to change. Regulatory developments at the federal, state, or international level may impact the operation of Bitcoin-related ETFs and ETPs or the underlying digital asset markets, potentially affecting their value or liquidity. In addition, the performance of Bitcoin-related ETFs and ETPs may differ from the performance of Bitcoin or Bitcoin futures due to operational inefficiencies, management fees, or market supply and demand conditions.

 **

**The Funds may invest in ETFs, mutual funds and securities that carry the risks described below:**

 

***Risks in General*.** Domestic and foreign economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets of the Funds' investments. There is a risk that these and other factors may adversely affect the Funds' performance. You should consider your own investment goals, time horizon, and risk tolerance before investing in the Funds. An investment in the Funds may not be appropriate for all investors and is not intended to be a complete investment program. An investment in the Funds is not a deposit in the bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Funds.

 ****

***Risks of Equity Securities*.** Overall stock market risks may affect the value of the Funds. These risks include the financial risk of selecting securities that do not perform as anticipated, the risk that the stock markets in which the Funds invests may experience periods of turbulence and instability, and the general risk that domestic and global economies may go through periods of decline and cyclical change. Many factors affect the performance of each company, including the strength of the company's management or the demand for its product or services. You should be aware that the value of a company's share price may decline as a result of poor decisions made by management or lower demand for the company's products or services. In addition, a company's share price may also decline if its earnings or revenues fall short of expectations. There are overall stock market risks that may also affect the value of the Funds. Over time, the stock markets tend to move in cycles, with periods when stock prices rise generally and periods when stock prices decline generally. The value of the Funds' investments may increase or decrease more than the stock markets in general. Common stocks, preferred securities, and warrants are examples of equity securities.

 ****

***Risks of Fixed Income Securities*.** Fixed income securities fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than the market price of shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by the Funds, possibly causing the Funds' share price and total return to be reduced and fluctuate more than other types of investments. "Junk bonds" are speculative investments that carry greater risks and are more susceptible to real or perceived adverse economic and competitive industry conditions than higher quality

debt securities. Government bonds, corporate bonds and high yield bonds are examples of fixed income securities.

 ****

***High-Yield Securities ("Junk Bond") Risk.*** To the extent that the Funds invests in Underlying Funds that invest in high-yield securities and unrated securities of similar credit quality (commonly known as "junk bonds"), the Funds may be subject to greater levels of interest rate and credit risk than funds that do not invest in such securities. Junk bonds are considered predominantly speculative with respect to the issuer's continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the underlying funds' ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, an investor may lose its entire investment, which will affect the Funds' return.

 ****

***Risks of Small and Medium Capitalization Companies.*** The underlying funds invest in the stocks of small and medium capitalization companies, which may subject the Fund to additional risks. The earnings and prospects of these companies are more volatile than larger companies. Small and medium capitalization companies may have limited product lines and markets and may experience higher failure rates than do larger companies.

***Foreign Risk.*** The Funds may invest in underlying funds that hold foreign securities, including American Depositary Receipts (ADRs). ADRs are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. ADRs are subject to risks similar to those associated with direct investment in foreign securities. Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. These risks include adverse political, social and economic developments, differing auditing and legal standards, war, expropriation and nationalization.

***Emerging Markets Risk.*** Emerging market issuers may be subject to a greater risk of loss than investments in issuers located or operating in more developed markets. Emerging markets may be more likely to experience inflation, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, less reliable securities valuations and greater risk associated with custody of securities than developed markets.

 ****

***Risks of Derivatives.*** Underlying funds in which the Funds may invest may use derivative instruments such as put and call options on stocks and stock indices, and index futures contracts and options thereon. There is no guarantee such strategies will work. If the underlying fund is not successful in employing such instruments in managing its portfolio, the Funds' performance will be worse than if it did not invest in underlying funds employing such strategies. Successful use by an underlying fund of options on stock indices, index futures contracts (and options thereon) will be subject to its ability to correctly predict movements in the direction of the securities generally or of a particular market segment. In addition, underlying funds will pay commissions and other costs in connection with such investments, which may increase the Funds' expenses and reduce the return. In utilizing certain derivatives, an underlying fund's losses are potentially unlimited. Derivative instruments may also involve the risk that

other parties to the derivative contract may fail to meet their obligations, which could cause losses.

***Real Estate Investment Trusts.*** REITs offer investors greater liquidity and diversification than direct ownership of properties. A REIT is a corporation or business trust that invests substantially all of its assets in interests in real estate. Equity REITs are those which purchase or lease land and buildings and generate income primarily from rental income. Equity REITs may also realize capital gains (or losses) when selling property that has appreciated (or depreciated) in value. Mortgage REITs are those that invest in real estate mortgages and generate income primarily from interest payments on mortgage loans. Hybrid REITs generally invest in both real property and mortgages. Unlike corporations, REITs do not pay income taxes if they meet certain IRS requirements. Real estate related equity securities also include those insured by real estate developers, companies with substantial real estate holdings (for investment or as part of their operations), as well as companies whose products and services are directly related to the real estate industry, such as building supply manufacturers, mortgage lenders or mortgage servicing companies. Like any investment in real estate, though, a REITs performance depends on several factors, such as its ability to find tenants, renew leases and finance property purchases and renovations. Other risks associated with REIT investments include the fact that equity and mortgage REITs are dependent upon specialized management skills and are not fully diversified. These characteristics subject REITs to the risks associated with financing a limited number of projects. They are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Additionally, equity REITs may be affected by any changes in the value of the underlying property owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund, but also may indirectly bear similar expenses of some of the REITs in which it invests.

***Commodity Risk.*** Commodity investments will subject the Fund to potentially greater volatility than traditional securities. Commodities will be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. Commodity prices may be volatile, so the risks to investors in the Fund is that unexpected and potentially significant decreases in the value of their commodity holdings would affect the value of an investment in the Fund.

***Cryptocurrency Risk.*** The Funds may invest in underlying funds that hold or have exposure to cryptocurrencies. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Cryptocurrency is an emerging asset class. There are thousands of cryptocurrencies, the most well-known of which is Bitcoin. Additionally, a Fund may have exposure to Bitcoin or other cryptocurrencies indirectly through ETFs that investment in companies that hold cryptocurrencies on their balance sheets or companies that are directly involved in providing infrastructure, trading platforms, technology, or other services relating to cryptocurrencies. Cryptocurrency generally operates without central authority (such as a bank) and is not backed by any government, corporation, or other entity. Cryptocurrency is not generally accepted as legal tender. Regulation of

cryptocurrency is still developing. Federal, state and/or foreign governments may restrict the development, use, or exchange of cryptocurrency.

The market price of Bitcoin and other cryptocurrencies has been subject to extreme fluctuations. The price of Bitcoin and other cryptocurrencies could fall sharply (potentially to zero) for various reasons, including, but not limited to, regulatory changes, issues impacting the Bitcoin network, events involving entities that facilitate transactions in Bitcoin, or changes in user preferences in favor of alternative cryptocurrencies. Furthermore, events that impact one cryptocurrency may lead to a decline in the value of other cryptocurrencies, including Bitcoin.

***Futures Contract Risk.*** The successful use of futures contracts draws upon the Adviser's skill and experience with respect to such instruments and is subject to special risk considerations. The primary risks associated with the use of futures contracts, which may adversely affect a Fund's net asset value and total return, are (a) the imperfect correlation between the change in market value of the futures contract held by the Fund and the price of the futures contract; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the Adviser's inability to predict correctly the direction of securities prices; (e) the possibility that the counterparty will default in the performance of its obligations; and (f) if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements, and a Fund may have to sell securities at a time when it may be disadvantageous to do so. A Fund's use of futures contracts for the purpose of increasing a Fund's long and/or short exposure creates leverage, which can magnify a Fund's potential for gain or loss and therefore amplify the effect of market volatility on a Fund's share price (see "**Leveraging Risk**").

***Leveraging Risk.*** A Fund's use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying an instrument and results in increased volatility, which means a Fund will have the potential for greater gains, as well as the potential for greater losses, than if a Fund does not use instruments that have a leveraging effect. Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in a Fund's exposure to an asset class and may cause a Fund's net asset value to be volatile.

***Short Exposure Risk.*** A Fund's use of taking short positions creates short exposure risk. A short position in a futures contract will profit from a decline in the value of the underlying asset or equity index. The Fund may lose significant value quite rapidly in a rising market if the derivative or equity index increases in value. This is the opposite of traditional "long" investments where the value of the Fund increases as the value of a portfolio security or instrument increases. The risk of loss on a short position is potentially unlimited unlike the risk of loss on a long position, which is limited to the amount paid for the investment plus transaction costs.

**Portfolio Holdings Disclosure**

A description of the Funds' policies and procedures with respect to the disclosure of the Funds' portfolio securities is available in the Funds' Statement of Additional Information ("SAI") and on the Funds' website at https://potomacfunds.com.

**Management**

**The Investment Advisor**

Potomac Fund Management, Inc. ("Potomac") is the investment advisor of the Funds and has responsibility for the management of the Funds' affairs, under the supervision of the Trust's Board of Trustees. The Advisor is a registered investment advisor controlled by Manish Khatta. The Funds' investment portfolio is managed on a day to day basis by Manish Khatta and Dan Russo. The Advisor provides investment advice to individuals, pensions, profit sharing plans, trusts, estates, other investment advisors, and to corporations and other business entities.

Manish Khatta is the lead portfolio manager and has managed the Fund since its inception in July 2020. Mr. Khatta is the CEO and Co-CIO of the Advisor. Dan Russo is the assistant portfolio manager and has helped manage the fund since October 2023. Mr. Russo is a portfolio manager and Co-CIO of the Advisor.

The Advisor's address is 7373 Wisconsin Ave., Suite #750, Bethesda, MD 20814.

Manish Khatta holds a BS degree in Finance from the University of Maryland. He has been a full-time employee with Potomac since January 2002 and in January 2013 he became Chief Executive Officer of the firm. Manish has spent his career creating and refining trading strategies built on mathematical computations and number crunching. Manish programmed the initial work behind Potomac's mechanical trading systems.

Dan Russo has been in the securities industry since 2000. He holds an MBA degree in Finance from Fordham University in New York City and a B.S. degree in Finance from Long Island University, C.W. Post. He is also a Charted Market Technician, having earned the right to use that designation in 2012. Dan has experience with a wide range of institutional investors, working with them to perform fundamental, technical, and quantitative research to navigate the market and generate actionable trading and investment ideas.

The Funds' SAI provides information about the portfolio managers' compensation, other accounts managed by the portfolio managers, and the portfolio managers' ownership of Fund shares.

The Advisor manages the investment portfolio of the Funds, subject to the policies adopted by the Trust's Board of Trustees. Under the Management Agreement, the Advisor, at its own expense and without reimbursement from the Trust, furnishes office space and all necessary office facilities, equipment, and executive personnel necessary for managing the assets of the Funds. For its services the Advisor receives an investment management fee equal to 1.25% of a Fund's average daily net assets up to $100 million, 1.00% of a Fund's average daily net assets between $100 million and $200 million and 0.90% of a Fund's average daily net assets in excess of $200

million. For its services, the Advisor received an investment management fee equal to 1.19% of the average daily net assets of the Potomac Managed Volatility Fund for the fiscal year ended June 30, 2025. For its services, the Advisor received an investment management fee equal to 1.16% of the average daily net assets of the Potomac Tactical Rotation Fund for the fiscal year ended June 30, 2025. For its services, the Advisor received an investment management fee equal to 1.21% of the average daily net assets of the Potomac Tactical Opportunities Fund for the fiscal year ended June 30, 2025. For its services, the Advisor received an investment management fee equal to 0.93% of the average daily net assets of the Potomac Defensive Bull Fund for the fiscal year ended June 30, 2025. A discussion regarding the basis of the Board of Trustees' approval of the Management Agreement between the Trust and the Advisor is available in the Funds' annual report filed on Form N-CSR for the period ending June 30, 2025.

Effective October 3, 2023, under the Services Agreement the Advisor receives an additional fee of 0.50% of a Fund's average daily net assets up to $25 million, and 0.20% of such assets in excess of $25 million for services provided under the agreement and is also obligated to pay the operating expenses of a Fund excluding management fees, brokerage fees and commissions, 12b-1 fees (if any), taxes, borrowing costs (such as (a) interest and (b) dividend expenses on securities sold short), ADR fees, the cost of acquired funds and extraordinary expenses.

From November 1, 2021 to October 3, 2023, under the Services Agreement the Advisor received an additional fee of 0.50% of a Fund's average daily net assets up to $25 million, 0.20% of a Fund's average daily net assets from $25 million to $100 million, and 0.10% of such assets in excess of $100 million. Prior to November 1, 2021, under the Services Agreement the Advisor received an additional fee of 0.65% of a Fund's average daily net assets up to $25 million, 0.35% of a Fund's average daily net assets from $25 million to $100 million, and 0.25% of such assets in excess of $100 million. For its services the Advisor received services fees, after waivers, of 0.25% of the average daily net assets of the Potomac Managed Volatility Fund, 0.25% of the average daily net assets of the Potomac Tactical Rotation Fund, 0.26% of the average daily net assets of the Potomac Tactical Opportunities Fund, and 0.21% of the average daily net assets of the Potomac Defensive Bull Fund for the fiscal year ended June 30, 2025. Under the Services Agreement the Advisor supervises the Funds' business affairs. The Advisor coordinates for the provision of the services of a Chief Compliance Officer for the Trust with respect to the Funds, executive and administrative services including, but are not limited to, the coordination of all third parties furnishing services to the Funds, review of the books and records of the Funds maintained by such third parties, and such other actions with respect to the Funds as may be necessary in the opinion of the Advisor to perform its duties under the Services Agreement.

**Shareholder Information**

**Pricing of Fund Shares**

The price you pay for a share of each Fund, and the price you receive upon selling or redeeming a share of each Fund, is called the Fund's net asset value ("NAV"). The NAV is calculated by taking the total value of the Fund's assets, subtracting its

liabilities, and then dividing by the total number of shares outstanding, rounded to the nearest cent:

Net Asset Value = Total Assets - Liabilities / Number of Shares Outstanding

The NAV is generally calculated as of the close of trading on the New York Stock Exchange (normally 4:00 p.m. Eastern time) every day the Exchange is open for trading. The New York Stock Exchange generally is open every day other than weekends and holidays. All purchases, redemptions or reinvestments of Fund shares will be priced at the next NAV calculated after your order is received in proper form by the Funds' Transfer Agent, Paralel Technologies, LLC. The Funds' Board of Trustees has chosen to designate the Advisor as "valuation designee" to perform certain valuation functions. The Funds' assets are generally valued at their market value. If market prices are not available or, in the valuation designee's opinion, market prices do not reflect fair value, or if an event occurs after the close of trading (but prior to the time the NAV is calculated) that materially affects fair value, the valuation designee may value the Funds' assets at their fair value according to policies approved by the Funds' Board of Trustees. For example, if trading in a portfolio security is halted and does not resume before the Funds calculate its NAV, the valuation designee may need to price the security using the Funds' fair value pricing guidelines. Without a fair value price, short-term traders could take advantage of the arbitrage opportunity and dilute the NAV of long-term investors. Fair valuation of a Funds' portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that fair value pricing policies will prevent dilution of the Funds' NAV by short-term traders. The Funds may use pricing services to help determine market value. Because the Funds may have portfolio securities that are primarily listed on foreign exchanges that trade on weekends or other days when the Funds do not price its shares, the net asset value of the Funds' shares may change on days when shareholders will not be able to purchase or redeem the Funds' shares. With respect to any portion of a Funds' assets that are invested in one or more open-end management investment companies that are registered under the Investment Company Act, the Funds' net asset value is calculated based upon the net asset values of the registered open-end management investment companies in which the Funds invest. The prospectuses for these investment companies explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing.

**Customer Identification Program**

 **IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT** 

*To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. This means that, when you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask for identifying documents and may take additional steps to verify your identity. We may not be able to open an account or complete a transaction for you until we are able to verify your identity.* 

**Investing in the Funds**

You may purchase shares through a brokerage firm or other financial institution that has agreed to sell the Funds' shares. The Funds reserve the right to change the amount of these minimums from time to time or to waive them in whole or in part for certain accounts. Investment minimums may be higher or lower to investors purchasing shares through a brokerage firm or other financial institution.

**Minimum Investments**

---

| | | |
|:---|:---|:---|
|  | Initial | Additional |
| Regular Account | $5000 | $100 |
| Automatic Investment Plan | $1000 | $100\* |
| IRA Account | $1000 | $100 |

---

\*An Automatic Investment Plan requires a $100 minimum automatic monthly or quarterly investment.

**Investments Made Through Brokerage Firms or Other Financial Institutions**

The Funds may be purchased through broker dealers and other intermediaries. If you invest through a brokerage firm or other financial institution, the policies and fees may be different than those described here. Financial advisers, financial supermarkets, brokerage firms, and other financial institutions may charge transaction and other fees and may set different minimum investments or limitations on buying or selling shares. Such brokers are authorized to designate other intermediaries to receive purchase and redemption orders on the Funds' behalf. Consult a representative of your financial institution if you have any questions. The Funds will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker's authorized designee, received the order. Customer orders will be priced at the Funds' net asset value next computed after they are received by an authorized broker or the broker's authorized designee. Your financial institution is responsible for transmitting your order in a timely manner.

**Payment**

All purchases must be made in U.S. dollars and checks must be drawn on U.S. banks. No cash, money orders, traveler's checks, credit cards, credit card checks, third-party checks or other checks deemed to be high-risk checks will be accepted. A $20 fee will be charged against your account for any payment check returned to the transfer agent or for any incomplete electronic fund transfer, or for insufficient funds, stop payment, closed account or other reasons. If a check does not clear your bank or the Funds are unable to debit your pre-designated bank account on the day of purchase, the Funds reserve the right to cancel the purchase. If your purchase is canceled, you will be responsible for any losses or fees imposed by your bank and losses that may be incurred as a result of a decline in the value of the canceled purchase. The Funds (or Fund agent) have the authority to redeem shares in your account(s) to cover any losses due to fluctuations in share price. Any profit on such cancellation will accrue to the Funds. Your investment in the Funds should be intended to serve as a long-term investment vehicle. The Funds are not designed to provide you with a means of speculating on the short-term fluctuations in the stock market. The Funds reserves the right to reject any purchase request that it regards as disruptive to the efficient

management of the Funds, which includes investors with a history of excessive trading. The Funds also reserves the right to stop offering shares at any time.

**Types of Account Ownership**

You can establish the following types of accounts by completing a Shareholder Account Application:

• **Individual or Joint Ownership.** Individual accounts are owned by one person. Joint accounts have
 two or more owners.

• **A Gift or Transfer to Minor.** (UGMA or UTMA) A UGMA/UTMA account is a custodial account
 managed for the benefit of a minor. To open an UGMA or UTMA account, you must include the minor's social security number on the application.

• **Trust.** An established trust can open an account. The names of each trustee, the name of the
 trust and the date of the trust agreement must be included on the application.

• **Business Accounts.** Corporations and partnerships may also open an account. The application must
 be signed by an authorized officer of the corporation or a general partner of a partnership.

• **IRA Accounts.** See "Tax-Deferred Plans".

**Instructions for Opening and Adding to an Account**

 **TO OPEN AN ACCOUNT**

**By Mail**

Complete and sign the Shareholder Application or an IRA Application.

Make your check payable to Potomac Funds.

• For IRA accounts, please specify the year for which the contribution is made.

**Mail or overnight the application and check to:**

 *Regular Mail via US Postal Service:* 

Potomac Funds

PO Box 2170

Denver, Colorado 80201

 *Overnight Delivery*

Potomac Funds

c/o Paralel Technologies

1700 Broadway, Suite 1850

Denver, CO 80290

**TO ADD TO AN ACCOUNT**

**By Mail**

Complete the investment slip that is included with your account statement and write your account number on your check. If you no longer have your investment slip, please reference your name, account number, and address on your check.

**Mail or overnight the slip and the check to:**

*Regular Mail via US Postal Service:* 

Potomac Funds

PO Box 2170

Denver, Colorado 80201

*Overnight Delivery*

Potomac Funds

c/o Paralel Technologies

1700 Broadway, Suite 1850

Denver, CO 80290

NOTE: The Fund does not consider the U.S. Postal Service or other independent delivery services to be their agents. Therefore, when you deposit your account application form, additional purchase request or redemption request in the mail, or use other delivery services, or if your documents are simply in the Transfer Agent's post office box, that does not mean that the Fund's Transfer Agent actually received those documents.

 **TO OPEN AN ACCOUNT**

**By Wire**

Call 1-888-774-6679 for instructions and to obtain an investor account number or an IRA account number prior to wiring to the Funds.

 **TO ADD TO AN ACCOUNT**

**By Wire**

Call 1-888-774-6679 for instructions.

**Telephone and Wire Transactions**

With respect to all transactions made by telephone, the Funds and their transfer agent will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. Such procedures may include, among others, requiring some form of personal identification prior to acting upon telephone instructions, providing written confirmation of all such transactions, and/or tape recording all telephone instructions. If reasonable procedures are followed, then neither the Funds nor the transfer agent will be liable for any loss, cost, or expense for acting upon an investor's telephone instructions or for any unauthorized telephone redemption. In any instance where the Funds' transfer agent is not reasonably satisfied that instructions received

by telephone are genuine, neither the Funds nor the transfer agent shall be liable for any losses which may occur because of delay in implementing a transaction.

If you purchase your initial shares by wire, the transfer agent first must have received a completed account application and issued an account number to you. The account number must be included in the wiring instructions as set forth above. The transfer agent must receive your account application to establish shareholder privileges and to verify your account information. Payment of redemption proceeds may be delayed, and taxes may be withheld unless the Funds receives a properly completed and executed account application.

Shares purchased by wire will be purchased at the NAV next determined after the transfer agent receives your wired funds and all required information is provided in the wire instructions. If the wire is not received by 4:00 p.m. Eastern time, the purchase will be effective at the NAV next calculated after receipt of the wire.

**Tax-Deferred Plans**

If you are eligible, you may set up one or more tax-deferred accounts. A tax-deferred account allows you to shelter your investment income and capital gains from current income taxes. A contribution to certain of these plans may also be tax deductible. Tax-deferred accounts include retirement plans described below. Distributions from these plans are generally subject to an additional tax if withdrawn prior to age 59 1/2 or used for a nonqualifying purpose. Investors should consult their tax advisers or legal counsel before selecting a tax-deferred account.

You will be charged an annual account maintenance fee of $8 for each tax-deferred account you have with the Funds. You may pay the fee by check or have it automatically deducted from your account (usually in December). The custodian reserves the right to change the amount of the fee or to waive it in whole or part for certain types of accounts.

**Types of Tax-Deferred Accounts**

**•** **Traditional IRA** 

An individual retirement account. Your contribution may or may not be deductible depending on your circumstances. Assets can grow tax-deferred and distributions are taxable as income.

**•** **Roth IRA** 

An IRA with non-deductible contributions, tax-free growth of assets, and tax-free distributions for qualified distributions.

**•** **Spousal IRA** 

An IRA funded by a working spouse in the name of a non-earning spouse.

• **SEP-IRA** 

An individual retirement account funded by employer contributions. Your assets grow tax-deferred and distributions are taxable as income.

**•** **Keogh or Profit Sharing Plans** 

These plans allow corporations, partnerships and individuals who are self-employed to make tax deductible contributions for each person covered by the plans.

**•** **403(b) Plans** 

An arrangement that allows employers of charitable or educational organizations to make voluntary salary reduction contributions to a tax-deferred account.

**•** **401(k) Plans** 

Allows employees of corporations of all sizes to contribute a percentage of their wages on a tax-deferred basis. These accounts need to be established by the trustee of the plan.

**Automatic Investment Plans**

By completing the Automatic Investment Plan section of the account application, you may make automatic monthly investments ($100 minimum per purchase) in the Funds from your bank or savings account. Your initial investment minimum is $1,000 if you select this option. Shares of the Funds may also be purchased through direct-deposit plans offered by certain employers and government agencies. These plans enable a shareholder to have all or a portion of his or her payroll or Social Security checks transferred automatically to purchase shares of the Fund.

**FOR INVESTING**

 **Automatic Investment Plan**

For making automatic investments from a designated bank account.

**Payroll Direct Deposit Plan**

For making automatic investments from your payroll check.

**Dividend Reinvestment**

All income dividends and capital gains distributions will be automatically reinvested in shares of the Funds unless you indicate otherwise on the account application or in writing.

**Instructions for Selling Fund Shares**

You may sell all or part of your shares on any day that the New York Stock Exchange is open for trading. Your shares will be sold at the next NAV per share calculated after your order is received in proper form by the transfer agent. The proceeds of your sale may be more or less than the purchase price of your shares, depending on the market value of the Funds' securities at the time of your sale. Your order will be processed promptly and you will generally receive the proceeds within seven days after receiving your properly completed request. The Funds will not mail any proceeds unless your investment check has cleared the bank, which may take up to fifteen calendar days. This procedure is intended to protect the Funds and its shareholders from loss. If the dollar or share amount requested is greater than the current value of your account, your entire account balance will be redeemed. If you choose to redeem your account

in full, any automatic services currently in effect for the account will be terminated unless you indicate otherwise in writing.

**TO SELL SHARES**

**By Mail**

Write a letter of instruction that includes:

• The
 names(s) and signature(s) of all account owners.

• Your
 account number.

• The
 dollar or share amount you want to sell.

• Where
 to send the proceeds.

• If
 redeeming from your IRA, please note applicable withholding requirements.

• Obtain
 a signature guarantee or other documentation, if required.

**Mail or overnight your request to:**

*Regular Mail via US Postal Service:* 

Potomac Funds

PO Box 2170

Denver, Colorado 80201

*Overnight Delivery*

Potomac Funds

c/o Paralel Technologies

1700 Broadway, Suite 1850

Denver, CO 80290

**By Telephone** 

&nbsp;&nbsp;&nbsp;&nbsp;• You
 will automatically be granted telephone redemption privileges unless you decline them in
 writing or indicate on the appropriate section of the account application that you decline
 this option. Otherwise, you may redeem Fund shares by calling 1-888-774-6679. Redemption
 proceeds will only be mailed to your address of record.

• You
 may only redeem a maximum of $25,000 per day by telephone.

• You
 will not be able to redeem by telephone and have a check sent to your address of record for
 a period of 15 days following an address change.

• Unless
 you decline telephone privileges in writing or on your account application, as long as the
 Funds take reasonable measures to verify the order, you may be responsible for any fraudulent
 telephone order.

For specific information on how to redeem your account, and to determine if a signature guarantee or other documentation is required, please call toll-free in the U.S. 1-888-774-6679.

**Additional Redemption Information**

The Funds typically expect to meet redemption requests through cash holdings or cash equivalents and expects to use cash holdings or cash equivalents on a regular basis. To the extent cash holdings or cash equivalents are not available to meet redemption requests the Funds will meet redemption requests by selling portfolio assets.

**Signature Guarantees** 

Signature guarantees are designed to protect both you and the Funds from fraud. A signature guarantee of each owner is required to redeem shares in the following situations:

• If
 you change ownership on your account.

• If
 a change of address request has been received by the transfer agent within the last 15 days.

• If
 you wish to redeem $25,000 or more from any shareholder account.

Signature guarantees can be obtained from most banks, savings and loan associations, trust companies, credit unions, broker-dealers, and member firms of a national securities exchange. Call your financial institution to see if they have the ability to guarantee a signature. **A notary public cannot provide signature guarantees.** 

The Funds reserve the right to require a signature guarantee under other circumstances or to delay a redemption when permitted by Federal Law. For more information pertaining to signature guarantees, please call 1-888-774-6679.

**Corporate, Trust and Other Accounts**

Redemption requests from corporate, trust, and other accounts may require documents in addition to those described above, evidencing the authority of the officers, trustees or others. In order to avoid delays in processing redemption requests for these accounts, you should call the transfer agent at 1-888-774-6679 to determine what additional documents are required.

**Address Changes**

To change the address on your account, call the transfer agent at 1-888-774-6679 or send a written request signed by all account owners. Include the account number(s) and name(s) on the account and both the old and new addresses. Certain options may be suspended for a period of 15 days following an address change.

**Transfer of Ownership**

In order to change the account registration or transfer ownership of an account, additional documents will be required. In order to avoid delays in processing these requests, you should call the transfer agent at 1-888-774-6679 to determine what additional documents are required.

**Redemption Initiated by the Fund**

Because there are certain fixed costs involved with maintaining your account, the Funds may require you to redeem all of your shares if your account balance falls below $500. After your account balance falls below the minimum balance, you will receive a notification from the Funds indicating its intent to close your account along with instructions on how to increase the value of your account to the minimum amount within 60 days. If your account balance is still below $500 after 60 days, the Funds may close your account and send you the proceeds. This minimum balance requirement does not apply to accounts using automatic investment plans, to IRAs, and to other tax-deferred investment accounts. The right of redemption by the Fund will not apply if the value of your account balance falls below $500 because of market performance. All shares of the Funds are also subject to involuntary redemption if the Board of Trustees determines to liquidate the Funds. Any involuntary redemption will create a capital gain or loss, which may have tax consequences about which you should consult your own tax adviser.

**Shareholder Communications**

**Account Statements**

Every quarter, shareholders of the Funds will automatically receive regular account statements. You will also be sent a yearly statement detailing the tax characteristics of any dividends and distributions you have received.

**Confirmations**

Confirmation statements will be sent after each transaction that affects your account balance or account registration.

**Regulatory Reports**

Financial reports will be published semi-annually. The Funds have discontinued mailing paper copies of the Funds' financial reports as permitted by new regulations adopted by the SEC, unless you specifically request paper copies from the Funds. The reports will remain available to you on the Funds' website (www.potomacfund.com/funds) and you will be notified by mail each time a report is posted and provided with a link to access the report. Annual reports will include audited financial statements. For any shareholder that requests paper copies only one copy of each report will be mailed to each taxpayer identification number even though the investor may have more than one account in the Funds.

**Dividends and Distributions**

The Funds intends to pay distributions on at least an annual basis and expects that distributions will consist primarily of capital gains. You may elect to reinvest income dividends and capital gain distributions in the form of additional shares of the Funds or receive these distributions in cash. Dividends and distributions from the Funds are automatically reinvested in the Funds, unless you elect to have dividends paid in cash. Reinvested dividends and distributions receive the same tax treatment as those paid in cash. If you are interested in changing your election, you may call the transfer agent at 1-888-774-6679 or send a written notification to:

*Regular Mail via US Postal Service:* 

Potomac Funds

PO Box 2170

Denver, Colorado 80201

**Market Timing**

The Funds discourage market timing. Market timing is an investment strategy using frequent purchases, redemptions and/or exchanges in an attempt to profit from short term market movements. Market timing may result in dilution of the value of Fund shares held by long term shareholders, disrupt portfolio management and increase Fund expenses for all shareholders. The Board of Trustees also has adopted a policy directing the Funds to reject any purchase order with respect to one investor, a related group of investors or their agent(s), where it detects a pattern of purchases and sales of the Fund that indicates market timing or trading that it determines is abusive. This policy applies uniformly to all Fund shareholders. While the Funds attempt to deter market timing, there is no assurance that they will be able to identify and eliminate all market timers. For example, certain accounts called "omnibus accounts" include multiple shareholders. Omnibus accounts typically provide the Funds with a net purchase or redemption request on any given day where purchasers of Fund shares and redeemers of Fund shares are netted against one another and the identity of individual purchasers and redeemers whose orders are aggregated are not known by the Funds. The netting effect often makes it more difficult for the Funds to detect market timing, and there can be no assurance that the Funds will be able to do so. However, the Funds will establish information sharing agreements with intermediaries as required by Rule 22c-2 under the 1940 Act, and otherwise use reasonable efforts to work with intermediaries to identify excessive short-term trading in underlying accounts. The Funds may invest in foreign securities, and small- to mid-capitalization companies, and therefore may have additional risks associated with market timing. Because the Funds may invest in securities that are, among other things, priced on foreign exchanges, thinly traded, traded infrequently or relatively illiquid, the Funds have the risk that the current market price for the securities may not accurately reflect current market values. This can create opportunities for market timing by shareholders. For example, securities trading on overseas markets present time zone arbitrage opportunities when events effecting portfolio security values occur after the close of the overseas market, but prior to the close of the U.S. market. A shareholder may seek to engage in short-term trading to take advantage of these pricing differences, and therefore could dilute the value of Funds shares held by long term shareholders, disrupt portfolio management and increase Fund expenses for all shareholders.

**Taxes**

Fund dividends and distributions are taxable to most investors (unless your investment is made through an individual retirement account or other tax-deferred account). Dividends paid by the Fund out of net ordinary income and distributions of net short-term capital gains are taxable to the shareholders as ordinary income.

Distributions by the Funds of net long-term capital gains to shareholders are generally taxable to the shareholders at the applicable long-term capital gains rate, regardless of how long a shareholder has held shares of a Fund.

Redemptions of shares of a Fund are taxable events for which you will generally realize a gain or loss. The amount of the gain or loss and the rate of tax will depend mainly upon the amount paid for the shares, the amount received from the redemption, and how long the shares were held.

A Fund's distributions may be subject to U.S. federal income tax whether received in cash or reinvested in additional shares. In addition to U.S. federal income taxes, you may be subject to state and local income taxes on distributions.

A Fund may be required to backup withhold U.S. federal income tax (presently at the rate of twenty-four percent (24%) on all taxable distributions payable to shareholders who fail to provide the Fund with their correct taxpayer identification numbers or to make required certifications, or who have been notified by the Internal Revenue Service that they are subject to backup withholding. Backup withholding is not an additional tax; rather, it is a way in which the Internal Revenue Service ensures it will collect taxes otherwise due. Any amounts backup withheld may be credited against a shareholder's U.S. federal income tax liability.

The Funds must report their shareholders' cost basis, gain/loss, and holding periods to the Internal Revenue Service on the Funds' shareholders' Consolidated Form 1099s when a Fund's shares are redeemed.

The Funds have chosen average cost as the standing (default) tax lot identification method for all shareholders. A tax lot identification method is the way the Funds will determine which specific shares are deemed to be redeemed when there are multiple purchases on different dates at differing net asset values, and the entire position is not sold at one time. The Funds' standing tax lot identification method is the method the Funds' shares will be reported on your Consolidated Form 1099 if you do not select a specific tax lot identification method. You may choose a method different than the Funds' standing method and will be able to do so at the time of your purchase or upon the redemption of a Fund's shares. Please consult your own tax adviser regarding your personal circumstances.

The Funds are responsible for maintaining accurate cost basis and tax lot information for tax reporting purposes. The Funds and their service providers do not provide tax advice. You should consult independent sources, which may include your own tax professional, with respect to any decisions you may make with respect to choosing a tax lot identification method.

At the time this prospectus was prepared, there were various legislative proposals under consideration that would amend the Internal Revenue Code. At this time, though, it is not possible to determine whether any of these proposals will become law and how these changes might affect the Fund or its shareholders.

The foregoing is not intended to be a full discussion of U.S. federal tax laws and the effect of such laws on you. Because everyone's tax situation is unique, always consult

your own tax professional about U.S. federal, state, and local tax consequences of an investment in the Funds.

**Glossary of Terms**

**Moving Average - is the average closing price of a security over a defined period of time.**

**Bollinger Bands - are a type of price envelope developed by John Bollinger. Price envelopes define upper and lower price range levels. Bollinger Bands are envelopes plotted at a standard deviation level above and below a simple moving average of the price. Because the distance of the bands is based on standard deviation, they adjust to volatility swings in the underlying price. Bollinger Bands use 2 parameters, Period and Standard Deviations, StdDev. The default values are 20 for period, and 2 for standard deviations, although you may customize the combinations. Bollinger bands help determine whether prices are high or low on a relative basis. They are used in pairs, both upper and lower bands and in conjunction with a moving average. Further, the pair of bands is not intended to be used on its own. Use the pair to confirm signals given with other indicators.**

**Relative Strength - is a ratio of a stock price performance to a market average (index) performance.**

**Stochastics – refers to a randomly determined process. A stochastic indicator is designed to display the location of the close (i.e. closing price of security) compared to the high/low range over a user defined number of periods.**

**Oscillators - is a technical analysis tool that constructs high- and low- bands between two extreme values, and then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover short-term overbought or oversold conditions. When the value of the oscillator approaches the upper extreme value, technical analysts interpret that information to mean that the asset is overbought, and as it approaches the lower extreme, technicians consider the asset to be oversold.**

**Intermarket Analysis - involves looking at asset classes or financial markets that have strong correlations.**

**Trend Following Analysis - is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue.**

**Counter Trend Following Analysis - is a type of swing trading strategy that assumes a current trading trend will reverse and attempts to profit from that reversal.**

**Other Fund Service Providers**

 **Custodian** State Street Bank and Trust Company

**Distributor**

Paralel Distributors, LLC

**Fund Administrator**

Premier Fund Solutions, Inc.

**Independent Registered Public Accounting Firm**

Cohen & Company, Ltd.

**Investment Advisor**

Potomac Fund Management, Inc.

**Legal Counsel**

Practus, LLP

**Transfer Agent**

Paralel Technologies, LLC

**Financial Highlights**

The financial highlights tables are intended to help you understand each Fund's financial performance since inception. Certain information reflects financial results for a single Fund share. The total returns in the tables represent the rate you would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by Cohen & Company, Ltd., the Funds' independent registered public accounting firm, whose report, along with the Funds' financial statements, is included in the Funds' annual report, which is available upon request and incorporated by reference in the Statement of Additional Information.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Potomac Managed Volatility Fund - Financial Highlights** | **Potomac Managed Volatility Fund - Financial Highlights** | **Potomac Managed Volatility Fund - Financial Highlights** |  |  |  |
| Selected data for a share outstanding | 7/1/2024 | 7/1/2023 | 7/1/2022 | 7/1/2021 | 7/1/2020\* |
| &nbsp;&nbsp;&nbsp;&nbsp;throughout each year: | to | to | to | to | to |
|  | 6/30/2025 | 6/30/2024 | 6/30/2023 | 6/30/2022 | 6/30/2021 |
| Net Asset Value - Beginning of Year | $&nbsp;&nbsp;&nbsp;&nbsp;10.14 | $&nbsp;&nbsp;&nbsp;&nbsp;10.10 | $&nbsp;&nbsp;&nbsp;&nbsp;9.48 | $10.44 | $10.00 |
| Net Investment Income (a) (e) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.33 | &nbsp;&nbsp;&nbsp;&nbsp; 0.32 | &nbsp;&nbsp;&nbsp;&nbsp; 0.06 | &nbsp;&nbsp;&nbsp;&nbsp; 0.15 |
| Net Gain (Loss) on Investments (Realized | (0.05) | (0.01) | 0.36 | (0.79) | 0.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;and Unrealized) (b) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total from Investment Operations | 0.35 | 0.32 | 0.68 | (0.73) | 0.54 |
| Distributions (From Net Investment Income) | &nbsp;&nbsp;&nbsp;&nbsp; (0.38) | &nbsp;&nbsp;&nbsp;&nbsp; (0.28) | &nbsp;&nbsp;&nbsp;&nbsp; (0.06) | &nbsp;&nbsp;&nbsp;&nbsp; (0.10) | &nbsp;&nbsp;&nbsp;&nbsp; (0.10) |
| Distributions (From Capital Gains) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp; (0.13) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp; (0.38) | &nbsp;&nbsp;&nbsp;&nbsp; (0.28) | &nbsp;&nbsp;&nbsp;&nbsp; (0.06) | &nbsp;&nbsp;&nbsp;&nbsp; (0.23) | &nbsp;&nbsp;&nbsp;&nbsp; (0.10) |
| Net Asset Value - End of Year | $&nbsp;&nbsp;&nbsp;&nbsp;10.11 | $&nbsp;&nbsp;&nbsp;&nbsp;10.14 | $10.10 | $&nbsp;&nbsp;&nbsp;&nbsp;9.48 | $10.44 |
| Total Return (c) | 3.44% | 3.21% | 7.16% | (7.15)% | 5.39% |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets - End of Year (Thousands) | $159614 | $122412 | $74709 | $42695 | $30992 |
| Before Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.44% | 1.49% (h) | 1.65% (g) | 1.66% | 1.88% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income to | 3.99% | 3.30% | 3.11% | 0.52% | 1.43% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| After Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.44% | 1.49% (h) | 1.64% (g) | 1.62% (f) | 1.87% (f) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income to | 3.99% | 3.30% | 3.12% | 0.56% | 1.44% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| Portfolio Turnover Rate | 665.24% | 685.94% | 761.70% | 620.91% | 519.72% |
| \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. |
| (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts |
| necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile |
| with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions |
| for the period. | for the period. | for the period. | for the period. | for the period. | for the period. |
| (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an |
| investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. |
| (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. |
| (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the |
| declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. |
| (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not |
| occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. |
| (g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average |
| net assets would have been 1.60% and 1.59%, respectively. | net assets would have been 1.60% and 1.59%, respectively. | net assets would have been 1.60% and 1.59%, respectively. | net assets would have been 1.60% and 1.59%, respectively. | net assets would have been 1.60% and 1.59%, respectively. | net assets would have been 1.60% and 1.59%, respectively. |
| (h) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (h) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (h) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (h) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (h) Excluding interest expense, the before waiver and after waiver ratios of expenses to average | (h) Excluding interest expense, the before waiver and after waiver ratios of expenses to average |
| net assets would have been 1.49% and 1.49%, respectively. | net assets would have been 1.49% and 1.49%, respectively. | net assets would have been 1.49% and 1.49%, respectively. | net assets would have been 1.49% and 1.49%, respectively. | net assets would have been 1.49% and 1.49%, respectively. | net assets would have been 1.49% and 1.49%, respectively. |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Potomac Tactical Rotation Fund - Financial Highlights** | **Potomac Tactical Rotation Fund - Financial Highlights** | **Potomac Tactical Rotation Fund - Financial Highlights** |  |  |  |
| Selected data for a share outstanding | 7/1/2024 | 7/1/2023 | 7/1/2022 | 7/1/2021 | 7/1/2020\* |
| &nbsp;&nbsp;&nbsp;&nbsp;throughout each year: | to | to | to | to | to |
|  | 6/30/2025 | 6/30/2024 | 6/30/2023 | 6/30/2022 | 6/30/2021 |
| Net Asset Value - Beginning of Year | $&nbsp;&nbsp;&nbsp;&nbsp;10.83 | $&nbsp;&nbsp;&nbsp;&nbsp;10.51 | $&nbsp;&nbsp;&nbsp;&nbsp; 9.72 | $&nbsp;&nbsp;&nbsp;&nbsp;12.43 | $&nbsp;&nbsp;&nbsp;&nbsp;10.00 |
| Net Investment Income (Loss) (a) (e) | 0.11 | 0.20 | 0.09 | (0.08) | (0.02) |
| Net Gain (Loss) on Investments (Realized | 0.41 | 0.23 | 0.71 | (0.63) | 2.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;and Unrealized) (b) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total from Investment Operations | 0.52 | 0.43 | 0.80 | (0.71) | 2.75 |
| Distributions (From Net Investment Income) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.14) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.11) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp; (0.02) |
| Distributions (From Capital Gains) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.40) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp; (0.01) | &nbsp;&nbsp;&nbsp;&nbsp; (2.00) | &nbsp;&nbsp;&nbsp;&nbsp; (0.30) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.54) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.11) | &nbsp;&nbsp;&nbsp;&nbsp; (0.01) | &nbsp;&nbsp;&nbsp;&nbsp; (2.00) | &nbsp;&nbsp;&nbsp;&nbsp; (0.32) |
| Net Asset Value - End of Year | $&nbsp;&nbsp;&nbsp;&nbsp;10.81 | $&nbsp;&nbsp;&nbsp;&nbsp;10.83 | $&nbsp;&nbsp;&nbsp;&nbsp;10.51 | $&nbsp;&nbsp;&nbsp;&nbsp; 9.72 | $&nbsp;&nbsp;&nbsp;&nbsp;12.43 |
| Total Return (c) | 4.95% | 4.12% | 8.27% | (6.74)% | 27.85% |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets - End of Year (Thousands) | $175101 | $149533 | $91055 | $64948 | $55497 |
| Before Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.41% (g) | 1.47% | 1.55% | 1.62% | 1.80% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income (Loss) to | 1.06% | 1.96% | 0.92% | (0.79)% | (0.18)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| After Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.41% (g) | 1.47% | 1.55% | 1.58% (f) | 1.79% (f) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income (Loss) to | 1.06% | 1.96% | 0.92% | (0.75)% | (0.17)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| Portfolio Turnover Rate | 917.06% | 1,644.06% | 1,420.24% | 1,544.72% | 1,028.67% |
| \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. |
| (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts |
| necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile |
| with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions |
| for the period. | for the period. | for the period. | for the period. | for the period. | for the period. |
| (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an |
| investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. |
| (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. |
| (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the |
| declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. |
| (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not |
| occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. | occurred, the expense ratios would have been higher. |
| g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average net | g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average net | g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average net | g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average net | g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average net | g) Excluding interest expense, the before waiver and after waiver ratios of expenses to average net |
| assets would have been 1.41% and 1.41%, respectively. | assets would have been 1.41% and 1.41%, respectively. | assets would have been 1.41% and 1.41%, respectively. | assets would have been 1.41% and 1.41%, respectively. | assets would have been 1.41% and 1.41%, respectively. | assets would have been 1.41% and 1.41%, respectively. |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Potomac Tactical Opportunities Fund - Financial Highlights** | **Potomac Tactical Opportunities Fund - Financial Highlights** | **Potomac Tactical Opportunities Fund - Financial Highlights** |  |  |  |
| Selected data for a share outstanding | 7/1/2024 | 7/1/2023 | 7/1/2022 | 7/1/2021 | 7/1/2020\* |
| &nbsp;&nbsp;&nbsp;&nbsp;throughout each year: | to | to | to | to | to |
|  | 6/30/2025 | 6/30/2024 | 6/30/2023 | 6/30/2022 | 6/30/2021 |
| Net Asset Value - Beginning of Year | $&nbsp;&nbsp;&nbsp;&nbsp;10.33 | $&nbsp;&nbsp;&nbsp;&nbsp;10.26 | $&nbsp;&nbsp;&nbsp;&nbsp; 8.11 | $&nbsp;&nbsp;&nbsp;&nbsp;12.12 | $&nbsp;&nbsp;&nbsp;&nbsp;10.00 |
| Net Investment Income (Loss) (a) (e) | 0.09 | 0.15 | 0.06 | (0.10) | (0.11) |
| Net Gain (Loss) on Investments (Realized | (0.03) | (0.01) | 2.09 | (2.41) | 2.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;and Unrealized) (b) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total from Investment Operations | 0.06 | 0.14 | 2.15 | (2.51) | 2.47 |
| Distributions (From Net Investment Income) | &nbsp;&nbsp;&nbsp;&nbsp; (0.13) | &nbsp;&nbsp;&nbsp;&nbsp; (0.07) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |
| Distributions (From Capital Gains) | &nbsp;&nbsp;&nbsp;&nbsp; (0.33) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp; (1.50) | &nbsp;&nbsp;&nbsp;&nbsp; (0.35) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp; (0.46) | &nbsp;&nbsp;&nbsp;&nbsp; (0.07) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp; (1.50) | &nbsp;&nbsp;&nbsp;&nbsp; (0.35) |
| Net Asset Value - End of Year | $&nbsp;&nbsp;&nbsp;&nbsp; 9.93 | $&nbsp;&nbsp;&nbsp;&nbsp;10.33 | $&nbsp;&nbsp;&nbsp;&nbsp;10.26 | $&nbsp;&nbsp;&nbsp;&nbsp; 8.11 | $&nbsp;&nbsp;&nbsp;&nbsp;12.12 |
| Total Return (c) | 0.85% | 1.35% | 26.51% | (23.00)% | 24.81% |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets - End of Year (Thousands) | $144582 | $115029 | $103503 | $36264 | $43525 |
| Before Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.47% | 1.50% | 1.59% | 1.68% | 1.81% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income (Loss) to | 0.88% | 1.54% | 0.68% | (1.05)% | (0.98)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| After Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.47% | 1.50% | 1.59% | 1.63% (f) | 1.80% (f) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income (Loss) to | 0.88% | 1.54% | 0.68% | (1.00)% | (0.97)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| Portfolio Turnover Rate | 2,273.53% | 2,568.77% | 1,208.66% | 1,483.56% | 1,291.12% |
| \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. |
| (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts |
| necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile |
| with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions |
| for the period. | for the period. | for the period. | for the period. | for the period. | for the period. |
| (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an |
| investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. |
| (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. |
| (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the |
| declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. |
| (f) Voluntary expense waivers reduced the gross expense ratio by 0.01% and 0.05%, respectfully, | (f) Voluntary expense waivers reduced the gross expense ratio by 0.01% and 0.05%, respectfully, | (f) Voluntary expense waivers reduced the gross expense ratio by 0.01% and 0.05%, respectfully, | (f) Voluntary expense waivers reduced the gross expense ratio by 0.01% and 0.05%, respectfully, | (f) Voluntary expense waivers reduced the gross expense ratio by 0.01% and 0.05%, respectfully, | (f) Voluntary expense waivers reduced the gross expense ratio by 0.01% and 0.05%, respectfully, |
| during the fiscal years ended June 30, 2021 and June 30, 2022, respectfully. If the voluntary | during the fiscal years ended June 30, 2021 and June 30, 2022, respectfully. If the voluntary | during the fiscal years ended June 30, 2021 and June 30, 2022, respectfully. If the voluntary | during the fiscal years ended June 30, 2021 and June 30, 2022, respectfully. If the voluntary | during the fiscal years ended June 30, 2021 and June 30, 2022, respectfully. If the voluntary | during the fiscal years ended June 30, 2021 and June 30, 2022, respectfully. If the voluntary |
| waivers had not occurred, the expense ratios would have been higher. | waivers had not occurred, the expense ratios would have been higher. | waivers had not occurred, the expense ratios would have been higher. | waivers had not occurred, the expense ratios would have been higher. | waivers had not occurred, the expense ratios would have been higher. | waivers had not occurred, the expense ratios would have been higher. |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Potomac Defensive Bull Fund - Financial Highlights** | **Potomac Defensive Bull Fund - Financial Highlights** |  |  |  |  |
| Selected data for a share outstanding | 7/1/2024 | 7/1/2023 | 7/1/2022 | 7/1/2021 | 7/1/2020\* |
| &nbsp;&nbsp;&nbsp;&nbsp;throughout each year: | to | to | to | to | to |
|  | 6/30/2025 | 6/30/2024 | 6/30/2023 | 6/30/2022 | 6/30/2021 |
| Net Asset Value - Beginning of Year | $&nbsp;&nbsp;&nbsp;&nbsp; 14.35 | $&nbsp;&nbsp;&nbsp;&nbsp; 14.44 | $10.28 | $&nbsp;&nbsp;&nbsp;&nbsp;14.66 | $&nbsp;&nbsp;&nbsp;&nbsp;10.00 |
| Net Investment Income (Loss) (a) (e) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.22 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.29 | &nbsp;&nbsp;&nbsp;&nbsp; (0.08) | &nbsp;&nbsp;&nbsp;&nbsp; (0.05) |
| Net Gain (Loss) on Investments (Realized | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.44 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.92 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.89 | &nbsp;&nbsp;&nbsp;&nbsp; (1.16) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;and Unrealized) (b) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total from Investment Operations | 1.60 | 1.14 | 4.18 | (1.24) | 4.86 |
| Distributions (From Net Investment Income) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.14) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.21) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |
| Distributions (From Capital Gains) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1.50) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1.02) | &nbsp;&nbsp;&nbsp;&nbsp; (0.02) | &nbsp;&nbsp;&nbsp;&nbsp; (3.14) | &nbsp;&nbsp;&nbsp;&nbsp; (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1.64) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1.23) | &nbsp;&nbsp;&nbsp;&nbsp; (0.02) | &nbsp;&nbsp;&nbsp;&nbsp; (3.14) | &nbsp;&nbsp;&nbsp;&nbsp; (0.20) |
| Net Asset Value - End of Year | $&nbsp;&nbsp;&nbsp;&nbsp; 14.31 | $&nbsp;&nbsp;&nbsp;&nbsp; 14.35 | $14.44 | $&nbsp;&nbsp;&nbsp;&nbsp;10.28 | $&nbsp;&nbsp;&nbsp;&nbsp;14.66 |
| Total Return (c) | 12.72% | 9.75% | 40.72% | (12.38)% | 49.04% |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets - End of Year (Thousands) | $1771336 | $1188764 | $652111 | $235276 | $233859 |
| Before Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.14% | 1.14% | 1.17% | 1.29% | 1.55% |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income (Loss) to | 1.18% | 1.68% | 2.37% | (0.64)% | (0.41)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| After Waiver |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Expenses to Average Net Assets (d) | 1.14% | 1.14% | 1.17% | 1.24% (f) | 1.53% (f) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio of Net Investment Income (Loss) to | 1.18% | 1.68% | 2.37% | (0.59)% | (0.39)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Net Assets (d) (e) |  |  |  |  |  |
| Portfolio Turnover Rate | 1,352.76% | 2,445.82% | 1,628.24% | 1,558.57% | 1,657.50% |
| \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | \* Commencement of Operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. | (a) Per share amounts were calculated using the average shares method. |
| (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts | (b) Realized and unrealized gains and losses per share in this caption are balancing amounts |
| necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile | necessary to reconcile the change in net asset value for the period, and may not reconcile |
| with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions | with the aggregate gains and losses in the Statement of Operations due to share transactions |
| for the period. | for the period. | for the period. | for the period. | for the period. | for the period. |
| (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an | (c) Total return represents the rate that the investor would have earned or lost on an |
| investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. | investment in the Fund assuming reinvestment of dividends and distributions, if any. |
| (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. | (d) These ratios exclude the impact of expenses of the underlying investment security holdings. |
| (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the | (e) Recognition of the net investment income/(loss) by the Fund is affected by the timing of the |
| declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. | declaration of dividends by the underlying investment security holdings. |
| (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not | (f) All waivers incurred during the noted period were voluntary. If the voluntary waivers had not |  |  |
| occurred, the expense ratios would have been higher. |  |  |  |  |  |

---

**PRIVACY NOTICE** 

The following is a description of the Funds' policies regarding disclosure of non-public personal information that you provide to the Funds or that the Funds collect from other sources. In the event that you hold shares of the Funds through a broker-dealer or other financial intermediary, the privacy policy of your financial intermediary would govern how your nonpublic personal information would be shared with unaffiliated third parties.

**Categories of Information the Funds Collect**. The Funds collect the following nonpublic personal information about you:

&nbsp;&nbsp;&nbsp;&nbsp;•Information the Funds receive from you on or in applications or other forms, correspondence, or conversations (such as your name, address, phone number, Social Security Number, assets, income and date of birth); and

&nbsp;&nbsp;&nbsp;&nbsp;•Information about your transactions with the Funds, its affiliates, or others (such as your account number, balance, payment history, parties to transactions, cost-basis information, and other financial information).

**Categories of Information the Funds Discloses**. The Funds do not disclose any nonpublic personal information about their current or former shareholders to unaffiliated third parties, except as required or permitted by law. The Funds are permitted by law to disclose all of the information it collects, as described above, to its service providers (such as the Funds' custodian, administrator, and transfer agent) to process your transactions and otherwise provide services to you.

**Confidentiality and Security**. The Funds restrict access to your non-public personal information to those persons who require such information to provide products or services to you. The Funds maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

**Potomac Funds**

**Where to Go for Information**

For shareholder inquiries, please call toll-free in the U.S. at 1-888-774-6679.

You will also find more information about each of the Funds on our website at https://potomacfunds.com or in the following documents:

Statement of Additional Information

The Statement of Additional Information is on file with the Securities and Exchange Commission ("SEC"), contains additional and more detailed information about the Funds and is incorporated into this Prospectus by reference. The Funds publish Shareholder Reports (annual and semiannual reports) and in Form N-CSR that contain additional information about the Funds' investments. In the Funds' annual report, you will find a discussion of the market conditions and investment strategies that significantly affected the Funds' performance during its last fiscal year. In Form N-CSR, you will find the Fund's annual and semi-annual financial statements.

You may obtain the SAI, Shareholder Reports and other information, such as the Fund's financial statements without charge by contacting the Fund at 1-888-774-6679 or on our Internet site at: www.potomacfund.com/funds. If you purchased shares through a Financial Intermediary, you may also obtain these documents, without charge, by contacting your Financial Intermediary.

Shareholder Reports and other information about the Funds are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.

SEC file number 811-09781

Potomac Managed Volatility Fund<br> Ticker CRMVX<br>Potomac Tactical Rotation Fund<br> Ticker CRTBX<br>Potomac Tactical Opportunities Fund<br> Ticker CRTOX<br>Potomac Defensive Bull Fund<br> Ticker CRDBX<br>each a Series of PFS Funds<br>

November 1, 2025

&nbsp;&nbsp;&nbsp;&nbsp; This Statement of Additional Information ("SAI") is not a prospectus. It should be read in conjunction with the Prospectus of Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, Potomac Tactical Opportunities Fund and Potomac Defensive Bull Fund dated November 1, 2025. The SAI incorporates by reference the Fund's Annual Form N-CSR for the fiscal year ended June 30, 2025. A free copy of the Prospectus can be obtained by going to the Funds' website at https://potomacfunds.com, writing the Transfer Agent at 1700 Broadway, No. 1850, Denver, CO 80290, or by calling 1-888-774-6679.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| DESCRIPTION OF THE TRUST AND THE FUNDS | 1 |
| ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS | 1 |
| INVESTMENT LIMITATIONS | 10 |
| THE INVESTMENT ADVISOR | 11 |
| THE PORTFOLIO MANAGERS | 13 |
| TRUSTEES AND OFFICERS | 14 |
| AUDIT COMMITTEE | 15 |
| BOARD INTEREST IN THE FUND | 17 |
| COMPENSATION | 18 |
| CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES | 18 |
| PORTFOLIO TRANSACTIONS AND BROKERAGE | 19 |
| ADDITIONAL TAX INFORMATION | 21 |
| PRICING OF FUND SHARES | 29 |
| PURCHASES AND SALES THROUGH BROKER-DEALERS | 30 |
| ANTI-MONEY LAUNDERING PROGRAM | 30 |
| CUSTODIAN | 30 |
| FUND SERVICES | 30 |
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 31 |
| DISTRIBUTOR | 31 |
| LEGAL COUNSEL | 32 |
| DISCLOSURE OF PORTFOLIO HOLDINGS | 32 |
| FINANCIAL STATEMENTS | 32 |
| PROXY VOTING POLICIES | 33 |

---

DESCRIPTION OF THE TRUST AND THE FUNDS

&nbsp;&nbsp;&nbsp;&nbsp; Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, Potomac Tactical Opportunities Fund and Potomac Defensive Bull Fund (each a "Fund", separately referred to as "the Fund", and together the "Funds") were organized as non-diversified series of PFS Funds (the "Trust"), on June 9, 2020 and commenced operations on July 1, 2020. The Trust is an open-end investment company established under the laws of Massachusetts by an Agreement and Declaration of Trust dated January 13, 2000, as amended on January 20, 2011 (the "Trust Agreement"). The Trust Agreement permits the Trustees to issue an unlimited number of full and fractional shares of multiple separate and distinct portfolio series the assets and liabilities of which are separate and distinct from the assets and liabilities of the other series portfolios of the Trust. Each share of a Fund represents an equal proportionate interest in the Fund with each other share of the Fund and is entitled to a proportionate interest in the dividends and distributions from the Fund. The shares of the Funds do not have any preemptive rights. The investment advisor to the Funds is Potomac Fund Management, Inc. (the "Advisor").

&nbsp;&nbsp;&nbsp;&nbsp; Upon termination of any Fund, whether pursuant to liquidation of the Trust or otherwise, shareholders of a Fund are entitled to share pro rata in the net assets of the Fund available for distribution to shareholders. The assets received by a Fund for the issue or sale of its shares and all income, earnings, profits, losses and proceeds therefrom, subject only to the rights of creditors, are allocated to, and constitute the underlying assets of, a Fund. The underlying assets are segregated and are charged with the expenses with respect to a Fund and with a share of the general expenses of the Trust. Any general expenses of the Trust that are not readily identifiable as belonging to a particular Fund are allocated by or under the direction of the Trustees in such manner as the Trustees determine to be fair and equitable. While the expenses of the Trust are allocated to the separate books of account of each Fund, certain expenses may be legally chargeable against the assets of the Funds.

&nbsp;&nbsp;&nbsp;&nbsp; The Trustees may also, without shareholder approval, establish one or more additional separate portfolios for investments in the Trust. Shareholders' investments in such an additional portfolio would be evidenced by a separate series of shares (i.e., a new "Fund"). The Trust Agreement provides for the perpetual existence of the Trust and the Funds. A Fund, however, may be terminated at any time by vote of at least two-thirds of the outstanding shares of the Fund or by the Trustees upon notice to shareholders. The Trust Agreement also provides that the Trustees may also terminate the Trust upon written notice to the shareholders, and that shareholders holding at least two-thirds of the Trust's outstanding shares may terminate the Trust.

&nbsp;&nbsp;&nbsp;&nbsp; For information concerning the purchase and redemption of shares of each Fund, see "Purchase and Sale of Fund Shares" in the Prospectus. For a description of the methods used to determine the share price and value of each Fund's assets, see "Pricing of Fund Shares" in the Prospectus and in this Statement of Additional Information.

ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS

&nbsp;&nbsp;&nbsp;&nbsp; Under normal market conditions, each Fund generally constructs its portfolio by investing in exchange traded funds ("ETFs"), mutual funds (open-end investment companies) registered under the Investment Company Act of 1940, as amended (the "1940 Act") (the "underlying funds") and/or cash and cash equivalents. This section contains a discussion of some of the investments the Funds, or the underlying funds, may make and some of the techniques each Fund, or the underlying funds, may use.

&nbsp;&nbsp;&nbsp;&nbsp; A. Equity Securities. The Funds may invest in equity securities such as common stock, preferred stock, convertible securities, rights and warrants. Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. Warrants are options to purchase equity securities at a specified price for a specific time period. Rights are similar to warrants but normally have a short duration and are distributed by the issuer to its shareholders. Although equity securities have a history of long-term growth in value, their prices fluctuate based on changes in a company's financial condition and on overall market and economic conditions.

Equity securities also include exchange-traded funds ("ETFs"). Because the Funds will invest in shares of ETFs their performance is directly related to the ability of the ETFs to meet their respective investment objectives, as well as the Adviser's allocation of the Funds' assets among the ETFs. These ETFs will generally attempt to replicate the performance of a particular index. An ETF may not always hold all of the same securities as the index it attempts to track. An ETF may use statistical sampling techniques to attempt to replicate the returns of an index. Statistical sampling techniques attempt to match the investment characteristics of the index and the fund by taking into account such factors as capitalization, industry exposures, dividend yield, price/earnings (P/E) ratio, price/book (P/B) ratio, and earnings growth. An ETF may not track the index perfectly because differences between the index and the fund's portfolio can cause differences in performance. In addition, expenses and transaction costs, the size and frequency of cash flow into and out of the fund, and differences between how and when the fund and the index are valued can cause differences in performance. When the Funds invests in ETFs each Fund will indirectly bear its proportionate share of any fees and expenses payable directly by the ETF. In connection with its investments in other investment companies, the Funds will incur higher expenses, many of which may be duplicative. Furthermore, because the Funds invests in shares of ETFs their performance is directly related to the ability of the ETFs to meet their respective investment objectives, as well as the Adviser's allocation of each Fund's assets among the ETFs. Accordingly, each Fund's investment performance will be influenced by the investment strategies of and risks associated with the ETFs in direct proportion to the amount of assets the Fund allocates to the ETFs utilizing such strategies.

To the extent that the Funds invest in leveraged ETFs, including ETFs leveraged multiple times (ultra-long), the value of the Fund's investment will rise or fall proportionally with the amount of leverage as the index underlying the ETF's benchmark rises or falls. The net asset value and market price of leveraged ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not use leverage. Leveraged ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions. Most leveraged ETFs are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance or inverse of the performance of the underlying index during the same period of time. This effect can be magnified in volatile markets. By investing in ultra-long ETFs and gaining magnified exposure to a particular index, a Fund can commit less assets to the investment in the securities represented on the index than would otherwise be required. ETFs that seek to multiply the return on the tracked index are subject to a special form of correlation risk, which is the risk that for periods greater than one day, the use of leverage tends to cause the performance of the ETF to be either greater than or less than the index performance times the stated multiple in the ETFs investment objective.

The Funds may also invest in inverse ETFs, including double inverse (or ultra-short) ETFs. Inverse ETFs seek to negatively correlate to the performance of the particular index that they track by using various forms of derivative transactions, including by short-selling the underlying index. Ultra-short ETFs seek to multiply the negative return of the tracked index (e.g., twice the inverse return). As a result, an investment in an inverse ETF will decrease in value when the value of the underlying index rises. By investing in ultra-short ETFs and gaining magnified short exposure to a particular index, a Fund can commit less assets to the investment in the securities represented on the index than would otherwise be required. ETFs that seek to multiply the negative return on the tracked index are subject to a special form of correlation risk which is the risk that for periods greater than one day, the use of leverage tends to cause the performance of the ETF to be either greater than or less than the index performance times the stated multiple in the ETFs investment objective.

Investments in ETFs involve certain inherent risks generally associated with investments in a broadly-based portfolio of stocks, including risks that: (1) the general level of stock prices may decline, thereby adversely affecting the value of each unit of the ETF or other instrument; (2) an ETF may not fully replicate the performance of its benchmark index because of the temporary unavailability of certain index securities in the secondary market or discrepancies between the ETF and the index with respect to the weightings of securities or number of stocks held; (3) an ETF may also be adversely affected by the performance of the specific index, market sector or group of industries on which it is based; and (4) an ETF may not track an index as well as a traditional index mutual fund because ETFs are valued by the market and, therefore, there may be a difference between the market value and the ETF's net asset value. Additionally, investments in fixed income ETFs involve certain inherent risks generally associated with investments in fixed income securities, including the risk of fluctuation in market value based on interest rates rising or

declining and risks of a decrease in liquidity, such that no assurances can be made that an active trading market for underlying ETFs will be maintained.

&nbsp;&nbsp;&nbsp;&nbsp; There is also a risk that the ETFs may terminate due to extraordinary events. For example, any of the service providers to the ETF, such as the trustee or sponsor, may close or otherwise fail to perform their obligations to the ETF, and the ETF may not be able to find a substitute service provider. Also, the ETF may be dependent upon licenses to use the various indices as a basis for determining their compositions and/or otherwise to use certain trade names. If these licenses are terminated, the respective underlying ETF may also terminate. In addition, an ETF may terminate if its net assets fall below a certain amount. Although the Funds believe that in the event of the termination of an ETF, it will be able to invest instead in shares of an alternate ETF tracking the same market index or another index covering the same general market, there can be no assurance that shares of an alternate underlying fund or ETF would be available for investment at that time.

&nbsp;&nbsp;&nbsp;&nbsp; Many ETFs are organized as investment companies under the 1940 Act. Investments in the securities of other investment companies, including investments in ETFs and closed-end funds, may involve duplication of advisory fees and certain other expenses. By investing in another investment company, a Fund becomes a shareholder of that investment company. As a result, the Fund's shareholders indirectly will bear the Fund's proportionate share of the fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses the Fund's shareholders directly bear in connection with the Fund's own operations.

&nbsp;&nbsp;&nbsp;&nbsp; Section 12(d)(1)(A) of the 1940 Act provides that a fund may not purchase or otherwise acquire the securities of other investment companies if, as a result of such purchase or acquisition, it would own: (i) more than 3% of the total outstanding voting stock of the acquired investment company; (ii) securities issued by any one investment company having a value in excess of 5% of the fund's total assets; or (iii) securities issued by all investment companies having an aggregate value in excess of 10% of the fund's total assets. These limitations are subject to certain statutory and regulatory exemptions including Rule 12d1-4. Rule 12d1-4 permits the Fund to invest in other investment companies beyond the statutory limits, subject to certain conditions. Among other conditions, the rule prohibits a fund from acquiring control of another investment company (other than an investment company in the same group of investment companies), including by acquiring more than 25% of its voting securities. In addition, the rule imposes certain voting requirements when a fund's ownership of another investment company exceeds particular thresholds. If shares of a fund are acquired by another investment company, the "acquired" fund may not purchase or otherwise acquire the securities of an investment company or private fund if immediately after such purchase or acquisition, the securities of investment companies and private funds owned by that acquired fund have an aggregate value in excess of 10 percent of the value of the total assets of the fund, subject to certain exceptions. These restrictions may limit the Fund's ability to invest in other investment companies to the extent desired. In addition, other unaffiliated investment companies may impose other investment limitations or redemption restrictions which may also limit the Fund's flexibility with respect to making investments in those unaffiliated investment companies. The Funds have adopted policies and procedures designed to comply with the requirements of Rule 12d1-4 and the Funds intends to follow such policies and procedures when investing in other investment companies.

&nbsp;&nbsp;&nbsp;&nbsp; B. Foreign Securities. The Funds may invest in foreign equity and fixed income securities. Foreign securities include American Depositary Receipts ("ADRs") and ETFs that hold foreign securities. ADRs are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. ADRs are subject to risks similar to those associated with direct investment in foreign securities.

&nbsp;&nbsp;&nbsp;&nbsp; Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. The value of securities denominated in or indexed to foreign currencies, and of dividends and interest from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices on some foreign markets can be highly volatile. Many foreign countries lack uniform accounting and disclosure standards comparable to those applicable to U.S. companies, and it may be more difficult to obtain reliable information regarding an issuer's financial condition and operations. In addition, the costs

of foreign investing, including withholding taxes, brokerage commissions, and custodial costs, generally are higher than for U.S. investments.

&nbsp;&nbsp;&nbsp;&nbsp; Foreign markets may offer less protection to investors than U.S. markets. Foreign issuers, brokers, and securities markets may be subject to less government supervision. Foreign security trading practices, including those involving the release of assets in advance of payment, may invoke increased risks in the event of a failed trade or the insolvency of a broker-dealer, and may involve substantial delays. It also may be difficult to enforce legal rights in foreign countries.

&nbsp;&nbsp;&nbsp;&nbsp; Investing abroad also involves different political and economic risks. Foreign investments may be affected by actions of foreign governments adverse to the interests of U.S. investors, including the possibility of expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment or on the ability to repatriate assets or convert currency into U.S. dollars, or other government intervention. There may be a greater possibility of default by foreign governments or foreign government-sponsored enterprises. Investments in foreign countries also involve a risk of local political, economic or social instability, military action or unrest, or adverse diplomatic developments. There is no assurance that an advisor will be able to anticipate or counter these potential events and their impacts on a Fund's share price.

&nbsp;&nbsp;&nbsp;&nbsp; The considerations noted above generally are intensified for investments in developing and emerging market countries. These countries may have relatively unstable governments, economies based on only a few industries and securities markets that trade a small number of securities.

C. Restricted and Illiquid Securities. In accordance with Rule 22e-4 under the 1940 Act (the "Liquidity Rule"), the Fund may invest up to 15% of its net assets in "illiquid investments." For these purposes, "illiquid investments" are investments that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment.

The Fund must classify each portfolio investment at least monthly into one of four liquidity categories (highly liquid, moderately liquid, less liquid and illiquid), which are defined pursuant to the Liquidity Rule. Such classification is to be made using information obtained after reasonable inquiry and taking into account relevant market, trading and investment-specific considerations. Moreover, in making such classification determinations, the Fund determines whether trading varying portions of a position in a particular portfolio investment or asset class, in sizes that the Fund would reasonably anticipate trading, is reasonably expected to significantly affect its liquidity, and if so, the Fund takes this determination into account when classifying the liquidity of that investment. The Fund may be assisted in classification determinations by one or more third-party service providers. Investments classified according to this process as "illiquid investments" are those subject to the 15% limit on illiquid investments.

&nbsp;&nbsp;&nbsp;&nbsp; D. U.S. Government Securities. U.S. government securities are high-quality debt securities issued or guaranteed by the U.S. Treasury or by an agency or instrumentality of the U.S. government. Not all U.S. government securities are backed by the full faith and credit of the United States or guaranteed by the United States Treasury. For example, securities issued by the Farm Credit Banks or by the Federal National Mortgage Association are supported by the instrumentality's right to borrow money from the U.S. Treasury under certain circumstances. Moreover, securities issued by other agencies or instrumentalities are supported only by the credit of the entity that issued them.

&nbsp;&nbsp;&nbsp;&nbsp; E. Corporate Debt Securities. Corporate debt securities are long- and short-term debt obligations issued by companies (such as publicly issued and privately placed bonds, notes and commercial paper). The Advisor considers corporate debt securities to be of investment grade quality if they are rated BBB or higher by S&P or Baa or higher by Moody's, or if unrated, determined by the Advisor to be of comparable quality. Investment grade debt securities generally have adequate to strong protection of principal and interest payments. For securities on the lower end of this category, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal than for higher-rated securities.

&nbsp;&nbsp;&nbsp;&nbsp; F. Fixed Income Securities. The Funds may invest in all types of U.S. and non-U.S. fixed income securities, including when-issued, delayed delivery, or forward commitment basis. Fixed income securities are subject to credit risk and interest rate risk. Credit risk is the risk that a Fund could lose money if an issuer of a fixed income security cannot meet its financial obligations or goes bankrupt. Interest rate risk is the risk that a Fund's investments in fixed income securities may fall when interest rates rise.

&nbsp;&nbsp;&nbsp;&nbsp; Investments in high-yield bonds (also known as "junk bonds") are considered to be more speculative than higher quality fixed income securities. They are more susceptible to credit risk than investment-grade securities, especially during periods of economic uncertainty or economic downturns. The values of lower quality securities are subject to greater volatility and are generally more dependent on the ability of the issuer to meet interest and principal payments than the values of higher quality securities. Issuers of high-yield securities may not be as strong financially as those issuing bonds with higher credit ratings.

&nbsp;&nbsp;&nbsp;&nbsp; G. Financial Services Industry Obligations. The Funds may invest in each of the following obligations of the financial services industry:

&nbsp;&nbsp;&nbsp;&nbsp; (1) Certificate of Deposit. Certificates of deposit are negotiable certificates evidencing the indebtedness of a commercial bank or a savings and loan association to repay funds deposited with it for a definite period of time (usually from fourteen days to one year) at a stated or variable interest rate.

&nbsp;&nbsp;&nbsp;&nbsp; (2) Time Deposits. Time deposits are non-negotiable deposits maintained in a banking institution or a savings and loan association for a specified period of time at a stated interest rate.

&nbsp;&nbsp;&nbsp;&nbsp; (3) Bankers' Acceptances. Bankers' acceptances are credit instruments evidencing the obligation of a bank to pay a draft which has been drawn on it by a customer and reflect the obligation both of the bank and of the drawer to pay the face amount of the instruments upon maturity.

&nbsp;&nbsp;&nbsp;&nbsp; H. Repurchase Agreements. The Funds may invest in repurchase agreements fully collateralized by obligations issued by the U.S. government or agencies of the U.S. government ("U.S. Government Obligations"). A repurchase agreement is a short-term investment in which the purchaser (i.e., a Fund) acquires ownership of a U.S. Government Obligation (which may be of any maturity) and the seller agrees to repurchase the obligation at a future time at a set price, thereby determining the yield during the purchaser's holding period (usually not more than 7 days from the date of purchase). Any repurchase transaction in which the Funds engage will require full collateralization of the seller's obligation during the entire term of the repurchase agreement. In the event of a bankruptcy or other default of the seller, a Fund could experience both delays in liquidating the underlying security and losses in value. However, the Funds intends to enter into repurchase agreements only with the custodian, other banks with assets of $1 billion or more and registered securities dealers determined by the Advisor to be creditworthy. The Advisor will monitor the creditworthiness of the banks and securities dealers with which each Fund engages in repurchase transactions.

&nbsp;&nbsp;&nbsp;&nbsp; I. Borrowing. The Funds are permitted to borrow money up to one-third of the value of its total assets. Borrowing is a speculative technique that increases both investment opportunity and a Fund's ability to achieve greater diversification. However, it also increases investment risk. Because each Fund's investments will fluctuate in value even though the interest obligations on borrowed funds may be fixed, the Fund's net asset value may tend to increase more when its investments increase in value and decrease more when its investments decrease in value. In addition, interest costs on borrowings may fluctuate with changing market interest rates and may partially offset or exceed the return earned on the borrowed funds. Also, during times of borrowing under adverse market conditions, the Funds might have to sell portfolio securities to meet interest or principal payments at a time when fundamental investment considerations would not favor such sales.

&nbsp;&nbsp;&nbsp;&nbsp; J. Securities Lending. The Funds may make long- and short-term loans of its portfolio securities to parties such as broker-dealers, banks, or institutional investors, in an amount up to 33 1/3% of Fund assets. Securities lending allows a Fund to retain ownership of the securities loaned and, at the same time, to earn additional income. Since there may be delays in the recovery of loaned securities, or even a loss of rights in collateral supplied, should the borrower fail financially, loans will be made only to parties whose

creditworthiness has been reviewed and deemed satisfactory by the Advisor. Furthermore, loans will only be made if, in the judgment of the Advisor, the consideration to be earned from such loans would justify the risk.

&nbsp;&nbsp;&nbsp;&nbsp; The Advisor understands that it is the current view of the staff of the Securities and Exchange Commission (the "SEC") that the Funds may engage in loan transactions only under the following conditions: (1) the Fund must receive between 102% - 105% collateral in the form of cash or cash equivalents (e.g. securities issued or guaranteed by the U.S. Government or its agencies, negotiable certificates of deposit, bankers' acceptances or letters of credit); (2) the borrower must increase the collateral whenever the market value of the securities loaned (determined on a daily basis) rises above the value of the collateral; (3) after giving notice, the Fund must be able to terminate the loan at any time; (4) the Fund must receive reasonable interest on the loan or a flat fee from the borrower, as well as amounts equivalent to any dividends, interest, or other distributions on the securities loaned and to any increase in market value; (5) the Fund may pay only reasonable custodian fees in connection with the loan; and (6) the Fund must be able to vote proxies on the securities loaned, either by terminating the loan or by entering into an alternative arrangement with the borrower.

Cash received through loan transactions may be invested in any security in which the Funds are authorized to invest. Investing this cash subjects that investment, as well as the security loaned, to market forces (i.e., capital appreciation or depreciation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. Mortgage-Backed Securities. The Funds may invest in mortgage-backed securities. These securities represent an interest in a pool of mortgages. Most mortgage-backed securities are pass-through securities, meaning that the payments received by a Fund on such securities consist of both principal and interest as the mortgages in the underlying mortgage pool are paid off. Unscheduled or early payments on the underlying mortgages may shorten the securities' effective maturities. The average life of securities representing interests in pools of mortgage loans is likely to be substantially less than the original maturity of the mortgage pools as a result of prepayments or foreclosures of such mortgages. Prepayments are passed through to the registered holder with the regular monthly payments of principal and interest and have the effect of reducing future payments. To the extent the mortgages underlying a security representing an interest in a pool of mortgages are prepaid, a Fund may experience a loss (if the price at which the respective security was acquired by a Fund was at a premium over par, which represents the price at which the security will be sold upon prepayment). In addition, prepayments of such securities held by a Fund will reduce the share price of the Fund to the extent the market value of the securities at the time of prepayment exceeds their par value. Furthermore, the prices of mortgage-backed securities can be significantly affected by changes in interest rates. Prepayments may occur with greater frequency in periods of declining mortgage rates because, among other reasons, it may be possible for mortgagors to refinance their outstanding mortgages at lower interest rates. In such periods, it is likely that any prepayment proceeds would be reinvested by the Fund at lower rates of return.

&nbsp;&nbsp;&nbsp;&nbsp; L. Options Transactions. The Funds may engage in option transactions involving individual securities and stock indexes. An option involves either: (a) the right or the obligation to buy or sell a specific instrument at a specific price until the expiration date of the option; or (b) the right to receive payments or the obligation to make payments representing the difference between the closing price of a stock index and the exercise price of the option expressed in dollars times a specified multiple until the expiration date of the option. Options are sold (written) on securities and stock indexes. The purchaser of an option on a security pays the seller (the writer) a premium for the right granted but is not obligated to buy or sell the underlying security. The purchaser of an option on a stock index pays the seller a premium for the right granted, and in return the seller of such an option is obligated to make the payment. A writer of an option may terminate the obligation prior to expiration of the option by making an offsetting purchase of an identical option. Options are traded on organized exchanges and in the over-the-counter market.

&nbsp;&nbsp;&nbsp;&nbsp; The purchase and writing of options requires additional skills and techniques beyond normal portfolio management and involves certain risks. The purchase of options limits a Fund's potential loss to the amount of the premium paid and can afford the Fund the opportunity to profit from favorable movements in the price of an underlying security to a greater extent than if transactions were effected in the security directly. However, the purchase of an option could result in a Fund losing a greater percentage of its investment than if the transaction were effected directly. When a Fund sells a call option, it will receive a premium, but

it will give up the opportunity to profit from a price increase in the underlying security above the exercise price as long as its obligation as a writer continues. It will also retain the risk of loss should the price of the security decline. When a Fund sells a put option, it will assume the risk that the price of the underlying security or instrument will fall below the exercise price, in which case the Funds may be required to purchase the security or instrument at a higher price than the market price of the security or instrument. In addition, there can be no assurance that a Fund can effect a closing transaction on a particular option it has sold. Further, the total premium paid for any option may be lost if a Fund does not exercise the option or, in the case of over-the-counter options, the writer does not perform its obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. Real Estate Investment Trusts. The Funds may invest in the securities of real estate investment trusts ("REITs"). REITs offer investors greater liquidity and diversification than direct ownership of properties. A REIT is a corporation or business trust that invests substantially all of its assets in interests in real estate. Equity REITs are those which purchase or lease land and buildings and generate income primarily from rental income. Equity REITs may also realize capital gains (or losses) when selling property that has appreciated (or depreciated) in value. Mortgage REITs are those that invest in real estate mortgages and generate income primarily from interest payments on mortgage loans. Hybrid REITs generally invest in both real property and mortgages. Unlike corporations, REITs do not pay income taxes if they meet certain IRS requirements. Real estate related equity securities also include those insured by real estate developers, companies with substantial real estate holdings (for investment or as part of their operations), as well as companies whose products and services are directly related to the real estate industry, such as building supply manufacturers, mortgage lenders or mortgage servicing companies. Like any investment in real estate though, a REIT's performance depends on several factors, such as its ability to find tenants, renew leases and finance property purchases and renovations. Other risks associated with REIT investments include the fact that equity and mortgage REITs are dependent upon specialized management skills and are not fully diversified. These characteristics subject REITs to the risks associated with financing a limited number of projects. They are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Additionally, equity REITs may be affected by any changes in the value of the underlying property owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund but also may indirectly bear similar expenses of some of the REITs in which it invests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. Futures and Options on Futures. The Funds may buy and sell stock index futures contracts. A stock index futures contract obligates the seller to deliver (and the buyer to take) an amount of cash equal to a specific dollar amount times the difference between the value of a specific stock index at the close of the last trading day of the contract and the price at which the agreement was made. No physical delivery of the underlying stocks in the index is made. Positions taken in the futures markets are not normally held to maturity but are liquidated through offsetting transactions that may result in a profit or a loss.

The Funds may sell stock index futures contracts in anticipation of or during a market decline to attempt to offset the decrease in market value of its long positions in equity securities that might otherwise result. When the Funds are not fully invested in stocks and anticipates a significant market advance, they may buy stock index futures in order to gain rapid market exposure that may in part or entirely offset increases in the cost of common stocks that it intends to buy.

Each Fund may buy and sell call and put options on stock index futures to hedge against risks of market price movements in its long portfolio and to maintain short positions through transactions other than short sales of securities. The need to hedge against market movement risks will depend on the extent of diversification of the Fund's common stock portfolio and the sensitivity of such investments to factors influencing the stock market as a whole.

Call and put options on stock index futures are similar to options on securities except that, rather than the right to buy and sell stock at a specified price, options on stock index futures give the holder the right to receive cash. Upon exercise of the option, the delivery of the futures position by the writer of the option to the holder of the option will be accompanied by delivery of the accumulated balance in the writer's futures margin account which represents the amount by which the market price of the futures contract, at exercise, exceeds, in the case of a call, or is less than, in case of a put, the exercise price of the option on the futures contract. If an option is exercised on the last trading day before the expiration date of the option, the

settlement will be made entirely in cash in an amount equal to the difference between the exercise price of the option and the closing price of the futures contract on the expiration date.

To the extent a Fund enters into a futures contract, it will deposit in a segregated account with a custodian bank or U.S. Treasury obligations equal to a specified percentage of the value of the futures contract (the initial margin), as required by the relevant contract market and futures commission merchant. The futures contract will be marked to market daily. Should the value of the futures contract decline relative to the Fund's position, the Fund, if required by law, will pay the futures commission merchant an amount equal to the change in value to maintain its appropriate margin balance.

Transactions involving futures contracts and related options carry risk. There is no assurance a liquid secondary market will exist for any particular options or futures contract at any particular time, and a Fund may be unable to promptly liquidate unfavorable positions. Consequently, the Fund may have to hold a position until delivery or expiration regardless of change in its value. There is also the risk that there will be imperfect correlation, or even no correlation, between price movements of the investments being hedged and the options or futures used. In addition, the Fund will pay commissions and other costs in connection with such investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O. Other Investment Companies. The Funds may purchase securities of open-end or closed-end investment companies if the purchase complies with the 1940 Act. If the Funds invests in securities of other investment companies, the return of any such investment will be reduced by the operating expenses, including investment advisory and administrative fees, of such investment companies. However, the Advisor believes that at times the return and liquidity features of these securities will be more beneficial than other types of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P. Reverse Repurchase Agreements. In a reverse repurchase agreement, a fund sells a security to another party, such as a bank or a broker-dealer, in return for cash and agrees to repurchase that security at an agreed-upon price and time. The Funds will only enter into reverse repurchase agreements with parties whose creditworthiness has been reviewed and found satisfactory by the Advisor. Such transactions may increase fluctuations in the market value of a Fund's assets and may be viewed as a form of leverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q. Zero Coupon Bonds. Zero coupon bonds do not make interest payments; instead, they are sold at a discount from their face value and are redeemed at face value when they mature. Because zero coupon bonds do not pay current income, their prices can be more volatile than other types of fixed-income securities when interest rates change. In calculating a Fund's dividend, a portion of the difference between a zero coupon bond's purchase price and its face value is considered income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R. Exchange-Traded Notes. The Funds may invest in exchange-traded notes ("ETNs"), which are a type of unsecured, unsubordinated debt security. ETNs combine certain aspects of bonds and ETFs. Similar to ETFs, ETNs are traded on a major exchange (e.g., NYSE) during normal trading hours. However, investors can also hold the ETN until maturity. At maturity, the issuer pays to the investor a cash amount equal to principal amount, subject to the day's index factor. ETN returns are based upon the performance of a market index minus applicable fees. ETNs do not make periodic coupon payments and provide no principal protection. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities markets, changes in the applicable interest rates, changes in the issuer's credit rating and economic, legal, political or geographic events that affect the referenced commodity. The value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying index remaining unchanged. ETNs are synthetic instruments in that they do not represent an interest in the ETNs underlying securities. Additionally, because the ETNs are issued by third parties, there is a risk that the party issuing the ETN may default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S. Commodities. The Funds may also invest in underlying funds that hold a portfolio of commodities. Commodities are physical substances, such as metals, that investors buy or sell on the market, usually through futures contracts. The price of a commodity is subject to supply and demand. Commodity risk refers to the uncertainties of future market values and the size of future income, caused by fluctuation in the price of a commodity. An investment in commodities contends with the following types of risks: price risk, adverse movements in world prices, exchange rates, and the basis between local and world prices; quantity risk; cost risk, input price risk; and political risk, how political conditions can affect supply, demand and the price of commodities.

Certain ETFs and ETNs may not produce qualifying income for purposes of the 90% income test (as described below under the heading "Taxation as a RIC") which must be met for a Fund to maintain its status as a regulated investment company (a "RIC") under the Internal Revenue Code of 1986, as amended (the "Code"). If one or more ETFs or ETNs generates more non-qualifying income for purposes of the 90% income test than the Fund's portfolio management expects, it could cause the Fund inadvertently to fail the 90% income test.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; T.**&nbsp;&nbsp;&nbsp;&nbsp;** Cash and Cash Equivalents**.** The Funds may hold cash or invest in cash equivalents. Cash equivalents include money market funds, commercial paper (for example, short-term notes with maturities typically up to 12 months in length issued by corporations, governmental bodies, or bank/corporation sponsored conduits (asset-backed commercial paper)); short-term bank obligations (for example, certificates of deposit, bankers' acceptances (time drafts on a commercial bank where the bank accepts an irrevocable obligation to pay at maturity)); or bank notes; savings association and saving bank obligations (for example, bank notes and certificates of deposit issued by savings banks or savings associations); securities of the U.S. government, its agencies, or instrumentalities that mature or may be redeemed in one year or less, and; corporate bonds and notes that mature or that may be redeemed in one year or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.**&nbsp;&nbsp;&nbsp;&nbsp;** Derivatives Transactions. Rule 18f-4 under the 1940 Act governs the Funds' use of derivative instruments and certain other transactions that create future payment and/or delivery obligations by the Fund. Rule 18f-4 permits the Funds to enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions on the issuance of "senior securities" under Section 18 of the 1940 Act. Section 18 of the 1940 Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling any "senior security," other than borrowing from a bank (subject to a requirement to maintain 300% "asset coverage"). In connection with the adoption of Rule 18f-4, the SEC eliminated the asset segregation framework arising from prior SEC guidance for covering Derivatives Transactions and certain financial instruments.

Under Rule 18f-4, "Derivatives Transactions" include the following: (i) any swap, security-based swap (including a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination of the foregoing, or any similar instrument, under which the Fund is or may be required to make any payment or delivery of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or settlement payment or otherwise; (ii) any short sale borrowing; (iii) reverse repurchase agreements and similar financing transactions, if the Fund elects to treat these transactions as Derivatives Transactions under Rule 18f-4; and (iv) when-issued or forward-settling securities (e.g., firm and standby commitments, including to-be-announced ("TBA") commitments, and dollar rolls) and non-standard settlement cycle securities, unless the Fund intends to physically settle the transaction and the transaction will settle within 35 days of its trade date.

Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires the Fund to (i) appoint a Derivatives Risk Manager, (ii) maintain a Derivatives Risk Management Program designed to identify, assess, and reasonably manage the risks associated with Derivatives Transactions; (iii) comply with certain value-at-risk (VaR)-based leverage limits (VaR is an estimate of an instrument's or portfolio's potential losses over a given time horizon and at a specified confidence level); and (iv) comply with certain Board reporting and recordkeeping requirements.

Rule 18f-4 provides an exception from the requirements to appoint a Derivatives Risk Manager, adopt a Derivatives Risk Management Program, comply with certain VaR-based leverage limits, and comply with certain Board oversight and reporting requirements if a Fund's "derivatives exposure" (as defined in Rule 18f-4) is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the "Limited Derivatives User Exception").

Pursuant to Rule 18f-4, if a Fund enters into reverse repurchase agreements or similar financing transactions, the Fund will (i) aggregate the amount of indebtedness associated with all of its reverse repurchase agreements or similar financing transactions with the amount of any other "senior securities" representing indebtedness (e.g., bank borrowings, if applicable) when calculating the Fund's asset coverage ratio or (ii) treat all such transactions as Derivatives Transactions.

The requirements of Rule 18f-4 may limit a Fund's ability to engage in Derivatives Transactions as part of its investment strategies. These requirements may also increase the cost of the Fund's investments and cost of doing business, which could adversely affect the value of the Fund's investments and/or the performance of the Fund.

The Adviser has claimed an exemption from registration with the Commodity Futures Trading Commission as a commodity pool operator under the Commodity Exchange Act ("CEA"), and therefore the Adviser is not subject to registration or regulation as a commodity pool operator under the CEA. This claim of exemption from registration as a commodity pool operator is pursuant to Rule 4.5 promulgated under the CEA, which requires that a Fund limit its use of futures, options on futures, swaps, and swaptions ("commodity interests") to no more than (i) five percent (5%) of the Fund's liquidation value being committed as aggregate initial premium or margin for such contracts or (ii) one hundred percent (100%) of the Fund's liquidation value in aggregate net notional value of commodity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U. Bitcoin. The Fund may invest up to 15% of its net assets in ETFs and exchange traded products ("ETPs") that hold Bitcoin and Bitcoin futures (collectively, "Bitcoin Exchange-Traded Products"). Bitcoin is a digital asset that is created and transmitted through the operations of the online, peer-to-peer Bitcoin network, a decentralized network of computers that operates on cryptographic protocols. The ownership and transfer of Bitcoin is determined by participants in the Bitcoin network. The Bitcoin network connects computers that run publicly accessible, or "open source," software that follows the rules and procedures governing the Bitcoin network. This is commonly referred to as the "Bitcoin protocol." Bitcoin, the asset, plays a key role in the operation of the Bitcoin network, as the computers (or "miners") that process transactions on the network and maintain the network's security are compensated through the issuance of new Bitcoin and through transaction fees paid by users in Bitcoin. No single entity owns or operates the Bitcoin network. Bitcoin is not issued by any government, central authority, or financial institution. Bitcoin transaction and ownership records are reflected on the "Bitcoin Blockchain," which is a digital public record or ledger. The Fund may purchase and sell Bitcoin Exchange-Traded Products based a variety of considerations, including overall portfolio diversification and the perceived relative value of Bitcoin Exchange-Traded Products versus other crypto currency companies or investments. Investments in Bitcoin Exchange-Traded Products are subject to the risks associated with the Bitcoin and Bitcoin futures markets, including significant volatility, market liquidity constraints, potential regulatory developments, and the risk that the performance of such products may not correspond closely to the price of Bitcoin or Bitcoin futures. The Fund does not invest directly in Bitcoin or Bitcoin futures, and the Adviser monitors these investments in accordance with Rule 18f-4 under the Investment Company Act of 1940 to ensure compliance with applicable derivatives and exposure limits.

INVESTMENT LIMITATIONS

&nbsp;&nbsp;&nbsp;&nbsp; Fundamental. The investment limitations described below have been adopted by the Trust with respect to the Funds and are fundamental ("Fundamental"), i.e., they may not be changed without the affirmative vote of a majority of the outstanding shares of a Fund. As used in the Prospectus and the Statement of Additional Information, the term "majority" of the outstanding shares of a Fund means the lesser of: (1) 67% or more of the outstanding shares of the Fund present at a meeting if the holders of more than 50% of the outstanding shares of the Fund are present or represented at such meeting; or (2) more than 50% of the outstanding shares of the Fund. Other investment practices described in this Statement of Additional Information, as well as the Funds' prospectus may be changed by the Board without the approval of shareholders to the extent permitted by applicable law, regulation or regulatory policy and are considered non-fundamental.

&nbsp;&nbsp;&nbsp;&nbsp; 1. Borrowing Money. The Funds will not borrow money, except: (a) from a bank, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund's total assets at the time when the borrowing is made. This limitation does not preclude the Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all borrowings and repurchase commitments of the Fund pursuant to reverse repurchase transactions.

&nbsp;&nbsp;&nbsp;&nbsp; 2. Senior Securities. The Funds will not issue senior securities. This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by the Fund, provided that the Fund's engagement in such activities is consistent with or permitted by the 1940, as amended, the rules and regulations promulgated thereunder, or interpretations of the SEC or its staff.

&nbsp;&nbsp;&nbsp;&nbsp; 3. Underwriting. The Funds will not act as underwriter of securities issued by other persons. This limitation is not applicable to the extent that, in connection with the disposition of portfolio securities (including restricted securities), the Funds may be deemed an underwriter under certain federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp; 4. Real Estate. The Funds will not purchase or sell real estate. This limitation is not applicable to investments in marketable securities which are secured by or represent interests in real estate. This limitation does not preclude the Funds from investing in mortgage-related securities or investing in companies engaged in the real estate business or that have a significant portion of their assets in real estate (including real estate investment trusts).

&nbsp;&nbsp;&nbsp;&nbsp; 5. Commodities. The Funds will not purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude the Funds from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies which are engaged in a commodities business or have a significant portion of their assets in commodities.

&nbsp;&nbsp;&nbsp;&nbsp; 6. Loans. The Funds will not make loans to other persons, except: (a) by loaning portfolio securities; (b) by engaging in repurchase agreements; or (c) by purchasing non-publicly offered debt securities. For purposes of this limitation, the term "loans" shall not include the purchase of a portion of an issue of publicly distributed bonds, debentures, or other securities.

&nbsp;&nbsp;&nbsp;&nbsp; 7. Concentration. Each Fund will not invest 25% or more of its total assets in a particular industry. This limitation is not applicable to investments in obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities, or repurchase agreements related to these securities.

&nbsp;&nbsp;&nbsp;&nbsp; With respect to the percentages adopted by the Trust as maximum limitations on its investment policies and limitations, an excess above the fixed percentage will not be a violation of the policy or limitation unless the excess results immediately and directly from the acquisition of any security or the action taken. This paragraph does not apply to the borrowing policy set forth in paragraph 1 above.

&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding any of the foregoing limitations, any investment company, whether organized as a trust, association or corporation, or a personal holding company, may be merged or consolidated with or acquired by a Fund, provided that if following the consummation of such merger, consolidation or acquisition results in an investment in the securities of any issuer or a position held that is prohibited by any applicable limitation or restriction of a Fund, the Fund shall, within ninety days (three days in the case of Investment Limitation #1 above) after the consummation of such merger, consolidation or acquisition (or the date of exceeding the borrowing limit with respect to Investment Limitation #1 above), dispose of all of the securities of such issuer or such portion thereof or eliminate such position, as shall be necessary to bring the investment or position within the bounds of the applicable limitation or restriction of the Fund.

THE INVESTMENT ADVISOR

&nbsp;&nbsp;&nbsp;&nbsp; The Advisor is Potomac Fund Management, Inc., located at 7373 Wisconsin Ave., Suite #750, Bethesda, MD 20814. The Advisor is owned and controlled by Manish Khatta.

&nbsp;&nbsp;&nbsp;&nbsp; Under the terms of the Management Agreement, the Advisor manages the investment portfolio of the Funds, subject to policies adopted by the Trust's Board. Under the Management Agreement, the Advisor, at its own expense and without reimbursement from the Trust, furnishes office space and all necessary office facilities, equipment and executive personnel necessary for managing the assets of the Funds. The Advisor receives an annual investment management fee of 1.25% of each Fund's average daily net assets

up to $100 million, 1.00% of a Fund's average daily net assets between $100 million and $200 million and 0.90% of a Fund's average daily net assets in excess of $200 million. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor received management fees equal to $620,953, $1,349,873 and $1,589,397, respectively, from the Potomac Managed Volatility Fund. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor received management fees equal to $894,732, $1,459,321 and $1,780,204, respectively, from the Potomac Tactical Rotation Fund. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor received management fees equal to $670,113, $1,286,386 and $1,469,335, respectively, from the Potomac Tactical Opportunities Fund. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor received management fees equal to $3,672,989, $8,600,353 and $12,481,648, respectively, from the Potomac Defensive Bull Fund.

&nbsp;&nbsp;&nbsp;&nbsp; The Advisor retains the right to use the names "Potomac Fund" or any derivative thereof in connection with another investment company or business enterprise with which the Advisor is or may become associated. The Trust's right to use the names "Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, Potomac Tactical Opportunities Fund and Potomac Defensive Bull Fund" or any derivative thereof automatically ceases ninety days after termination of the Management Agreement and may be withdrawn by the Advisor on ninety days' written notice.

&nbsp;&nbsp;&nbsp;&nbsp; The Advisor may make payments to banks or other financial institutions that provide shareholder services and administer shareholder accounts. If a bank or other financial institution were prohibited from continuing to perform all or a part of such services, management of the Funds believes that there would be no material impact on the Funds or its shareholders. Financial institutions may charge their customers fees for offering these services to the extent permitted by applicable regulatory authorities, and the overall return to those shareholders availing themselves of the financial institution's services will be lower than to those shareholders who do not. The Funds may from time to time purchase securities issued by financial institutions that provide such services; however, in selecting investments for the Funds, no preference will be shown for such securities.

The Funds have entered into a Services Agreement with the Advisor pursuant to which the Advisor provides services and also assumes and pays all ordinary expenses of the Funds, excluding management fees, brokerage fees and commissions, taxes, borrowing costs (such as interest and dividend expenses on securities sold short), ADR Fees, underlying fund fees and expenses, and extraordinary or non-recurring expenses. Effective October 3, 2023, the Advisor receives a fee under the Services Agreement of 0.50% of a Fund's average daily net assets up to $25 million, and 0.20% of such assets in excess of $25 million. From November 1, 2021 through October 2, 2023, the Advisor received a fee under the Services Agreement of 0.50% of the Fund's average daily net assets up to $25 million, 0.20% of the Fund's average daily net assets from $25 million to $100 million, and 0.10% of such assets in excess of $100 million. It is possible the Advisor may earn a profit from the services it provides the Funds pursuant to the Services Agreement. The Funds may also pay expenses which they are authorized to pay pursuant to Rule 12b-1 under the Act. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor earned services fees, before waivers described below, equal to $174,354, $297,386 and $342,881, respectively, from the Potomac Managed Volatility Fund. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor earned services fees, before waivers described below, equal to $218,159, $317,107 and $381,042, respectively, from the Potomac Tactical Rotation Fund. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor earned services fees, before waivers described below, equal to $182,220, $280,289 and $318,868, respectively, from the Potomac Tactical Opportunities Fund. For the fiscal years ended June 30, 2023, 2024 and 2025, the Advisor earned services fees equal to $533,112, $1,723,892 and $2,748,701, respectively, from the Potomac Defensive Bull Fund. From November 1, 2021 through October 31, 2022, the Advisor contractually agreed to waive a portion of its Service Fee to limit the Service Fee to 0.40% of Managed Volatility Fund's, Tactical Opportunities Fund's and Tactical Rotation Fund's average daily net assets. For the fiscal year ended June 30, 2023, the Advisor contractually waived service fees equal to $5,243, $0 and $114 from the Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund and Potomac Tactical Opportunities Fund, respectively.

THE PORTFOLIO MANAGERS

&nbsp;&nbsp;&nbsp;&nbsp; Manish Khatta and Dan Russo (the "Portfolio Managers") each serve as portfolio managers of the Funds. Mr. Khatta is the lead portfolio manager of each of the Funds. Mr. Russo is the assistant portfolio manager to each of the Funds. The following provides information regarding other accounts managed by the Portfolio Managers as of June 30, 2025:

Manish Khatta

---

| | | | | |
|:---|:---|:---|:---|:---|
| Account Type | Number of Accounts by Account Type | Total Assets By Account Type | Number of Accounts by Type Subject to a Performance Fee | Total Assets By Account Type Subject to a Performance Fee |
| Registered Investment Companies<br>| 0 | 0 | 0 | 0 |
| Other Pooled <br> Investment Vehicles<br>| 0 | 0 | 0 | 0 |
| Other Accounts | 2613 | $543671422 | 0 | 0 |

---

Dan Russo

---

| | | | | |
|:---|:---|:---|:---|:---|
| Account Type | Number of Accounts by Account Type | Total Assets By Account Type | Number of Accounts by Type Subject to a Performance Fee | Total Assets By Account Type Subject to a Performance Fee |
| Registered Investment Companies<br>| 0 | 0 | 0 | 0 |
| Other Pooled <br> Investment Vehicles<br>| 0 | 0 | 0 | 0 |
| Other Accounts | 2613 | $543671422 | 0 | 0 |

---

&nbsp;&nbsp;&nbsp;&nbsp; Mr. Khatta and Mr. Russo manage separate accounts that may be similar to that of the Funds. Actual or apparent conflicts of interest may arise in connection with the day-to-day management of the Funds and other accounts. The management of the Funds and other accounts may result in unequal time and attention being devoted to a Fund and other accounts. Another potential conflict of interest may arise where another account has the same investment objective as the Funds, whereby the portfolio manager could favor one account over another. Further, a potential conflict could include the portfolio manager's knowledge about the size, timing and possible market impact of a Fund trades, whereby the portfolio manager could use this information to the advantage of other accounts and to the disadvantage of a Fund. These potential conflicts of interest could create the appearance that the portfolio manager is favoring one investment vehicle over another.

**&nbsp;&nbsp;&nbsp;&nbsp;** Mr. Khatta is not paid a salary to manage the Funds. Mr. Russo is paid a fixed salary from the Advisor and a discretionary bonus based on the company's financial strength. There are no bonuses, deferred compensation or retirement plans associated with the Portfolio Managers' service to the Funds. Mr. Khatta participates directly in the profits and losses of the Advisor, which includes the management fees paid by the Funds.

The following table shows the dollar range of equity securities beneficially owned by the Portfolio Managers in each Fund as of June 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Name of Portfolio<br> Manager | Dollar Range of Equity<br> Securities in the<br> Potomac Managed Volatility Fund | Dollar Range of Equity<br> Securities in the<br> Potomac Tactical Rotation Fund | Dollar Range of Equity<br> Securities in the<br> Potomac Tactical Opportunities Fund | Dollar Range of Equity<br> Securities in the<br> Potomac Defensive Bull Fund |
| Manish Khatta | Over $1,000,000<br>| Over $1,000,000<br>| $500001–$1000000 | Over $1,000,000<br>|
| Dan Russo | $10001-50000 | $10001-50000 | $10001-50000 | $100001–$500000 |

---

TRUSTEES AND OFFICERS

&nbsp;&nbsp;&nbsp;&nbsp; The Board supervises the business activities of the Trust. The names of the Trustees and executive officers of the Trust are shown below. The Trustees who are "interested persons" of the Trust, as defined in the 1940 Act, are indicated by an asterisk. Each Trustee serves until the Trustee sooner dies, resigns, retires or is removed. Officers hold office for one year and until their respective successors are chosen and qualified.

&nbsp;&nbsp;&nbsp;&nbsp; The Board is currently composed of four Trustees, including three Trustees who are not "interested persons" of the Funds, as that term is defined in the 1940 Act (each an "Independent Trustee"). In addition to four regularly scheduled meetings per year, the Board holds special meetings or informal conference calls to discuss specific matters that may require action prior to the next regular meeting. The Board has established an Audit Committee comprised entirely of Trustees who are Independent Trustees. The Audit Committee is generally responsible for (i) overseeing and monitoring the Trust's internal accounting and control structure, its auditing function and its financial reporting process, (ii) selecting and recommending to the full Board the appointment of auditors for the Trust, (iii) reviewing audit plans, fees, and other material arrangements with respect to the engagement of auditors, including permissible non-audit services performed; (iv) reviewing the qualifications of the auditor's key personnel involved in the foregoing activities and (v) monitoring the auditor's independence.

&nbsp;&nbsp;&nbsp;&nbsp; *Board Leadership Structure*. The Board has established an Audit Committee which allows it to access the expertise necessary to oversee the Trust, identify risks, recognize shareholder concerns and needs and highlight opportunities. The Audit Committee is able to focus Board time and attention to matters of interest to shareholders and, through its private sessions with the Trust's auditor, Chief Compliance Officer and legal counsel, stay fully informed regarding management decisions. The Board had determined that its leadership structure is appropriate based on the size of the Trust, the Board's current responsibilities, each Trustee's ability to participate in the oversight of the Trust and committee transparency. The Board periodically reviews this leadership structure and believes it to be appropriate because it allows the Board to exercise informed and independent judgment over matters under its purview, and allocates responsibility among the Audit Committee of the Trustees and the full Board in a manner that enhances effective oversight.

&nbsp;&nbsp;&nbsp;&nbsp; *Risk Oversight*. Mutual funds face a number of risks, including investment risk, compliance risk and valuation risk. The Board oversees management of the Fund's risks directly and through its officers. While day-to-day risk management responsibilities rest with each Fund's Chief Compliance Officer, investment advisors and other service providers, the Board monitors and tracks risk by: (1) receiving and reviewing quarterly reports related to the performance and operations of the Fund; (2) reviewing and approving, as applicable, the compliance policies and procedures of the Trust, including the Trust's valuation policies and transaction procedures; (3) periodically meeting with the portfolio managers to review investment strategies, techniques and related risks; (4) meeting with representatives of key service providers, including the Fund's investment advisors, administrator, distributor, transfer agent and the independent registered public accounting firm, to discuss the activities of the Fund; (5) engaging the services of the Chief Compliance Officer of the Fund to test the compliance procedures of the Trust and its service providers; (6) receiving and reviewing reports from the Trust's independent registered public accounting firm regarding

the Fund's financial condition and the Trust's internal controls; and (7) receiving and reviewing an annual written report prepared by the Chief Compliance Officer reviewing the adequacy of the Trust's compliance policies and procedures and the effectiveness of their implementation. The Board has concluded that its general oversight of the investment advisors and other service providers as implemented through the reporting and monitoring process outlined above allows the Board to effectively administer its risk oversight function.

AUDIT COMMITTEE

&nbsp;&nbsp;&nbsp;&nbsp; The Board has an Audit Committee, which is comprised of the independent members of the Board, Thomas H. Addis III, Robert L Boerner and John W. Czechowicz. The Audit Committee meets at least once a year, or more often as required, in conjunction with meetings of the Board. The Audit Committee oversees and monitors the Trust's internal accounting and control structure, its auditing function and its financial reporting process. The Audit Committee selects and recommends to the full Board the appointment of auditors for the Trust. The Audit Committee also reviews audit plans, fees, and other material arrangements with respect to the engagement of auditors, including permissible non-audit services performed. It reviews the qualifications of the auditor's key personnel involved in the foregoing activities and monitors the auditor's independence. During the fiscal year ended June 30, 2025 the Audit Committee met four times.

&nbsp;&nbsp;&nbsp;&nbsp; The Board nominates and appoints trustees to fill vacancies on the Board and to stand for election at shareholder meetings of the Trust. The nomination of any Independent Trustees to the Board is made in the sole and exclusive discretion of the current Independent Trustees. The Trustees do not consider nominations by shareholders for trustee candidates. Each Trustee was nominated to serve on the Board based on their particular experiences, qualifications, attributes and skills. The characteristics that have led the Board to conclude that each of the Trustees should continue to serve as a Trustee of the Trust are discussed below.

***Jeffrey R. Provence.*** Mr. Jeffrey R. Provence has served as a Trustee since the Trust's inception in 2000. Mr. Jeffrey R. Provence is the CEO of Premier Fund Solutions, Inc. which provides the Board of Trustees with knowledge related to fund administration. Mr. Jeffrey R. Provence is also a General Partner of Value Trend Capital Management, LP, and has worked in the investment management industry since 1995 providing investment management knowledge to the Board of Trustees.

***Thomas H. Addis III.*** Mr. Addis has served as a Trustee since the Trust's inception in 2000. Mr. Addis is the Executive Director/CEO of the Southern California PGA. His strategic planning, organizational and leadership skills help the Board set long-term goals.

***Robert L. Boerner.*** Mr. Boerner has served as a Trustee since September 2022. He has been a licensed real estate broker for over 20 years and also has experience as a licensed mortgage lender. Mr. Boerner has extensive experience representing residential buyers and sellers and strong ability to understand complex financial and financing aspects of transactions. The Board of Trustees believes his experience with the complexities of the highly-regulated aspects of real estate, mortgage lending and sales translates well to the highly-regulated environment under which mutual funds must operate. Consequently, he has experience overseeing layers of regulatory conditions under which an entity must operate which parallels the operations of mutual funds.

***John W. Czechowicz.*** Mr. Czechowicz has served as a Trustee since September 2022. He is a Certified Public Accountant. As a Certified Public Accountant, Mr. Czechowicz brings budgeting and financial reporting skills to the Board of Trustees. Consequently, he has experience analyzing financial statements and related disclosures, as well as a strong understanding of accounting pronouncements and regulations. His experience provides a valued financial reporting prospective to the Board of Trustees.

 ****

&nbsp;&nbsp;&nbsp;&nbsp; The trustees and officers, together with their addresses, age, principal occupations during the past five years are as follows:

**<u>Interested Trustees and Officers</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br> Name,<br> Address <sup>(1)</sup>,<br> <u>and Year of Birth</u><br>| <br> Position(s)<br> with<br> <u>the Trust</u> | <br> Term of Office and Length<br> of Time<br> <u>Served</u> | <br> Principal Occupation(s) During<br> <u>Past 5 Years</u> | <br> Number of Portfolios In Fund Complex Overseen By<br> <u>Trustee</u> | <br> Other Directorships Held By <u>Trustee</u><br>|
| <br> James D. Craft Year of Birth: 1982 | <br> President<br>| <br> Indefinite<br> Term;<br> Since 2023 | <br> Fund Administrator, Premier Fund Solutions, Inc. (2007 - current); Chief Technology Officer, Premier Fund Solutions, Inc. (2011 - current). | <br> N/A | <br> N/A |
| Jeffrey R. Provence<sup>(2)</sup>,<br> Year of Birth: 1969 | Trustee, Secretary and Treasurer | Indefinite Term; <br> Since 2000 | CEO, Premier Fund Solutions, Inc. (2001 to current). General Partner and Portfolio Manager for Value Trend Capital Management, LP (1995 to current).<br>| 10 | Blue Chip Investor Funds, Meeder Funds |
| Julian G. Winters,<br> Year of Birth: 1968 | Chief<br> Compliance<br> Officer | Chief Compliance<br> Officer Since 2010 | Managing Member, Watermark Solutions LLC (investment compliance and consulting firm) since March 2007. | N/A | N/A |

---

<sup>(1)</sup> The address of each trustee and officer is c/o PFS Funds, 1939 Friendship Drive, Suite C, El Cajon, CA 92020.

<sup>(2)</sup> Jeffrey R. Provence is considered "interested person" as defined in Section 2(a)(19) of the 1940 Act by virtue of his position with the Trust.

**<u>Independent Trustees</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br> Name, Address<sup>(1)</sup>,<br> <u>and Year of Birth</u> | <br> Position<br> with<br> <u>the Trust</u> | <br> Term of Office and Length<br> of Time<br> <u>Served</u> | <br> Principal Occupation(s) During<br> <u>Past 5 Years</u> | <br> Number of Portfolios In Fund Complex Overseen By<br> <u>Trustee</u> | <br> Other Directorships Held By <u>Trustee</u><br>|
| <br> Thomas H. Addis III,<br> Year of Birth:<br> 1945<br>| <br> Independent<br> Trustee<br>| <br> Indefinite Term;<br> Since 2000<br>| <br> Executive Director/CEO, Southern California PGA (2006 to 2023). | <br> 10<br>|  |
| Robert L. Boerner, Year of Birth: 1969<br>| Independent<br> Trustee<br>| Indefinite Term;<br> Since 2022<br>| Owner / Broker of Gecko Realty (2008 to current)<br>| 10<br>| Blue Chip Investor Funds, Neiman Fund<br>|
| John W. Czechowicz, Year of Birth: 1983<br>| Independent<br> Trustee | Indefinite Term;<br> Since 2022 | CPA at Advisent (May 2025 to current). CPA at CWDL (2016 to May 2025).<br>| 10<br>|  |

---

<sup>(1)</sup> The address of each trustee and officer is c/o PFS Funds, 1939 Friendship Drive, Suite C, El Cajon, California 92020.

BOARD INTEREST IN THE FUND

As of December 31, 2024, the Trustees owned the following amounts in the Funds:

---

| | | |
|:---|:---|:---|
| <br> Name of Trustee | <br> Dollar Range of Securities In the <br> Potomac Managed Volatility Fund<br> Potomac Tactical Rotation Fund<br> Potomac Tactical Opportunities Fund and<br> Potomac Defensive Bull Fund<br>| <br> Aggregate Dollar Range of Equity Securities In All Registered Investment Companies Overseen By Trustee In Family of Investment Companies |
| Jeffrey R. Provence<sup>(1)</sup> | Potomac Managed Volatility Fund $1 - $10,000<br> Potomac Tactical Rotation Fund $1 - $10,000<br> Potomac Tactical Opportunities Fund $1 - $10,000<br> Potomac Defensive Bull Fund $1 - $10,000 | Over $100,000 |
| Thomas H. Addis III | $0 | $0 |
| Robert L. Boerner | $0 | $0 |
| John W. Czechowicz, | $0 | $0 |

---

<sup>(1)</sup> Jeffrey R. Provence is considered "interested person" as defined in Section 2(a)(19) of the 1940 Act by virtue of his position with the Trust.

COMPENSATION

Trustee fees are paid by the advisors to the Funds of the Trust, including the Advisor to the Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, Potomac Tactical Opportunities Fund and Potomac Defensive Bull Fund. Trustees who are deemed "interested persons" of the Trust receive no compensation. The Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund and Potomac Tactical Opportunities Fund are each allocated a per meeting/per trustee fee of $1,000 and the Potomac Defensive Bull Fund is allocated a per meeting/per trustee fee of $1,750. The following table shows Trustee compensation for the 12-month period ended June 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name | Pension or Retirement Benefits Accrued as Part of Fund Expenses | Estimated Annual Benefits Upon Retirement | Aggregate Compensation from each Potomac Fund (excluding Potomac Defensive Bull Fund) | Aggregate Compensation from Potomac Defensive Bull Fund | Total Compensation from the Fund Complex |
| Jeffrey R. Provence | $0 | $0 | $0 | $0 | $0 |
| Thomas H. Addis III | $0 | $0 | $2875 | $4375 | $26500 |
| Robert L. Boerner | $0 | $0 | $2875 | $4375 | $26500 |
| Allen C. Brown<sup>(1)</sup> | $0 | $0 | $375 | $375 | $4500 |
| John W. Czechowicz | $0 | $0 | $2875 | $4375 | $26500 |

---

<sup>(1)</sup> Mr. Allen C. Brown retired from the Trust on September 6, 2024.

CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES

&nbsp;&nbsp;&nbsp;&nbsp; A principal shareholder is any person who owns (either of record or beneficially) 5% or more of the outstanding shares of a Fund. A control person is one who owns, either directly or indirectly, more than 25% of the voting securities of a Fund or acknowledges the existence of such control. As a controlling shareholder, each of these persons could control the outcome of any proposal submitted to the shareholders for approval, including changes to a Fund's fundamental policies or the terms of the Management Agreement with the Advisor. As of October 7, 2025, the following persons owned of record 5% or more of the outstanding shares of the Funds:

Potomac Managed Volatility Fund

---

| | | | |
|:---|:---|:---|:---|
| Name and Address | Shares | Percent Ownership | Type of Ownership |
| Charles Schwab & Co., Inc.<br> For Benefit of Customers<br> 211 Main Street<br> San Francisco, CA 94105 | 7409653.89 | 42.19% | Record |
| National Financial Services<br> FBO Customers<br> 200 Liberty Street<br> New York, NY 10281-1033 | 3497359.03 | 19.91% | Record |
| LPL Financial Services<br> For Benefit of Customers<br> 4707Executive Drive<br> San Diego, CA 92121 | 2331443.58 | 13.28% | Record |

---

As of October 7, 2025, the Trustees and officers as a group owned less than 1% of the outstanding shares of the Potomac Managed Volatility Fund.

Potomac Tactical Rotation Fund

---

| | | | |
|:---|:---|:---|:---|
| Name and Address | Shares | Percent Ownership | Type of Ownership |
| Charles Schwab & Co., Inc.<br> For Benefit of Customers<br> 211 Main Street<br> San Francisco, CA 94105 | 8809631.23 | 49.41%% | Record |
| National Financial Services<br> FBO Customers<br> 200 Liberty Street<br> New York, NY 10281-1033 | 3373165.20 | 18.92% | Record |
| LPL Financial Services<br> For Benefit of Customers<br> 4707Executive Drive<br> San Diego, CA 92121 | 2177067.53 | 12.21% | Record |

---

As of October 7, 2025, the Trustees and officers as a group owned less than 1% of the outstanding shares of the Potomac Tactical Rotation Fund.

Potomac Tactical Opportunities Fund

---

| | | | |
|:---|:---|:---|:---|
| Name and Address | Shares | Percent Ownership | Type of Ownership |
| Charles Schwab & Co., Inc.<br> For Benefit of Customers<br> 211 Main Street<br> San Francisco, CA 94105 | 7146066.89 | 44.13% | Record |
| National Financial Services<br> FBO Customers<br> 200 Liberty Street<br> New York, NY 10281-1033 | 3509103.67 | 21.67% | Record |
| LPL Financial Services<br> For Benefit of Customers<br> 4707Executive Drive<br> San Diego, CA 92121 | 2335008.05 | 14.42% | Record |

---

As of October 7, 2025, the Trustees and officers as a group owned less than 1% of the outstanding shares of the Potomac Tactical Opportunities Fund.

Potomac Defensive Bull Fund

---

| | | | |
|:---|:---|:---|:---|
| Name and Address | Shares | Percent Ownership | Type of Ownership |
| Charles Schwab & Co., Inc.<br> For Benefit of Customers<br> 211 Main Street<br> San Francisco, CA 94105 | 65013992.24 | 47.13% | Record |
| National Financial Services<br> FBO Customers<br> 200 Liberty Street<br> New York, NY 10281-1033 | 24973388.00 | 18.10% | Record |
| LPL Financial Services<br> For Benefit of Customers<br> 4707Executive Drive<br> San Diego, CA 92121 | 20314509.74 | 14.73% | Record |

---

As of October 7, 2025, the Trustees and officers as a group owned less than 1% of the outstanding shares of the Potomac Defensive Bull Fund.

PORTFOLIO TRANSACTIONS AND BROKERAGE ("the Fund" covers each of the Funds separately)

&nbsp;&nbsp;&nbsp;&nbsp;Subject to policies established by the Board, the Advisor is responsible for the Fund's portfolio decisions and the placing of the Fund's portfolio transactions. In placing portfolio transactions, the Advisor seeks the best qualitative execution for the Fund, taking into account such factors as price (including the applicable brokerage commission or dealer spread), the execution capability, financial responsibility and responsiveness of the broker or dealer and the brokerage and research services provided by the broker or dealer. The Advisor generally seeks favorable prices and commission rates that are reasonable in relation to the benefits received. The Advisor may not give consideration to sales of shares of the Trust as a factor in the selection of brokers and dealers to execute portfolio transactions. However, the Advisor may place portfolio transactions with brokers or dealers that promote or sell the Fund's shares so long as such

placements are made pursuant to policies approved by the Fund's Board that are designed to ensure that the selection is based on the quality of the broker's execution and not on its sales efforts.

&nbsp;&nbsp;&nbsp;&nbsp; The Advisor is specifically authorized to select brokers or dealers who also provide brokerage and research services to the Fund and/or the other accounts over which the Advisor exercises investment discretion and to pay such brokers or dealers a commission in excess of the commission another broker or dealer would charge if the Advisor determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided. The determination may be viewed in terms of a particular transaction or the Advisor's overall responsibilities with respect to the Trust and to other accounts over which it exercises investment discretion.

&nbsp;&nbsp;&nbsp;&nbsp; Research services include supplemental research, securities and economic analyses, statistical services and information with respect to the availability of securities or purchasers or sellers of securities and analyses of reports concerning performance of accounts. The research services and other information furnished by brokers through whom the Fund effects securities transactions may also be used by the Advisor in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Advisor in connection with its services to the Fund. Although research services and other information are useful to the Fund and the Advisor, it is not possible to place a dollar value on the research and other information received. It is the opinion of the Board and the Advisor that the review and study of the research and other information will not reduce the overall cost to the Advisor of performing its duties to the Fund under the Investment Advisory Agreement. Due to research services provided by brokers, the Fund may direct trades to certain brokers. For the fiscal years ended June 30, 2023, 2024 and 2025, the Potomac Managed Volatility Fund paid brokerage commissions of $13,828, $144,599 and $110,727, respectively. For the fiscal years ended June 30, 2023, 2024 and 2025, the Potomac Tactical Rotation Fund paid brokerage commissions of $143,923, $131,089 and $127,042, respectively. For the fiscal years ended June 30, 2023, 2024 and 2025, the Potomac Tactical Opportunities Fund paid brokerage commissions of $128,721, $176,536 and $159,659, respectively. For the fiscal years ended June 30, 2023, 2024 and 2025, the Potomac Defensive Bull Fund paid brokerage commissions of $651,175, $795,326 and $937,044, respectively.

The portfolio turnover rate for the Fund is calculated by dividing the lesser of amounts of purchases or sales of portfolio securities for the reporting period by the monthly average value of the portfolio securities owned during the reporting period. The calculation excludes all securities whose maturities or expiration dates at the time of acquisition are one year or less. Portfolio turnover may vary greatly from year to year as well as within a particular year and may be affected by cash requirements for redemption of shares and by requirements which enables the Fund to receive favorable tax treatment. Portfolio turnover will not be a limiting factor in making portfolio decisions, and the Fund may engage in short-term trading to achieve its investment objective. The portfolio turnover rate for the Potomac Managed Volatility Fund for the fiscal years ended June 30, 2024 and 2025, was 685.94% and 665.24%, respectively. The portfolio turnover rate for the Potomac Tactical Rotation Fund for the fiscal years ended June 30, 2024 and 2025, was 1,644.06% and 917.06%, respectively. The portfolio turnover rate for the Potomac Tactical Opportunities Fund for the fiscal years ended June 30, 2024 and 2025, was 2,568.77% and 2,273.53%, respectively. The portfolio turnover rate for the Potomac Defensive Bull Fund for the fiscal years ended June 30, 2024 and 2025, was 2,445.82% and 1,352.76%, respectively. The primary reason for the variation in portfolio turnover is that the rates reflect the Advisor's trading strategy in response to market conditions.

&nbsp;&nbsp;&nbsp;&nbsp; Over-the-counter transactions may be placed either directly with principal market makers or with broker-dealers, if the same or a better price, including commissions and executions, is available. Fixed income securities are normally purchased directly from the issuer, an underwriter or a market maker. Purchases include a concession paid by the issuer to the underwriter and the purchase price paid to a market maker may include the spread between the bid and asked prices.

&nbsp;&nbsp;&nbsp;&nbsp; When the Fund and another of the Advisor's clients seek to purchase or sell the same security at or about the same time, the Advisor may execute the transaction on a combined ("blocked") basis. Blocked transactions can produce better execution for the Fund because of the increased volume of the transaction. If the entire blocked order is not filled, the Fund may not be able to acquire as large a position in such security as it desires, or it may have to pay a higher price for the security. Similarly, the Fund may not be able to obtain as large an execution of an order to sell or as high a price for any particular portfolio security

if the other client desires to sell the same portfolio security at the same time. In the event that the entire blocked order is not filled, the purchase or sale will normally be allocated on a pro rata basis. The allocation may be adjusted by the Advisor, taking into account such factors as the size of the individual orders and transaction costs, when the Advisor believes an adjustment is reasonable.

&nbsp;&nbsp;&nbsp;&nbsp; The Trust, the Advisor and the Distributor have each adopted a Code of Ethics under Rule 17j-1 of the 1940 Act. The personnel subject to the Code of Ethics are permitted to invest in securities, including securities that may be purchased or held by the Fund. You may obtain a copy of the Code of Ethics from the SEC.

ADDITIONAL TAX INFORMATION

&nbsp;&nbsp;&nbsp;&nbsp; The following discussion is a summary of certain U.S. federal income tax considerations affecting the Funds and their shareholders. The discussion reflects applicable U.S. federal income tax laws as of the date of this SAI, which tax laws may be changed or subject to new interpretations by the courts or the Internal Revenue Service (the "IRS"), possibly with retroactive effect. No attempt is made to present a detailed explanation of all U.S. income, estate or gift tax, or foreign, state or local tax concerns affecting the Funds and their shareholders (including shareholders owning large positions in a Fund). The discussion set forth herein does not constitute tax advice. Investors are urged to consult their own tax advisers to determine the tax consequences to them of investing in the Funds.

&nbsp;&nbsp;&nbsp;&nbsp; In addition, no attempt is made to address tax concerns applicable to an investor with a special tax status such as a financial institution, REIT, insurance company, RIC, individual retirement account, other tax-exempt entity or dealer in securities. Furthermore, this discussion does not reflect possible application of the alternative minimum tax ("AMT"). Unless otherwise noted, this discussion assumes shares of the Funds are held by U.S. shareholders (defined below) and that such shares are held as capital assets.

&nbsp;&nbsp;&nbsp;&nbsp; A U.S. shareholder is a beneficial owner of shares of a Fund that is for U.S. federal income tax purposes:

* a
citizen or individual resident of the United States (including certain former citizens and former long-term residents);

* a
corporation or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of
the United States or any state thereof, or the District of Columbia;

* an
estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

* a
trust with respect to which a court within the United States is able to exercise primary supervision over its administration and one or
more U.S. persons have the authority to control all of its substantial decisions or a trust that has a valid election in effect under
applicable Treasury regulations to be treated as a U.S. person.

&nbsp;&nbsp;&nbsp;&nbsp; A "Non-U.S. shareholder" is a beneficial owner of shares of a Fund that is an individual, corporation, trust or estate and is not a U.S. shareholder. If a partnership (including any entity treated as a partnership for U.S. federal income tax purposes) holds shares of a Fund, the tax treatment of a partner in the partnership generally depends upon the status of the partner and the activities of the partnership. A partner of a partnership holding a Fund's shares should consult its own tax adviser with respect to the purchase, ownership and disposition of the Fund's shares by the partnership.

**Taxation as a RIC**

&nbsp;&nbsp;&nbsp;&nbsp; Each Fund intends to qualify each year for treatment as a RIC under Subchapter M of the Code. There can be no assurance that they actually will so qualify. A Fund will qualify as a RIC if, among other things, it meets the source-of-income and the asset-diversification requirements. With respect to the source-of-income requirement, a Fund must derive in each taxable year at least 90% of its gross income (including tax-exempt interest) from (i) dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including but

not limited to gains from options, futures and forward contracts) derived with respect to its business of investing in such shares, securities or currencies and (ii) net income derived from an interest in a "qualified publicly traded partnership." A qualified publicly traded partnership is generally defined as a publicly traded partnership under Code Section 7704. However, for these purposes, a qualified publicly traded partnership does not include a publicly traded partnership if 90% or more of its income is described in (i) above. Income derived from a partnership (other than a qualified publicly traded partnership) or trust is qualifying income to the extent such income is attributable to items of income of the partnership or trust which would be qualifying income if realized by a Fund in the same manner as realized by the partnership or trust.

&nbsp;&nbsp;&nbsp;&nbsp; If a RIC fails this 90% income test, it generally will not be subject to corporate U.S. federal income tax as long as such failure is inadvertent. Instead, the amount of the penalty for non-compliance is the amount by which the non-qualifying income exceeds one-ninth of the qualifying gross income.

&nbsp;&nbsp;&nbsp;&nbsp; With respect to the asset-diversification requirement, a Fund must diversify its holdings so that, at the end of each quarter of each taxable year (i) at least 50% of the value of the Fund's total assets is represented by cash and cash items, U.S. government securities, the securities of other RICs and other securities, if such other securities of any one issuer do not represent more than 5% of the value of the Fund's total assets or more than 10% of the outstanding voting securities of such issuer, and (ii) not more than 25% of the value of the Fund's total assets is invested in the securities, other than U.S. government securities or the securities of other RICs, of (a) one issuer, (b) two or more issuers that are controlled by the Fund and that are engaged in the same, similar or related trades or businesses, or (c) one or more qualified publicly traded partnerships.

&nbsp;&nbsp;&nbsp;&nbsp; If a RIC fails this asset-diversification test, such RIC, in addition to other cure provisions, has a 6-month period to correct any failure without incurring a penalty if such failure is "de minimis."

&nbsp;&nbsp;&nbsp;&nbsp; Similarly, if a RIC fails this asset-diversification test and the failure is not de minimis, a RIC can cure the failure if: (i) the RIC files with the U.S. Treasury Department a description of each asset that causes the RIC to fail the asset-diversification test; (ii) the failure is due to reasonable cause and not willful neglect; and (iii) the failure is cured within six months (or such other period specified by the U.S. Treasury Department). In such cases, a tax is imposed on the RIC equal to the greater of: (i) $50,000 or (ii) an amount determined by multiplying the highest rate of corporate U.S. federal income tax (currently 21%) by the amount of net income generated during the period of asset-diversification test failure of the assets that caused the RIC to fail the asset-diversification test.

&nbsp;&nbsp;&nbsp;&nbsp; If a Fund qualifies as a RIC and distributes to its shareholders, for each taxable year, at least 90% of the sum of (i) its "investment company taxable income" as that term is defined in the Code (which includes, among other things, dividends, taxable interest, the excess of any net short-term capital gains over net long-term capital losses and certain net foreign exchange gains as reduced by certain deductible expenses) without regard to the deduction for dividends paid, and (ii) the excess of its gross tax-exempt interest, if any, over certain deductions attributable to such interest that are otherwise disallowed, the Fund will be relieved of U.S. federal income tax on any income of the Fund, including long-term capital gains, distributed to shareholders. However, any ordinary income or capital gain retained by the Fund will be subject to U.S. federal income tax at regular corporate income tax rates (currently at a maximum rate of 21%). Each Fund intends to distribute at least annually substantially all of its investment company taxable income, net tax-exempt interest, and net capital gain.

&nbsp;&nbsp;&nbsp;&nbsp;Each Fund will generally be subject to a nondeductible 4% U.S. federal excise tax on the portion of its undistributed ordinary income with respect to each calendar year and undistributed capital gains if it fails to meet certain distribution requirements with respect to the one-year period ending on October 31 in that calendar year. In order to avoid the 4% U.S. federal excise tax, the required minimum distribution is generally equal to the sum of (i) 98% of the Fund's ordinary income (computed on a calendar year basis), (ii) 98.2% of the Fund's capital gain net income (generally computed for the one-year period ending on October 31), and (iii) any income realized, but not distributed, and on which the Fund paid no U.S. federal income tax in preceding years. Each Fund generally intends to make distributions in a timely manner in an amount at least equal to the required minimum distribution and therefore, under normal market conditions, does not expect to be subject to this excise tax.

&nbsp;&nbsp;&nbsp;&nbsp;A RIC is permitted to carry forward net capital losses indefinitely and may allow losses to retain their

original character (as short-term or as long-term). These capital loss carryforwards may be utilized in future years to offset net realized capital gains of the Fund, if any, prior to distributing such gains to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp; As of June 30, 2025, Potomac Managed Volatility Fund had $1,308,183 of available short-term capital loss carryforwards.

As of June 30, 2025, Potomac Tactical Opportunities Fund had $1,356,764 of available short-term capital loss carryforwards and $1,771,261 of available long-term capital loss carryforwards.

&nbsp;&nbsp;&nbsp;&nbsp; A Fund may be required to recognize taxable income in circumstances in which it does not receive cash. For example, if a Fund holds debt obligations that are treated under applicable tax rules as having original issue discount ("OID"), such as debt instruments with payment in kind interest or, in certain cases, with increasing interest rates or that are issued with warrants, the Fund must include in income each year a portion of the OID that accrues over the life of the obligation regardless of whether cash representing such income is received by the Fund in the same taxable year. Because any OID accrued will be included in the Fund's "investment company taxable income" (discussed below) for the year of accrual, the Fund may be required to make a distribution to its shareholders to satisfy the distribution requirement, even though it will not have received an amount of cash that corresponds with the income earned.

**Failure to Qualify as a RIC**

&nbsp;&nbsp;&nbsp;&nbsp; If a Fund is unable to satisfy the 90% income distribution requirement or otherwise fails to qualify as a RIC in any year, it could be subject to corporate U.S. federal income tax on all of its income and gain, regardless of whether or not such income was distributed. Distributions to a Fund's shareholders of such income and gain will not be deductible by the Fund in computing its taxable income. In such event, a Fund's distributions, to the extent derived from the Fund's current or accumulated earnings and profits, would constitute ordinary dividends, which would generally be eligible for the dividends received deduction available to corporate shareholders, and non-corporate shareholders would generally be able to treat such distributions as "qualified dividend income" eligible for preferential rates of U.S. federal income tax, provided in each case that certain holding period and other requirements are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp; Distributions in excess of a Fund's current and accumulated earnings and profits would be treated first as a return of capital to the extent of a shareholders' tax basis in their Fund shares, and any remaining distributions would be treated as a capital gain. To qualify as a RIC in a subsequent taxable year, the Fund would be required to satisfy the source-of-income, the asset diversification, and the annual distribution requirements for that year and dispose of any earnings and profits from any year in which the Fund failed to qualify for tax treatment as a RIC. Subject to a limited exception applicable to RICs that qualified as such under the Code for at least one year prior to disqualification and that re-qualify as a RIC no later than the second year following the non-qualifying year, the Fund would be subject to tax on any unrealized built-in gains in the assets held by it during the period in which the Fund failed to qualify for tax treatment as a RIC that are recognized within the subsequent five years, unless the Fund made a special election to pay corporate-level tax on such built-in gain at the time of its re-qualification as a RIC.

**Taxation of U.S. Shareholders**

&nbsp;&nbsp;&nbsp;&nbsp; Distributions paid to U.S. shareholders by a Fund from its investment company taxable income (which is, generally, the Fund's ordinary income plus net realized short-term capital gains in excess of net realized long-term capital losses) are generally taxable to U.S. shareholders as ordinary income to the extent of the Fund's earnings and profits, whether paid in cash or reinvested in additional shares. Such distributions (if designated by the Fund) may qualify (i) for the dividends received deduction in the case of corporate shareholders to the extent that the Fund's income consists of dividend income from U.S. corporations, excluding distributions from tax-exempt organizations, exempt farmers' cooperatives or REITs or (ii) in the case of individual shareholders, as qualified dividend income eligible to be taxed at preferential rates to the extent that the Fund receives qualified dividend income, and provided in each case certain holding period and other requirements are met. Qualified dividend income is, in general, dividend income from taxable domestic corporations and qualified foreign corporations (e.g., generally, foreign corporations incorporated in a possession of the United States or in certain countries with a qualified comprehensive income tax treaty with the United States, or the stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States). A qualified foreign corporation generally excludes any

foreign corporation, which for the taxable year of the corporation in which the dividend was paid, or the preceding taxable year, is a passive foreign investment company (a "PFIC"). Distributions made to a U.S. shareholder from an excess of net long-term capital gains over net short-term capital losses ("Capital Gain Dividends"), including Capital Gain Dividends credited to such shareholder but retained by the Fund, are taxable to such shareholder as long-term capital gain if they have been properly designated by the Fund, regardless of the length of time such shareholder owned the shares of the Fund. The maximum tax rate on Capital Gain Dividends received by individuals is generally 20%. Distributions in excess of the Fund's earnings and profits will be treated by the U.S. shareholder, first, as a tax-free return of capital, which is applied against and will reduce the adjusted tax basis of the U.S. shareholder's shares and, after such adjusted tax basis is reduced to zero, will constitute capital gain to the U.S. shareholder. Generally, not later than sixty days after the close of its taxable year, each Fund will provide the shareholders with a written notice designating the amount of any qualified dividend income or Capital Gain Dividends and other distributions.

&nbsp;&nbsp;&nbsp;&nbsp; As a RIC, each Fund will be subject to the AMT, but any items that are treated differently for AMT purposes must be apportioned between the Fund and the shareholders and this may affect the shareholders' AMT liabilities. Each Fund intends in general to apportion these items in the same proportion that dividends paid to each shareholder bear to the Fund's taxable income, determined without regard to the dividends paid deduction.

&nbsp;&nbsp;&nbsp;&nbsp; For purposes of determining (i) whether the annual distribution requirement is satisfied for any year and (ii) the amount of Capital Gain Dividends paid for that year, a Fund may, under certain circumstances, elect to treat a dividend that is paid during the following taxable year as if it had been paid during the taxable year in question. If a Fund makes such an election, the U.S. shareholder will still be treated as receiving the dividend in the taxable year in which the distribution is made. However, any dividend declared by a Fund in October, November or December of any calendar year, payable to shareholders of record on a specified date in such a month and actually paid during January of the following year, will be treated as if it had been received by the U.S. shareholders on December 31 of the year in which the dividend was declared.

&nbsp;&nbsp;&nbsp;&nbsp; If more than 50% of the value of a Fund's assets at the close of the taxable year consist of stock or securities in foreign corporations and certain other requirements are met, the Fund may elect to have its foreign tax deduction or credit for foreign withholding taxes be taken by its shareholders instead of claiming it on its tax return. If such an election is made, each investor will include in gross income its proportional share of the foreign taxes paid by the Fund. Shareholders may claim the amount of such taxes paid as a foreign tax credit in order to reduce the amount of U.S. federal income tax liability that a shareholder incurs on its foreign source income, including foreign source income from the Fund. If a Fund makes the election, it will furnish the shareholders with a written notice after the close of its taxable year. Each Fund intends to distribute all realized capital gains, if any, at least annually. If, however, a Fund were to retain any net capital gain, the Fund may designate the retained amount as undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax on long-term capital gains, (i) will be required to include in income as long-term capital gain, their proportionate shares of such undistributed amount, and (ii) will be entitled to credit their proportionate shares of the U.S. federal income tax paid by the Fund on the undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit exceeds such liabilities. If such an event occurs, the tax basis of shares owned by a shareholder will, for U.S. federal income tax purposes, generally be increased by the difference between the amount of undistributed net capital gain included in the shareholder's gross income and the tax deemed paid by the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp; Sales and other dispositions of the shares of a Fund generally are taxable events. U.S. shareholders should consult their own tax adviser with reference to their individual circumstances to determine whether any particular transaction in the shares of a Fund is properly treated as a sale or exchange for U.S. federal income tax purposes, as the following discussion assumes, and the tax treatment of any gains or losses recognized in such transactions. The sale or other disposition of shares of a Fund will generally result in capital gain or loss to the shareholder equal to the difference between the amount realized and its adjusted tax basis in the shares sold or exchanged, and will be long-term capital gain or loss if the shares have been held for more than one year at the time of sale. Any loss upon the sale or exchange of shares held for six months or less will be treated as long-term capital loss to the extent of any Capital Gain Dividends received (including amounts credited as an undistributed Capital Gain Dividend) by such shareholder with respect

to such shares. A loss realized on a sale or exchange of shares of the Fund generally will be disallowed if other substantially identical shares are acquired within a 61-day period beginning 30 days before and ending 30 days after the date that the shares are disposed. In such case, the tax basis of the shares acquired will be adjusted to reflect the disallowed loss. Present law taxes both long-term and short-term capital gain of corporations at the rates applicable to ordinary income of corporations. For non-corporate U.S. shareholders, short-term capital gain will currently be taxed at the rate applicable to ordinary income, while long-term capital gain generally will be taxed at a maximum rate of 20%. Capital losses are subject to certain limitations.

&nbsp;&nbsp;&nbsp;&nbsp; The Funds have chosen average cost as the standing (default) tax lot identification method for all shareholders. A tax lot identification method is the way a Fund will determine which specific shares are deemed to be sold when there are multiple purchases on different dates at differing net asset values and the entire position is not sold at one time. The Funds' standing tax lot identification method is the method the Funds' shares will be reported on your Consolidated Form 1099 if you do not select a specific tax lot identification method. You may choose a method different than the Funds' standing method and will be able to do so at the time of your purchase or upon the sale of a Fund's shares. Please consult your own tax adviser with regard to your personal circumstances.

The Funds are responsible for maintaining accurate cost basis and tax lot information for tax reporting purposes under the law. The Funds are not responsible for the reliability or accuracy of the information for those securities that are not covered by the law. The Funds and their service providers do not provide tax advice. You should consult independent sources, which may include your own tax professional, with respect to any decisions you may make with respect to choosing a tax lot identification method.

&nbsp;&nbsp;&nbsp;&nbsp; Certain U.S. shareholders, including individuals and estates and trusts, will be subject to an additional 3.8% Medicare tax on all or a portion of their "net investment income," which should include dividends from the Fund and net gains from the disposition of shares of a Fund. U.S. shareholders are urged to consult their own tax advisers regarding the implications of the additional Medicare tax resulting from an investment in a Fund.

&nbsp;&nbsp;&nbsp;&nbsp; **Original Issue Discount, Pay-In-Kind Securities, and Market Discount.** Some debt obligations that may be acquired by a Fund may be treated as debt obligations that are issued originally at a discount. Generally, the amount of OID is treated as interest income and is included in the Fund's taxable income (and required to be distributed by the Fund) over the term of the debt obligation, even though payment of that amount is not received until a later time, upon partial or full repayment or disposition of the debt security.

&nbsp;&nbsp;&nbsp;&nbsp; Some debt obligations that may be acquired by a Fund in the secondary market may be treated as having "market discount." Very generally, market discount is the excess of the stated redemption price of a debt obligation (or in the case of an obligations issued with OID, its "revised issue price") over the purchase price of such obligation. Generally, any gain recognized on the disposition of, and any partial payment of principal on, a debt obligation having market discount is treated as ordinary income to the extent the gain, or principal payment, does not exceed the "accrued market discount" on such debt obligation. Alternatively, a Fund may elect to accrue market discount currently, in which case the Fund will be required to include the accrued market discount in the Fund's income (as ordinary income) and thus distribute it over the term of the debt security, even though payment of that amount is not received until a later time, upon partial or full repayment or disposition of the debt security. The rate at which the market discount accrues, and thus is included in a Fund's income, will depend upon which of the permitted accrual methods the Fund elects.

&nbsp;&nbsp;&nbsp;&nbsp; Some debt obligations that may be acquired by a Fund may be treated as having "acquisition discount" (very generally, the excess of the stated redemption price over the purchase price), or OID in the case of certain types of debt obligations. The Fund will be required to include the acquisition discount, or OID, in income (as ordinary income) over the term of the debt obligation, even though payment of that amount is not received until a later time, upon partial or full repayment or disposition of the debt security. A Fund may make one or more of the elections applicable to debt obligations having acquisition discount, or OID, which could affect the character and timing of recognition of income.

&nbsp;&nbsp;&nbsp;&nbsp; In addition, payment-in-kind securities will, and commodity-linked notes may, give rise to income that is required to be distributed and is taxable even though a Fund receives no interest payment in cash on the security during the year.

&nbsp;&nbsp;&nbsp;&nbsp; If a Fund holds the foregoing kinds of securities, it may be required to pay out as an income distribution each year an amount that is greater than the total amount of cash interest the Fund actually received. Such distributions may be made from the cash assets of the Fund or by liquidation of portfolio securities, if necessary (including when it is not advantageous to do so). The Fund may realize gains or losses from such liquidations. In the event the Fund realizes net capital gains from such transactions, its shareholders may receive a larger capital gain distribution than they would in the absence of such transactions.

&nbsp;&nbsp;&nbsp;&nbsp; **Warrants.** Gain or loss realized by a Fund from the sale or exchange of warrants acquired by the Fund as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. Such gain or loss generally will be long-term or short-term, depending on how long the Fund held a particular warrant. Upon the exercise of a warrant acquired by a Fund, the Fund's tax basis in the stock purchased under the warrant will equal the sum of the amount paid for the warrant plus the strike price paid on the exercise of the warrant.

&nbsp;&nbsp;&nbsp;&nbsp; **Tax-Exempt Shareholders.** A tax-exempt shareholder could recognize unrelated business taxable income ("UBTI") by virtue of its investment in a Fund if shares in the Fund constitute debt-financed property in the hands of the tax-exempt shareholder within the meaning of Code Section 514(b). Furthermore, a tax-exempt shareholder may recognize UBTI if a Fund recognizes "excess inclusion income" derived from direct or indirect investments in residual interests in REMICs or equity interests in taxable mortgage pools ("TMPs") if the amount of such income recognized by the Fund exceeds the Fund's investment company taxable income (after taking into account deductions for dividends paid by the Fund).

&nbsp;&nbsp;&nbsp;&nbsp; In addition, special tax consequences apply to charitable remainder trusts ("CRTs") that invest in RICs that invest directly or indirectly in residual interests in REMICs or equity interests in TMPs. Under legislation enacted in December 2006, a CRT (as defined in Code Section 664) that realizes any UBTI for a taxable year, must pay an excise tax annually of an amount equal to such UBTI. Under IRS guidance issued in October 2006, a CRT will not recognize UBTI solely as a result of investing in a Fund that recognizes "excess inclusion income." Rather, if at any time during any taxable year a CRT (or one of certain other tax-exempt shareholders, such as the United States, a state or political subdivision, or an agency or instrumentality thereof, and certain energy cooperatives) is a record holder of a share in a RIC that recognizes "excess inclusion income," then the RIC will be subject to a tax on that portion of its "excess inclusion income" for the taxable year that is allocable to such shareholders, at the highest corporate U.S. federal corporate income tax rate. The extent to which this IRS guidance remains applicable in light of the December 2006 legislation is unclear. To the extent permitted under the 1940 Act, each Fund may elect to specially allocate any such tax to the applicable CRT, or other shareholder, and thus reduce such shareholder's distributions for the year by the amount of the tax that relates to such shareholder's interest in the Fund. The Funds have not yet determined whether such an election will be made. CRTs and other tax-exempt investors are urged to consult their own tax advisers concerning the consequences of investing in a Fund.

&nbsp;&nbsp;&nbsp;&nbsp; **Passive Foreign Investment Companies.** A PFIC is any foreign corporation: (i) 75% or more of the gross income of which for the taxable year is passive income, or (ii) the average percentage of the assets of which (generally by value, but by adjusted tax basis in certain cases) that produce or are held for the production of passive income is at least 50%. Generally, passive income for this purpose means dividends, interest (including income equivalent to interest), royalties, rents, annuities, the excess of gains over losses from certain property transactions and commodities transactions, and foreign currency gains. Passive income for this purpose does not include rents and royalties received by the foreign corporation from active business and certain income received from related persons.

&nbsp;&nbsp;&nbsp;&nbsp; Equity investments by a Fund in certain PFICs could potentially subject the Fund to a special U.S. federal income tax and interest charges on the distributions received from the PFIC or on proceeds received from the disposition of shares in the PFIC. This tax cannot be eliminated by making distributions to Fund shareholders. However, in certain circumstances a Fund may elect to avoid the imposition of that special tax and interest. For example, if the Fund is in a position to and elects to treat a PFIC as a "qualified electing fund" (<u>i.e.</u>, make a "QEF election"), the Fund will be required to include its share of the PFIC's income and net capital gains annually, regardless of whether it receives any distribution from the PFIC. Alternatively, the Fund may make an election to yearly mark to market the gains (and to a limited extent losses) in its PFIC holdings as though it had sold and repurchased its holdings in those PFICs on the last day of the

Fund's taxable year. Such gains and losses are treated as ordinary income and loss. The QEF and mark-to-market elections may accelerate the recognition of income (without the receipt of cash) and increase the amount required to be distributed by a Fund to avoid taxation. Making either of these elections therefore may require a Fund to liquidate other investments (including when it is not advantageous to do so) to meet its distribution requirement, which also may accelerate the recognition of gain and affect the Fund's total return. Dividends paid by PFICs will not be eligible to be treated as "qualified dividend income" subject to preferential rates of taxation. Because it is not always possible to identify a foreign corporation as a PFIC, a Fund may incur the tax and interest charges described above in some instances.

&nbsp;&nbsp;&nbsp;&nbsp; **Foreign Currency Transactions.** A Fund's transactions in foreign currencies, foreign currency-denominated debt obligations and certain foreign currency options, futures contracts and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and potentially require the re-characterization of prior ordinary income distributions. Such ordinary income treatment may accelerate the Fund's distributions to shareholders and increase the distributions taxed to shareholders as ordinary income. Any net ordinary losses so created cannot be carried forward by a Fund to offset income or gains earned in subsequent taxable years.

&nbsp;&nbsp;&nbsp;&nbsp; **Foreign Taxation.** Income received by the Fund from sources within foreign countries may be subject to withholding and other taxes imposed by such countries. Tax conventions between certain countries and the United Sates may reduce or eliminate such taxes.

&nbsp;&nbsp;&nbsp;&nbsp; The RICs in which a Fund invests may invest in foreign securities. Dividends and interest received by a RIC's holding of foreign securities may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. If the RIC in which a Fund invests and meets certain requirements, which include a requirement that more than 50% of the value of such RIC's total assets at the close of its respective taxable year consists of stocks or securities of foreign corporations, then the RIC should be eligible to file an election with the IRS that may enable its shareholders, including the Fund in effect, to receive either the benefit of a foreign tax credit, or a tax deduction, with respect to any foreign income taxes paid the by the RIC, subject to certain limitations.

&nbsp;&nbsp;&nbsp;&nbsp; A "qualified fund of funds" is a RIC that has at least 50% of the value of its total interests invested in other RICs at the end of each quarter of the taxable year. If a Fund satisfies this requirement or if it meets certain other requirements, which include a requirement that more than 50% of the value of the Fund's total assets at the close of its taxable year consist of stocks or securities of foreign corporations, then the Fund should be eligible to file an election with the IRS that may enable its shareholders to receive either the benefit of a foreign tax credit, or a tax deduction, with respect to any foreign income taxes paid by the Fund, subject to certain limitations.

&nbsp;&nbsp;&nbsp;&nbsp; **Taxation of Non-U.S. Shareholders.** Capital Gain Dividends are generally not subject to withholding of U.S. federal income tax. Absent a specific statutory exemption, dividends other than Capital Gain Dividends paid by the Fund to a Non-U.S. shareholder are subject to withholding of U.S. federal income tax at a rate of 30% (or lower applicable treaty rate) even if they are funded by income or gains (such as portfolio interest, short-term capital gains, or foreign-source dividend and interest income) that, if paid to a Non-U.S. shareholder directly, would not be subject to withholding.

&nbsp;&nbsp;&nbsp;&nbsp; In general, a RIC is not required to withhold any amounts (i) with respect to distributions (other than distributions to a Non-U.S. shareholder (a) that does not provide a satisfactory statement that it is not a U.S. person, (b) to the extent that the dividend is attributable to certain interest on an obligation if the Non-U.S. shareholder is the issuer or is a 10% shareholder of the issuer, (c) that is within a foreign country that has inadequate information exchange with the United States, or (d) to the extent the dividend is attributable to interest paid by a person that is a related person of the Non-U.S. shareholder and the Non-U.S. shareholder is a controlled foreign corporation) from U.S.-source interest income of types similar to those not subject to U.S. federal income tax withholding if earned directly by a Non-U.S. shareholder, to the extent such distributions are properly reported as such by the Fund in a written notice to shareholders ("interest-related dividends"), and (ii) with respect to distributions (other than (a) distributions to an individual Non-U.S. shareholder who is present in the United States for a period or periods aggregating 183 days or more

during the year of the distribution and (b) distributions subject to special rules regarding the disposition of U.S. real property interests ("USRPIs") as described below) of net short-term capital gains in excess of net long-term capital losses to the extent such distributions are properly reported by the RIC ("Short-Term Capital Gain Dividends"). If a Fund invests in an underlying fund that pays such distributions to the Fund, such distributions retain their character as not subject to withholding if properly reported when paid by the Fund to Non-U.S. shareholders.

&nbsp;&nbsp;&nbsp;&nbsp; A Fund is permitted to report such part of its dividends as interest-related or Short-Term Capital Gain Dividends as are eligible but is not required to do so. These exemptions from withholding will not be available to Non-U.S. shareholders of Funds that do not currently report their dividends as interest-related or Short-Term Capital Gain Dividends.

&nbsp;&nbsp;&nbsp;&nbsp; In the case of shares held through an intermediary, the intermediary may withhold even if a Fund reports all or a portion of a payment as an interest-related or Short-Term Capital Gain Dividend to shareholders. Non-U.S. shareholders should contact their intermediaries regarding the application of these rules to their accounts.

&nbsp;&nbsp;&nbsp;&nbsp; A Non-U.S. shareholder generally is not subject to U.S. federal income tax on gains (and is not allowed a deduction for losses) realized on the sale of shares of the Fund or on Capital Gain Dividends unless (i) such gain or dividend is effectively connected with the conduct of a trade or business carried on by such holder within the United States, (ii) in the case of an individual holder, the holder is present in the United States for a period or periods aggregating 183 days or more during the year of the sale or the receipt of the Capital Gain Dividend and certain other conditions are met, or (iii) the special rules relating to gain attributable to the sale or exchange of USRPIs apply to the Non-U.S. shareholder's sale of shares of the Fund or to the Capital Gain Dividend the Non-U.S. shareholder received (as described below).

&nbsp;&nbsp;&nbsp;&nbsp; If a Non-U.S. shareholder has a trade or business in the United States, and the dividends are effectively connected with its conduct of that trade or business, the dividend will be subject to regular U.S. federal net income taxation at regular income tax rates.

If a Non-U.S. shareholder is eligible for the benefits of a tax treaty, any effectively connected income or gain will generally be subject to U.S. federal income tax on a net basis only if it is also attributable to a permanent establishment maintained by it in the United States.

&nbsp;&nbsp;&nbsp;&nbsp; To qualify for any exemptions from withholding described above or for lower withholding tax rates under income tax treaties, or to establish an exemption from backup withholding, a Non-U.S. shareholder must comply with special certification and filing requirements relating to its non-US status (including, in general, furnishing an applicable IRS Form W-8BEN). Non-U.S. shareholders in the Fund should consult their tax advisors in this regard.

&nbsp;&nbsp;&nbsp;&nbsp; A Non-U.S. shareholder may be subject to state and local tax and to the U.S. federal estate tax in addition to the U.S. federal tax on income referred to above.

&nbsp;&nbsp;&nbsp;&nbsp; **Backup Withholding.** A Fund may be required to backup withhold U.S. federal income tax, presently at the rate of twenty-four percent (24%), on all taxable distributions payable to shareholders who fail to provide the Fund with their correct taxpayer identification numbers and make required certifications, or who have been notified by the IRS that they are subject to backup withholding. Backup withholding is not an additional tax; rather, it is a way in which the IRS ensures it will collect taxes otherwise due. Any amounts backup withheld may be credited against a shareholder's U.S. federal income tax liability, provided the appropriate information is furnished to the IRS.

&nbsp;&nbsp;&nbsp;&nbsp; **Tax Shelter Reporting Regulations.** If a shareholder recognizes a loss with respect to the Fund's shares of $2 million or more for an individual shareholder or $10 million or more for a corporate shareholder, the shareholder must file with the IRS a disclosure statement on Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, shareholders of a RIC are not excepted. Future guidance may extend the current exception from this reporting requirement to shareholders of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. Shareholders should consult their own tax advisers to determine the applicability of these Treasury

regulations in light of their individual circumstances.

&nbsp;&nbsp;&nbsp;&nbsp; **Shares Purchased through Tax-Qualified Plans.** Special tax rules apply to investments through defined contribution plans and other tax-qualified plans. Shareholders should consult their own tax advisers to determine the suitability of shares of a Fund as an investment through such plans, and the precise effect of an investment on their particular tax situation.

&nbsp;&nbsp;&nbsp;&nbsp; **FATCA**. Payments to a shareholder that is either a foreign financial institution ("FFI") or a non-financial foreign entity ("NFFE") within the meaning of the Foreign Account Tax Compliance Act ("FATCA") may be subject to a generally nonrefundable 30% withholding tax on: (i) income dividends paid by a Fund and (ii) possibly in the future, certain capital gain distributions and the proceeds arising from the redemption of shares of a Fund. FATCA withholding tax generally can be avoided: (i) by an FFI, subject to any applicable intergovernmental agreement or other exemption, if it enters into a valid agreement with the IRS to, among other requirements, report required information about certain direct and indirect ownership of foreign financial accounts held by U.S. persons with the FFI and (ii) by an NFFE, if it: (a) certifies that it has no substantial U.S. persons as owners or (b) if it does have such owners, reports information relating to them. Each Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or other parties as necessary to comply with FATCA. Withholding also may be required if a foreign entity that is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA, generally on an applicable IRS Form W-8.

&nbsp;&nbsp;&nbsp;&nbsp; The foregoing is a general and abbreviated summary of the provisions of the Code and the Treasury regulations in effect as they directly govern the taxation of the Funds and their shareholders. These provisions are subject to change by legislative and administrative action, and any such change may be retroactive. Shareholders are urged to consult their own tax advisers regarding specific questions as to U.S. federal income, estate or gift taxes, or foreign, state, local taxes or other taxes.

PRICING OF FUND SHARES

&nbsp;&nbsp;&nbsp;&nbsp; The price (net asset value) of the shares of the Funds are determined at the close of trading (normally 4:00 p.m., Eastern time) on each day the New York Stock Exchange is open for business (the Exchange is closed on weekends, most federal holidays, and Good Friday). For a description of the methods used to determine the net asset value (share price), see "Determination of Net Asset Value" in the Prospectus. The Board has designated the Adviser as "valuation designee." The Board maintains responsibility for fair value determinations under Rule 2a-5 of the 1940 Act and oversees the valuation designee.

&nbsp;&nbsp;&nbsp;&nbsp; Equity securities generally are valued by using market quotations but may be valued on the basis of prices furnished by a pricing service when the valuation designee believes such prices accurately reflect the fair market value of such securities. Securities that are traded on any stock exchange or on the NASDAQ over-the-counter market are generally valued at the last quoted sale price. Lacking a last sale price an equity security is generally valued at the last bid price. When market quotations are not available or, when the valuation designee determines that the market quotations do not reflect the current fair value, or when restricted securities are being valued, such securities are valued as determined in good faith by the valuation committee, which includes the valuation designee, subject to review of the Board.

Fixed income securities generally are valued by using prices provided by a pricing service approved by the Board. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. If the valuation designee decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the valuation committee, which includes the valuation designee, subject to review of the Board.

PURCHASES AND SALES THROUGH BROKER-DEALERS

&nbsp;&nbsp;&nbsp;&nbsp; The Funds may be purchased through broker-dealers and other intermediaries. Each Fund has authorized one or more brokers to receive on its behalf purchase and redemption orders. Such brokers are authorized to designate other intermediaries to receive purchase and redemption orders on each Fund's behalf. A Fund will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker's authorized designee, received the order. Customer orders will be priced at the Fund's net asset value next computed after they are received by an authorized broker or the broker's authorized designee.

ANTI-MONEY LAUNDERING PROGRAM

&nbsp;&nbsp;&nbsp;&nbsp; The Trust has established an Anti-Money Laundering Compliance Program (the "Program") as required by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 ("USA PATRIOT Act"). To ensure compliance with this law, the Trust's Program provides for the development of internal practices, procedures and controls, designation of anti-money laundering compliance officers, an ongoing training program and an independent audit function to determine the effectiveness of the Program.

&nbsp;&nbsp;&nbsp;&nbsp; Procedures to implement the Program include, but are not limited to, determining that the Fund's transfer agent has established proper anti-money laundering procedures, reporting suspicious and/or fraudulent activity and a complete and thorough review of all new opening account applications. The Fund will not transact business with any person or entity whose identity cannot be adequately verified under the provisions of the USA PATRIOT Act.

CUSTODIAN

&nbsp;&nbsp;&nbsp;&nbsp; State Street Bank and Trust Company, One Congress Street, Suite 1, Boston, MA 02114 (the "Custodian") has been selected as each Fund's custodian by the Trust. The Custodian holds in safekeeping certificated securities and cash belonging to the Funds and, in such capacity, is the registered owner of securities held in book entry form belonging to the Funds. Upon instruction, the Custodian will receive and deliver cash and securities of a Fund in connection with Fund transactions and collect all dividends and other distributions made with respect to a Fund's portfolio securities. The Custodian will also maintain certain accounts and records of the Funds.

FUND SERVICES

&nbsp;&nbsp;&nbsp;&nbsp;Effective beginning on October 27, 2025, Paralel Technologies LLC ("PTL"), located at 1700 Broadway Suite 1850, Denver, Colorado 80290 serves as the Funds' accountant. PTL is the parent company of Paralel Distributors LLC, the Funds' distributor. Pursuant to a Fund Accounting Agreement between the Trust and PTL, on behalf of the Funds, PTL provides the Funds with accounting services, including portfolio accounting services, calculation of performance and provision of data reports. In this capacity, PTL does not have any responsibility or authority for the management of the Funds, the determination of investment policy, or for any matter pertaining to the distribution of shares. As compensation for the accounting services, the Advisor pays PTL a fee based on each Fund's average daily net assets, subject to a minimum annual fee. PTL also is entitled to certain out-of-pocket expenses for the services mentioned above.

&nbsp;&nbsp;&nbsp;&nbsp;Effective beginning on October 27, 2025, pursuant to a Transfer Agency Agreement with the Trust, PTL (in such capacity, the "Transfer Agent") serves as the Funds' transfer agent. Pursuant to the Transfer Agency Agreement, the Transfer Agent receives an annual fee from the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;Until October 27, 2025, Mutual Shareholder Services, LLC ("MSS"), 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147, acted as the Funds' accountant and transfer agent, providing similar services as currently provided by PTL. For these services, MSS received an annual fee based upon the assets of the Funds from the Advisor, in the aggregate amounts shown below for the fiscal years ended June 30:

---

| | | | |
|:---|:---|:---|:---|
| Fund | 2023 | 2024 | 2025 |
| Potomac Managed Volatility Fund | $57733 | $79459 | $84190 |
| Potomac Tactical Rotation Fund | $53517 | $79408 | $85641 |
| Potomac Tactical Opportunities Fund | $49085 | $76322 | $79016 |
| Potomac Defensive Bull Fund | $89264 | $158267 | $197094 |

---

&nbsp;&nbsp;&nbsp;&nbsp; Premier Fund Solutions, Inc. ("PFS"), 1939 Friendship Drive, Suite C, El Cajon, CA 92020, provides the Funds with administrative services, including regulatory reporting and necessary office equipment, personnel and facilities. As compensation for the administrative services, the Advisor pays PFS a fee based on each Fund's average daily net assets, subject to a minimum annual fee and any waivers. PFS also is entitled to certain out-of-pocket expenses for the services. A Trustee of the Trust is the CEO of PFS. For these services, PFS received an annual fee based upon the assets of the Funds from the Advisor, in the aggregate amounts shown below for the fiscal years ended June 30:

---

| | | | |
|:---|:---|:---|:---|
| Fund | 2023 | 2024 | 2025 |
| Potomac Managed Volatility Fund | $37317 | $78030 | $93702 |
| Potomac Tactical Rotation Fund | $50162 | $85022 | $107009 |
| Potomac Tactical Opportunities Fund | $38483 | $73362 | $85293 |
| Potomac Defensive Bull Fund | $219646 | $452348 | $580675 |

---

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

&nbsp;&nbsp;&nbsp;&nbsp; The firm of Cohen & Company, Ltd.,8101 East Prentice Avenue, Suite 750, Greenwood Village, Colorado, 80111, has been selected as the independent registered public accounting firm for the Funds for the fiscal year ending June 30, 2026. The independent registered public accounting firm performs an annual audit of the Fund's financial statements. Cohen & Co Advisory, LLC, an affiliate of Cohen & Company, Ltd., provides tax services as requested.

DISTRIBUTOR

&nbsp;&nbsp;&nbsp;&nbsp; The Trust and Paralel Distributors LLC (the "Distributor") are parties to a distribution agreement ("Distribution Agreement"), whereby the Distributor acts as principal underwriter for the Funds. Shares are continuously offered for sale by the Distributor. The principal business address of the Distributor is 1700 Broadway, Suite 1850, Denver, CO 80290.

&nbsp;&nbsp;&nbsp;&nbsp; The Distributor is registered as a broker-dealer under the Securities Exchange Act of 1934 and each state's securities laws and is a member of the Financial Industry Regulatory Authority ("FINRA"). The offering of the Funds' shares is continuous. The Distribution Agreement provides that the Distributor, as agent in connection with the distribution of the Funds' shares, will use commercially reasonable efforts to facilitate the sale of the shares.

&nbsp;&nbsp;&nbsp;&nbsp; The Distribution Agreement will continue for two years from its effective date and is renewable annually thereafter. The continuance of the Distribution Agreement must be specifically approved at least annually (i) by the vote of the Trustees or by a vote of the shareholders of a Fund and (ii) by the vote of a majority of the Independent Trustees who have no direct or indirect financial interest in the operations of the Distribution Agreement or any related agreement, cast in person at a meeting called for the purpose of voting on such approval. The Distribution Agreement is terminable without penalty by the Trust on 60 days' written notice when authorized either by majority vote of its outstanding voting shares or by a vote of a majority of its Board (including a majority of the Independent Trustees), or by the Distributor on 60 days' written notice, and will automatically terminate in the event of its assignment. The Distribution Agreement provides that in the absence of willful misfeasance, bad faith or gross negligence on the part of the Distributor, the Distributor shall not be liable for and will be indemnified for any action or failure to act in accordance with its duties thereunder.

LEGAL COUNSEL

Practus, LLP, 11300 Tomahawk Creek Parkway, Ste. 310, Leawood, KS 66211, serves as legal counsel for the Trust and each Fund.

DISCLOSURE OF PORTFOLIO HOLDINGS

&nbsp;&nbsp;&nbsp;&nbsp; The Funds are required to include a schedule of portfolio holdings in its annual and semi-annual reports to shareholders, which is made available to shareholders within 60 days of the end of the second and fourth fiscal quarters on the Funds' websites (https://potomacfunds.com) and which are filed with the Securities and Exchange Commission (the "SEC") on Form N-CSR within 70 days of the end of the second and fourth fiscal quarters. Each Fund is also required to file a schedule of portfolio holdings with the SEC on Form N-PORT within 60 days of the end of the first and third fiscal quarters. These schedules will also be made available on the Funds' website. The Funds must provide a copy of the complete schedule of portfolio holdings as filed with the SEC to any shareholder of the Funds, upon request, free of charge. This policy is applied uniformly to all shareholders of the Funds without regard to the type of requesting shareholder (i.e., regardless of whether the shareholder is an individual or institutional investor). Information contained in annual and semi-annual reports mailed to shareholders, as well as information filed with the SEC on Form N-PORT and information posted on the Funds' website, is public information. All other information is non-public information.

&nbsp;&nbsp;&nbsp;&nbsp; The Funds have an ongoing relationship with third-party servicing agents to release portfolio holdings information on a daily basis in order for those parties to perform their duties on behalf of the Funds. These third-party servicing agents are the Advisor, Transfer Agent, Fund Accounting Agent, Distributor, Administrator and Custodian. The Funds also may disclose portfolio holdings, as needed, to auditors, legal counsel, proxy voting services (if applicable), pricing services, printers, parties to merger and reorganization agreements and their agents, and prospective or newly hired investment advisors or sub-advisors. The Funds' Chief Compliance Officer must authorize all disclosures of portfolio holdings. The lag between the date of the information and the date on which the information is disclosed will vary based on the identity of the party to whom the information is disclosed. For instance, the information may be provided to auditors within days of the end of an annual period, while the information may be given to legal counsel or prospective sub-advisors at any time. This information is disclosed to all such third parties under conditions of confidentiality. "Conditions of confidentiality" include (i) confidentiality clauses in written agreements, (ii) confidentiality implied by the nature of the relationship (e.g., attorney-client relationship), (iii) confidentiality required by fiduciary or regulatory principles (e.g., custody relationships) or (iv) understandings or expectations between the parties that the information will be kept confidential. The Fund also releases information to Morningstar, Thomson Reuters, Bloomberg, and FactSet on a delayed basis after the information has been filed with the SEC or otherwise made public. The Funds believe, based upon its size and history, that these are reasonable procedures to protect the confidentiality of each Fund's portfolio holdings and will provide sufficient protection against personal trading based on the information.

&nbsp;&nbsp;&nbsp;&nbsp; The Funds are prohibited from entering into any arrangements with any person to make available information about a Fund's portfolio holdings without the specific approval of the Board. The Advisor must submit any proposed arrangement pursuant to which the Advisor intends to disclose a Fund's portfolio holdings to the Board, which will review such arrangement to determine (i) whether it is in the best interests of Fund shareholders, (ii) whether the information will be kept confidential and (iii) whether the disclosure presents a conflict of interest between the interests of Fund shareholders and those of the Advisor, or any affiliated person of the Funds, or the Advisor. Additionally, the Funds, the Advisor, and any affiliated persons of the Advisor, are prohibited from receiving compensation or other consideration, for themselves or on behalf of the Funds, as a result of disclosing the Funds' portfolio holdings.

FINANCIAL STATEMENTS

The financial statements and report of the independent registered public accounting firm required to be included in the Statement of Additional Information are incorporated herein by reference to the Funds' Annual Form N-CSR to Shareholders for the fiscal year ended June 30, 2025. The Trust will provide the Annual Form N-CSR without charge at written or telephone request.

PROXY VOTING POLICIES

The Trust and the Advisor each have adopted proxy voting policies and procedures reasonably designed to ensure that proxies are voted in shareholders' best interests. As a brief summary, the Trust's policy delegates responsibility regarding proxy voting to the Advisor subject to the supervision of the Board. The Advisor votes the Fund's proxies in accordance with its proxy voting policy, subject to the provisions of the Trust's policy regarding conflicts of interests. The Trust's Proxy Voting Policy and Procedure is attached as Exhibit A. The Advisor's Proxy Voting Policy and Procedure is attached as Exhibit B.

The Trust's policy provides that, if a conflict of interest between the Advisor and its affiliates and the Fund arises with respect to any proxy, the Advisor must fully disclose the conflict to the Board and vote the proxy in accordance with the Board's instructions. The Board shall make the proxy voting decision that in its judgment, after reviewing the recommendation of the Advisor, is most consistent with the Advisor's proxy voting policies and in the best interests of Fund shareholders.

MORE INFORMATION. The actual voting records relating to portfolio securities during the most recent 12-Month period ended June 30 will be available after August 31 without charge, upon request by calling toll-free, 1-888-774-6679 or by accessing the Funds' website at https://potomacfunds.com or the SEC's website at www.sec.gov. In addition, a copy of the Fund's proxy voting policies and procedures are also available by calling 1-888-774-6679 and will be sent within three business days of receipt of a request.

EXHIBIT A

 **PFS FUNDS**

**PROXY VOTING POLICY AND PROCEDURE**

PFS Funds (the "Trust") is a registered open-end investment company under the Investment Company Act of 1940, as amended ("1940 Act"). The Trust offers multiple series (each a "Fund" and, collectively, the "Funds"). Effective April 14, 2003, the Securities and Exchange Commission ("SEC") adopted rule and form amendments under the Securities Act of 1933, the Securities Exchange Act of 1934, and the 1940 Act to require registered management investment companies to provide disclosure about how they vote proxies for their portfolio securities (collectively, the rule and form amendments are referred to herein as the "Proxy Rule"). Consistent with its fiduciary duties and pursuant to the Proxy Rule, the Board of Trustees of the Trust (the "Board") has adopted this proxy voting policy on behalf of the Trust (the "Policy") to reflect its commitment to ensure that proxies are voted in a manner consistent with the best interests of the Funds' shareholders. While decisions about how to vote must be determined on a case-by-case basis, proxy voting decisions will be made considering these guidelines and following the procedures recited herein. This policy may be amended, from time to time, as determined by the Board.

The Proxy Rule requires that each series of shares of the Trust listed on Exhibit A, attached hereto, (each a "Fund"), disclose the policies and procedures used to determine how to vote proxies for portfolio securities. The Proxy Rule also requires each Fund to file with the SEC and to make available to their shareholders the specific proxy votes cast for portfolio securities.

**Delegation of Proxy Voting Authority to Fund Advisor**

The Board believes that the investment advisor (or sub-advisor as the case may be) of each Fund (each an "Advisor"), as the entity that selects the individual securities that comprise its Fund's portfolio, is the most knowledgeable and best-suited entity to make decisions on how to vote proxies of portfolio companies held by that Fund. Therefore, subject to the oversight of the Board, the Trust shall defer to and rely on the Advisor of each Fund to make decisions on how to cast proxy votes on behalf of such Fund.

The Trust hereby designates the Advisor of each Fund as the entity responsible for exercising proxy voting authority with regard to securities held in the Fund's investment portfolio. Consistent with its duties under this Policy, each Advisor shall monitor and review corporate transactions of corporations in which the Fund has invested, obtain all information sufficient to allow an informed vote on all proxy solicitations, ensure that all proxy votes are cast in a timely fashion, and maintain all records required to be maintained by the Fund under the Proxy Rule and the 1940 Act. Each Advisor shall perform these duties in accordance with the Advisor's proxy voting policy (each an "Advisor's Voting Policy"), a copy of which shall be presented to the Board for its review. Each Advisor shall promptly provide to the Board updates to its proxy voting policy as they are adopted and implemented.

The Board, including a majority of the independent trustees of the Board, shall approve each Advisor's Voting Policy as it relates to each Fund. The Board shall also approve any material

changes to the Advisor's Voting Policy no later than four (4) months after adoption by the Advisor.

**Conflict of Interest Transactions**

In some instances, an Advisor may be asked to cast a proxy vote that presents a conflict between the interests of a Fund's shareholders, and those of the Advisor or an affiliated person of the Advisor. In such case, the Advisor is instructed to abstain from making a voting decision and to forward all necessary proxy voting materials to the Trust to enable the Board to make a voting decision. In addition, provided the Advisor is not affiliated with a Fund's principal underwriter or an affiliated person of the principal underwriter and neither the Fund's principal underwriter nor an affiliated person of the principal underwriter has influenced the Advisor with respect to a matter to which the Fund is entitled to vote, a vote by the Advisor shall not be considered a conflict between the Fund's shareholders and the Fund's principal underwriter or affiliated person of the principal underwriter.

When the Board is required to make a proxy voting decision, only the Trustees without a conflict of interest with regard to the security in question or the matter to be voted upon shall be permitted to participate in the decision of how the Fund's vote will be cast. In the event that the Board is required to vote a proxy because an Advisor has a conflict of interest with respect to the proxy, the Board will vote such proxy in accordance with the Advisor's proxy voting policy, to the extent consistent with the shareholders' best interests, as determined by the Board in its discretion. The Board shall notify the Advisor of its final decision on the matter and the Advisor shall vote in accordance with the Board's decision.

**Oversight of the Advisors' Proxy Voting Compliance Activities**

Each Advisor shall present to the Trust's administrator a quarterly report summarizing its proxy voting compliance activities for the preceding quarter. The administrator shall review the report to ensure compliance with the Proxy Rule and with this Policy, and shall determine the steps and procedures, if any, that must be undertaken or adopted by the Trust and any Advisor to ensure further compliance with the relevant laws.

**Availability of Proxy Voting Policy and Records Available to Fund Shareholders**

Each Fund shall disclose this Policy, or a description of the Policy, to its shareholders by including it as an appendix to its Statement of Additional Information ("SAI") on Form N-1A. Each Fund will also notify its shareholders in the Fund's shareholder reports that a description of this Policy is available upon request, without charge, by calling a specified toll-free telephone number. The Fund will send this description of the Policy within three business days of receipt of any shareholder request, by first-class mail or other means designed to ensure equally prompt delivery.

In accordance with the Proxy Rule, each Advisor shall provide a complete voting record, for each series of the Trust for which it acts as advisor, to the Trust's administrator within 15 days following the end of each calendar quarter. The Trust's administrator will file Form N-PX with the SEC on an annual basis with the Securities and Exchange Commission no later than August 31st of each year.

Each Fund, subject to oversight of the Board, shall disclose the Fund's complete proxy voting record to its shareholders on Form N-PX, as required by the Proxy Rule, for the twelve-month period ended June 30th. Each Fund shall disclose the following information on Form N-PX for each matter relating to a portfolio security considered at any shareholder meeting held during the period covered by the report and with respect to which to the Fund was entitled to vote: (i) The name of the issuer of the portfolio security; (ii) The exchange ticker symbol of the portfolio security (if available through reasonably practicable means); (iii) The Council on Uniform Security Identification Procedures ("CUSIP") number for the portfolio security (if available through reasonably practicable means); (iv) The shareholder meeting date; (v) A brief identification of the matter voted on; (vi) Whether the matter was proposed by the issuer or by a security holder; (vii) Whether the Fund cast its vote on the matter; (viii) How the Fund cast its vote (e.g., for or against proposal, or abstain; for or withhold regarding election of directors); and (ix) Whether the Fund cast its vote for or against management.

Each Fund shall make its proxy voting record available to shareholders either upon request or by making available an electronic version on or through the Fund's website, if applicable. If the Fund discloses its proxy voting record on or through its website, the Fund shall post the information disclosed in the Fund's most recently filed report on Form N-PX on the website beginning the same day it files such information with the SEC.

Each Fund shall also include in its annual reports, semi-annual reports and SAI a statement that information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30th is available (1) without charge upon request, by calling a specified toll-free (or collect) telephone number, or (if applicable) on or through the Fund's website at a specified Internet address; and (2) on the SEC's website. If the Fund discloses that its proxy voting record is available by calling a toll-free (or collect) telephone number, it shall send the information disclosed in the Fund's most recently filed report on Form N-PX within three business days of receipt of a request for this information, by first-class mail or other means designed to ensure equally prompt delivery.

If a Fund has a website, the Fund may post of copy of its Advisor's proxy voting policy and this Policy on such website. A copy of such policies and of each Fund's proxy voting record shall also be made available, without charge, upon request of any shareholder of the Fund, by calling the applicable Fund's toll-free telephone number as printed in the Fund's prospectus. The Trust's administrator shall reply to any Fund shareholder request within three business days of receipt of the request, by first-class mail or other means designed to ensure equally prompt delivery.

EXHIBIT B

Potomac Fund Management, Inc.

PROXY VOTING POLICY AND PROCEDURES

Rule 206(4)-6 and rule amendments under the Advisers Act addresses an investment advisor's fiduciary obligation to its Clients when the adviser has authority to vote their proxies.

**Statement of Policy**

Potomac Fund Management, Inc. (PFM) as a matter of policy and practice has no authority to vote proxies on behalf of its advisory Clients, except mutual funds in which PFM serves as investment advisor. PFM may offer assistance as to proxy matters upon a Client's request, but the Client always retains the proxy voting responsibility. (The policy with respect to voting proxies for its mutual fund Clients is described below.)

PFM discloses its proxy voting policy in its Disclosure Documents. Moreover, PFM's advisory agreements provide that it has no proxy voting responsibilities and that the advisory Clients expressly retain such voting authority. PFM's new Client information materials may also indicate that the advisory Clients retain proxy voting authority.

Clients may obtain a copy of PFM's proxy voting policies and procedures upon their request.

Mutual Fund Clients

PFM will generally vote proxies for mutual funds in which PFM serves as the investment advisor unless required by applicable legal, regulatory or contractual requirements to pass such vote to the fund shareholders.

PFM will generally vote proxies in accordance with management recommendations as described below. PFM reserves the right to deviate from the general provisions contained within any part of this policy, and to vote against any issue regardless of the nature of the issue, if by doing so we protect the fund shareholders' interest and value. In the event of such deviation, documentation regarding such vote will be maintained in PFM's books and records.

**Routine Matters**

On routine matters, PFM will support management and vote in accordance with the following:

* In analyzing directors and boards, the policy we follow generally
supports the election of incumbent and newly appointed directors except when a majority of the company's directors are not independent
or where a director fails to attend at least 75% of board and committee meetings. In a contested election we will vote in accordance with
what we feel is in the best interests of shareholders.

* Our policy will support auditor ratification;

* We generally support management proposals on executive compensation
including equity compensation plans, allowing management and board discretion to design and implement effective compensation programs.
However, recognizing that at some point the dilutive effect of equity compensation plans can negatively affect overall shareholder returns,
the guidelines will vote against plans that would result in total overhang greater than 25%. Similarly, our guidelines will support management

advisory votes on compensation and will vote in favor of executive compensation arrangements in connection with merger transactions with the belief that an independent compensation committee is in the best position to design an appropriate compensation program for the company. Further, we follow management's recommendation for proposals on the frequency of such advisory votes;

* We recognize that having sufficient available authorized common
and preferred shares allows companies flexibility to take advantage of rapidly developing opportunities as well as to effectively operate
the business. Therefore, we will support proposals to increase both common and preferred shares;

* We will generally support proposals relating to treatment of shareholders
and changes to corporate structure except for management proposals to classify the board of directors which we will vote against to preserve
director accountability;

* We will undertake a thorough examination of the economic implications
of a proposed merger or acquisition to determine the transaction's likelihood of maximizing shareholder return. We will examine
the process used to negotiate the transaction as well as the terms of the transaction in making the vote recommendation. We will vote
in accordance with our belief in what is in the best interests of shareholders on mergers, acquisitions, and other financing transactions;
and

* We will vote against shareholder proposals not supported by management,
thereby allowing management and the board discretion to address issues generally raised by shareholder proponents, including those relating
to governance, compensation, environmental, and social issues.

**Voting Procedures**

Proxy statements are to be reviewed and voted by the mutual fund's portfolio manager/s or another designated person. A record will be made and maintained of all votes. PFM reserves the right to vote contrary to its stated policy if it believes in its sole opinion that to do so would be in the best interests of its Clients and fund shareholders.

PFM may abstain from voting a proxy if it concludes that the effect on the Fund shareholders' economic interests or the value of the portfolio holding is indeterminable or insignificant. PFM may also abstain from voting if it concludes the cost of voting is disproportionate to the economic impact the vote would have on the portfolio holdings. A record of reasons for any such abstention by PFM will be maintained.

**Conflicts of Interest**

Any conflict of interest will be resolved in the best interests of the mutual fund's shareholders. In the event that a material conflict of interest is identified or believed to exist, PFM will review such conflict with its Chief Compliance Officer and the mutual fund's proxy voting policies and procedures.

PFM shall also maintain record of any conflicts of interest that were identified with any specific vote, and if so, what action was taken to resolve the conflict with respect to each vote cast.

**Proxy Vote Record Retention**

PFM shall maintain records of proxies voted in accordance with Section 204-2 of the Act, including proxy statements, and a record of each vote cast. PFM shall also keep a copy of its policies and procedures and each written request from a Client for proxy voting records and PFM's written response to any Client request, either written or oral, for such records. All proxy voting records are to be retained for five years, with the first two years in the offices of PFM.

**Form N-PX Filing** 

PFM shall be responsible for ensuring that it maintains a complete proxy vote log and confirms the timely voting of proxies. The proxy vote log will be maintained in such a manner that the following information is contained within the log in accordance with the requirements of submitting Form N-PX for proxies voted on behalf of PFM's mutual fund(s) Clients:

* the name of the issuer;

* the exchange ticker symbol, if available;

* the CUSIP number, if available;

* the shareholder meeting date;

* a brief identification of the matter voted on;

* whether the matter was proposed by the issuer or a security holder;

* whether PFM cast its vote on the matter;

* how PFM cast its vote on the matter (for, against, abstain, or
withhold regarding the election of directors); and

* whether PFM cast its vote for or against management.

PFM shall provide the information necessary to complete the Form N-PX to the appropriate fund service provider/administrator who will timely submit the filings, generally prior to August 31 for the 12-month period ended June 30 each year.

Adopted: June 9, 2020

<u>**PART C**</u>

FORM N-1A

OTHER INFORMATION

ITEM 28. <u>Exhibits</u>.

---

| | |
|:---|:---|
| (a)(1) | [Declaration of Trust. Incorporated by reference to Registrant's Registration Statement filed on January 14, 2000.](https://www.sec.gov/Archives/edgar/data/1103243/000075697600000007/0000756976-00-000007-d1.html) |
| (a)(2) | [Amended and Restated Declaration of Trust. Incorporated by reference to the Registrant's Post-Effective Amendment No. 20 filed on January 31, 2011.](https://www.sec.gov/Archives/edgar/data/1103243/000141304211000022/exa2pfsfundstrust.htm) |
| (a)(3) | [Amendments to Amended and Restated Declaration of Trust. Incorporated by reference to the Registrant's Post-Effective Amendment No. 45 filed on June 25, 2012.](https://www.sec.gov/Archives/edgar/data/1103243/000141304212000190/a3pfsser.htm) |
| (b)(1) | [By-laws. Incorporated by reference to Registrant's Registration Statement filed on January 14, 2000.](https://www.sec.gov/Archives/edgar/data/1103243/000075697600000007/0000756976-00-000007-d1.html) |
| (b)(2) | [Amended and Restated By-laws. Incorporated by reference to the Registrant's Post-Effective Amendment No. 5 filed on May 31, 2005.](https://www.sec.gov/Archives/edgar/data/1103243/000116204405000186/ex9923b.htm) |
| (b)(3) | [Amendment No. 2 to the By-laws. Incorporated by reference to the Registrant's Post-Effective Amendment No. 20 filed on January 31, 2011.](https://www.sec.gov/Archives/edgar/data/1103243/000141304211000022/exb3pfsfundsbylaws.htm) |
| (c) | Certificates for shares are not issued. Provisions of the Agreement and Declaration of Trust define the rights of holders of shares of the Trust. |
| (d)(1) | [Management Agreement between the Trust and Value Trend Capital Management, LP. Incorporated by reference to the Registrant's Pre-Effective Amendment No. 1 filed on March 29, 2000.](https://www.sec.gov/Archives/edgar/data/1103243/000075697600000065/0000756976-00-000065-d1.html) |
| (d)(2) | [Management Agreement between the Trust and Castle Investment Management, LLC with respect to Castle Tandem Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 168 filed on March 14, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000073/exd2iimanagreecastletandem.htm) |
| (d)(3) | [Sub-Advisory Agreement between Castle Investment Management and Tandem Investment Advisors, Inc. Incorporated by reference to the Registrant's Post-Effective Amendment No. 168 filed on March 14, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000073/exd3iiisubagreecastletandem.htm) |
| (d)(4)(i) | [Management Agreement between the Trust and Bretton Capital Management, LLC for the Bretton Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 98 filed on April 30, 2015.](https://www.sec.gov/Archives/edgar/data/1103243/000141304215000092/exd4iaagree.htm) |
| (d)(4)(ii) | [Amendment to Management Agreement between the Trust and Bretton Capital Management, LLC for the Bretton Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 194 filed on March 27, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000091/exd4iiamdmanbretton.htm) |
| (d)(5) | [Management Agreement between the Trust and Taylor Frigon Capital Management LLC. Incorporated by reference to the Registrant's Post-Effective Amendment No. 132 filed on December 27, 2016.](https://www.sec.gov/Archives/edgar/data/1103243/000141304216000638/exd9tfmanagree.htm) |
| (d)(6) | [Management Agreement between the Trust and Cargile Investment Management, Inc. for the Cargile Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 159 filed on July 9, 2018.](https://www.sec.gov/Archives/edgar/data/1103243/000141304218000176/exd9cargilemanagree.htm) |
| (d)(7) | [Management Agreement between the Trust and Alpha Fiduciary, Inc. with respect to Alpha Fiduciary Quantitative Strategy Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 185 filed on November 5, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000325/exd9managreealpha.htm) |

---

---

| | |
|:---|:---|
| (d)(8) | [Management Agreement between the Trust and Potomac Fund Management, Inc. with respect to Conquer Risk Managed Volatility Fund, Conquer Risk Tactical Rotation Fund, Conquer Risk Tactical Opportunities Fund, and Conquer Risk Defensive Bull Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exd10managreeconquerrisk.htm) |
| (e)(1) | [Distribution Agreement. Incorporated by reference to the Registrant's Post-Effective Amendment No. 15 filed on June 29, 2010.](https://www.sec.gov/Archives/edgar/data/1103243/000141304210000174/edistributionagreement.htm) |
| (e)(2) | [Amended Distribution Agreement Schedule A. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exeiidistscheda.htm) |
| (e)(3) | [Form of Distribution Agreement with Arbor Court Capital, LLC. Incorporated by reference to the Registrant's Post-Effective Amendment No. 227 filed on March 24, 2022.](https://www.sec.gov/Archives/edgar/data/1103243/000141304222000275/exeiiidistfo.htm) |
| (e)(4) | [Distribution Agreement with Paralel Distributors LLC. Filed Herewith](exe4pfsparaleldist.htm) |
| (f) | Not applicable. |
| (g)(1) | [Amended Custodian Agreement with PFS Funds. Incorporated by reference to the Registrant's Post-Effective Amendment No. 95 filed on March 27, 2015.](https://www.sec.gov/Archives/edgar/data/1103243/000141304215000056/exgcustagree.htm) |
| (g)(2) | [Amended Custodian Agreement Exhibit B. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exgiicustexb.htm) |
| (g)(3) | [Custodian Agreement with PFS Funds and The Huntington National Bank. Incorporated by reference to the Registrant's Post-Effective Amendment No. 251 filed on March 26, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000223/exgiiipfshb.htm).<br>|
| (g)(4) | [Custodian Agreement with PFS Funds and State Street Bank and Trust Company. Filed Herewith.](exg4pfscustss.htm) |
| (h)(1)(i) | [Amended Transfer Agent Agreement with Mutual Shareholder Services, LLC with respect to the PFS Funds. Incorporated by reference to the Registrant's Post-Effective Amendment No. 95 filed on March 27, 2015.](https://www.sec.gov/Archives/edgar/data/1103243/000141304215000056/exh1taagreemss.htm) |
| (h)(2)(i) | [Amended Accounting Services Agreement with Mutual Shareholder Services, LLC, with respect to respect to the PFS Funds. Incorporated by reference to the Registrant's Post-Effective Amendment No. 95 filed on March 27, 2015.](https://www.sec.gov/Archives/edgar/data/1103243/000141304215000056/exh2acctservagreemss.htm) |
| (h)(1)(ii) and (h)(2)(ii) | [Amended Accounting Services Agreement & Transfer Agent Agreement Exhibit. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exh1iiexh2iiasataaex.htm) |
| (h)(3) | [Amended Administration Servicing Agreement with Premier Fund Solutions, Inc. with respect to the PFS Funds. Incorporated by reference to the Registrant's Post-Effective Amendment No. 220 filed on July 27, 2021.](https://www.sec.gov/Archives/edgar/data/1103243/000141304221000648/exh3iadminagree.htm) |
| (h)(4)(i) | [Services Agreement between the Trust and Castle Investment Management, LLC with respect to Castle Tandem Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 168 filed on March 14, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000073/exh4iiiservagreecastletandem.htm) |
| (h)(4)(ii) | [Fee Waiver Agreement between the Trust and Castle Investment Management, LLC with respect to Castle Tandem Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 256 filed on October 28, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000848/exhivwaivercastletandem.htm). |

---

---

| | |
|:---|:---|
| (h)(5) | [Services Agreement between the Trust and Taylor Frigon Capital Management LLC. Incorporated by reference to the Registrant's Post-Effective Amendment No. 132 filed on December 27, 2016.](https://www.sec.gov/Archives/edgar/data/1103243/000141304216000638/exh8tfseragree.htm) |
| (h)(6) | [Services Agreement between the Trust and Cargile Investment Management, Inc. Incorporated by reference to the Registrant's Post-Effective Amendment No. 159 filed on July 9, 2018.](https://www.sec.gov/Archives/edgar/data/1103243/000141304218000176/exh7cargileservagree.htm) |
| (h)(7) | [Services Agreement between the Trust and Alpha Fiduciary, Inc. with respect to Alpha Fiduciary Quantitative Strategy Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 185 filed on November 5, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000325/exh8serveagreealpha.htm) |
| (h)(8)(i) | [Services Agreement between the Trust and Potomac Fund Management, Inc. with respect to Conquer Risk Managed Volatility Fund, Conquer Risk Tactical Rotation Fund, Conquer Risk Tactical Opportunities Fund, and Conquer Risk Defensive Bull Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exh9servicesagreeconquerrisk.htm) |
| (h)(8)(ii) | [Amendment to Services Agreement between the Trust and Potomac Fund Management, Inc. with respect to Conquer Risk Managed Volatility Fund, Conquer Risk Tactical Rotation Fund, Conquer Risk Tactical Opportunities Fund, and Conquer Risk Defensive Bull Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 224 filed on October 28, 2021.](https://www.sec.gov/Archives/edgar/data/1103243/000141304221000934/exh9iiamdsagreercr.htm) |
| (h)(8)(iii) | [Amendment to Services Agreement between the Trust and Potomac Fund Management, Inc. with respect to Conquer Risk Managed Volatility Fund, Conquer Risk Tactical Rotation Fund, Conquer Risk Tactical Opportunities Fund, and Conquer Risk Defensive Bull Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 245 filed on October 3, 2023.](https://www.sec.gov/Archives/edgar/data/1103243/000141304223000756/exh9iiiamdservagree.htm) |
| (h)(9) | [Fund of Funds Investment Agreement between the Trust and Direxion Shares ETF Trust. Incorporated by reference to the Registrant's Post-Effective Amendment No. 245 filed on October 3, 2023](https://www.sec.gov/Archives/edgar/data/1103243/000141304223000756/exh10fofdirexion.htm). |
| (h)(10) | [Transfer Agency and Services Agreement with PFS Funds and Paralel Technologies LLC. Filed Herewith.](exh10pfsparalelta.htm) |
| (h)(11) | [Trust Accounting Agreement with PFS Funds and Paralel Technologies LLC. Filed Herewith](exh11pfsparalelacounting.htm). |
| (i)(1) | [Legal Opinion with respect to the Wireless Fund. Incorporated by reference to the Registrant's Pre-Effective Amendment No. 1 filed on March 29, 2000.](https://www.sec.gov/Archives/edgar/data/1103243/000075697600000065/0000756976-00-000065-d1.html) |
| (i)(2) | [Legal Opinion with respect to the Bretton Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 18 filed on September 30, 2010.](https://www.sec.gov/Archives/edgar/data/1103243/000141304210000308/ex9928i4brettonlegalop.htm) |
| (i)(3) | [Legal Consent with respect to the Wireless Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 262 filed on July 29, 2025.](https://www.sec.gov/Archives/edgar/data/1103243/000141304225000614/exii3legalcon.htm) |
| (i)(4) | [Legal Consent with respect to the Bretton Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 261 filed on April 25, 2025.](https://www.sec.gov/Archives/edgar/data/1103243/000141304225000350/exi4legalcon.htm) |
| (i)(5) | [Legal Opinion with respect to the Taylor Frigon Core Growth Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 132 filed on December 27, 2016.](https://www.sec.gov/Archives/edgar/data/1103243/000141304216000638/exi14legalopiniontf.htm) |
| (i)(6) | [Legal Consent with respect to the Taylor Frigon Core Growth Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 260 filed on March 26, 2025](https://www.sec.gov/Archives/edgar/data/1103243/000141304225000285/exi6legalcontaylor.htm). |

---

---

| | |
|:---|:---|
| (i)(7) | [Legal Opinion with respect to the Cargile Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 159 filed on July 9, 2018.](https://www.sec.gov/Archives/edgar/data/1103243/000141304218000176/exi15legalopcarg.htm) |
| (i)(8) | [Legal Opinion with respect to the Castle Tandem Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 168 filed on March 14, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000073/exi14ctandemopinion.htm) |
| (i)(9) | [Legal Consent with respect to the Castle Tandem Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 256 filed on October 28, 2024.](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000848/exi15castlelegalcon.htm) |
| (i)(10) | [Legal Consent with respect to the Cargile Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 257 filed on October 28, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000850/exi16legaconcargile.htm). |
| (i)(11) | [Legal Opinion with respect to the Alpha Fiduciary Quantitative Strategy Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 185 filed on November 5, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000325/exi17legalopalpha.htm) |
| (i)(12) | [Legal Opinion with respect to the Conquer Risk Managed Volatility Fund, Conquer Risk Tactical Rotation Fund, Conquer Risk Tactical Opportunities Fund, and Conquer Risk Defensive Bull Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exi18legalopcr.htm) |
| (i)(13) | [Legal Consent with respect to the Alpha Fiduciary Quantitative Strategy Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 259 filed on November 29, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000934/exi15legalconalpha.htm). |
| (i)(14) | [Legal Consent with respect to the Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, and Potomac Tactical Opportunities Fund. Filed Herewith.](exi14legalconsent.htm) |
| (j)(1) | [Consent of Cohen & Company, Ltd. with respect to the Wireless Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 262 filed on July 29, 2025](https://www.sec.gov/Archives/edgar/data/1103243/000141304225000614/exj1audcon.htm). |
| (j)(2) | [Consent of Cohen & Company, Ltd. with respect to the Bretton Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 261 filed on April 25, 2025.](https://www.sec.gov/Archives/edgar/data/1103243/000141304225000350/exj2audcon.htm) |
| (j)(3) | [Consent of Cohen & Company, Ltd. with respect to the Taylor Frigon Core Growth Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 260 filed on March 26, 2025](https://www.sec.gov/Archives/edgar/data/1103243/000141304225000285/exj3cohentaylor.htm). |
| (j)(4) | [Consent of Cohen & Company, Ltd. with respect to the Cargile Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 257 filed on October 28, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000850/exj7auditorconcargile.htm). |
| (j)(5) | [Consent of Cohen & Company, Ltd. with respect to the Castle Tandem Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 256 filed on October 28, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000848/exj8auditorconcastle.htm). |
| (j)(6) | [Consent of Cohen & Company, Ltd. with respect to the Alpha Fiduciary Quantitative Strategy Fund. Incorporated by reference to the Registrant's Post-Effective Amendment No. 259 filed on November 29, 2024](https://www.sec.gov/Archives/edgar/data/1103243/000141304224000934/exj7audconalpha.htm). |
| (j)(7) | [Consent of Cohen & Company, Ltd. with respect to the Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, and Potomac Tactical Opportunities Fund. Filed Herewith.](exj7cohenconsent.htm) |
| (k) | Not applicable. |
| (l) | Not applicable |

---

---

| | |
|:---|:---|
| (m) | Not applicable |
| (n) | Not applicable. |
| (o) | Reserved. |
| (p)(1) | [Code of Ethics for the Trust. Incorporated by reference to the Registrant's Post-Effective Amendment No. 15 filed on June 29, 2010.](https://www.sec.gov/Archives/edgar/data/1103243/000141304210000174/p1pfsfundscodeofethics.htm) |
| (p)(2) | [Code of Ethics for Value Trend Capital Management, LP. Incorporated by reference to the Registrant's Post-Effective Amendment No. 194 filed on March 27, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000091/exp2vtcode.htm) |
| (p)(3) | [Amended Code of Ethics for Castle Investment Management, LLC. Incorporated by reference to the Registrant's Post-Effective Amendment No. 246 filed on October 27, 2023.](https://www.sec.gov/Archives/edgar/data/1103243/000141304223000827/pcodecastle061523.htm) |
| (p)(4) | [Code of Ethics for Bretton Capital Management, LLC. Incorporated by reference to the Registrant's Post-Effective Amendment No. 18 filed on September 30, 2010.](https://www.sec.gov/Archives/edgar/data/1103243/000141304210000308/ex9928p5brettoncode.htm) |
| (p)(5) | [Code of Ethics for Taylor Frigon Capital Management LLC. Incorporated by reference to the Registrant's Post-Effective Amendment No. 132 filed on December 27, 2016.](https://www.sec.gov/Archives/edgar/data/1103243/000141304216000638/exp10taylorfigoncode.htm) |
| (p)(6) | [Code of Ethics for Cargile Investment Management, Inc. Incorporated by reference to the Registrant's Post-Effective Amendment No. 159 filed on July 9, 2018.](https://www.sec.gov/Archives/edgar/data/1103243/000141304218000176/exp10cargilecode.htm) |
| (p)(7) | [Code of Ethics for Tandem Investment Advisors, Inc. Incorporated by reference to the Registrant's Post-Effective Amendment No. 168 filed on March 14, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000073/exp10codetandem.htm) |
| (p)(8) | [Code of Ethics for Alpha Fiduciary, Inc. Incorporated by reference to the Registrant's Post-Effective Amendment No. 185 filed on November 5, 2019.](https://www.sec.gov/Archives/edgar/data/1103243/000141304219000325/exp11codealpha.htm) |
| (p)(9) | [Code of Ethics for Potomac Fund Management, Inc. Incorporated by reference to the Registrant's Post-Effective Amendment No. 200 filed on June 26, 2020.](https://www.sec.gov/Archives/edgar/data/1103243/000141304220000291/exp12codepotomac.htm) |
| (q)(1) | [Powers of Attorney of the Registrant and the Officers and the Trustees of the Registrant. Incorporated by reference to the Registrant's Post-Effective Amendment No. 15 filed on June 29, 2010.](https://www.sec.gov/Archives/edgar/data/1103243/000141304210000174/qpoapfsfunds.htm) |
| (q)(2) | [Powers of Attorney of John W. Czechowicz and Robert L. Boerner, Trustees of the Registrant. Incorporated by reference to the Registrant's Post-Effective Amendment No. 231 filed on October 27, 2022.](https://www.sec.gov/Archives/edgar/data/1103243/000141304222000910/exq2poas.htm) |

---

ITEM 29. <u>Persons Controlled by or Under Common Control with the Registrant</u>.

No person is controlled by or under common control with the Registrant.

ITEM 30. <u>Indemnification</u>.

Reference is made to the Registrant's Declaration of Trust. The application of these provisions is limited by the following undertaking set forth in the rules promulgated by the Securities and Exchange Commission

Insofar as indemnification for liability arising under the Securities Act of 1933 (the "1933 Act") may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defenses of any action, suite or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of counsel the matter has been settled by controlling precedent, submit to court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.

ITEM 31. <u>Business and Other Connections of the Investment Adviser</u>.

See the Prospectuses section entitled "Management of the Fund–Adviser" and the Statement of Additional Information section entitled "Investment Adviser" for the activities and affiliations of the officers and directors of the investment advisers of the Registrant (the "Advisers"). Except as so provided, to the knowledge of Registrant, none of the directors or executive officers of the Advisers is or has been at any time during the past two fiscal years engaged in any other business, profession, vocation or employment of a substantial nature. The Advisers currently serve as investment advisers to other institutional and individual clients.

ITEM 32. <u>Principal Underwriter</u>.

(a) Paralel
 Distributors LLC acts as the distributor to four series of the Trust (Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac
 Tactical Opportunities Fund, Potomac Tactical Rotation Fund).

As of the date of this Registration Statement, in addition to four series of the Trust, Paralel Distributors LLC also acts as the underwriter for:

Elevation Series Trust, Collaborative Investment Series Trust (7 series); Reaves Utility Income Fund (ATM Offering); Coller Secondaries Private Equity Opportunities Fund; CollerPrivate Credit Secondaries Fund; HarbourVest Private Investments Fund; Octagon XAI CLO Income Fund, XAI Octagon Floating Rate & Alternative Income Trust (ATM Offering), Shelton Equity Premium Income ETF, Wisdom Short Duration Income Fund & Wisdom Short Term Government Fund.

(b) To
 the best of Registrant's knowledge, the directors and executive officers of the distributor are as follows:

**Paralel Distributors LLC**

---

| | | |
|:---|:---|:---|
| **Name\*** | **Position with Underwriter** | **Positions with Trust** |
| Bradley Swenson | President, Chief Compliance Officer and FINOP | None |
| Jeremy May | Chief Executive Officer | None |
| Christopher Moore | General Counsel | None |

---

\*Except as otherwise noted, the principal business address for each of the above directors and executive officers is 1700 Broadway, Suite 1850, Denver, CO 80290.

(c) Not
 applicable.

ITEM 33. <u>Location of Accounts and Records</u>.

All accounts, books and documents required to be maintained by the Registrant pursuant to Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 through 31a-3 thereunder are maintained at the office of the Registrant at 1939 Friendship Drive, Suite C, El Cajon, California 92020, the Transfer Agents at 8000 Town Centre Drive, Suite 400, Broadview Heights, Ohio 44147 and 1700 Broadway, Suite 1850, Denver, CO 80290 except that all records relating to the activities of the Fund's Custodian are maintained at the office of the Custodians, Huntington National Bank, 41 South High Street, Columbus, OH 43287 and State Street Bank and Trust, One Congress Street, Suite 1, Boston, MA 02114. Certain books and records relating to the Trust's series portfolios are maintained at the offices of the advisers to the Trust's series portfolios:

(a) Value Trend Capital Management, LP, located at 1939 Friendship Drive, Suite C, El Cajon, California, keeps records relating to its function as the investment adviser to the Wireless Fund.

(b) Castle Investment Management, LLC, located at 277 S. Washington Street, Suite 210, Alexandria, VA 22314, keeps records relating to its function as the investment adviser to the Castle Tandem Fund.

(c) Bretton Capital Management, LLC, located at 535 Mission Street 14th Floor, San Francisco, CA 94105, keeps records relating to its function as the adviser to the Bretton Fund.

(d) Taylor Frigon Capital Management LLC located at 18835 N Thompson Peak Pkwy C-200, Scottsdale, AZ 85255, keeps records relating to its function as the investment adviser to the Taylor Frigon Core Growth Fund.

(e) Cargile Investment Management, Inc. located at 415 West Wall Street, Suite 2200, Midland, Texas 79701, keeps records relating to its function as the investment adviser to the Cargile Fund.

(f) Tandem Investment Advisors, Inc. located at 145 King Street, Suite 400, Charleston, South Carolina 29401, keeps records relating to its function as the sub-adviser to the Castle Tandem Fund.

(g) Alpha Fiduciary, Inc. located at 20645 N Pima Rd Suite N-225, Scottsdale, AZ 85255, keeps records relating to its function as the adviser to the Alpha Fiduciary Quantitative Strategy Fund.

(h) Potomac Fund Management, Inc. located at 7373 Wisconsin Ave., Suite #750, Bethesda, MD 20814, keeps records relating to its function as the adviser to the Potomac Funds.

ITEM 34. <u>Management Services</u>.

Not Applicable.

ITEM 35. <u>Undertakings</u>.

Not Applicable.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Post-Effective Amendment No. 264 pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of El Cajon, State of California, on the 28<sup>th</sup> day of October, 2025.

PFS Funds

By: <u>/s/ James D. Craft</u> 

James D. Craft, President

Pursuant to the requirements of the Securities Act of 1933, as amended, this Post-Effective Amendment No. 264 to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated below.

---

| | | |
|:---|:---|:---|
| **<u>Signature</u>**<br>| **<u>Title</u>** | **<u>Date</u>** |
| <u>/s/ James D. Craft</u><br> James D. Craft<br>| President of the Funds<br>| October 28, 2025<br>|
| <u>/s/ Jeffrey R. Provence</u> <br> Jeffrey R. Provence<br>| Secretary, Treasurer / Principal Financial Officer,<br> and Trustee of the Funds<br>| October 28, 2025<br>|
| <u>/s/ Thomas H. Addis III\*</u><br> Thomas H. Addis III<br>| Trustee of the Funds<br>| October 28, 2025<br>|
| <u>/s/ Robert L. Boerner\*</u><br> Robert L. Boerner<br>| Trustee of the Funds<br>| October 28, 2025<br>|
| <u>/s/ John W. Czechowicz\*</u><br> John W. Czechowicz<br>| Trustee of the Funds<br>| October 28, 2025<br>|

---

\* By: <u>/s/ Jeffrey R. Provence</u> 

&nbsp;&nbsp;&nbsp;&nbsp;Jeffrey R. Provence, Secretary, Treasurer and Attorney-In-Fact

Date: October 28, 2025

PFS FUNDS

PART C - EXHIBIT LIST FOR POST-EFFECTIVE AMENDMENT NO. 264

AS FILED ON OCTOBER 28, 2025

EXHIBIT INDEX

ITEM 28

(e)(4) [Distribution Agreement with Paralel Distributors LLC.](exe4pfsparaleldist.htm)

(g)(4) [Custodian Agreement with PFS Funds and State Street Bank and Trust Company.](exg4pfscustss.htm)

(h)(10) [Transfer Agency and Services Agreement with PFS Funds and Paralel Technologies LLC](exh10pfsparalelta.htm).

(h)(11) [Trust Accounting Agreement with PFS Funds and Paralel Technologies LLC.](exh11pfsparalelacounting.htm)

(i)(14) [Legal Consent with respect to the Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, and Potomac Tactical Opportunities Fund.](exi14legalconsent.htm)

(j)(7) [Consent of Cohen & Company, Ltd. with respect to the Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, and Potomac Tactical Opportunities Fund.](exj7cohenconsent.htm)

## Ex-99.E

**DISTRIBUTION AGREEMENT**

This Distribution Agreement (the "Agreement") is made effective this October 27, 2025, by and between PFS Funds, a Massachusetts business trust (the "Trust"), on behalf of its Funds (defined below), and Paralel Distributors LLC, a Delaware limited liability company (the "Distributor").

WHEREAS, the Trust is a registered open-end management investment company organized under the Investment Company Act of 1940, as amended (the "1940 Act") with multiple separate and distinct series registered with the United States Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "1933 Act"),

WHEREAS, the Distributor is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934, as amended (the "1934 Act"), and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA").

WHEREAS, the Trust desires to retain the Distributor to act as the principal underwriter of certain of the Trust's series listed in Exhibit A (each a "Fund" or collectively, the "Funds").

WHEREAS, the Distributor desires to provide the services described herein to the Trust subject to the terms and conditions set forth below.

NOW THEREFORE, in consideration of the mutual promises and undertakings herein contained, the parties agree as follows:

**1.&nbsp;&nbsp;&nbsp;&nbsp; Appointment**. The Trust hereby appoints the Distributor to serve as the principal underwriter of each Fund as listed in Exhibit A hereto (as may be amended by the Trust from time to time on written notice to the Distributor and agreed to by the Distributor) on the terms and for the period set forth in this Agreement and subject to the registration requirements of the federal securities laws and of the laws governing the sale of securities in the various states, and the Distributor hereby accepts such appointment and agrees to act in such capacity hereunder.

**2.&nbsp;&nbsp;&nbsp;&nbsp; Definitions**. Wherever they are used herein, the following terms have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; "Prospectus" means the Prospectus and Statement of Additional Information constituting parts of the Registration Statement of the Trust under the 1933 Act and the 1940 Act as such Prospectus and Statement of Additional Information may be amended or supplemented and filed with the SEC from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; "Registration Statement" means the registration statement most recently filed from time to time by the Trust with the SEC and effective under the 1933 Act and the 1940 Act, as such registration statement is amended by any amendments thereto at the time in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; All other capitalized terms used but not defined in this Agreement shall have the meanings ascribed to such terms in the Registration Statement and the Prospectus.

**3.&nbsp;&nbsp;&nbsp;&nbsp; Duties of the Distributor and Related Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor agrees to act as agent of the Trust for distribution of the Shares of the Funds, upon the terms and at the current offering price (plus sales charge, if any) described in the Prospectus. As used in this Agreement, the term "Prospectus" shall mean each current prospectus, including the statement of additional

information, as amended or supplemented, relating to any of the Funds and included in the currently effective Registration Statement(s) of the Trust under the Securities Act of 1933 (the "1933 Act") and the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the continuous public offering of Shares of the Funds, the Distributor shall use commercially reasonable efforts to distribute the Shares. All orders for Shares shall be made through financial intermediaries or directly to the applicable Fund or its designated agent. Such purchase orders shall be deemed effective at the time and in the manner set forth in the Prospectus. The Trust or its designated agent will confirm orders and subscriptions upon receipt, will make appropriate book entries and, upon receipt of payment therefor, will issue the appropriate number of Shares in uncertificated form. The Distributor shall not be obligated to sell any certain number of Shares. The Trust agrees to redeem or repurchase Shares tendered by shareholders of the Funds in accordance with the Trust's obligations in the Prospectus and the Registration Statement. The Trust reserves the right to suspend such repurchase right upon written notice to the Distributor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor shall maintain membership with the NSCC and any other similar successor organization to sponsor a participant number for the Funds so as to enable the Shares to be traded through FundSERV. The Distributor shall not be responsible for any operational matters associated with FundSERV or Networking transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor acknowledges and agrees that it is not authorized to provide any information or make any representations regarding the Funds other than as contained in the Prospectus and any sales literature and advertising materials specifically approved by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributor shall review and approve, prior to use, all Trust marketing materials ("Marketing Materials") for compliance with SEC and FINRA advertising rules and will file all Marketing Materials required to filed with FINRA. The Distributor agrees to furnish to a Fund's investment adviser any comments provided by FINRA with respect to such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor may, in its discretion, and shall, at the request of the Fund enter into agreements with such qualified broker-dealers and other financial intermediaries as it may select (the "Financial Intermediaries"), in order that such Financial Intermediaries may sell Shares of the Fund. The form of any selling agreement to be used with such Financial Intermediaries shall be approved by the Trust and Distributor. The Distributor shall not be obligated to make any payments to the Financial Intermediaries or other third parties, unless (i) the Distributor has received an authorized payment from the Fund and (ii) such payment has been approved by the Board (which authorization may be a general authorization). A Fund's investment adviser (a "Investment Adviser") may provide all or a portion of such payments to the Distributor, as mutually agreed, for onward payment to the Financial Intermediaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor shall monitor amounts paid under Rule 12b-1 plans and pursuant to sales loads to ensure compliance with applicable FINRA rules. The Distributor shall administer Rule 12b-1 payments to payees, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor shall prepare reports for the Board regarding its activities under this Agreement, including reports regarding the use of any 12b-1 payments received by the Distributor, as shall be reasonably requested by the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor agrees to maintain and preserve for the periods prescribed by Rule 31a-2 under the 1940 Act, such records as are required to be maintained by Rule 31a-1(d) under the 1940 Act. The Distributor agrees that all records which it maintains pursuant to the 1940 Act for the Trust shall at all times remain the property of

the Trust, shall be readily accessible during normal business hours, and shall be promptly surrendered upon the termination of the Agreement or otherwise on written request; provided, however, that Distributor may retain all such records required to be maintained by Distributor pursuant to applicable FINRA or SEC rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Distributor agrees to maintain compliance policies and procedures (a "Compliance Program") that are reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the 1940 Act) with respect to the Distributor's services under this Agreement, and to provide any and all information with respect to the Compliance Program, including without limitation, information and certifications with respect to material violations of the Compliance Program and any material deficiencies or changes therein, as may be reasonably requested by the Trust's Chief Compliance Officer or Board of Trustees.

**4. &nbsp;&nbsp;&nbsp;&nbsp; Duties of the Trust.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust shall take, or cause to be taken, all necessary action to register the Shares under the federal and all applicable state securities laws and to maintain an effective Registration Statement for such Shares in order to permit the sale of Shares as herein contemplated. The Trust, on behalf of each Fund, authorizes the Distributor to use the Prospectus, in the forms furnished to the Distributor from time to time, in connection with the sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust agrees to advise the Distributor promptly in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of
 any material correspondence or other communication by the SEC or its staff relating to the
 Trust or a Fund, including requests by the SEC for amendments to a Registration Statement
 or Prospectus (not including routine comments on post-effective amendments to the Registration
 Statement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the event of the issuance by the SEC of any stop-order suspending the effectiveness of the
 Registration Statement then in effect or the initiation of any proceeding for that purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of
 the happening of any event, of which the Trust is aware or reasonably should be aware, which
 makes untrue any statement of a material fact made in the Prospectus or which requires the
 making of a change in such Prospectus in order to make the statements therein not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of
 all actions taken by the SEC with respect to any amendments to any Registration Statement
 or Prospectus which may from time to time be filed with the SEC (not including routine comments
 on post-effective amendments to the Registration Statement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in
 the event that it determines to suspend the sale of Shares at any time in response to conditions
 in the securities markets or otherwise or to suspend the repurchase of Shares of the Fund
 at any time as permitted by the 1940 Act or the rules of the SEC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) of
 the commencement of any litigation or proceedings against the Trust, or a Fund, or any of
 its officers or directors, that the Trust know of, or reasonably should know of, in connection
 with the issue and sale of any of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust shall file such reports and other documents as may be required under applicable federal and state laws and regulations, including state blue sky laws, and shall notify the Distributor in writing of the states in which the Shares may be sold and of any changes to such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust agrees to file from time to time such amendments to each Fund's Registration Statement and Prospectus as may be necessary in order that the Registration Statement and Prospectus will not contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust shall fully cooperate in the efforts of the Distributor to arrange for the distribution of Shares. In addition, the Trust shall provide to the Distributor from time to time copies of all information, financial statements, and other papers that the Distributor may reasonably request for use in connection with the distribution of Shares, including, without limitation, certified copies of any financial statements prepared for the Trust by their independent public accountants and such reasonable number of copies of the most current Prospectus, statement of additional information and annual and interim reports to shareholders as the Distributor may request. The Trust shall forward a copy of the Registration Statement, or amendments thereto, to the Distributor promptly following such filings. The Trust and each Fund (including each Fund's investment adviser) represents that it will not use or authorize the use of any marketing material unless and until such materials have been approved and authorized for use by the Distributor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust shall provide and cause each other agent or service provider to the Funds, including each Fund's transfer agent and investment adviser, to provide, to Distributor in a timely and accurate manner all such information (and in such reasonable medium) that the Distributor may reasonably request that may be necessary for the Distributor to perform its duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust shall inform Distributor of any such jurisdictions in which the Trust, on behalf of its Funds, has filed notice filings for Shares for sale under the securities laws thereof and shall promptly notify the Distributor of any change in this information. The Distributor shall not be liable for damages resulting from the sale of Shares in authorized jurisdictions where the Distributor had no information from the Trust that such sale or sales were unauthorized at the time of such sale or sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust shall not file any amendment to the Registration Statement or Prospectus that materially amends any provision therein which pertains to Distributor or the distribution of the Shares or the applicable sales loads or public offering price without giving Distributor reasonable advance notice thereof; provided, however, that nothing contained in this Agreement shall in any way limit the Trust's right to file at any time such amendments to the Registration Statement or Prospectus, of whatever character, as the Trust may deem advisable, such right being in all respects absolute and unconditional.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trust has adopted reasonably designed policies and procedures pursuant to Title V of the Gramm-Leach-Bliley Act, as may be modified from time to time. In this regard, the Trust (and relevant agents) shall have in place and maintain physical, electronic and procedural safeguards reasonably designed to protect the security, confidentiality and integrity of, and to prevent the unauthorized access to or use of, records and information relating to the Trust, its Funds and the owners of the Shares.

**5.&nbsp;&nbsp;&nbsp;&nbsp; Fees and Expenses.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; In consideration of Distributor's services in connection with the distribution of Shares of the Funds, Distributor shall receive the compensation set forth in Exhibit B. Except as otherwise specified in this Agreement or in any separate agreements agreed to with a Fund's Investment adviser, Distributor shall be entitled to no compensation or reimbursement of expenses for services provided by Distributor pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; The Trust and the Funds shall bear all costs and expenses in connection with registration of the Shares with the SEC and the applicable states, as well as all costs and expenses in connection with the offering of

the Shares and communications with its shareholders, including but not limited to (i) fees and disbursements of its counsel and independent public accountants; (ii) costs and expenses of the preparation, filing, printing and mailing of Registration Statements and Prospectuses and amendments thereto, as well as related marketing material, (iii) costs and expenses of the preparation, printing and mailing of annual and interim reports, proxy materials and other communications to shareholders of the Funds; and (iv) fees required in connection with the offer and sale of Shares in such jurisdictions as shall be selected by the Trust and the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything in this Agreement to the contrary, the Distributor and its affiliates may receive compensation or reimbursement from a Fund's Investment Adviser with respect to any services performed under this Agreement, as may be agreed upon by the parties from time to time.

**6.&nbsp;&nbsp;&nbsp;&nbsp; Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; The Distributor will not be liable for and the Trust, on behalf of each Fund, agrees to indemnify and hold harmless the Distributor, its affiliates and each of their respective directors, officers and employees and agents and any person who controls the Distributor within the meaning of Section 15 of the 1933 Act (any of the Distributor, its officers, employees, agents and directors or such control persons, for purposes of this paragraph, a "Distributor Indemnitee") against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages or expense and reasonable counsel fees incurred in connection therewith) ("Losses") that a Distributor Indemnitee may incur arising out of or based upon: (i) Distributor serving as distributor for the Trust pursuant to this Agreement; (ii) the allegation of any wrongful act of the Trust or any of its directors, officers, employees or affiliates in connection with its duties and responsibilities in this Agreement; (iii) any claim that the Registration Statement, Prospectus, Statement of Additional Information, product description, shareholder reports, Marketing Materials and advertisements specifically approved by the Trust and/or Investment Adviser or other information filed or made public by the Trust (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein (and in the case of the Prospectus, Statement of Additional Information and product description, in light of the circumstances under which they were made) not misleading under the 1933 Act, or any other statute or the common law; (iv) the breach by the Trust of any obligation, representation or warranty contained in this Agreement; or (v) the Trust's failure to comply in any material respect with applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; The Distributor agrees to indemnify and hold harmless the Trust, on behalf of each Fund, and each of its Trustees and officers and any person who controls the Trust within the meaning of Section 15 of the 1933 Act (for purposes of this paragraph, the Trust and each of its Trustees and officers and its controlling persons are collectively referred to as the "Trust Indemnitees") against any Losses arising out of or based upon (i) any willful misfeasance, bad faith or gross negligence of the Distributor or any of its directors, officers, employees or affiliates, taken in connection with its activities as Distributor pursuant to this Agreement; (ii) the Distributor's failure to comply in any material respect with applicable securities laws, including applicable FINRA regulations due to the Distributor's willful misfeasance, bad faith or gross negligence; or (iii) any allegation that the Registration Statement, Prospectus, Statement of Additional Information, product description, shareholder reports, any information or materials relating to the Funds (as described in section 3(g)) or other information filed or made public by the Trust (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements not misleading, insofar as such statement or omission was made in reliance upon, and in conformity with information furnished to the Trust, in writing, by the Distributor.

In no case (i) is the indemnification provided by an indemnifying party to be deemed to protect against any liability the indemnified party would otherwise be subject to by reason of willful misfeasance, bad faith or gross negligence

in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the indemnifying party to be liable under this Section with respect to any claim made against any indemnified party unless the indemnified party notifies the indemnifying party in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the indemnified party (or after the indemnified party shall have received notice of service on any designated agent).

Failure to notify the indemnifying party of any claim shall not relieve the indemnifying party from any liability that it may have to the indemnified party against whom such action is brought on account of this Section, unless failure or delay to so notify the indemnifying party prejudices the indemnifying party's ability to defend against such claim. The indemnifying party shall be entitled to participate at its own expense in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if the indemnifying party elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the indemnified party. In the event that indemnifying party elects to assume the defense of any suit and retain counsel, the indemnified party shall bear the fees and expenses of any additional counsel retained by them. If the indemnifying party does not elect to assume the defense of any suit, it will reimburse the indemnified party for the reasonable fees and expenses of any counsel retained by them. The indemnifying party agrees to notify the indemnified party promptly of the commencement of any litigation or proceedings against it or any of its officers or directors in connection with the purchase or redemption of any Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; No indemnified party shall settle any claim against it for which it intends to seek indemnification from the indemnifying party, under the terms of section 6(a) or 6(b) above, without prior written notice to and consent from the indemnifying party, which consent shall not be unreasonably withheld. No indemnified or indemnifying party shall settle any claim unless the settlement contains a full release of liability with respect to the other party in respect of such action. This section 6 shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; The Trust acknowledges and agrees that as part of its duties, Distributor will enter into agreements with certain Financial Intermediaries (each such agreement, a "Selling Agreement"). The Financial Intermediaries may insert and require that Distributor agree to certain provisions in the Selling Agreements that contain representations, undertakings and indemnification that are not included in the form-of Selling Agreement (each such modified Selling Agreement, a "Non-Standard Selling Agreement") approved by the Trust and Distributor.

To the extent that Distributor agrees to enter into any Non-Standard Selling Agreement, the Trust, on behalf of the Funds, shall indemnify, defend and hold the Distributor Indemnitees free and harmless from and against any and all Losses that any Distributor Indemnitee may incur arising out of or relating to (a) the Distributor's actions or failures to act pursuant to any Non-Standard Selling Agreement; (b) any representations made by the Distributor in any Non-Standard Selling Agreement to the extent that the Distributor is not required to make such representations in the form-of Selling Agreement; and/or (c) any indemnification provided by the Distributor under a Non-Standard Selling Agreement. In no event shall this provision be construed as requiring Distributor be required to enter into any Non-Standard Selling Agreement under this Agreement.

**7.&nbsp;&nbsp;&nbsp;&nbsp; Representations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Distributor represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (i)
 it is duly organized as a Delaware limited liability company and is and at all times will
 remain duly authorized and licensed under applicable law to carry out its services as contemplated
 herein; (ii) the execution, delivery and performance of this Agreement are within its power
 and

have been duly authorized by all necessary action; (iii) its entering into this Agreement or providing the services contemplated hereby does not conflict with or constitute a default or require a consent under or breach of any provision of any agreement or document to which the Distributor is a party or by which it is bound; (iv) it is registered as a broker-dealer under the 1934 Act and is a member of FINRA; and (v) it has in place compliance policies and procedures reasonably designed to prevent violations of the Federal Securities Laws as that term is defined in Rule 38a-1 under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All
 activities by the Distributor and its agents and employees in connection with the services
 provided in this Agreement shall comply with the Registration Statement and Prospectus, the
 instructions of the Trust, and all applicable laws, rules and regulations including, without
 limitation, all rules and regulations made or adopted pursuant to the 1940 Act by the SEC
 or any securities association registered under the 1934 Act, including FINRA and the Listing
 Exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; The Trust represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (i)
 it is duly organized as a Massachusetts business trust and is and at all times will remain
 duly authorized to carry out its obligations as contemplated herein; (ii) it is registered
 as an investment company under the 1940 Act; (iii) the execution, delivery and performance
 of this Agreement are within its power and have been duly authorized by all necessary action;
 (iv) its entering into this Agreement does not conflict with or constitute a default or require
 a consent under or breach of any provision of any agreement or document to which the Trust
 is a party or by which it is bound; (v) the Registration Statement and each Fund's Prospectus
 have been prepared, and all Marketing Materials shall be prepared, in all materials respects,
 in conformity with the 1933 Act, the 1940 Act and the rules and regulations of the SEC (the
 "Rules and Regulations"); and (vi) the Registration Statement and each Fund's
 Prospectus contain, and all Marketing Materials shall contain, all statements required to
 be stated therein in accordance with the 1933 Act, the 1940 Act and the Rules and Regulations;
 (vii) all statements of fact contained therein, or to be contained in all Marketing Materials,
 are or will be true and correct in all material respects at the time indicated or the effective
 date, as the case may be, and none of the Registration Statement, any Fund's Prospectus,
 nor any Marketing Materials shall include any untrue statement of a material fact or omit
 to state a material fact required to be stated therein or necessary to make the statements
 therein, in the case of each Fund's Prospectus in light of the circumstances in which
 made, not misleading; and (viii) except as otherwise noted in the Registration Statement
 and Prospectus, the offering price for all Shares will be the aggregate net asset value of
 the Shares of the relevant Fund, as determined in the manner described in the Registration
 Statement and Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. it
 shall file such amendment or amendments to the Registration Statement and each Fund's
 Prospectus as, in the light of future developments, shall, in the opinion of the Trust's
 counsel, be necessary in order to have the Registration Statement and each Fund's Prospectus
 at all times contain all material facts required to be stated therein or necessary to make
 the statements therein, in light of the circumstances in which made, not misleading. The
 Trust shall not file any amendment to the Registration Statement or each Fund's Prospectus
 without giving the Distributor reasonable notice thereof in advance, provided that nothing
 in this Agreement shall in any way limit the Trust's right to file at any time such
 amendments to the Registration

Statement or any Fund's Prospectus as the Trust may deem advisable. The Trust will also notify the Distributor in the event of any stop order suspending the effectiveness of the Registration Statement. Notwithstanding the foregoing, the Trust shall not be deemed to make any representation or warranty as to any information or statement provided by the Distributor for inclusion in the Registration Statement or any Fund's Prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; The Distributor and the Trust each individually represent that its anti-money laundering program ("AML Program"), at a minimum, (i) designates a compliance officer to administer and oversee the AML Program, (ii) provides ongoing employee training, (iii) includes an independent audit function to test the effectiveness of the AML Program, (iv) establishes internal policies, procedures, and controls that are tailored to its particular business, (v) provides for the filing of all necessary anti-money laundering reports including, but not limited to, currency transaction reports and suspicious activity reports, and (vi) allows for appropriate regulators to examine its anti-money laundering books and records. Notwithstanding the foregoing, the Trust acknowledges that the Authorized Participants are not "customers" for the purposes of 31 CFR 103.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; The Distributor and the Trust each individually represent and warrant that: (i) it has procedures in place reasonably designed to protect the privacy of non-public personal consumer/customer financial information to the extent required by applicable law, rule and regulation; and (ii) it will comply with all of the applicable terms and provisions of the 1934 Act.

**8.&nbsp;&nbsp;&nbsp;&nbsp; Duration, Termination and Amendment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; This Agreement shall be effective on the date set forth above, and unless terminated as provided herein, shall continue for two years from its effective date, and thereafter from year to year, provided such continuance is approved annually (i) by vote of a majority of the Trustees or by the vote of a majority of the outstanding voting securities of the Fund and (ii) by the vote of a majority of those Trustees who are not parties to this Agreement or interested persons of any such party cast in person at a meeting called for the purpose of voting on such approval. This Agreement may be terminated at any time, without the payment of any penalty, as to each Fund (i) by vote of a majority of those Trustees who are not parties to this Agreement or interested persons of any such party or (ii) by vote of a majority of the outstanding voting securities of the Fund, or by the Distributor, on at least sixty (60) days prior written notice. This Agreement shall automatically terminate without the payment of any penalty in the event of its assignment. As used in this paragraph, the terms "vote of a majority of the outstanding voting securities," "assignment," "affiliated person" and "interested person" shall have the respective meanings specified in the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; No provision of this Agreement may be changed, waived, discharged or terminated except by an instrument in writing signed by both parties.

**9.&nbsp;&nbsp;&nbsp;&nbsp; Notice.** Any notice or other communication authorized or required by this Agreement to be given to either party shall be in writing and deemed to have been given when delivered in person or by confirmed, email, or posted by certified mail, return receipt requested, to the following address (or such other address as a party may specify by written notice to the other):

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| (i) **To Paralel:** | (ii) **If to the Trust:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paralel Distributors LLC<br> 1700 Broadway Suite 1850<br> Denver, Colorado 80290<br> Attn: General Counsel<br> Email:legalnotice@paralel.com; <br>| PFS Funds<br> 1939 Friendship Drive, Suite C<br> El Cajon, California 92020<br> Email: |

---

**10.&nbsp;&nbsp;&nbsp;&nbsp; Choice of Law.** This Agreement shall be governed by, and construed in accordance with, the laws of the state of Colorado, without giving effect to the choice of laws provisions thereof. Each party to this Agreement, by its execution hereof (i) irrevocably submits to the nonexclusive jurisdiction of the state courts of the State of Colorado or the United States District Courts for the State of Colorado for the purpose of any action between the parties arising in whole or in part under or in connection with this Agreement, and (ii) waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court.

**11.&nbsp;&nbsp;&nbsp;&nbsp; Counterparts.** This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

**12.&nbsp;&nbsp;&nbsp;&nbsp; Severability.** If any provisions of this Agreement shall be held or made invalid, in whole or in part, then the other provisions of this Agreement shall remain in force. Invalid provisions shall, in accordance with this Agreement's intent and purpose, be amended, to the extent legally possible, in order to effectuate the intended results of such invalid provisions.

**13.&nbsp;&nbsp;&nbsp;&nbsp; Insurance.** The Distributor will maintain at its expense an errors and omissions insurance policy adequate to cover services provided by the Distributor hereunder.

**14.&nbsp;&nbsp;&nbsp;&nbsp; Confidentiality.** During the term of this Agreement, the Distributor and the Trust may have access to confidential information relating to such matters as either party's business, trade secrets, systems, procedures, manuals, products, contracts, personnel, and clients. As used in this Agreement, "Confidential Information" means information belonging to one of the parties that is of value to such party and the disclosure of which could result in a competitive or other disadvantage to such party. Confidential Information includes, without limitation, financial information, proposal and presentations, reports, forecasts, inventions, improvements and other intellectual property; trade secrets; know-how; designs, processes or formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such as possible acquisitions or dispositions of businesses or facilities). Confidential Information includes information developed by either party in the course of engaging in the activities provided for in this Agreement, unless: (i) the information is or becomes publicly known through lawful means; (ii) the information is disclosed to the other party without a confidential restriction by a third party who rightfully possesses the information and did not obtain it, either directly or indirectly, from one of the parties, as the case may be, or any of their respective principals, employees, affiliated persons, or affiliated entities. The parties understand and agree that all Confidential Information shall be kept confidential by the other both during and after the term of this Agreement. Each party shall maintain commercially reasonable information security

policies and procedures for protecting Confidential Information. The parties further agree that they will not, without the prior written approval by the other party, disclose such Confidential Information, or use such Confidential Information in any way, either during the term of this Agreement or at any time thereafter, except as required in the course of this Agreement and as provided by the other party or as required by law. Upon termination of this Agreement for any reason, or as otherwise requested by the Trust, all Confidential Information held by or on behalf of Trust shall be promptly returned to the Trust, or an authorized officer of the Distributor will certify to the Trust in writing that all such Confidential Information has been destroyed. This section 14 shall survive the termination of this Agreement. Notwithstanding the foregoing, a party may disclose the other's Confidential Information if (i) required by law, regulation or legal process or if requested by the SEC or other governmental regulatory agency with jurisdiction over the parties hereto or (ii) requested to do so by the other party.

**15.&nbsp;&nbsp;&nbsp;&nbsp; Liability of Officers, Trustees, and Funds.** This Agreement is executed by or on behalf of the Trust with respect to each of the Funds and the obligations hereunder are not binding upon any of the trustees, officers or shareholders of the Trust individually but are binding only upon the Fund to which such obligations pertain and the assets and property of such Fund. Separate and distinct records are maintained for each Fund and the assets associated with any such Fund are held and accounted for separately from the other assets of the Trust, or any other Fund of the Trust. The debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to a particular Fund of the Trust shall be enforceable against the assets of that Fund only, and not against the assets of the Trust generally or any other Fund, and none of the debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to the Trust generally or any other Fund shall be enforceable against the assets of that Fund.

**16.&nbsp;&nbsp;&nbsp;&nbsp; Use of Names; Publicity.** The Trust shall not use the Distributor's name in any offering material, shareholder report, advertisement or other material relating to the Trust, in a manner not approved by the Distributor in writing prior to such use, such approval not to be unreasonably withheld. The Distributor hereby consents to all uses of its name required by the SEC, any state securities commission, or any federal or state regulatory authority.

The Distributor shall not use the name PFS Funds in any offering material, shareholder report, advertisement or other material relating to the Distributor, other than for the purpose of merely identifying the Trust as a client of Distributor hereunder, in a manner not approved by the Trust in writing prior to such use; provided, however, that the Trust shall consent to all uses of its name required by the SEC, any state securities commission, or any federal or state regulatory authority; and provided, further, that in no case shall such approval be unreasonably withheld.

**17. &nbsp;&nbsp;&nbsp;&nbsp; Exclusivity.** Nothing herein contained shall prevent the Distributor from entering into similar distribution arrangements or from providing the services contemplated hereunder to other investment companies or investment vehicles.

[execution page follows]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their officers designated below as of the date first set forth above.

**PFS FUNDS**

A Massachusetts business trust

By: <u>/s/ Jeffrey R. Provence</u> 

Name: Jeffrey R. Provence

Title: Trustee, Secretary and Treasurer

**PARALEL DISTRIBUTORS LLC**

A Delaware limited liability company

By: <u>/s/ Bradley Swenson</u><u> </u>

Name: Bradley Swenson

Title: President

**EXHIBIT A**

**Applicable Series of the Trust**

&nbsp;&nbsp;&nbsp;&nbsp;1. Potomac
 Managed Volatility Fund

&nbsp;&nbsp;&nbsp;&nbsp;2. Potomac
 Tactical Rotation Fund

&nbsp;&nbsp;&nbsp;&nbsp;3. Potomac
 Tactical Opportunities Fund

&nbsp;&nbsp;&nbsp;&nbsp;4. Potomac
 Defensive Bull Fund

**EXHIBIT B**

<u>Compensation</u>

Notwithstanding anything to the contrary, amounts owed to the Distributor pursuant to the below fee schedule shall only be paid out of the assets and property of the particular Fund involved, if applicable.

<u>SALES CHARGES</u>:

1.&nbsp;&nbsp;&nbsp;&nbsp; With respect to any Class of Shares which imposes an initial sales charge or sales load, or contingent deferred sales load, that part of the sales charges or sales loads which is retained by the Distributor after reallowance of discounts to dealers as set forth, if required, in the Registration Statement, including the Prospectus, filed with the SEC and in effect at the time of the offering, as amended.

2.&nbsp;&nbsp;&nbsp;&nbsp; With respect to Institutional Class or other Class of Shares which does not impose an initial sales charge or sales load, if any, the Distributor shall not be entitled to any compensation with regard to sales charges or sales loads.

3.&nbsp;&nbsp;&nbsp;&nbsp; With respect to any future Class of Shares, the Distributor shall be entitled to such consideration as the Trust and the Distributor shall agree upon at the time such Class of Shares is established.

Such commissions shall not exceed the maximum of the applicable sale amount and shall be paid by the Distributor to the applicable Financial Intermediaries as set forth in the Registration Statement and only after, for so long as and to the extent that the Distributor has received such sales loads from the Fund.

<u>DISTRIBUTION AND SERVICING PLANS</u>:

The Trust has in effect with respect to the Funds Distribution and Shareholder Servicing Plan(s) that are in compliance with Rule 12b-1 under the 1940 Act approved by the Trust, and its Board (the "Distribution and Servicing Plan(s)"). The Trust shall be responsible for all compensation and reimbursements pursuant to this Agreement, or such portions thereof as are authorized under the Distribution and Servicing Plan(s).

The Trust, on behalf of its Funds, will pay to the Distributor a fee under the Distribution and Servicing Plan(s) for the applicable Classes of Shares at an annual rate as set forth in each Fund's Registration Statement, based on the aggregate net assets of a Fund attributable to such class. The Funds will not pay to the Distributor any fee under the Distribution and Servicing Plan(s) for Institutional Class Shares or any Class of Shares which does not impose a fee under the Distribution and Servicing Plan(s). All such compensation and reimbursements shall be paid by the Distributor to the applicable Financial Intermediaries as set forth in the Registration Statement and only after, for so long as and to the extent that the Distributor has received such compensation and reimbursements from the Trust, on behalf of its Funds. Any amounts remaining under the Distribution and Servicing Plan(s) following the payment of compensation to Financial Intermediaries shall be retained by the Distributor.

In addition, the Trust, on behalf of its Funds, may pay to the Distributor the shareholder services fee for each Class at an annual rate as set forth in each Fund's Registration Statement, based on the aggregate net assets of a Fund attributable to such Class, for shareholder servicing expenses under a Fund's Shareholder Services Plan (if applicable) that is payable to the Financial Intermediaries. All such shareholder servicing expenses shall be paid by the Distributor to the applicable Financial Intermediaries for so long as and to the extent that the Distributor has received such compensation and reimbursements from the Trust, on behalf of its Funds. Distributor shall not retain and shall return any shareholder services fee amounts remaining after payment of the shareholder servicing expenses to such financial intermediaries.

## Ex-99.G

**CUSTODY AGREEMENT**

**This Agreement** (the "Agreement") is made as of October 27, 2025 (the "Effective Date") **between**:

**(1)** **PFS FUNDS**, a business trust, incorporated under the laws of Massachusetts (the "Client");
 and

**(2)** **STATE STREET BANK AND TRUST COMPANY**, a bank and trust company organized under the laws of The
 Commonwealth of Massachusetts, U.S.A. (the "Custodian").

1 Definitions and Interpretation

Defined terms and the general rules of interpretation agreed by the Parties are set forth in Schedule 1.

2 Appointment of the Custodian

The Client hereby appoints the Custodian to provide the services set out in Sections 3 through 15 below (the "Services") subject to and in accordance with the terms of this Agreement.

3 Safekeeping Securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Holding Securities.** The Custodian will hold Securities delivered or credited to its account under
 this Agreement directly or through accounts at Subcustodians or CSDs. In turn, Subcustodians
 will hold Securities directly or through accounts at CSDs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **Client Entitlements and Segregation.** The Custodian will take the following steps to reflect
 the Client's ownership of Securities and to separately identify the Securities of the
 Client from the proprietary assets of the Custodian, Subcustodians, and CSDs, in accordance
 with Local Market Practice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.1** **Accounts at the Custodian.** Open and maintain on the records of the Custodian one or more securities
 accounts in the name of the Client or such other name as the Client may reasonably request
 (each, a "Securities Account") and credit Securities to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.2** **Accounts at the Subcustodians or CSDs.** Open and maintain securities accounts at the Subcustodians
 or CSDs in which the Custodian is a direct participant, cause Subcustodians to open and maintain
 securities accounts at CSDs in which the Subcustodian is a participant, and cause Securities
 to be credited to the relevant accounts. Such accounts: (i) may be commingled (or omnibus)
 accounts for Securities of multiple customers of the Custodian (or Subcustodian, in the case
 of accounts opened by the Subcustodian at a CSD) or, in limited markets, segregated (or separate)
 accounts for Securities of the Client; and (ii) must not include any proprietary securities
 of the Custodian, the Subcustodian or the CSD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.3** **Physical Securities.** Physically segregate bearer Securities from the proprietary assets of the
 Custodian, and require that the Subcustodians physically segregate bearer Securities from
 the Subcustodian's and the Custodian's proprietary assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.4** **Registration Names.** Register certificated Securities (other than bearer securities) in the name of
 the Client or in the name of the Custodian, a Subcustodian, a CSD or a nominee of any of
 them, or otherwise in accordance with Local Market Practice and the laws and regulations
 applicable to the Custodian; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.5** **Records of Transactions; Reconciliation.** Maintain records of the Client's transactions in
 the Securities Accounts and reconcile its records of clients' securities holdings against
 the records of its Subcustodians and CSDs in which it is a direct participant in accordance
 with the Custodian's standard procedures and Local Market Practice. Subcustodians will
 likewise maintain records of their client's transactions and reconcile their records
 of the securities holdings of their clients against the records of the CSDs in which they
 are a direct participant in accordance with the Subcustodians' standard procedures and
 Local Market Practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **Securities Interchangeable.** Securities of the Client (whether held in separate or commingled accounts)
 are fungible with all other securities of the same issue held in such accounts by the Custodian
 and its Subcustodians. This means that the Client's redelivery rights in respect of
 the Securities are not in respect of the Securities actually deposited with the Custodian
 or a Subcustodian from time to time, but rather in respect of Securities of the same number,
 class, denomination and issue as those Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4** **Acceptance of Securities.** Except as otherwise agreed in writing with the Client, the Custodian will
 only accept custody of Securities and other assets that it is operationally equipped and
 licensed to hold in the relevant market where it provides custodial services either directly
 or through an existing Subcustodian and may decline to accept custody of certain securities
 or asset types that it determines present an unacceptable risk profile or that it or its
 Subcustodians are not operationally equipped or permitted to hold under any law or regulation.

---

| | |
|:---|:---|
| 4 | Cash |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Cash Accounts.** The Custodian will open and maintain in the name of the Client one or more
 cash deposit accounts (each a "Cash Account") in such currencies as may be required
 in connection with the investment activity of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Location of Cash Deposits.** Cash received for the Client will be deposited with the Custodian,
 or with a Subcustodian, depending on the currency and/or the market. The Custodian will designate
 each currency in a particular market as On Book Cash or Off Book Cash. "On Book Cash"
 means the currency is maintained in a deposit account with, and recorded as a liability on
 the balance sheet of, the Custodian (through any of its branches) and "Off Book Cash"
 means the currency is maintained in a deposit account with, and recorded as a liability on
 the balance sheet of, a Subcustodian (through any of its branches). The Custodian may change
 the designation of a currency as On Book or Off Book from time to time. Clients will find
 the designation of currencies as On Book Cash and Off Book Cash, and any changes to such
 designations, in the Client Publications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Cash Records.** The Custodian will reflect Cash balances held in all On Book and Off Book Client
 deposit accounts on its books and records and report the balances to the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Banking Relationship.** In accepting deposits under this Agreement, the Custodian (for On Book
 Cash) or the relevant Subcustodian (for Off Book Cash) acts as banker and (i) does not hold
 the money deposited on trust or segregated from its proprietary assets and (ii) does not
 collateralize such deposits. Accordingly, the Client is an unsecured creditor of the Custodian
 (for On Book Cash) or the relevant Subcustodian (for Off Book Cash), subject to such rights
 as may arise in an Insolvency Event as determined under the laws of the jurisdiction of the
 Custodian or relevant Subcustodian. With respect to Off Book Cash, the Custodian is only
 responsible for returning the actual amount that the Custodian receives from the Subcustodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Interest and Charges.** Cash Accounts may be interest bearing or non-interest bearing and may be
 subject to charges or fees on the deposit balance or on a per account basis. The Custodian
 or the relevant Subcustodian will determine on a periodic basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5.1** the
 interest rates, if any, (which may be positive, zero or negative) or equivalent charges or
 fees paid or charged to the Client from time to time with respect to a Cash Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5.2** the
 overdraft rates or equivalent charges or fees and the applicable overdraft thresholds (if
 any) that will trigger interest charges from time to time for overdrafts,

in each case, acting in their sole discretion, taking into account market conditions and other relevant commercial considerations. Interest and overdraft rates or other account charges or fees will vary by currency. Details on current rates and deposit account charges are available upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Overdrafts.** The Client must maintain sufficient funds in the Cash Accounts to settle all transactions
 in the applicable currencies in a timely manner. The Custodian or its Subcustodians may,
 but are not required to, extend credit under this Agreement. The Custodian reserves the right
 to decline to process any Proper Instruction or settle any transaction that would result
 in an overdraft of the Cash Account. If an overdraft arises in the Cash Account, the Client
 agrees to repay the principal amount of the overdraft upon demand by the Custodian or within
 five Business Days, whichever is earlier, plus any applicable overdraft fees and interest
 on the principal overdraft.

---

| | |
|:---|:---|
| **5** | **Transaction Settlement** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Settlement**.
 The Custodian will settle all transactions in accordance with Local Market Practice, which
 may not always be on a delivery-versus-payment or receipt-versus-payment basis. Except as
 otherwise provided below regarding Contractual Settlement, the Custodian will credit or debit
 the appropriate Cash Account on an actual settlement or payment basis.

&nbsp;&nbsp;&nbsp;&nbsp;**5.2** **Contractual Settlement.** In order to facilitate transaction settlement, the Custodian may provisionally
 credit settlement, maturity or redemption proceeds, or income, dividends and other distributions,
 on a contractual settlement or predetermined income basis ("Contractual Settlement"),
 for markets, securities and eligible clients as determined and notified by the Custodian
 in the Client Publications. The Custodian can terminate or suspend Contractual Settlement
 for markets, securities or particular clients at any time.

&nbsp;&nbsp;&nbsp;&nbsp;**5.3** **Use of Funds.** Where Contractual Settlement applies, the Custodian will credit or debit the
 appropriate Cash Account on the contractual settlement date or payable date for the relevant
 transaction. This means that (i) the Client will have use of the funds from the

date that a sale was contracted to settle or the payable date, which may be earlier than the date payment actually occurs and (ii) the Custodian will have use of the funds debited from the Cash Account from the date that a purchase was contracted to settle until the date that settlement actually occurs.

&nbsp;&nbsp;&nbsp;&nbsp;**5.4** **Reversal.** The Custodian may reverse any Contractual Settlement credit at any time before actual
 receipt of the cash payment associated with the credit if the Custodian determines, in its
 reasonable judgement, that such payment will not be received within 30 days for that transaction
 or if the Custodian suspends or terminates the provision of Contractual Settlement for those
 Securities in that market. The Custodian will generally notify the Client two Business Days
 before any such reversal.

&nbsp;&nbsp;&nbsp;&nbsp;**5.5** **Secured Liability.** To the extent that the Custodian has not received the cash payment associated
 with a credit, the amount credited remains a Secured Liability under this Agreement.

---

| | |
|:---|:---|
| **6** | **Corporate Actions** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Transmit Information.** The Custodian will promptly transmit or make available to the Client all
 material written information customarily provided by a professional global custodian regarding
 an applicable Corporate Action, or a brief synopsis of that information, affecting Securities
 then being held under this Agreement, where (i) that information is received directly from
 issuers of such Securities or from CSDs or Subcustodians or (ii) that information is publicly
 available in the relevant market from standard vendors routinely used by professional global
 custodians provided that the Custodian can verify the accuracy of such information. The Custodian
 will transmit or make available such Corporate Action data it receives from primary sources
 (issuers, CSDs and Subcustodians) without further review although it will generally note
 if such information is single sourced. The Custodian generally will not transmit or make
 available such Corporate Action data it receives from secondary sources (vendors) unless
 the accuracy of that information can be verified against at least one additional source.

&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Exercise.** The Custodian will process the Client's elections with respect to any voluntary
 Corporate Action at the direction of the Client provided it has actual possession of the
 relevant Securities and it has received Proper Instructions by the deadline specified in
 the Custodian's Corporate Action notification ("Corporate Actions Deadline Date").
 The Custodian will use reasonable efforts to effect Proper Instructions received after that
 deadline but will have no responsibility for any failure to exercise such instructions accurately
 or timely. In the absence of receiving Proper Instructions by the Corporate Actions Deadline
 Date, the Custodian may take the default action specified in the corporate action notification.
 In the event of a mandatory Corporate Action, the Custodian will act without Proper Instructions
 in accordance with Section 22.10.

&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Class Actions.** The Custodian will transmit written information
 received by the Custodian regarding any class action litigation to the extent set out in
 the Client Publications. The Custodian will not support class action participation by the
 Client beyond such forwarding of written information. In no event will the Custodian act
 as a lead plaintiff in a class action.

&nbsp;&nbsp;&nbsp;&nbsp;**6.4** **Fractional Positions.** Fractional positions resulting from Corporate Actions will be dealt with in
 accordance with the Client Publications.

---

| | |
|:---|:---|
| **7** | **Proxy Servicing** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **Transmit Information.** The Custodian will forward to the Client all proxies received by the
 Custodian relating to the Securities then held under this Agreement, for the markets designated
 in the Client Publications, unless otherwise instructed by the Client. The Custodian
 will use an agent to assist in the receipt and distribution of proxies and will share the
 Client's position and contact information to facilitate such collection and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;**7.2** **Voting.** The Custodian provides proxy voting services for the markets designated in the Client
 Publications. The Custodian will cause eligible proxies to be promptly executed by the registered holder
 in accordance with Proper Instructions and delivered to the issuer of the Securities or its
 designated agent. In order for the Custodian to provide the voting services, the Custodian
 must have received such Proper Instructions, must have actual possession of the relevant
 Securities, and all requirements set out in the Client Publications must have been met, including
 where applicable receiving an executed power of attorney, in each case by the deadline specified
 in the Custodian's proxy notification.

---

| | |
|:---|:---|
| **8** | **Income Collection** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Monitoring and Crediting.** The Custodian will use reasonable efforts to monitor and collect on a
 timely basis, in accordance with Local Market Practice, all income and other payments to
 which the Client is entitled in respect of the Securities held under this Agreement and Securities
 on loan through the securities lending program sponsored by the Custodian or its Affiliates.
 The Custodian will credit such amounts to the Cash Account of the Client as received, except
 where Contractual Settlement applies.

&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Repatriation of Income.** The Client is responsible for directing the repatriation of income into the
 base currency of the Portfolio or another currency selected by the Client, and may enter
 into separate arrangements to do so, as set out in Section 13 of this Agreement.

---

| | |
|:---|:---|
| **9** | **Statements and Reports** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Contents.** The Custodian will make available reports to the Client regarding the Portfolio on a
 periodic basis as selected by the Client from certain online tools made available from time
 to time by the Custodian or as otherwise agreed with the Client. The reports will include
 Cash balances, an itemized statement of Securities and Cash and Securities transaction activity.
 Market values contained in these reports are unaudited and based on the Custodian's
 standard pricing vendors and practices. These reports will not include net asset value calculations.

&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Cash and Securities Not Held.** The Custodian may agree to incorporate information in respect
 of cash or securities not held by the Custodian. In making available such information to
 the Client, the Custodian will rely upon the information provided by the Client or a third
 party without any requirement to verify the accuracy of such information. The Custodian will
 not perform any other Services in relation to such cash or securities.

---

| | |
|:---|:---|
| **10** | **Tax Withholding and Tax Relief** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**10.1** **Withholding.** The Custodian will withhold (or cause to be withheld) the amount of any tax which is
 required to be withheld by the Custodian or Subcustodian under the Law applicable to the
 Custodian or Subcustodian based on the Client's domicile and entity

type in respect of any dividend, interest income or other distribution in relation to any Security, and/or the proceeds or income from the sale or other transfer of any Security held by the Custodian. If the Client has not provided the requisite information and documentation, the Custodian is obligated to arrange for maximum withholding. In certain markets, the Client will be required to hire a local tax agent to calculate withholding, as set out in the Client Publications.

&nbsp;&nbsp;&nbsp;&nbsp;**10.2** **Tax Relief.** The Custodian will apply for a reduction of withholding tax and refund of any
 tax paid or tax credits in respect of income payments on Securities based on the Client's
 entitlement under relevant tax treaties or laws which apply in each market that supports
 a standard tax reclaim process, in all cases as may be set out from time to time in the Client
 Publications *.* The Custodian does not facilitate tax reclaims for tax transparent or
 pass-through (i.e., multiple-beneficiary) entities such as partnerships, LLCs, common trusts
 or any other types of entities that are generally ineligible for tax treaty or domestic law
 tax entitlements, even where the partners or beneficial holders of such entities may be eligible.

&nbsp;&nbsp;&nbsp;&nbsp;**10.3** **Documentation.** In order for the Custodian to perform the services in this Section 10, the Client will
 provide the Custodian such information and documentation as may be required from time to
 time by the Custodian for tax purposes, including documentary evidence of its tax domicile,
 and its entity type and details of any special ruling or treatment to which the Client may
 be entitled in relation to countries where the Client engages or proposes to engage in investment
 activity or where Securities are or will be held. The Client is responsible for ensuring
 the documentation and information provided is true and accurate in all material respects
 and will promptly provide the Custodian with all necessary corrections or updates upon becoming
 aware of any changes or inaccuracies in the documentation or information supplied. The provision
 of documentation and information under this Section 10.3 will be taken to be a Proper Instruction
 upon which the Custodian will be entitled to rely for all purposes under this Section 10,
 including calculating withholding and determining available tax relief, without the need
 to undertake any further inquiries or verification.

&nbsp;&nbsp;&nbsp;&nbsp;**10.4** **Client Responsible for Taxes.** The Client will be liable for all taxes, levies or similar obligations
 which arise as a result of the Client's investment activity, including in relation to
 any Cash or Securities held by the Custodian on behalf of the Client, or any related transactions.
 If any taxes become payable in relation to any prior payment made to the Client by the Custodian,
 the Custodian may withhold any credit balance in the Client's Cash Accounts to the extent
 necessary to satisfy such tax obligation. The Client will also remain liable for any tax
 deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;**10.5** **No Tax Advice.** The Client acknowledges that the Custodian is not, and will not be deemed
 to be, providing tax advice or tax counsel.

---

| | |
|:---|:---|
| **11** | **Physical Safekeeping of Investment Documents** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**11.1** **Document Safekeeping.** The Custodian may agree to provide physical safekeeping for Investment Documents
 delivered to it and will return such Investment Documents to the Client upon receipt of Proper
 Instructions, subject to additional documentation and other requirements as the Custodian
 may specify from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;**11.2** **No Other Services.** The Custodian will not otherwise perform any other Services in relation
 to such Investment Documents.

---

| | |
|:---|:---|
| **12** | **Alternative Asset Servicing** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**12.1** **Alternative Assets.** The Custodian may agree to reflect the Client's Alternative Assets on its
 books, records or statements. Unless otherwise agreed in writing, the Custodian will not
 perform any other services or assume any obligations in relation to Alternative Assets. The
 Custodian may, in limited cases, agree to register the Client's interests in Alternative
 Assets in the name of the Custodian, subject to additional documentation and other requirements
 as the Custodian may specify from time to time.

13 Foreign Exchange

&nbsp;&nbsp;&nbsp;&nbsp;**13.1** **Role of Custodian.** The role of the Custodian with respect to foreign exchange transactions
 is limited to facilitating the processing and settlement of such transactions. The Custodian
 does not have any agency, trust or fiduciary obligation to the Client or any other person
 in connection with the execution of any foreign exchange transactions, other than the obligation
 as agent to process the Proper Instructions given by the Client.

&nbsp;&nbsp;&nbsp;&nbsp;**13.2** **Role of Counterparties.** If the Client enters into any foreign exchange transaction with State
 Street Bank and Trust Company, a Subcustodian or any of their Affiliates, the Client does
 so on the basis that these entities are acting as a principal dealer and counterparty, and
 not as fiduciary or agent to the Client, and the execution services are governed by separate
 arrangements (including pricing) and do not form part of the Services provided by the Custodian
 under this Agreement. This applies to foreign exchange transactions entered into by the Client
 directly with the trading desk of these entities or by Proper Instruction to the Custodian
 using the indirect foreign exchange services described in the Client Publications.

14 Subcustodians

&nbsp;&nbsp;&nbsp;&nbsp;**14.1** **Use of Subcustodians.** The Custodian is authorized to utilize Subcustodians in connection
 with its performance of the Services, and will notify the Client of the Subcustodians so
 employed from time to time through the Client Publications.

&nbsp;&nbsp;&nbsp;&nbsp;**14.2** **Selection and Monitoring.** The Custodian will use reasonable skill, care and diligence in the selection,
 monitoring and continued utilization of Subcustodians by taking the following actions: (i)
 annually assess the financial condition of each Subcustodian by reviewing their publicly
 available financial information, (ii) on a daily basis monitoring the performance by each
 Subcustodian' of its duties relative to the Services, and (iii) confirming on an annual
 basis that each Subcustodian is licensed to act as a subcustodian in its relevant market.

&nbsp;&nbsp;&nbsp;&nbsp;**14.3** **Special Subcustodians**. At the request of the Client, the Custodian may agree to appoint one or
 more qualified banks, trust companies or other entities designated by the Client to act as
 a subcustodian (each a "Special Subcustodian") for purposes specified by the Client.
 In connection with the appointment of a Special Subcustodian, the Custodian shall enter into
 a tri-party subcustodian agreement with the Special Subcustodian and the Client in form and
 substance approved the Custodian, provided that such agreement shall comply with Law applicable
 to the Client and shall be consistent with the terms and provisions of this Agreement, to
 the extent practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.** **Provisions Relating to Rule 17f-5** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.1** **Delegation**.
 Each Client, by resolution of its Board, delegates to the Custodian, pursuant to Rule 17f-5(b),
 the obligations to perform as the Client's Foreign Custody Manager and, unless the Custodian
 advises the

Customer that it does not accept such delegation with respect to a country, the Custodian accepts such delegation. The Custodian acting in this capacity shall be referred to as the "Foreign Custody Manager."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.2** **Exercise of Care as Foreign Custody Manager**. The Foreign Custody Manager will exercise such reasonable
 care, prudence and diligence in performing the delegated responsibilities as a person having
 responsibility for the safekeeping of assets of management investment companies registered
 under the 1940 Act would exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.3** **Foreign Custody Arrangements.** The Foreign Custody Manager will perform the delegated responsibilities
 only with respect to Covered Foreign Countries and will provide the Client with a list on
 Schedule A of the Eligible Foreign Custodian(s) it selects to maintain the Client's
 Foreign Assets in each Covered Foreign Country. The Foreign Custody Manager may amend the
 list from time to time in its sole discretion upon notice to the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.4** **Scope of Delegated Responsibilities**. The Foreign Custody Manager, when placing and maintaining
 Foreign Assets in the care of an Eligible Foreign Custodian, will determine that: (i) the
 Foreign Assets will be subject to reasonable care, based on the standards applicable to custodians
 in the country in which the Foreign Assets will be held by the Eligible Foreign Custodian,
 after considering all factors relevant to the safekeeping of such assets, including, without
 limitation the factors specified in Rule 17f-5(c)(1), and (ii) the contract between the Foreign
 Custody Manager and the Eligible Foreign Custodian governing the foreign custody arrangements
 will satisfy the requirements of Rule 17f-5(c)(2). The Foreign Custody Manager will establish
 a system to monitor (a) the appropriateness of maintaining the Foreign Assets with the Eligible
 Foreign Custodian, and (b) the performance of the contract governing the foreign custody
 arrangements. The Foreign Custody Manager will notify the Client if it determines that the
 custody arrangements with an Eligible Foreign Custodian are no longer appropriate and will
 act in accordance with the Client's Proper Instructions with respect to the disposition
 of the affected Foreign Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.5** **Reporting Requirements**. The Foreign Custody Manager will (i) report the withdrawal of Foreign Assets
 from an Eligible Foreign Custodian and the placement of Foreign Assets with another Eligible
 Foreign Custodian by providing to the Client an updated Schedule A at the end of the calendar
 quarter in which the action has occurred, and (ii) after the occurrence of any other material
 change in the foreign custody arrangements of the Client, make a written report available
 to the Client containing a notification of the change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.6** **Representations of Foreign Custody Manager and Client**. The Foreign Custody Manager represents to Client
 that it is a U.S. Bank as defined in Section (a)(7) of Rule 17f-5(a)(7). Client represents
 to the Custodian that its Board has (i) determined that it is reasonable for the Board to
 rely on the Custodian to perform the responsibilities delegated pursuant to this Agreement
 to the Custodian as the Foreign Custody Manager of the Client, and (ii) considered and determined
 to accept the risk described in the first

sentence of Section 19.2 as is incurred by placing and maintaining the Client's Foreign Assets in each Covered Foreign Country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.7.** **Withdrawal of Acceptance of Delegation as Foreign Custody Manager.** Upon reasonable prior written
 notice to the Client, the Foreign Custody Manager may withdraw its acceptance of such delegated
 responsibilities generally or with respect to a specified Covered Foreign Country, and the
 Custodian will have no further responsibility in its capacity as Foreign Custody Manager
 to the Client generally or with respect to the designated Covered Foreign Country, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4.8.** **Settlement Practices.** The Custodian will provide to each Client the information with respect to
 custody and settlement practices in countries in which the Custodian employs an Eligible
 Foreign Custodian described on Schedule C at the time or times set out on the Schedule. The
 Custodian may revise Schedule C from time to time, but no revision will result in a Client
 being provided with substantively less information than had been previously provided on Schedule
 C.

15 Central Securities Depositories

&nbsp;&nbsp;&nbsp;&nbsp;**15.1** **Use of Central Securities Depositories.** The Custodian and its Subcustodians will use CSDs
 in connection with the performance of the Services, and will notify the Client of the CSDs
 so employed from time to time through the Client Publications **.** 

&nbsp;&nbsp;&nbsp;&nbsp;**15.2** **Rules of Central Securities Depositories.** Where the Custodian or its Subcustodians use CSDs,
 the Client acknowledges that they will do so in accordance with the terms and conditions
 of participation or membership in such CSDs and the rules and procedures governing the operation
 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;**15.3** **Provisions Relating to Rule 17f-4**. The Custodian may deposit and maintain securities or other financial
 assets of the Client in a U.S. CSD in compliance with the conditions of Rule 17f-4.

&nbsp;&nbsp;&nbsp;&nbsp;**15.4** **Provisions Relating to Rule 17f-7.** The Custodian will (i) provide the Client or its Investment Manager
 with an analysis of the custody risks associated with maintaining assets with the Eligible
 Securities Depositories set out on Schedule B in accordance with Section (a)(1)(i)(A) of
 Rule 17f-7, (ii) monitor such risks on a continuing basis and promptly notify the Client
 or its Investment Manager of any material change in such risks, in accordance with Section
 (a)(1)(i)(B) of Rule 17f-7, and (iii) exercise reasonable care, prudence and diligence in
 performing the requirements in subsections (i) and (ii) above.

16 Delegation

&nbsp;&nbsp;&nbsp;&nbsp;**16.1** **Use of Delegates.** The Custodian will have the right, without prior notice to or the consent
 of the Client, to employ Delegates to provide or assist it in the provision of any part of
 the Services other than Services required by Law applicable to either Party to be performed
 by a qualified custodian or CSD. Unless otherwise agreed in a fee schedule, the Custodian
 will be responsible for the compensation of its Delegates.

&nbsp;&nbsp;&nbsp;&nbsp;**16.2** **Provision of Information Regarding Delegates.** The Custodian will provide or make available to the
 Client on a quarterly or other periodic basis information regarding its

global operating model for the delivery of the Services, which information will include the identities of Delegates affiliated with the Custodian that perform or may perform any part of the Services, and the locations from which such Delegates perform Services, as well as such other information about its Delegates as the Client may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;**16.3** **Third Parties.** Nothing in this Section limits or restricts the Custodian's right to use
 Affiliates or third parties to perform or discharge, or assist it in the performance or discharge
 of, any obligations or duties under this Agreement other than the provision of the Services.

17 Standard of Care and Liability

&nbsp;&nbsp;&nbsp;&nbsp;**17.1** **Standard of Care.** The Custodian will at all times exercise the reasonable skill, care and diligence
 expected of a professional provider of custody services to institutional investors and act
 in good faith and in accordance with generally applicable industry standards and practices
 in the performance of its duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**17.2** **Liability for Losses.** Subject to the limitations and exclusions of liability in this Agreement,
 the Custodian will be liable for Losses suffered or incurred by the Client to the extent
 such Losses are caused by the negligence, wilful default, or fraud of the Custodian in the
 performance of its obligations under this Agreement. The parties agree that "negligence"
 will mean a breach by the Custodian of its obligation to exercise the standard of care described
 in Section 17.1 above.

&nbsp;&nbsp;&nbsp;&nbsp;**17.3** **Responsibility for Subcustodians.** The Custodian will be liable to the Client for the acts and omissions
 of its Subcustodians as if it had committed such acts and omissions itself; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3.1** compliance
 with the standard of care set out in Section 17.1 will be assessed in accordance with the
 standards and circumstances prevailing at the time of the act or omission in the local market
 or jurisdiction in which the Subcustodian is providing the relevant Services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3.2** the
 Custodian will have no liability for Losses resulting from the insolvency or other financial
 default of a Subcustodian that is not an Affiliate of the Custodian except to the extent
 that such Losses are caused by the failure of the Custodian to exercise reasonable skill,
 care and diligence in the selection, monitoring and continued utilization of the Subcustodian
 as required under Section 14.2.

&nbsp;&nbsp;&nbsp;&nbsp;**17.4** **Responsibility for Special Subcustodians.** Notwithstanding the provisions of Section 17.3 to the contrary,
 the Custodian shall not be liable to the Client for Losses suffered or incurred by the Client
 resulting from the acts or omissions of a Special Subcustodian, except to the extent such
 Losses are caused by the negligence, wilful default or fraud of the Custodian. In the event
 of any such Loss, the Custodian shall use commercially reasonable efforts to enforce such
 rights as it may have against any Special Subcustodian.

&nbsp;&nbsp;&nbsp;&nbsp;**17.5** **Responsibility for Delegates.** The Custodian will be liable to the Client for the acts and omissions
 of its Delegates as if it had committed such acts and omissions itself.

&nbsp;&nbsp;&nbsp;&nbsp;**17.6** **Force Majeure.** Neither Party will be in breach of this Agreement or liable for Losses arising
 by reason of the occurrence of a Force Majeure Event that prevents, hinders or

delays it from or in performing its obligations under this Agreement, except, in the case of the Custodian, to the extent that such Losses are attributable to its breach of its business continuity obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**17.7** **No Liability for Certain Losses.** The Custodian will not be liable to the Client for any
 Losses to the extent they arise from or are caused by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.7.1** the
 Custodian acting upon any (i) Proper Instruction or (ii) if a Proper Instruction is not required
 in a particular circumstance, any other instruction, information, notice, request, consent,
 certificate, instrument or other writing that the Custodian reasonably believes to be genuine
 and to be signed or otherwise given by or on behalf of a person authorized to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.7.2** a
 delay in processing or any failure to process any Proper Instruction to the extent permitted
 under Section 22, subject to the satisfaction of the conditions set out in that Section,
 as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.7.3** the
 failure of the Client or any person authorized by it to comply with the Client's obligations
 under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.7.4** any
 other acts and omissions of the Client, any person authorized by it or any third party, including
 any Third Party Agent, Market Participant, Authorized Data Source, CSD, or Financial Market
 Utility.

&nbsp;&nbsp;&nbsp;&nbsp;**17.8** **Mutual Exclusion of Indirect and Other Loss.** Notwithstanding any other provision of this Agreement,
 neither Party will be liable to the other for: (i) indirect, consequential, speculative,
 punitive or special Loss or (ii) loss of profit, revenue, opportunity, business, anticipated
 savings, goodwill and damage to reputation, or Loss of any similar kind; in each case whether
 or not a Party has been advised of or otherwise could have anticipated the possibility of
 such losses, except to the extent any such losses cannot be excluded or limited as a matter
 of Law applicable to either Party.

---

| | |
|:---|:---|
| **18** | **Error Correction** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**18.1** **Error Correction**. If an error results from an act or omission of the Custodian in performing
 the services under this Agreement, the Custodian may take such remedial action as it considers
 appropriate under the circumstances, which may include effecting corrective transactions
 involving the Client's assets, where and to the extent reasonably necessary to place
 the Client in the position (or its equivalent) it would have been had the error not occurred. 
 The Custodian will be responsible for Losses arising from its errors in accordance with the
 terms of this Agreement and will be entitled to retain gains arising from its errors or related
 remedial actions unless otherwise prohibited by Law. Where an error results in a series
 of related Losses and gains, the Custodian will be entitled to net gains against Losses when
 permitted by Law. The Custodian will have no duty to notify or account to the Client
 for any Loss or gain associated with an error it has fully remediated.

---

| | |
|:---|:---|
| **19** | **Limits on the Scope of the Services** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**19.1** **No Fiduciary or Implied Duties.** The Custodian is responsible only for the duties it has
 expressly undertaken under this Agreement and no other duties will be implied or inferred,
 including any fiduciary duties, except to the extent such fiduciary duties may not be disclaimed
 as a matter of Law.

&nbsp;&nbsp;&nbsp;&nbsp;**19.2** **Investment and Other Risk, Client Compliance Matters.** The Client bears the risk of investing in
 Securities or other assets or holding cash denominated in any currency or holding assets
 in a particular market, including investment risk and risk arising from the political, regulatory,
 legal or financial infrastructure of such market or otherwise arising from Local Market Practice.
 The Custodian is not responsible for monitoring or enforcing compliance by the Client or
 its Investment Manager(s) with any investment or other restriction, guideline or requirement
 imposed by the Client's constituent documents or by contract or Law applicable to the
 Client in connection with investment activity undertaken by or on behalf of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;**19.3** **Data Accuracy.** The Custodian has no responsibility for, or duty to review, verify or otherwise
 perform any investigation as to the completeness, accuracy or sufficiency of, any data or
 information provided by or on behalf of the Client, any persons authorized by the Client,
 any Third Party Agent, any Market Participant or any Authorized Data Sources, except to the
 extent the Custodian has agreed in writing to perform reconciliations, variance or tolerance
 checks or other specific forms of data review under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**19.4** **Title.** The Custodian is not responsible for title or entitlement to, validity or genuineness,
 including good deliverable form, of any asset received by the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;**19.5** **Proceedings.** The Custodian is not responsible for commencing legal or administrative proceedings on
 behalf of the Client or relating to the assets held under this Agreement, including in respect
 of the late payment of income or other payments due to the Client or amounts payable on Securities
 in default if payment is refused after due demand and presentment.

&nbsp;&nbsp;&nbsp;&nbsp;**19.6** **Laws Applicable to the Custodian or Subcustodian.** Laws applicable to the Custodian or a Subcustodian
 may from time to time prohibit or cause delays in the Custodian holding assets, acting on
 Proper Instructions or providing the Services to the Client in the manner contemplated by
 this Agreement. In such cases, the Custodian or Subcustodian will be entitled to comply with
 the Law and, where permitted by such Law, the Parties will seek to resolve the situation
 to the Parties' mutual satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;**19.7** **Securities on Loan.** Asset servicing is not generally performed for securities on loan unless otherwise
 noted in this Agreement or agreed by the Parties in writing. Provision of such services
 with respect to securities on loan may be covered by a separate securities lending or services
 agreement.

20 Indemnity

&nbsp;&nbsp;&nbsp;&nbsp;**20.1** **Indemnity by Client.** Subject to this Section 20 and the exclusions and limitations of liability
 elsewhere in this Agreement, including Section 17.8, the Client will indemnify the Custodian
 against any direct Losses incurred by the Custodian (including Losses incurred by Subcustodians
 or Delegates for which the Custodian is liable) in connection with the performance of its
 duties under this Agreement, including acting on Proper Instructions and Losses incurred
 by virtue of being the holder of record of the Client's Securities, except, in each
 case, to the extent such Losses result from the Custodian's negligence, wilful default
 or fraud (or that of its Subcustodians or Delegates) in the discharge of the Custodian's
 duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**20.2** **Indemnity by Custodian.** Subject to this Section 20 and the exclusions and limitations of liability
 elsewhere in this Agreement, including Section 17.7 and 17.8, the Custodian

will indemnify the Client against any direct Losses incurred by the Client, in each case, to the extent such Losses result from the negligence, wilful default or fraud of the Custodian (or that of its Subcustodians or Delegates) in the discharge of the Custodian's duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**20.3** **Duty to Mitigate.** Each Party will use reasonable efforts to mitigate any Losses in respect
 of which it claims indemnification under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**20.4** **Notice of Claims.** A Party seeking indemnification under this
 Section ("Indemnified Party") against a third-party claim ("Indemnified Claim")
 will promptly provide written notice of such claim to the Party obligated to indemnify ("Indemnifying
 Party"). The failure to notify the Indemnifying Party will not relieve such Party of
 any liability under this Section, except to the extent that such failure materially prejudices
 the investigation and/or defense of the Indemnified Claim.

&nbsp;&nbsp;&nbsp;&nbsp;**20.5** **Right to Control Third Party Claims.** The Indemnifying Party will, at its own expense, be entitled
 but not obligated to control and direct the investigation and defense of any Indemnified
 Claim, except where the Custodian is the Indemnified Party and is seeking indemnification
 from multiple customers for claims based on common facts or otherwise related to the Indemnified
 Claim, in which case the Custodian will have the right to control and direct the investigation
 and defense of such claim, at the expense of (i) the Indemnifying Party or (ii) all of the
 customers from which indemnification is sought, including the Indemnifying Party, pro rata,
 as appropriate. Where the Indemnifying Party controls and directs the investigation of the
 defence of the Indemnified Claim, the Indemnified Party may retain separate counsel at its
 own expense. If a conflict of interest exists between the Parties with respect to the defense
 of such claim, the reasonable cost of separate counsel will be an indemnified expense.

&nbsp;&nbsp;&nbsp;&nbsp;**20.6** **Settlement of Claims.** Neither Party may settle an Indemnified Claim without the consent of the
 other Party, which consent will not be unreasonably withheld, conditioned or delayed, provided
 that the Indemnifying Party will have the right to settle an Indemnified Claim without the
 consent of the Indemnified Party if such settlement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.6.1** involves
 only the payment of money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.6.2** fully
 and unconditionally releases the Indemnified Party from any liability in exchange for the
 amount paid in settlement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.6.3** does
 not include any admission of fault or liability in relation to the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;**20.7** **Cooperation.** In all cases, each Party will, as applicable, provide reasonable cooperation and assistance
 to the other Party and keep the other Party apprised as to the status of the Indemnified
 Claim, including any discussions relating to the settlement of the claim and the details
 of any settlement offer.

21 Obligations of the Client

&nbsp;&nbsp;&nbsp;&nbsp;**21.1** **Provide Information.** The Client will provide or cause to be provided to the Custodian all data,
 information, documents and instructions concerning the Client and the investment activity
 of the Client in relation to the Portfolio as may be reasonably necessary or as the Custodian
 may reasonably request, in each case in a complete, accurate and timely manner, in order
 to enable the Custodian to discharge its duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**21.2** **AML Compliance.** The Client will comply with all applicable anti-money laundering, sanctions
 or other financial crime legislation applicable to it and will provide the Custodian with
 all necessary sanctions questionnaires, declarations and other documentation in order for
 the Custodian to comply with its anti-money laundering policy.

&nbsp;&nbsp;&nbsp;&nbsp;**21.3** **Pass Through Representations.** To the extent that the Custodian is required to give (or is
 deemed to have given) any representation, warranty or undertaking to a third party relating
 to the Client in accordance with normal market practice in connection with the execution
 of transaction documents or the issuance or transmission of trade notifications, confirmations
 and/or settlement instructions, whether using facsimile transmission, industry messaging
 or matching utilities and/or the proprietary software of Third Party Agents and Market Participants,
 CSDs or other Financial Market Utilities, the Client will be deemed to have made such representation,
 warranty or undertaking to the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;**21.4** **Operational Requirements.** The Client will adhere to the deadlines and other operational requirements
 set out in the Client Publications, to facilitate meeting the requirements of CSD's,
 Third Party Agents and Market Participants.

&nbsp;&nbsp;&nbsp;&nbsp;**21.5** **Client Review and Notification.** In accordance with standard market practice, the Client will
 employ commercially reasonable review and control measures with respect to information provided
 by the Custodian under this Agreement and give the Custodian prompt written notice of any
 suspected error or omission or the Client's inability to access any such Information
 so as to prevent, stem or mitigate any Losses that may arise from the use of inaccurate data
 or the inaccessibility of data.

&nbsp;&nbsp;&nbsp;&nbsp;**21.6** **Fees.** In consideration for the Services provided by the Custodian, the Client will pay the
 Fees as agreed in a written fee schedule or otherwise agreed in writing by the Parties from
 time to time. The Fees and any other amounts payable under this Agreement are stated exclusive
 of any sales, use, excise, value-added, services, consumption, withholding or other similar
 tax that is assessed on the supply of the Services under an agreement. Any such tax will
 be payable by the Client.

&nbsp;&nbsp;&nbsp;&nbsp;**21.7** **Client Publications.** The Client will ensure that it provides the Custodian with and regularly
 updates, as necessary, e-mail and other contact details for its representatives to enable
 timely distribution and receipt of the Client Publications.

---

| | |
|:---|:---|
| 22 | Proper Instructions |

---

&nbsp;&nbsp;&nbsp;&nbsp;**22.1** **Dealings in Cash and Securities.** The Custodian will effect all transactions and dealings in Cash
 and Securities under this Agreement in accordance with Proper Instructions, subject to any
 other rights it may have under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**22.2** **Appointment of Authorized Persons.** The Client and each Investment Manager will provide the Custodian
 with a list of the names and (if applicable) signatures, of Authorized Persons in a form
 agreed by the parties from time to time. The Custodian may rely upon the authority of each
 Authorized Person until it receives written notice to the contrary from the Client and has
 had a reasonable time to act on such notice.

&nbsp;&nbsp;&nbsp;&nbsp;**22.3** **Authentication Procedures.** The Custodian will implement Authentication Procedures. The Client acknowledges
 that the Authentication Procedures are intended to provide a commercially reasonable degree
 of protection against unauthorized transactions of

certain types and are not designed to detect errors. Any purported Proper Instruction received by the Custodian in accordance with an Authentication Procedure will be taken to have originated from an Authorized Person and will constitute a Proper Instruction under this Agreement for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;**22.4** **Security Measures by Client.** The Client is responsible for ensuring that appropriate security
 measures are implemented to prevent unauthorized disclosure or use of any Authentication
 Procedure made available to it or an Investment Manager in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**22.5** **No Duty to Verify.** Except to the extent the Custodian is required to comply with Authentication
 Procedures under Section 22.3 above, the Custodian has no duty to verify that personnel of
 the Client or any Investment Manager engaged in investment activity are authorized to do
 so or that any instructions received by the Custodian are duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;**22.6** **Decline/Delay in Processing.** The Custodian reserves the right to decline to process or delay the processing
 of any purported Proper Instruction where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.6.1** the
 Custodian, in good faith, determines that the instruction may not have been properly authorized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.6.2** the
 instruction is inaccurate, incomplete or unclear;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.6.3** the
 instruction conflicts with the terms of this Agreement or any Law applicable to either Party,
 Local Market Practice or the Custodian's standard operating procedures; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.6.4** the
 Custodian has not been given a reasonable time period to effect the instruction.

In these circumstances, the Custodian will promptly seek authentication, clarification, correction or amendment of any Proper Instruction, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;**22.7** **Cancellation and Amendment**. The Custodian will use reasonable efforts to act on Proper Instructions
 to cancel or amend previously issued Proper Instructions if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.7.1** the
 Custodian has not already acted on the previously issued Proper Instructions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.7.2** the
 Proper Instruction to cancel or amend is received before the applicable deadlines specified
 from time to time in the Client Publications or applicable event notification.

The Custodian is not responsible or liable if the request to cancel or amend cannot be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;**22.8** **Oral Instructions.** If applicable, the Custodian may act on an oral instruction (given in accordance
 with an agreed Authentication Procedure) before receipt of any written confirmation and irrespective
 of whether any subsequent written confirmation conforms to the oral instruction.

&nbsp;&nbsp;&nbsp;&nbsp;**22.9** **Conflicting Claims.** If there is a dispute or conflicting claim with respect to Securities or Cash
 held by the Custodian under this Agreement, the Custodian is entitled to refuse to act on
 a Proper Instruction of the Client or any Investment Manager in relation to the particular
 Securities or Cash until either (i) the dispute or conflicting claims have been finally determined
 by a court of competent jurisdiction or settled by agreement between

the conflicting parties, and the Custodian has received written evidence satisfactory to it of such determination or agreement, or (ii) the Custodian has received an indemnity, security or both, satisfactory to it and sufficient to hold it harmless from and against any and all Losses which the Custodian may incur as a result of its actions.

&nbsp;&nbsp;&nbsp;&nbsp;**22.10** **Matters Not Requiring Proper Instructions.** The Client authorises the Custodian in the absence
 of Proper Instructions to attend to all matters which may be necessary or appropriate to
 discharge its duties and give effect to the terms of this Agreement, including the execution,
 in the Client's name or on its behalf, of any affidavits, certificates of ownership
 and other certificates and documents relating to Securities.

---

| | |
|:---|:---|
| **23** | **Creditors Rights** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**23.1** **Security.** To secure the full and timely satisfaction of all Secured Liabilities, the Client hereby
 grants to the Custodian a security interest in and a right of retention, sale and set off,
 as applicable, against (i) all of the Client's Cash, Securities, and other assets, whether
 now existing or hereafter acquired, in the possession or under the control of the Custodian
 or its Subcustodians pursuant to this Agreement and (ii) any and all cash proceeds of any
 of the above (collectively, the "Collateral").

&nbsp;&nbsp;&nbsp;&nbsp;**23.2** **Rights of the Custodian**. In the event that the Client fails to satisfy in full any of the Secured
 Liabilities as and when due and payable, the Custodian will have, in addition to all other
 rights and remedies arising under this Agreement or under applicable Law, the rights and
 remedies of a secured party under applicable Law. Without prejudice to the Custodian's
 other rights and remedies, the Custodian will be entitled, in each case as and to the extent
 reasonably necessary to satisfy in full the Secured Liabilities and any related transaction
 expenses, to (a) exercise its right of retention and withhold delivery of any Collateral
 and otherwise refuse to act on any Proper Instruction relating to such Collateral, (b) sell
 or otherwise realize any Collateral, and (c) set off the net proceeds of such sale or realization
 of Collateral and/or the amount of any deposit balances standing to the credit of the Client
 in any Cash Account(s) against such Secured Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;**23.3** **Exercise of Rights**. The Custodian may exercise its rights and remedies against the Collateral
 in any manner (including by any method, at any time or place, and on any terms) as it deems,
 in good faith, to be commercially reasonable under the circumstances, and will use reasonable
 efforts to effect any sale of Collateral at the prevailing market price in the relevant market.
 Without limiting the foregoing, the Client acknowledges that it will be commercially reasonable
 for the Custodian to, among other things: (i) accelerate or cause the acceleration of the
 maturity of any fixed term deposits comprised in the Collateral and (ii) effect any necessary
 currency conversions through its own trading desk at such exchange rates as it determines
 in its reasonable discretion, which rates may include a mark-up from the rates the Custodian
 receives on the interbank market.

&nbsp;&nbsp;&nbsp;&nbsp;**23.4** **Notice.** The Custodian will use reasonable efforts to give the Client prior notice of any exercise
 of the right to sell or otherwise realize Collateral set forth above, provided that the Custodian
 will not be obligated to give prior notice to the Client or delay exercising its rights pending
 or after the provision of such notice if, in its reasonable judgment, giving such notice
 or any such delay would prejudice its ability to obtain satisfaction in full of the Secured
 Liabilities.

24 Confidentiality and Use of Data

&nbsp;&nbsp;&nbsp;&nbsp;**24.1** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.1.1 No Disclosure Without Consent.** Subject to Section 24.2 and Section 24.3, Confidential Information will not be disclosed by the Receiving Party to any third party without the prior consent of the Disclosing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.1.2** **No limitations of obligations under Agreement or at Law.** Except as expressly contemplated
 by this Agreement, nothing in this Section 24 will limit the confidentiality and data-protection
 obligations of the Custodian and its Affiliates under this Agreement and Law applicable to
 the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.2** **Use of Confidential Information and Data** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.2.1** **Use of Confidential Information and Data generally.** Subject to this Section 24.2 and Section
 24.3, all Confidential Information, including Data, will be used by the Receiving Party for
 the purpose of providing or receiving services, as applicable, pursuant to this Agreement
 or otherwise discharging its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.2.2** **Use of Data for Indicators.** The Custodian and its Affiliates may use Data to develop, publish
 or otherwise distribute to third parties certain investor behavior "indicators"
 or "indices" that represent broad trends in the flow of investment funds into various
 markets, sectors or investment instruments (collectively, the "Indicators"), but
 only so long as (i) the Data is combined or aggregated with (A) information relating to other
 customers of the Custodian and/or (B) information derived from other sources, in each case
 such that the Indicators do not allow for attribution to or identification of such Data with
 the Client, (ii) the Data represents less than a statistically meaningful portion of all
 of the data used to create the Indicators and (iii) the Custodian publishes or otherwise
 distributes to third parties only the Indicators and under no circumstance publishes, makes
 available, distributes or otherwise discloses any of the Data to any third party, whether
 aggregated, anonymized or otherwise, except as expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.2.3** **Economic benefit from Indicators.** The Client acknowledges that the Custodian may seek and realize
 economic benefit from the publication or distribution of the Indicators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3** **Disclosure of Confidential Information and Data** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.1** **Disclosure of Confidential Information to Representatives.** The Receiving Party may disclose the
 Disclosing Party's Confidential Information without the Disclosing Party's consent to
 its attorneys, accountants, auditors, consultants and other similar advisors that have a
 reasonable need to know such Confidential Information ("Representatives"), provided
 such Confidential Information is disclosed under obligations of confidentiality that prohibit
 the disclosure or use of such Confidential Information by the Representatives for any purpose
 other than the specific engagement with the Receiving Party for which the Representative
 has been retained and that are otherwise no less restrictive than the confidentiality obligations
 contained in this Agreement. The Parties acknowledge that use of Confidential Information
 by a Representative to represent its other clients in dealing with the Disclosing

Party would constitute a breach of this Section 24.3. Where the Custodian is the Receiving Party, "Representatives" will include its Affiliates and Service Providers (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.2** **Disclosure and Use of Confidential Information by Custodian.** The Custodian may disclose and permit
 use (as applicable) of Confidential Information of the Client without the Client's consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.2.1** to
 its Affiliates and any of its third-party agents and service providers ("Service Providers")
 in connection with the provision of services, the discharge of its obligations under this
 Agreement or the carrying out of any Proper Instruction, including in accordance with the
 standard practices or requirements of any Financial Market Utility or in connection with
 the settlement, holding or administration of Cash, Securities or other instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.2.2** to
 its Affiliates in connection with the management of the businesses of the Custodian and its
 Affiliates, including, but not limited to, financial and operational management and reporting,
 risk management, legal and regulatory compliance and client service management and marketing.

Where possible, such Confidential Information must be disclosed under obligations of confidentiality or in a manner consistent with industry practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.3** **Confidential Information and Cloud Computing and Storage.** Each Party may store Confidential Information
 with third-party providers of information technology services, and permit access to Confidential
 Information by such providers as reasonably necessary for the receipt of cloud computing
 and storage services and related hardware and software maintenance and support. Such Confidential
 Information must be disclosed under obligations of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.4** **Disclosure of Confidential Information to comply with law.** The Receiving Party may disclose the
 Disclosing Party's Confidential Information to the extent such disclosure is required to
 satisfy any legal requirement (including in response to court-issued orders, investigative
 demands, subpoenas or similar processes or to satisfy the requirements of any applicable
 regulatory authority).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.5** **Harm of Unauthorized Disclosure of Confidential Information.** Each Party acknowledges that
 the disclosure to any non-authorized third party of Confidential Information or the use of
 Confidential Information in breach of this Agreement, may immediately give rise to continuing
 irreparable injury inadequately compensable in damages at law, and in such cases the Receiving
 Party agrees to waive any defense that an adequate remedy at law is available if the Disclosing
 Party seeks to obtain injunctive relief against any such breach or any threatened breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.6** **Responsibility for Representatives.** Each Party will be responsible for any use or disclosure of Confidential
 Information of the Disclosing Party in breach of this Agreement by its Representatives as
 though such Party had used or disclosed such Confidential Information itself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.3.7** **No Disclosure to Custodian Asset Manager Division.** In no event will the Custodian allow
 representatives of its asset management division or Affiliates engaged in asset management
 to have access to or to use Confidential Information of the Client, including Data.

25 Term and Termination

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.1** **Term.** This Agreement will commence on the Effective Date and will continue until terminated
 in accordance with this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.2** **Termination Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior Notice.** The Parties agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.1.1 the
 Client may terminate this Agreement by giving not less than 30 days' prior written notice
 to the Custodian; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.1.2 the
 Custodian may terminate this Agreement by giving not less than 270 days' prior written
 notice to the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.2.2** **Immediate Effect.** A Party may terminate this Agreement with immediate effect at any time by written
 notice to the other Party, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.2.1 an
 Insolvency Event occurs in relation to the other Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.2.2 such
 other Party is the Client and fails to pay any undisputed Fees as and when due and has failed
 to cure such breach within 30 days of receipt of notice from the Custodian requesting it
 to do so; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.2.3 such
 other Party commits a material breach of an obligation under this Agreement and has failed
 to cure such breach within 30 days of receipt of notice requesting it to do so.

If the Custodian terminates this Agreement pursuant to sub-sections 25.2.1 or 25.2.2, the Custodian will continue to provide the Services for a period of up to 270 days subject to payment in full of any overdue undisputed Fees and prepayment of the Fees reasonably expected to be incurred during such 270-day period, or such other financial assurance reasonably acceptable to the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.3** **Actions on Termination.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.3.1** **Successor Custodian.** Upon termination of the Agreement, the Custodian will deliver the Portfolio
 to the successor custodian designated by the Client in Proper Instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.3.2** **Remaining Portfolio.** If any part of the Portfolio remains in the possession of the Custodian or
 its Subcustodians after the date of termination because the Client fails to designate a successor
 custodian or otherwise, the Custodian may continue to provide the Services to the Client
 in consideration of the Fees, as if the Agreement had not terminated. If no successor custodian
 has been appointed on or before the termination of this Agreement, then the Custodian will
 have the right to deliver to a bank or trust company, which is a "bank" as defined
 in the 1940 Act, doing business in Boston, Massachusetts, or New York, New York, of its own
 selection, all Cash and

Securities of the Client then held by the Custodian, and to transfer to an account of the bank or trust company all of the Securities of the Client held in any CSD. The transfer will be on such terms as are contained in this Agreement or as the Custodian may otherwise reasonably negotiate with the bank or trust company. Any compensation payable to the bank or trust company, and any cost or expense incurred by the Custodian, in connection with the transfer will be for the account of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.3.3** **Payment of Fees.** Upon termination of this Agreement, Fees will become due and payable for the
 period to the date of such termination, or, if later, to the date at which any part of the
 Portfolio held by the Custodian has been fully transferred to a successor custodian or to
 the Client, other than Fees subject to a bona fide good faith dispute.

26 Representations and Warranties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.1** **Each Party.** Each Party represents and warrants to the other that: (i) it
 has the power to enter into and perform its obligations under this Agreement; and (ii) it
 has duly executed this Agreement by duly authorized persons so as to constitute valid and
 binding obligations of that Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.2** **Client.** The Client further represents and warrants to the Custodian that: (i) it is the beneficial
 owner of the assets comprising the Portfolio or is entitled to deal with the assets comprising
 the Portfolio under this Agreement as if it were beneficial owner; and (ii) unless otherwise
 agreed, the Client acts as principal for the purposes of this Agreement and not as agent
 for another person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.3** **Custodian.** The Custodian further represents and warrants to the Client that: (i) it holds such authorisations
 and licences as are necessary to lawfully perform its obligations under this Agreement; and
 (ii) it will seek to maintain such authorisations and licenses for the term of this Agreement.

27 Record Retention and Audit Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.1** **Records.** The Custodian will retain the records it is required to maintain under this Agreement
 in accordance with the Law applicable to the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.2** **Client and Regulator Access.** The Custodian will allow the Client and the Client's regulators
 or supervisory authorities to perform periodic on-site audits as may be reasonably required
 to examine the Custodian's performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.3** **Frequency and Scope.** For inspections requested by the Client (such request will include reasonable
 advance notice) and agreed to by the Custodian, the Custodian reserves the right to impose
 reasonable limitations on the number, frequency, timing, and scope of such audits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.4** **Limitations on Disclosure.** Nothing contained in this Section will obligate the Custodian to provide
 access to or otherwise disclose: (i) any information that is unrelated to the Client and
 the provision of the Services to the Client; (ii) any information that is treated as confidential
 under the Custodian's corporate policies, including, without limitation, internal audit
 reports, compliance or risk management plans or reports, work papers and other reports, and
 information relating to management functions; or (iii) any other documents, reports, or information
 that the Custodian is

obligated or entitled to maintain in confidence as a matter of law or regulation. In addition, any access provided to technology will be limited to a demonstration by the Custodian of the functionality thereof and a reasonable opportunity to communicate with the Custodian's personnel regarding such technology.

28 Business Continuity, Internal Controls and Information Security

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.1** **Business Continuity Plans.** The Custodian will at all times maintain a business contingency plan
 and a disaster recovery plan and will take commercially reasonable measures to maintain and
 periodically test such plans. The Custodian will implement such plans following the occurrence
 of an event which results in an interruption or suspension of the Services to be provided
 by the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.2** **Internal Controls Review and Repor** t. The Custodian will retain a firm of independent auditors
 to perform an annual review of certain internal controls and procedures employed by the Custodian
 in the provision of the Services and issue a standard System and Organization Controls 1
 or equivalent report based on such review. The Custodian will provide a copy of the report
 to the Client upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.3** **Information Security Systems and Controls.** The Custodian will maintain commercially reasonable information
 security systems and controls, which include administrative, technical, and physical safeguards
 that are designed to: (i) maintain the security and confidentiality of the Client's
 data; (ii) protect against any anticipated threats or hazards to the security or integrity
 of the Client's data, including appropriate measures designed to meet legal and regulatory
 requirements applying to the Custodian; and (iii) protect against unauthorized access to
 or use of the Client's data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.4** **Virus Detection.** The Custodian will at all times employ a current version of one of the leading
 commercially available virus detection software programs to test the hardware and software
 applications used by it to deliver the Services for the presence of any computer code designed
 to disrupt, disable, harm, or otherwise impede operation.

---

| | |
|:---|:---|
| 29 | General |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.1** **Services Not Exclusive; Acting in Various Capacities.** The Custodian, its Subcustodians and their
 Affiliates are part of groups of companies and businesses that, in the ordinary course of
 their business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.1.1** provide
 a wide range of financial services to many clients of different kinds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.1.2** engage
 in transactions for their own account (including acting as banker as outlined in Section
 4.4 and acting as foreign exchange counterparty as outlined in Section 13) or for the account
 of other clients;

which may result in actual, perceived or potential conflicts between the interests of the Client and the interest of the Custodian, its Subcustodians and their Affiliates or between the interests of clients. The Custodian maintains a conflicts of interest policy, and has implemented procedures and arrangements to identify and manage conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2** **Disclosure of Conflicts.** In connection with the matters outlined in Section 29.1.1, the Custodian,
 its Subcustodians and their Affiliates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2.1** may
 do business with each client on different contractual or financial terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2.2** will
 seek to profit and is entitled to receive and retain profits and compensation in connection
 with such activities without any obligation to account to the Client for the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2.3** may
 act as principal in its own interests, or as agent for its other clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2.4** may
 act or refrain from acting based upon information derived from such activities that is not
 available to the Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2.5** are
 not under a duty to notify or disclose to the Client any information which comes to their
 notice as a result of such activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.2.6** do
 not have an obligation to consider, act in, or
 provide information to the Client in respect of, the interests
 of the Client in connection with such activities, except to the extent (if any) expressly
 agreed in writing with the Client under the contractual arrangements governing those activities.

The Custodian may (but is not required to) make any disclosure or notification in connection with such activities to the Client via publication on MyStateStreet.com or other notification mechanism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.3** **Notice.** Unless otherwise specified, all notices, requests, demands and other communications under
 this Agreement (other than routine operational communications), will be in writing and will
 be taken to have been given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.3.1** when
 delivered by hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.3.2** on
 the next Business Day after being sent by e-mail (unless the sender receives an automated
 message that the e-mail has not been delivered);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.3.3** on
 the next Business Day after being sent by overnight courier service for next Business Day
 delivery; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.3.4** on
 the third Business Day after being sent by certified or registered mail, return receipt requested;

in each case to the applicable Party at the address or e-mail address specified on <u>Schedule 2</u>, or such other address or e-mail address as a Party may specify by written notice from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.4** **Waiver.** No failure on the part of any Party to exercise, and no delay on its part in exercising,
 any right or remedy under this Agreement will operate as a waiver, nor will any single or
 partial exercise of any right or remedy preclude any other or further exercise of that right
 or remedy, or the exercise of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.5** **Sole Remedy.** Subject to the right to seek relief under the specific circumstances expressly
 permitted in this Agreement, each of the Custodian and the Client agrees that, to the maximum
 extent permitted by law, a claim for breach of contract under and consistent with the terms
 of this Agreement will be the sole and exclusive remedy available for any and all matters
 arising from or in any way relating to this Agreement, the provision of the Services or any
 conduct (including omissions and alleged conduct) relating to the Agreement or provision
 of the Services, whether before, during or after the term of this Agreement. Accordingly,
 to the maximum extent permitted by law, each of the Custodian and the Client, on

behalf of itself and its Affiliates, waives any and all other rights and remedies that otherwise would be available to such party in law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.6 Assignment
 and Successors. The terms of this Agreement are binding
 on the Parties' representatives, successors and permitted assigns and this Agreement
 and any rights or obligations under this Agreement may not be assigned or transferred without
 the prior written consent of the other Party. However, in the event that either Party becomes
 the subject of an Insolvency Event, then such Party will have the right to assign or transfer
 its rights and obligations under this Agreement to any entity to which the Party transfers
 its business and assets (including a bridge bank or similar entity) and the other Party irrevocably
 consents to such assignment or transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.7 Entire
 Agreement. This Agreement is the complete and exclusive
 agreement of the Parties regarding the Services and supersedes, as of the Effective Date,
 all prior oral or written agreements, arrangements or understandings between the parties
 relating to the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.8 Amendments. This Agreement may be amended by written agreement between
 the Parties. However, the Custodian may amend this Agreement by giving written notice to
 the Client of such proposed amendment and the Client will be taken to have consented to the
 amendment if the Client does not affirmatively object in writing within thirty (30) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.9 Counterparts
 and Electronic Signatures. This Agreement may be executed
 in separate counterparts, each of which will be an original, but which together will constitute
 one and the same agreement. Counterparts may be executed in either original or electronically
 transmitted form (e.g., faxes or emailed portable document format (PDF) form), and the Parties
 adopt as original any signatures received in electronically transmitted form. This Agreement
 may be executed by electronic signature (whatever form the electronic signature takes) and
 the Parties agree that this method of signature is as conclusive of the intention to be bound
 by this Agreement as if signed by the Parties' manuscript signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.10 Severance. In the event that any part of this Agreement will be determined
 to be void or unenforceable for any reason, the rest of this Agreement will be unaffected
 (unless the essential purpose hereof is substantially frustrated by such determination) and
 will be enforceable in accordance with the rest of its terms as if the void or unenforceable
 part were not a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.11 Survival. The provisions of Sections 10 (Tax Withholding and Tax
 Relief), 17 (Standard of Care and Liability), 20 (Indemnity), 21 (Obligations of the Client-Fees),
 23 (Creditors Rights), 24 (Confidentiality and Use of Data) and 25.3 (Actions on Termination)
 are continuing obligations and will survive termination of this Agreement for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.12 Governing
 Law and Jurisdiction. This Agreement is governed by and
 interpreted in accordance with the laws of the Commonwealth of Massachusetts,

and any disputes which may arise out of, under or in connection with this Agreement will be determined by the exclusive jurisdiction of the Massachusetts courts.

 

Signed by the Parties:

PFS FUNDS

By: <u>/s/ Jeffrey R. Provence</u>

Name: <u>Jeffrey R. Provence</u>

Title: <u>Trustee, Secretary and Treasurer</u>

Date: <u>9/19/25</u> 

STATE STREET BANK AND TRUST COMPANY

By: <u>/s/ Andrea E. Sharp</u>

Name: <u>Andrea E. Sharp</u>

Title: <u>Managing Director</u>

Date: <u>September 22, 2025</u>

**Schedule 1**

**Definitions**

In this Agreement:

"**1940 Act**" means the U.S. Investment Company Act of 1940, as amended from time to time.

**"Affiliate"** means, with respect to any person, any other person Controlling, Controlled by, or under common Control with, such person at the time in question. For these purposes. "Control" and its derivatives "Controlled" and "Controlling" mean, with regard to any person: (i) the legal or beneficial ownership, directly or indirectly, of fifty percent (50%) or more of the issued share capital or capital stock of that person (or other ownership interest, if not a corporation); (ii) the ability to control, directly or indirectly, fifty per cent (50%) or more of the voting power in relation to that person; or (iii) the legal power to direct or cause the direction of the general management and policies of that person, provided that where Control is being determined with respect to a person that is a limited partnership, Control shall be determined by reference to the satisfaction of any of the above tests with respect to the general partner of the limited partnership

**"Alternative Assets"** means derivatives, real estate, commodities, private placements, loans, infrastructure holdings, private equity holdings, hedge fund holdings or such other assets (i) not typically held in book-entry form and (ii) not typically held in accounts registered in the name of the Custodian or a Subcustodian, in each case as determined by the Custodian.

"**Authentication Procedures**" means the use of security codes, passwords, tested communications or other authentication procedures as may be agreed upon in writing by Parties from time to time for purposes of enabling the Custodian to verify that purported Proper Instructions have been originated by an Authorized Person, and will include a Funds Transfer and Transaction Origination Policy Agreement.

"**Authorized Data Sources**" means third party sources of data and information utilized by the Custodian in the provision of the Services, including issuer and issuer group data; security characteristics and classifications; security prices (OTC and exchange traded); ratings (issuer and issue); exchange, interest, discount and coupon rates; corporate action, dividend, income and tax data; benchmark, index, composite and indice related data (including values, constituents, weights and performance); and other reference and market data and information necessary for the performance of the Services.

"**Authorized Person**" means a person authorized to give Proper Instructions and otherwise act on the Client's behalf in connection with this Agreement.

"**Business Day**" means a day on which the Custodian or the relevant Subcustodian is open for business in the market or country in which a transaction or an action by a Party takes place.

"**Board**" means, in relation to a Client, the board of directors, trustees or other governing body of the Client.

"**Cash**" means cash in any currency from time to time deposited with the Custodian or Subcustodian under this Agreement.

"**Cash Account**" has the meaning given to it in Section.

"**Client**" means the party named in the preamble.

**"Client Publications"** means the general client publications of the Custodian from time to time available to clients and their investment managers, including the Investment Managers' Guide, Client Guide, Guide to Custody in World Markets, and FX Client Guide.

**"Collateral"** has the meaning given to it in Section 23.1.

**"Confidential Information"** means all information provided by or on behalf of a party (the "Disclosing Party") to the other party (the "Receiving Party"), or collected by a Receiving Party, under or pursuant to this Agreement that is marked "confidential", "restricted", "proprietary" or with a similar designation, or that the Receiving Party knows or reasonably should know is confidential, proprietary or a trade secret. The terms and conditions of this Agreement (including any related fee schedule or arrangement) and any Fees will be treated as Confidential Information as to which each Party is a Disclosing Party. Confidential Information will not include information that: (i) is publicly available when provided or thereafter becomes publicly available, other than through a breach of this Agreement: (ii) was known to the Receiving Party (without an obligation of confidentiality) prior to its disclosure; (iii) is independently developed by the Receiving Party without the use of other Confidential Information; (iv) is rightfully obtained on a non-confidential basis from a third party source.

**"Contractual Settlement"** has the meaning given to it in Section.

**"Corporate Actions"** means warrant and option exercises, conversions, exchanges and other capital reorganizations, calls, odd lot tenders/credits, bonus rights, subscription offers/rights, puts, maturities of securities, redemptions, mergers, tender or exchange offers, and rights exercises and expirations. Corporate Actions do not include class actions.

"**Corporate Actions Deadline Date**" has the meaning given to it in Section 6.2.

"**Covered Foreign Country**" means a country listed on Schedule A, which list of countries may be amended from time to time at the request of any Client and with the agreement of the Foreign Custody Manager.

"**CSD**" or "**Central Securities Depository**" means an entity or generally recognised book-entry or other settlement system or clearing house, central clearing counterparty or agency, acting as a local securities depository, central securities depository or international securities depository, the use of which is customary for securities settlement activities in the jurisdiction(s) in which it holds Securities or Cash in connection with this Agreement, and through which the Custodian may transfer, settle, clear, deposit or maintain Securities whether in certificated or uncertificated form and will include any services provided by any network service provider or carriers or settlement banks used by a CSD.

"**Data**" means any Confidential Information of the Client relating to its holdings, transactions or other information that the Custodian obtains with respect to the Client in connection with the provision of the Services under this Agreement or any other agreement.

"**Delegate**" means any agent, subcontractor, consultant and other third party, whether affiliated or unaffiliated with the Custodian. The term Delegate does not include Subcustodians, CSDs, Authorized Data Sources, suppliers of information technology or related services, or Financial Market Utilities.

**"Effective Date"** has the meaning given to it in the preamble.

"**Eligible Foreign Custodian**" has the meaning set out in Section (a)(1) of Rule 17f-5.

"**Eligible Securities Depository**" has the meaning set out in section (b)(1) of Rule 17f-7.

"**Fees**" means the fees charged by the Custodian in consideration for providing the Services and the costs, expenses and disbursements of the Custodian to be reimbursed by the Client, as agreed between the parties from time to time in a separate written fee schedule, or as otherwise agreed in writing.

"**Financial Market Utility**" means any multilateral system for transferring, clearing, and settling payments, securities, and other financial transactions among or between financial institutions, including payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.

"**Force Majeure Event**" means any event or circumstances beyond the reasonable control of the Custodian, including nationalization, expropriation, currency restrictions, suspension or disruption of the normal procedures and practices, or disruption of the infrastructure, of any securities market or CSD, interruptions in telecommunications or utilities, acts of war or terrorism, riots, revolution, acts of God or other similar events or acts.

"**Foreign Assets**" means a Client's Securities or other investments (including non-U.S. Cash) for which the primary market is outside the United States, and any cash and cash equivalents that are reasonably necessary to effect transactions in those investments.

"**Foreign Custody Manager**" has the meaning set forth in section (a)(3) of Rule 17f-5.

"**Foreign Securities System**" means an Eligible Securities Depository listed on Schedule B.

"**Indemnified Claim**", "**Indemnified Party**" **and** "**Indemnifying Party**" each have the meaning given to them in Section 20.4.

"**Insolvency Event**" means the occurrence of any of the following events in relation to any person: (i) the person generally does not pay its debts as such debts become due, or admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors; or (ii) any proceeding is instituted by or against such person seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property and, where any such proceeding is instituted against (but not by) such person, such person does not promptly seek dismissal of such proceeding or its motion or request to dismiss such proceeding is denied (whether or not on an initial, interim or final basis); or (iii) such person proposes or takes any corporate action to authorize any of the preceding actions or anything analogous to the foregoing events occurs in relation to such person under the laws of any jurisdiction.

"**Investment Document**" means any agreement, subscription, assignment or other document evidencing in physical form an investment of the Client, or providing for the ownership by the Client, in each case that is acceptable to the Custodian. For the avoidance of doubt, it does not include any Security, instrument, certificate, title, agreement or other document that is accompanied by a stock power or instrument of assignment, endorsed to the Custodian or in blank.

"**Investment Manager**" means each person specified as such by the Client, including its agents and delegates.

"**Law**" means any statute, ordinance, order, judgment, decree, subordinate legislation, rule or regulation promulgated by any regulatory, administrative or judicial authority or otherwise in force in

any jurisdiction, applicable to a Party, that relates to the performance by such Party of the Services or obligations under this Agreement.

"**Local Market Practice**" means the customary or established practices, procedures and terms in the jurisdiction or market where a transaction occurs, including the rules and procedures of any exchange or over the counter market and any practical constraints that exist with respect to the exercise of shareholder rights, realisation of entitlements or the sale, exchange, purchase, transfer or delivery of Cash or Securities.

"**Losses**" means all direct losses, damages, claims, costs, expenses or other liabilities (including reasonable attorneys' fees and other litigation expenses).

"**Market Participant**" means any issuer, intermediary, exchange, transaction counterparty or other market participant.

"**Off Book Cash**" has the meaning given to it in Section 4.2.

"**On Book Cash**" has the meaning given to it in Section 4.2.

"**Parties"** means the parties set out at the beginning of this Agreement.

"**Portfolio**" means the Securities and Cash delivered to and held by the Custodian which comprise the assets of the Client over which the Custodian provides the Services pursuant to this Agreement.

"**Proper Instructions**" means instructions (which may be standing instructions and which includes any security trade advice) received by the Custodian through an agreed Authentication Procedure in any of the following forms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in writing given by an Authorized Person including a facsimile transmission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in an electronic communication as may be agreed upon between the Custodian and the Client in writing from
time to time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) by such other means as may be agreed from time to time by the Custodian and the Client .

"**Rule 17f-4, Rule 17f-5, and Rule17f-7**" means Rule 17f-4, Rule 17f-5 and Rule 17f-7 promulgated under the 1940 Act.

"**Schedule" or "Schedules"** are all of the schedules referenced herein and attached to this Agreement.

**"Secured Liabilities"** means all liabilities or obligations owed by the Client to the Custodian or its Affiliates relating to this Agreement, including: (a) the obligations of the Client to the Custodian or its Affiliates in relation to any advance of cash or securities or any other extension of credit for any purpose; (b) the obligations of the Client to compensate the Custodian for the provision of the Services; and (c) the indemnity obligations of the Client to the Custodian under Section 20.

"**Securities**" means securities and such other similar assets as the Custodian may from time to time accept into custody under this Agreement.

"**Securities Account**" has the meaning given to it in Section 3.2.

"**Services**" means the services to be provided by the Custodian to the Client in accordance with this Agreement.

"**Special Subcustodian**" has the meaning given to it in Section 14.3.

"**Subcustodian**" means any qualified bank, credit institution, trust company or other entity appointed by the Custodian to perform safekeeping, processing and other elements of the Services, including Affiliates or non-Affiliates of the Custodian.

"**Third Party Agent**" means any provider of services to the Client (other than the Custodian, a Subcustodian or Delegate under this Agreement) including any Investment Manager, adviser or sub-advisor, distributor, broker, dealer, transfer agent, administrator, accounting agent, audit firm, tax firm, or law firm.

"**UCC**" means the Uniform Commercial Code of the Commonwealth of Massachusetts, as in effect from time to time.

"**U.S.**" shall mean the United States of America.

"**U.S. CSD**" means a CSD authorized by the U.S. Department of the Treasury or a "clearing corporation" as defined in Section 8-102 of the UCC.

<u>Interpretation</u>: Capitalised terms used in this Agreement have the meanings given to them in this Schedule 1 unless otherwise defined. In this Agreement references to "persons" will include legal as well as natural persons or entities, references importing the singular will include the plural (and vice versa), use of the masculine pronoun will include the feminine, use of the terms "include", "includes" or "including" shall be deemed to be followed by the phrase "without limitation" and any specific examples given following the use of such terms shall be illustrative and in no way limit the general meaning of the words preceding them and numbered schedules, exhibits or Sections will (unless the contrary intention appears) be construed as references to such schedules and exhibits hereto and Sections herein bearing those numbers and any sub-sections thereof. The schedules and exhibits hereto are hereby incorporated herein by reference.

**Schedule 2**

**Notices**

**(Section 29)**

CUSTODIAN: STATE STREET BANK AND TRUST COMPANY

Attention: Senior Vice President – Custody Operations

CC: Legal Department

Address: One Congress Street, Suite 1, Boston MA 02114

CLIENT: PFS FUNDS

Attention: Jeffrey R. Provence

Address: 1939 Friendship Drive, Suite C, El Cajon, CA 92020

## Ex-99.H

**TRANSFER AGENCY AND SERVICES AGREEMENT** 

THIS AGREEMENT is made as of October 27, 2025, between the PFS Funds, a Massachusetts business trust (the "Trust"), and Paralel Technologies LLC, a Delaware limited liability company ("Paralel").

WHEREAS, the Trust is registered under the Investment Company Act of 1940, as amended ("1940 Act"), as an open-end management investment company, consisting of multiple series;

WHEREAS, Paralel provides certain transfer agency services to series of such registered investment companies; and

WHEREAS, the Trust, on behalf of the series listed in <u>Appendix C</u> (each a "Fund" or collectively, the "Funds"), desires to appoint Paralel as the Funds' transfer agent, dividend disbursing agent and agent in connection with certain other activities, and Paralel desires to accept such appointment.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows.

1. <u>Paralel Appointment and Duties.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Trust, on behalf of the Funds, appoints Paralel to provide the transfer agent and other specified
 services set forth in <u>Appendix A</u> hereto (the "Services"), as amended from
 time to time, upon the terms and conditions hereinafter set forth. Paralel hereby accepts
 such appointment and agrees to furnish such specified Services. Paralel shall for all purposes
 be deemed to be an independent contractor and shall, except as otherwise expressly authorized
 in this Agreement, have no authority to act for or represent the Trust in any way or otherwise
 be deemed an agent of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Paralel
 may employ or associate itself with a person or persons or organizations as Paralel believes
 to be desirable in the performance of its duties hereunder; provided that, in such event,
 the compensation of such person or persons or organizations shall be paid by and be the sole
 responsibility of Paralel, and the Trust shall bear no cost or obligation with respect thereto;
 and provided further that Paralel shall not be relieved of any of its obligations under this
 Agreement in such event and shall be responsible for all acts of any such person or persons
 or organizations taken in furtherance of this Agreement to the same extent it would be for
 its own acts.

2. <u>Paralel Compensation; Expenses.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In
 consideration for the Services to be performed hereunder by Paralel, the Trust, on behalf
 of the Funds, shall pay Paralel the fees listed in <u>Appendix B</u> hereto. Notwithstanding
 anything to the contrary in this Agreement, fees billed for the Services to be performed
 by Paralel under this Agreement are based on information provided by the Trust and such fees
 are subject to renegotiation between the parties to the extent such information is determined
 to be materially different from what the Trust originally provided to Paralel, as reasonably
 determined by Paralel. On January 1 of each year, all fees set forth in Appendix B or otherwise
 in this Agreement shall be increased by a cost of living adjustment equal to the greater
 of (i) three percent (3%) or (ii) the percentage increase in the Consumer Price Index published
 by the Bureau of Labor and Statistics of the United States Department of Labor, for the geographic
 location Denver-Aurora-Lakewood, CO region for the twelve-month period ending with the latest
 published month preceding January 1<sup>st</sup> (the "CPI") plus one and one
 half percent (1.5%). Paralel will provide notice to the Trust of the amount of such any such
 CPI adjustment at; promptly following; or prior to its implementation. Any CPI adjustment
 not charged in any given year may be included in prospective CPI fee adjustments in future
 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Paralel
 will bear all expenses in connection with the performance of its services under this Agreement,
 except as otherwise provided herein or in Appendix B. Paralel will not bear any of the costs
 of Trust personnel or Trust

1 of 10

expenses unrelated to the performance of the Services described herein. All Trust expenses incurred shall be borne by the Trust or a Fund's investment adviser, including, but not limited to, initial organization and offering expenses; litigation expenses; taxes; costs of preferred shares; expenses of conducting repurchase offers for the purpose of repurchasing Trust shares; administrative and accounting expenses; custodial expenses; interest; Trust directors' fees; brokerage fees and commissions; state and federal registration fees; advisory fees; insurance premiums; fidelity bond premiums; Trust and investment advisory related legal expenses; costs of maintenance of Trust existence; printing and delivery of materials in connection with meetings of the Trust's directors; printing and mailing of shareholder reports, prospectuses, statements of additional information, other offering documents, supplements, proxy materials, and other communications to shareholders; securities pricing data and expenses in connection with electronic filings with the U.S. Securities and Exchange Commission (the "SEC").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The
 Trust agrees to pay all amounts due hereunder within thirty (30) days of receipt of each
 invoice. Except as provided in Appendix B, Paralel shall bill fees monthly, and out-of-pocket
 expenses as incurred (unless prepayment is requested by Paralel). Any invoices not paid within
 thirty (30) days of the invoice date are subject to a one percent (1%) per month financing
 charge on any unpaid balance to the extent permitted by law.

3. <u>Right to Receive Advice.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Advice of the Trust and Service Providers</u>. If Paralel is in doubt as to any action it should
 or should not take, Paralel may request directions, advice or instructions from the Trust
 or a Fund's investment adviser or, as applicable, the Trust's custodian or other
 service providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Advice of Counsel</u>. If Paralel is in doubt as to any question of law pertaining to any action
 it should or should not take, Paralel may request advice from counsel of its own choosing
 (who may be counsel for the Trust, a Fund's investment adviser, or Paralel, at the
 option of Paralel).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Conflicting Advice</u>. In the event of a conflict between directions, advice or instructions Paralel
 receives from the Trust or any authorized service provider on behalf of the Trust and the
 advice Paralel receives from counsel, the Trust and Paralel shall mutually agree upon the
 directions, advice or instructions to follow.

4. <u>Standard of Care; Limitation of Liability; Indemnification.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Paralel
 shall be obligated to act in good faith and to exercise commercially reasonable care and
 diligence in the performance of its duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In
 the absence of willful misfeasance, bad faith, gross negligence or reckless disregard by
 Paralel in the performance of its duties, obligations or responsibilities set forth in this
 Agreement, Paralel and its affiliates, including their respective officers, directors, agents
 and employees, shall not be liable for, and the Trust agrees to indemnify, defend and hold
 harmless such persons from, all taxes, charges, expenses, disbursements, assessments, claims,
 losses, damages, penalties, actions, suits, judgments and liabilities (collectively, a "Loss"
 or "Losses") (including, without limitation, reasonable attorneys' fees
 and disbursements and liabilities arising under applicable federal and state laws) arising
 directly or indirectly from the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the
 inaccuracy of any factual information furnished to Paralel by the Trust, a Fund's investment
 adviser or custodian or any third party on behalf of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Paralel's
 reliance on any instruction, direction, notice, instrument or other information provided
 by the Trust, a Fund, a Fund's investment adviser or custodian or any authorized third
 party on behalf of the Trust, a Fund, or on behalf of a shareholder of the Funds, that Paralel
 reasonably believes to be genuine;

2 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. any
 reasonable error of judgment or mistake of law of Paralel related to any loss suffered by
 the Trust in connection with the matters to which this Agreement relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. failure
 to satisfy requests to cancel or amend payment orders, or to detect any erroneous payment
 order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. lost
 interest with respect to the refundable amount of an unauthorized payment order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. loss
 of data or service interruptions caused by equipment failure (provided that, if such equipment
 is under Paralel's control, reasonable care has been taken to maintain such equipment);
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. any
 other action or omission to act which Paralel takes in connection with the provision of the
 Services to the Trust.

Without limiting the generality of the foregoing, any Loss incurred by any party to the Agreement, or any other party, including a current or former Fund shareholder, as a result of fraud, mistake or error by a Shareholder, Paralel, or other person ("Fraud Loss"), shall, as between Paralel and the Trust, be the responsibility and liability of the Trust, if in connection with all related purchase, repurchase and/or redemption transactions, Paralel either complied materially with its written procedures applicable to such transactions ("Applicable Procedures"), or otherwise operated without willful misfeasance, bad faith, gross negligence or reckless disregard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Paralel
 shall indemnify and hold harmless the Trust, and their respective officers, trustees, directors,
 agents and employees from and against any and all Losses (including, without limitation,
 attorneys' fees and disbursements and liabilities arising under applicable federal
 and state laws) arising directly from Paralel's willful misfeasance, bad faith, gross
 negligence or reckless disregard in the performance of its duties, obligations or responsibilities
 set forth in this Agreement, except as otherwise set forth in Section 4(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Notwithstanding
 anything in this Agreement to the contrary, (i) no party shall be liable under this Agreement
 to the other party hereto, or to any other party, for any punitive, consequential, special
 or indirect losses or damages; (ii) Paralel will not be liable for any trading losses, lost
 revenues, lost profits, whether or not such damages were foreseeable or Paralel was advised
 of the possibility thereof, and (iii) the maximum cumulative amount of liability of Paralel
 to the Trust, any Funds, and all persons or entities making a claim arising out of the subject
 matter of, or in any way related to, this Agreement shall not exceed the aggregate fees paid
 by such Fund to Paralel under this Agreement for the most recent 12 months immediately preceding
 the date of the event giving rise to the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. In
 any case in which a party (the "Indemnifying Party") may be asked to indemnify
 or hold the other party (the "Indemnified Party") harmless, the Indemnified Party
 will notify the Indemnifying Party promptly after identifying any situation which it believes
 presents or appears likely to present a claim for indemnification against the Indemnifying
 Party although the failure to do so shall not prevent recovery by the Indemnified Party and
 shall keep the Indemnifying Party advised with respect to all developments concerning such
 situation. The Indemnifying Party shall have the option to defend the Indemnified Party against
 any claim which may be the subject of this indemnification, and, in the event that the Indemnifying
 Party so elects, such defense shall be conducted by counsel chosen by the Indemnifying Party
 and reasonably satisfactory to the Indemnified Party, and thereupon the Indemnifying Party
 shall take over complete defense of the claim and the Indemnified Party shall sustain no
 further legal or other expenses in respect of such claim. The Indemnified Party will not
 confess any claim or make any compromise in any case in which the Indemnifying Party will
 be asked to provide indemnification, except with the Indemnifying Party's prior written
 consent.

5. <u>Force Majeure</u>. Other than as to payment obligations, no party shall be liable for losses, delays,
 failures, errors, interruptions or losses of data in its performance of its obligations under
 this Agreement if and to the extent it is caused, directly or indirectly, by reason of circumstances
 beyond their reasonable control, including without limitation, acts of God, action or inaction
 of civil or military authority, war, terrorism, riot, fire, flood, sabotage, labor disputes,
 elements

3 of 10

of nature or non-performance by a third party. In any such event, the non-performing party shall be excused from any further performance and observance of obligations so affected only for so long as such circumstances prevail and such party continues to use commercially reasonable efforts to recommence performance or observance as soon as practicable.

6. <u>Activities of Paralel</u>. The services of Paralel under this Agreement are not to be deemed exclusive,
 and Paralel shall be free to render similar services to others. The Trust recognizes that
 from time-to-time directors, officers and employees of Paralel may serve as directors, officers
 and employees of other corporations or businesses (including other investment companies)
 and that such other corporations and businesses may include Paralel as part of their name
 and that Paralel or its affiliates may enter into agreements with such other corporations
 and businesses.

7. <u>Accounts and Records</u>. The accounts and records maintained by Paralel shall be the property of
 the Trust. Paralel shall prepare, maintain and preserve such accounts and records as required
 by the 1940 Act and other applicable securities laws, rules and regulations. Paralel shall
 surrender such accounts and records to the Trust, in the form in which such accounts and
 records have been maintained or preserved, promptly upon receipt of instructions from the
 Trust. The Trust shall have access to such accounts and records at all times during Paralel's
 normal business hours. Upon the reasonable request of the Trust, copies of any such books
 and records shall be provided by Paralel to the Trust at the Trust's expense. Paralel
 shall assist the Funds' independent auditors, or, upon approval of the Trust, any regulatory
 body, in any requested review of the Trust's accounts and records. In the event Paralel
 receives a request or demand for the inspection of records relating specifically to the Trust
 or a Fund, Paralel will promptly notify the Trust of such request in writing and obtain instructions
 from the Trust as to the handling of such request.

8. <u>Confidential and Proprietary Information</u>. In accordance with Regulation S-P and other relevant rules
 and regulations, Paralel agrees that it will, on behalf of itself and its officers and employees,
 treat all transactions contemplated by this Agreement, and all records and information relative
 to the Trust and its current and former shareholders and other information germane thereto,
 as confidential and as proprietary information of the Trust and not to use, sell, transfer,
 or divulge such information or records to any person for any purpose other than performance
 of its duties hereunder, except after prior notification to and approval in writing from
 the Trust, which approval shall not be unreasonably withheld. Approval may not be withheld
 where Paralel may be exposed to civil, regulatory or criminal proceedings for failure to
 comply, when requested to divulge such information by duly constituted authorities, or when
 requested by the Trust. When requested to divulge such information by duly constituted authorities,
 Paralel shall use reasonable commercial efforts to request confidential treatment of such
 information. Paralel shall have in place and maintain physical, electronic, and procedural
 safeguards reasonably designed to protect the security, confidentiality, and integrity of,
 and to prevent unauthorized access to or use of records and information relating to the Trust
 and its current and former shareholders.

9. <u>Compliance with Rules and Regulations</u>. Paralel shall comply (and to the extent Paralel takes or
 is required to take action on behalf of the Trust hereunder shall cause the Trust to comply)
 with all applicable requirements of the 1940 Act, the Securities Act of 1933, as amended
 (the "1933 Act"), the Securities Exchange Act of 1934, as amended (the "1934
 Act"), and other applicable laws, rules, regulations, orders and codes of ethics, as
 well as all investment restrictions, policies and procedures adopted by the Trust of which
 Paralel has knowledge (it being understood that Paralel is deemed to have knowledge of all
 investment restrictions, policies or procedures set out in the Trust's public filings
 or otherwise provided to Paralel). Except as set out in this Agreement, Paralel assumes no
 responsibility for such compliance by the Trust. Paralel shall maintain at all times a program
 reasonably designed to prevent violations of the federal securities laws (as defined in Rule
 38a-1 under the 1940 Act) with respect to the Services provided and shall provide to the
 Trust a certification to such effect no less than annually or as otherwise reasonably requested
 by the Trust or its Chief Compliance Officer. Paralel shall make available its compliance
 personnel and provide at its own expense summaries and other relevant materials relating
 to such program as reasonably requested by the Trust.

10. <u>Representations and Warranties of Paralel</u>. Paralel represents and warrants to the Trust that:

4 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. It
 is duly organized and existing as a limited liability company and in good standing under
 the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. It
 is empowered under applicable laws and by its operating documents (including its Certificate
 of Formation and Operating Agreement) to enter into and perform this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All
 requisite corporate proceedings have been taken to authorize it to enter into and perform
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The
 (i) execution, delivery and performance of this Agreement by Paralel does not breach, violate
 or cause a default under any agreement, contract or instrument to which Paralel is a party
 or any judgment, order or decree to which Paralel is subject; (ii) the execution, delivery
 and performance of this Agreement by Paralel has been duly authorized and approved by all
 necessary action; and (iii) upon the execution and delivery of this Agreement by Paralel
 and Trust, this Agreement will be a valid and binding obligation of Paralel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. It
 has and will continue to have access to the necessary facilities, equipment, systems and
 personnel to perform its duties and obligations under this Agreement in accordance with industry
 standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. It
 is, and will continue to be, registered as a transfer agent under the 1934 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. It
 currently maintains and shall at all times maintain insurance coverage adequate for the nature
 of its operations, including directors and officers, errors and omissions and fidelity bond
 insurance coverage (as applicable). Upon the reasonable request of the Trust, it shall provide
 the Trust a certificate of insurance and shall notify the Trust if there are any material
 adverse changes to its insurance policies or coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. It
 is conducting its business in compliance in all material respects with all applicable laws
 and regulations, both state and federal, and has obtained (or will timely obtain) all regulatory
 approvals necessary to carry on its business as now conducted; there is no statute, rule,
 regulation, order or judgment binding on it which would prohibit its execution or performance
 of this Agreement.

11. <u>Representations and Warranties of the Trust</u>. The Trust represents and warrants to Paralel that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. It
 is a statutory trust duly organized and existing and in good standing under the laws of the
 state of its organization, and is registered with the SEC as an open-end, registered investment
 company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. It
 is empowered under applicable laws and by its Declaration of Trust and Bylaws (collectively,
 the "Organizational Documents") to enter into and perform this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Its
 Board of Trustees has duly authorized it to enter into and perform this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. With
 respect to each Fund, a registration statement under the 1933 Act and the 1940 Act is currently,
 or will be upon commencement of operations, effective and will remain effective, and appropriate
 state securities law filings have been made and will continue to be made, with respect to
 all shares of the Funds being offered for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Notwithstanding
 anything in this Agreement to the contrary, the Trust agrees not to make any modifications
 to a Fund's registration statement or adopt any policies which would affect materially
 the obligations or responsibilities of Paralel hereunder without the prior written approval
 or Paralel, which approval shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The
 (i) execution, delivery and performance of this Agreement by the Trust does not breach, violate
 or cause a default under any agreement, contract or instrument to which that Trust is a party
 or any judgment, order

5 of 10

or decree to which said Trust is subject; (ii) the execution, delivery and performance of this Agreement by the Trust has been duly authorized and approved by all necessary action; and (iii) upon the execution and delivery of this Agreement by Paralel and Trust, this Agreement will be a valid and binding obligation of the Trust and each Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Any
 officer position(s) filled by Paralel, to the extent applicable, shall be covered by the
 Trust's Directors & Officers/Errors & Omissions Policy (the "Policy"),
 and the Trust shall use reasonable efforts to ensure that such coverage be (i) reinstated
 should the Policy be cancelled; (ii) continued after such officer(s) cease to serve as officer(s)
 of the Trust on substantially the same terms as such coverage is provided for the other persons
 serving as officers of the Trust after such persons are no longer officers of the Trust;
 or (iii) continued in the event the Trust merges or terminates, on substantially the same
 terms as such coverage is continued for the other Trust officers (but, in any event, for
 a period of no less than six years). The Trust shall provide Paralel with proof of current
 coverage upon request, including a copy of the Policy, and shall notify Paralel immediately
 should the Policy be cancelled or terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The
 Trust officer position(s) filled by Paralel (if any) are named officer(s) in the Trust corporate
 resolutions and are subject to the provisions of the Trust Organizational Documents regarding
 indemnification of its officers.

12. <u>Documents</u>.
 The Trust has furnished or will furnish, upon request, Paralel with copies of the Trust's
 Declaration of Trust, advisory agreement(s), custodian agreement, transfer agency agreement
 (if any separate from the Agreement), administration agreement, current prospectus, statement
 of additional information, periodic Trust reports, and all forms relating to any plan, program
 or service offered by the Trust. The Trust shall furnish, within a reasonable time period,
 to Paralel a copy of any amendment or supplement to any of the above-mentioned documents.
 Upon request, the Trust shall furnish promptly to Paralel any additional documents necessary
 or advisable to perform its functions hereunder. As used in this Agreement the terms "registration
 statement," "prospectus" and "statement of additional information"
 shall mean any registration statement, prospectus and statement of additional information
 filed by the Trust and or Fund with the SEC and any amendments and supplements thereto that
 are filed with the SEC.

13. <u>Consultation Between the Parties</u>. Paralel and the Trust shall regularly consult with each other regarding
 Paralel's performance of its obligations under this Agreement. In connection therewith,
 the Trust shall submit to Paralel at a reasonable time in advance of filing with the SEC
 reasonably final copies of any amended or supplemented registration statement (including
 exhibits) under the 1933 Act and the 1940 Act; provided, however, that nothing contained
 in this Agreement shall in any way limit the Trust's right to file at any time such
 amendments to any registration statement and/or supplements to any prospectus or statement
 of additional information, of whatever character, as the Trust may deem advisable, such right
 being in all respects absolute and unconditional.

14. <u>Business Continuity Plan</u>. Paralel shall maintain in effect a business continuity plan and enter
 into any agreements necessary with appropriate parties making reasonable provisions for emergency
 use of electronic data processing equipment customary in the industry. In the event of equipment
 failures, Paralel shall, at no additional expense to the Trust, take commercially reasonable
 steps to minimize service interruptions.

15. <u>Duration and Termination of this Agreement.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Initial Term</u>. This Agreement shall become effective as of the date first written above (the "Start
 Date") and shall continue thereafter throughout the period that ends three (3) years
 after the Start Date (the "Initial Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Renewal Terms.</u> If not sooner terminated, this Agreement shall renew at the end of the Initial
 Term and shall thereafter continue for successive annual periods (each a "Renewal Term"
 and collectively with the Initial Term, a "Term") until terminated as provided
 herein.

6 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Termination.</u> A party may terminate this Agreement, without payment of penalty, if upon at least ninety
 (90) days prior to the end of applicable Term it gives the other party a written notice of
 non-renewal and termination, with such termination coinciding at the end of the applicable
 Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Termination for Cause.</u> Paralel or the Trust (on behalf of the Funds) also may, by written notice
 to the other, terminate this Agreement if any of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The
 other party breaches any material term, condition or provision of this Agreement, which breach,
 if capable of being cured, is not cured within 30 calendar days after the non-breaching party
 gives the other party written notice of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The
 other party (i) terminates or suspends its business, (ii) becomes insolvent, admits in writing
 its inability to pay its debts as they mature, makes an assignment for the benefit of creditors,
 or becomes subject to direct control of a trustee, receiver or analogous authority, (iii)
 becomes subject to any bankruptcy, insolvency or analogous proceeding, or (iv) where the
 other party is the Trust, and Trust becomes subject to a material Action (as defined below)
 or an Action that Paralel reasonably determines could cause Paralel reputational harm (including
 any Action against an investment adviser, or other service provider of Trust), or (v) where
 the other party is Paralel, material changes in governing documents, bylaws, or registration
 statement, or other assumptions relied upon by the Administrator or the assumptions set forth
 are determined by Paralel, in its reasonable discretion, to materially affect the Services
 provided by Paralel. "Action" means any civil, criminal, regulatory or administrative
 lawsuit, allegation, demand, claim, counterclaim, action, dispute, sanction, suit, request,
 inquiry, investigation, arbitration or proceeding, in each case, made, asserted, commenced
 or threatened by any person, including any government entity or authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. If
 any such event occurs, the termination will become effective immediately or on the date stated
 in the written notice of termination, or other such date as agreed to by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Deliveries Upon Termination</u>. Upon termination of this Agreement, Paralel agrees to cooperate in
 the orderly transfer of transfer agency duties and shall deliver to the Trust or as otherwise
 directed by the Trust (in the case of termination by the Trust, at the expense of the Trust)
 all records and other documents made or accumulated in the performance of its duties for
 the Trust hereunder. In the event Paralel gives notice of termination under this Agreement,
 it will continue to provide the Services contemplated hereunder after such termination at
 the contractual rate for up to 120 days, provided that the Trust use all reasonable commercial
 efforts to appoint such replacement on a timely basis. In no event will Paralel be required
 to assist any new service or system provider in modifying or altering the Paralel's
 or the new agent's system or software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Deconversion Costs</u>. Should either party exercise its right to terminate, all reasonable out-of-pocket
 expenses or costs associated with the movement of records and material will be borne by the
 Trust. Additionally, the Trust agrees to pay to Paralel a reasonable fee (determined by Paralel)
 for Paralel's services provided in connection with the Trust or a Fund liquidating
 or converting to another service provider.

16. <u>Assignment</u>.
 This Agreement shall extend to and shall be binding upon the parties hereto and their respective
 successors and permitted assigns; provided, however, that this Agreement shall not be assignable
 by the Trust without the prior written consent of Paralel, or by Paralel without the prior
 written consent of the Trust (except for assignment by the Paralel to an affiliate under
 common control).

17. <u>Governing Law.</u> The provisions of this Agreement shall be construed and interpreted in accordance
 with the laws of the State of Colorado and the 1940 Act and the rules thereunder. To the
 extent that the laws of the State of Colorado conflict with the 1940 Act or such rules, the
 latter shall control. Each party to this Agreement, by its execution hereof (i)

7 of 10

irrevocably submits to the nonexclusive jurisdiction of the state courts of the State of Colorado or the United States District Courts for the State of Colorado for the purpose of any action between the parties arising in whole or in part under or in connection with this Agreement, and (ii) waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court.

18. <u>Amendments to this Agreement</u>. This Agreement may only be amended by the parties in writing.

19. <u>Notices</u>.
 Any notice, advice or report to be given pursuant to this Agreement shall be made in writing
 and deemed to have been given and received (a) when personally delivered, or delivered by
 same-day courier; or (b) on the third business day after mailing by registered or certified
 mail, postage prepaid, return receipt requested; or (c) upon delivery when sent by prepaid
 overnight express delivery service (e.g., FedEx, UPS); or (d) when sent by email, upon the
 receipt by the sending party of written confirmation of receipt by the receiving party, which
 shall not be unduly withheld by the receiving party;

To Paralel:<br>Paralel Technologies LLC<br> 1700 Broadway, Suite 1850<br> Denver, Colorado 80290<br> Attn: General Counsel<br> Email: <br>To the Trust:<br>PFS Funds<br> 1939 Friendship Drive, Suite C<br> El Cajon, California 92020<br> Email: <br>

20. <u>Counterparts</u>.
 This Agreement may be executed by the parties hereto on any number of counterparts, and all
 of said counterparts taken together shall be deemed to constitute one and the same instrument.
 Counterparts may be delivered via electronic mail (including pdf or any electronic signature
 complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
 method and any counterpart so delivered shall be deemed to have been duly and validly delivered
 and be valid and effective for all purposes.

21. <u>Entire Agreement</u>. This Agreement embodies the entire agreement and understanding among the parties
 and supersedes all prior agreements and understandings relating to the subject matter hereof;
 provided, however, that Paralel may embody in one or more separate documents its agreement,
 if any, with respect to delegated duties and oral instructions.

22. <u>Severability</u>.
 Any covenant, provision, agreement or term contained in this Agreement that is prohibited
 or that is held to be void or unenforceable in any jurisdiction shall, as to that jurisdiction,
 be ineffective to the extent of such prohibition or unenforceability, without in any way
 invalidating, effecting or impairing the other provisions hereof.

8 of 10

23. <u>Survival</u>.
 The provisions of Sections 4, 6, 8, 11, 15 (as applicable), 17, 22 and this Section 23 hereof
 shall survive termination of this Agreement.

[signature page follows]

9 of 10

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

**PFS FUNDS, on behalf of its Funds**

By: <u>/s/ Jeffrey R. Provence</u> 

Name: Jeffrey R. Provence

Title: Trustee, Secretary and Treasurer

**PARALEL TECHNOLOGIES LLC**

By: <u>/s/ Jeremy May</u> 

Name: Jeremy May

Title: Chief Executive Officer

10 of 10

**APPENDIX A**<br>**<u>SERVICES</u>**

In accordance with procedures established from time to time by agreement between the Trust and Paralel, Paralel agrees that it will perform the Services for the Trust, on behalf of the Funds, listed below. Notwithstanding anything to the contrary, the Services provided by Paralel under this Agreement apply only to Fund share classes not traded on an exchange, and shall not apply to any exchange-traded Fund share class (commonly referred to as an "ETF share class.")

&nbsp;&nbsp;&nbsp;&nbsp;A. Shareholder
 Transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Set
 up account information, including appropriate account type, shareholder address, dividend
 option, wire instructions, and taxpayer identification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Process
 shareholder purchase and redemption / repurchase orders in accordance with conditions set
 forth in the Fund's prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Process
 exchanges & transfers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Generate
 shareholder periodic statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Issue
 confirmations in compliance with Rule 10b-10 under the Securities Exchange Act of 1934;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Process
 dividend and distribution payments (paid in cash or reinvested back into the account purchasing
 new shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Provide
 cost basis reporting for shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Maintain
 a record of the number of shares held by each shareholder of record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. Record
 the issuance of shares of each fund and maintain, pursuant to Rule 17AD-10 of the Securities
 Exchange Act of 1934, a record of the total number of shares of the Trust which are authorized,
 based upon data provided to it by the Trust, and issued and outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. Administer
 and/or perform all other customary services of a transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;B. Shareholder
 Account Maintenance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Maintain
 all shareholder records for each account in the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Record
 shareholder account information changes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Maintain
 account documentation files for each shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;C. Shareholder
 Information Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Make
 information available to shareholder servicing unit and other remote access units regarding
 trade date, share price, current holdings, dividend information, and yields;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Produce
 detailed history of transactions through duplicate or special order statements upon request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Respond
 as appropriate to all inquiries and communications from shareholders relating to shareholder
 accounts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Provide
 mailing lists for distribution of prospectuses, proxy statements, financial reports or other
 marketing material.

&nbsp;&nbsp;&nbsp;&nbsp;D. Dealer
 Processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Provide
 reports for tracking rights of accumulation and purchases made under a Letter of Intent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Account
 for separation of shareholder investments from transaction sale charges for purchase of Fund
 shares;

Appendix A - 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Calculate
 fees due under Rule 12b-1 plans for distribution and marketing expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Track
 sales and commission statistics by dealer and provide for payment of commissions on direct
 shareholder purchases in each load Portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;E. Banking
 and DTCC Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Accept
 and effectuate the registration and maintenance of accounts through the Depository Trust
 and Clearing Corporation ("DTCC") or National Securities Clearing Corporation
 (the "NSCC") Fund/SERV also facilitating the purchase, redemption, transfer and
 exchange of shares in such accounts through and on behalf of the DTCC or NSCC participants,
 including the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Maintain
 bank account(s) that (i) are maintained in connection with Paralel's services to the
 Funds under the Transfer Agency Agreement and (ii) as to which Paralel has authority to make
 deposits and withdrawals (the "Operating Accounts");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Accept
 and distribute funds via systems such as, but not limited to; DTCC, NSCC and various banking
 systems such as Automated Clearing House ("ACH"), Fed Wire, SWIFT; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Paralel
 shall cause to be moved to Trust custody accounts all cash settlements including DTCC or
 NSCC settlements paid into transfer agency demand deposit accounts. Purchase settlements
 received through DTCC or NSCC, paid into transfer agency demand deposit accounts at BOKF
 or other banking institution, shall be moved to Trust custody accounts the next business
 day after settlement from the DTCC or NSCC.

&nbsp;&nbsp;&nbsp;&nbsp;F. Compliance
 Reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Maintain
 an Anti-Money Laundering Program in compliance with the USA PATRIOT Act of 2001 and regulations
 thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Perform
 such services as are required to comply with Rules 17a-24 and 17Ad-17 of the 1934 Act (the
 "Lost Shareholder Rules");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Provide
 reports to the Securities and Exchange Commission (the "SEC") and the states
 in which the Funds are registered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Prepare
 and distribute appropriate Internal Revenue Service forms for shareholder income and capital
 gains;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Issue
 tax withholding reports to the Internal Revenue Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Maintain
 a Customer Identification Program by obtaining, verifying, and recording information that
 identifies each person who opens an account within the Trust/Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Maintain
 and coordinate Blue Sky registration and notice filings, using third party vendor.

New procedures as to who provides certain of these services may be established in writing from time to time by agreement between the Trust and Paralel. Pursuant to such agreement, Paralel may at times perform only a portion of these services and the Trust or its agent may perform these services on the Trust's behalf. Paralel may require the Trust to enter into an additional agreement or agree to certain terms of use relating to the creation of any shareholder site for the Trust, or to obtain access to Paralel's web portal. Except as provided above, Paralel is not obligated to provide and may discontinue or suspend the availability of any web portal at any time.

Appendix A - 2

**APPENDIX B**<br>**<u>COMPENSATION</u>**

[Redacted]

Appendix B - 1

**APPENDIX C**<br>**<u>FUNDS</u>**

<u><br></u> 

<br> Potomac Managed Volatility Fund

Potomac Tactical Rotation Fund

Potomac Tactical Opportunities Fund

Potomac Defensive Bull Fund

Appendix C - 1

## Ex-99.H

**TRUST ACCOUNTING AGREEMENT**

This TRUST ACCOUNTING AGREEMENT ("Agreement") is made as of October 27, 2025, between the PFS Funds, a Massachusetts business trust, ("the "Trust") on behalf of its series listed in <u>Appendix A</u>, and Paralel Technologies LLC, a Delaware Limited Liability Company, its successors and assigns ("Paralel").

WHEREAS, the Trust is registered under the Investment Company Act of 1940, as amended ("1940 Act"), as an open-end management investment company, consisting of multiple series; and

WHEREAS, the Trust and Paralel desire to enter into an agreement pursuant to which Paralel shall provide the Services (as defined below) to each series of the Trust listed on Appendix A (each a "Fund," and collectively, the "Funds"); and

NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Paralel Appointment and Duties; Interpretation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Trust hereby appoints Paralel to provide the services set forth in <u>Appendix B</u> hereto,
 as amended from time to time, to the Fund(s) upon the terms and conditions hereinafter set
 forth ("Services"). Paralel hereby accepts such appointment and agrees to furnish
 the Services. Paralel shall for all purposes be deemed to be an independent contractor and
 shall, except as otherwise expressly authorized in this Agreement, have no authority to act
 for or represent the Trust in any way or otherwise be deemed an agent of the Trust. The Trust
 acknowledges that Paralel does not render legal, tax or investment advice and that Paralel
 is not a registered broker-dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Paralel
 may employ or associate itself with such person(s) or organization(s) as Paralel believes
 to be desirable in the performance of its duties hereunder; provided that, in such event,
 the compensation of such person(s) or organization(s) shall be paid by and be the sole responsibility
 of Paralel, and the Trust shall bear no cost or obligation with respect thereto; and provided
 further that Paralel shall not be relieved of any of its obligations under this Agreement
 in such event and shall be responsible for all acts of any such person(s) or organization(s)
 taken in furtherance of this Agreement to the same extent it would be for its own acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Paralel Compensation; Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 consideration for the Services to be performed hereunder by Paralel, the Trust shall pay
 Paralel the fees listed in <u>Appendix C</u>. Notwithstanding anything to the contrary in
 this Agreement, fees billed for the Services to be performed by Paralel under this Agreement
 are based on information provided by the Trust and such fees are subject to renegotiation
 between the parties to the extent such information is determined by Paralel to be materially
 different from what the Trust originally provided to Paralel. Fees paid to Paralel will be
 calculated and accrued daily and payable monthly by the Trust, including for any partial
 months in which this Agreement begins or terminates. On each January 1, (pro-rated for a
 previous partial year), all fees set forth in <u>Appendix C</u> or otherwise in this Agreement
 shall automatically be increased by a cost of living adjustment equal to 3% or the percentage
 increase in the Consumer Price Index published by the Bureau of Labor and Statistics of the
 United States Department of Labor, for the Denver-Aurora-Lakewood, CO region for the twelve-month
 period ending with the latest published month preceding January 1st (the "CPI")
 plus 1.5%, whichever is greater. Paralel will provide notice to the Trust of the amount of
 such any such CPI adjustment at, prior to, or reasonably promptly

1 of 12

following its implementation. Any CPI adjustment not charged in any given year may be included in prospective CPI fee adjustments in future years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Paralel
 will bear all expenses in connection with its provisions of Services under this Agreement,
 except as otherwise provided herein and in <u>Appendix C.</u> Paralel will not bear any
 of the costs of Trust personnel. Trust expenses related to the operations of a Fund (even
 if completed by Paralel) shall be borne by the Trust or a Fund's investment adviser
 (or sub-adviser), including, but not limited to: initial organization and offering expenses;
 any secondary offering expenses; litigation expenses; expenses related to any requests from,
 or as otherwise required by, any regulatory body concerning the Trust or a Fund's investment
 adviser (or sub-adviser); taxes; expenses relating to listing of any Fund's securities
 on an exchange; expenses related to any tender offers or repurchase offers' transfer
 agency and custodial expenses; interest; directors' fees; brokerage fees and commissions;
 state and federal registration fees; advisory fees; insurance premiums; fidelity bond premiums;
 Trust and investment advisory related legal expenses; costs of maintenance of the Trust's
 existence; any printing, distribution, or delivery expenses related to materials in connection
 with meetings of the Trust's trustees (including the cost of any third party board portal
 utilized for those purpose by Paralel); filing, printing and mailing of shareholder reports,
 prospectuses, statements of additional information, other offering documents, supplements,
 proxy materials and any other communications to shareholders or other third parties; securities
 pricing data; expenses incurred connection with electronic filings with the U.S. Securities
 and Exchange Commission (the "SEC"), including costs of preparation, typesetting,
 XBRL-tagging, page changes and all other print vendor, document management, EDGAR conversion
 or other related charges, and any fees and expenses upon termination as provided in this
 Agreement, among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Trust agrees to pay all amounts due hereunder within thirty (30) days of receipt of each
 invoice. Except as provided in <u>Appendix C</u>, Paralel shall bill fees monthly, and out-of-pocket
 expenses as incurred (unless prepayment is requested by Paralel). Any invoices not paid within
 thirty (30) days of the invoice date are subject to a one percent (1%) per month financing
 charge on any unpaid balance to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Right to Receive Advice</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Advice of the Trust and Service Providers</u>. If Paralel is in doubt as to any action it should
 or should not take, Paralel may request directions, advice or instructions from the Trust
 or, as applicable, a Fund's investment adviser, sub-adviser, custodian or other service
 providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Advice of Counsel</u>. If Paralel is in doubt as to any question of law pertaining to any action
 it should or should not take, Paralel may request advice from counsel of its own choosing
 (who may be counsel for the Trust, the Trust's independent board members, a Fund's
 investment adviser, sub-adviser, or Paralel, at the option of Paralel).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conflicting Advice</u>. In the event of a conflict between directions, advice or instructions Paralel
 receives from the Trust or any service provider and the advice Paralel receives from counsel,
 Paralel may in its sole discretion rely upon and follow the advice of counsel. Paralel will
 provide the Trust with prior written notice of its intent to follow advice of counsel that
 is materially inconsistent with directions, advice or instructions from the Trust. Upon request,
 Paralel will provide the Trust with a copy of such advice of counsel.

2 of 12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Standard of Care; Limitation of Liability; Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Paralel
 shall be obligated to act in good faith and to exercise commercially reasonable care and
 diligence in the performance of its duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 anything in this Agreement to the contrary, Paralel, its affiliates and each of their respective
 directors, officers, control persons, employees and agents (any of Paralel, its affiliates,
 their respective officers, employees, agents and directors or such control persons, a "Admin
 Associate") shall have no liability to the Trust, or a Fund or its shareholders for
 any action or inaction of a Admin Associate except to the extent such liability results directly
 from the bad faith, reckless disregard, gross negligence or willful misfeasance of the Admin
 Associate taken with respect to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Trust agrees to indemnify and hold harmless the Admin Associates against any loss, liability,
 claim, damages or expense (including the reasonable cost of investigating or defending any
 alleged loss, liability, claim, damages or expense and reasonable counsel fees incurred in
 connection therewith) of any Admin Associate directly or indirectly related to, arising out
 of or based upon (i) this Agreement or any activity related to or taken under this Agreement,
 or (ii) the breach of any obligation, representation or warranty under this Agreement by
 the Trust, except that, in no case is the indemnity of an Admin Associate described in this
 section to be deemed to protect any Admin Associate against any liability to which such Admin
 Associate would otherwise be subject to due to such Admin Associate's reckless disregard,
 willful misfeasance, bad faith or gross negligence in the performance of its duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Paralel
 agrees to indemnify and hold harmless the Trust, each Fund, and each of its trustees and
 officers (for purposes of this Section, the Trust, the Fund(s) and each of its directors
 and trustees and its controlling persons are collectively referred to as the "Trust
 Associate") against any loss, liability, claim, damages or expense (including the reasonable
 cost of investigating or defending any alleged loss, liability, claim, damages or expense
 and reasonable counsel fees incurred in connection therewith) arising directly out of an
 Admin Associate's reckless disregard, willful misfeasance, bad faith or gross negligence
 taken in connection to this Agreement. In no case (i) is the indemnity of Paralel in favor
 of any Trust Associate to be deemed to protect any Trust Associate against any liability
 to which such Trust Associate would otherwise be subject by reason of reckless disregard,
 willful misfeasance, bad faith or negligence in the performance of its duties or by reason
 of its reckless disregard of its obligations and duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Paralel
 shall be entitled to rely on information and data provided by third-party service provider(s),
 including among others, pricing vendors, (whether or not selected by Paralel, Trust or the
 adviser), adviser, sub-adviser, custodian or other service provider to the Trust, as well
 as other authorized representatives of such parties, without further investigation or verification.
 Paralel may rely on any instruction, direction, notice, instrument or other information that
 Paralel reasonably believes to be genuine. Further, Paralel may rely on the advice of Trust
 counsel or its own counsel as it deems appropriate. In all such cases described herein, Paralel
 shall have no liability to and shall be fully indemnified by the Trust for any losses or
 claims occurring related to or otherwise arising from such reliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding
 anything in this Agreement to the contrary, (i) neither party shall be liable under this
 Agreement to the other party hereto, or to any other party, for any punitive, consequential,
 special or indirect losses or damages; (ii) Paralel will not be liable for any trading losses,
 lost revenues, lost profits, whether or not such damages were foreseeable or Paralel was
 advised of the possibility thereof, and (iii) the maximum cumulative amount of liability
 of Paralel to the Trust arising out of the subject matter of,

3 of 12

or in any way related to, this Agreement shall not exceed the aggregate fees paid by the Trust to Paralel under this Agreement for the most recent 12 months immediately preceding the date of the event giving rise to the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In
 any case in which either party (the "Indemnifying Party") may be asked to indemnify
 or hold the other party (the "Indemnified Party") harmless, the Indemnified Party
 will notify the Indemnifying Party promptly after identifying any situation which it believes
 presents or appears likely to present a claim for indemnification against the Indemnifying
 Party (although the failure to do so shall not prevent recovery by the Indemnified Party)
 and shall keep the Indemnifying Party advised with respect to all developments concerning
 such situation. The Indemnifying Party shall have the option to defend the Indemnified Party
 against any claim which may be the subject of this indemnification, and, in the event that
 the Indemnifying Party so elects, such defense shall be conducted by counsel chosen by the
 Indemnifying Party and reasonably satisfactory to the Indemnified Party, and thereupon the
 Indemnifying Party shall take over complete defense of the claim and the Indemnified Party
 shall sustain no further legal or other expenses in respect of such claim. The Indemnified
 Party will not confess any claim or make any compromise in any case in which the Indemnifying
 Party will be asked to provide indemnification, except with the Indemnifying Party's
 prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Force Majeure</u>. Other than as to payment obligations of the Trust, no party shall be liable
 for losses, delays, failures, errors, interruptions or losses of data in its performance
 of its obligations under this Agreement if and to the extent it is caused, directly or indirectly,
 by reason of circumstances beyond their reasonable control, including without limitation,
 acts of God, action or inaction of civil or military authority, war, terrorism, riot, fire,
 flood, sabotage, labor disputes, elements of nature or non-performance by a third party.
 In any such event, the non-performing party shall be excused from any further performance
 and observance of obligations so affected only for so long as such circumstances prevail
 and such party continues to use commercially reasonable efforts to recommence performance
 or observance as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Activities of Paralel; Web Portal</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Services rendered by Paralel under this Agreement are not to be deemed exclusive and Paralel
 shall be free to render similar services to others. The Trust recognizes that, from time
 to time, directors, officers and employees of Paralel may serve as directors, officers and
 employees of other corporations or businesses (including other investment companies) and
 that such other corporations and businesses may include Paralel as part of their name and
 that Paralel or its affiliates may enter into administration, bookkeeping, pricing agreements
 or other agreements with such other corporations and businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Paralel
 may require the Trust or its adviser to enter into an additional agreement or agree to certain
 terms of use relating to the creation of, or to obtain access to Paralel's web portal.
 Paralel is not obligated to provide access to such web portal (and this Agreement does not
 create any such obligation). Paralel may discontinue or suspend the availability of any web
 portal at any time without prior notice; Paralel will endeavor to notify Trust as soon as
 reasonably practicable of such action if it occurs. If access is provided to a web portal,
 with or without the parties entering into additional agreements or terms of use, the Trust
 acknowledges that Paralel does not guarantee the accuracy of any information or services
 provided in or by the web portal. Further, the Trust acknowledges that Paralel and its affiliates,
 including their respective officers, directors, agents and employees, shall not be liable
 for, and the Trust agrees to indemnify, defend and hold harmless such persons from any claim,
 loss, or other damage (as otherwise described in Section 4(b)) arising directly or indirectly
 from the Trust's or service providers' use of the web portal and/or any information
 or service provided therein.

4 of 12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Portfolio
 compliance with: (i) the investment objective and certain policies and restrictions as disclosed
 in a Fund's prospectus(es) and statement(s) of additional information, as applicable;
 and (ii) certain SEC rules and regulations (collectively, "Portfolio Compliance")
 is required daily and is the responsibility of the Trust or a Fund's adviser/sub-adviser,
 as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Trust agrees and acknowledges that Paralel's performance of the Portfolio Compliance
 Testing (if applicable) shall not relieve the Trust or a Fund's investment adviser or
 sub-adviser of their primary day-to-day responsibility for assuring such Portfolio Compliance,
 including on a pre-trade basis, and Paralel is not responsible and shall not be held liable
 for matter related to a Fund's Portfolio Compliance, or any act or omission of a Trust,
 a Fund,, or a Fund's adviser or sub-adviser, as applicable, related to such Portfolio
 Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Accounts and Records</u>. The accounts and records maintained by Paralel under this Agreement on behalf
 of the Trust shall be the property of the Trust. Paralel shall prepare, maintain and preserve
 such accounts and records as required by the 1940 Act and other applicable securities laws,
 rules and regulations. Paralel shall surrender such accounts and records to the Trust **,** in the form in which such accounts and records have been maintained or preserved **,** promptly upon receipt of instructions from the Trust. The Trust shall have access to
 such accounts and records at all times during Paralel's normal business hours. Upon
 the reasonable request of the Trust, copies of any such books and records shall be provided
 by Paralel to the Trust at the Trust's expense. Paralel shall assist the Trust, the
 Trust's independent auditors, or, upon approval of the Trust, any regulatory body, in
 any requested review of the Trust's accounts and records and reports by Paralel or its
 independent accountants concerning its accounting system and internal auditing controls will
 be open to such entities for audit or inspection upon reasonable request. The Trust agrees
 to cooperate with Paralel and take delivery of Trust records within 120 days of termination
 of this Agreement and to pay all reasonable costs associated with the return of Trust records
 to the Trust. .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Confidential and Proprietary Information</u>. Paralel agrees that it will, on behalf of itself and its
 officers and employees, treat all transactions contemplated by this Agreement, and all records
 and information relative to the Trust and its current and former shareholders and other information
 germane thereto, as confidential and as proprietary information of the Trust. Paralel further
 agrees that it will not use, sell, transfer or divulge such information or records to any
 person for any purpose other than performance of its duties hereunder, except after prior
 notification to and approval in writing from the Trust, which approval shall not be unreasonably
 withheld. Approval may not be withheld where Paralel may be exposed to civil, regulatory,
 or criminal proceedings for failure to comply, when requested to divulge such information
 by duly constituted authorities, or when requested by the Trust. When requested to divulge
 such information by duly constituted authorities, Paralel shall use reasonable commercial
 efforts to request confidential treatment of such information. Paralel shall have in place
 and maintain physical, electronic, and procedural safeguards reasonably designed to protect
 the security, confidentiality and integrity of, and to prevent unauthorized access to or
 use of records and information relating to the Trust and its current and former shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Compliance with Rules and Regulations</u>. Paralel shall comply (and to the extent Paralel takes or
 is required to take action on behalf of the Trust hereunder shall cause the Trust to comply)
 with all applicable requirements of the 1940 Act and other applicable laws, rules, regulations,
 orders and codes of ethics, as well as all investment restrictions, policies and procedures
 adopted by the Trust of which Paralel has knowledge (it being understood that Paralel is
 deemed to have knowledge of all investment restrictions, policies or procedures set out in
 the Trust's public filings or otherwise provided to Paralel). Except as set out in this
 Agreement, Paralel assumes no responsibility for such compliance by the Trust. Paralel shall
 maintain at all times a program reasonably designed to prevent violations of the federal
 securities laws (as defined in Rule 38a-1 under the 1940 Act) with respect to the Services.
 Paralel shall make available its compliance personnel and shall provide at its own expense
 summaries

5 of 12

and other relevant materials relating to such program as reasonably requested by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Representations and Warranties of Paralel</u>. Paralel represents and warrants to the Trust that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It
 is duly organized and existing as a limited liability company and in good standing under
 the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It
 is empowered under applicable laws and by its Certificate of Formation and Operating Agreement
 to enter into and perform this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All
 requisite corporate proceedings have been taken to authorize it to enter into and perform
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) It
 has and will continue to have access to the necessary facilities, equipment and personnel
 to perform its duties and obligations under this Agreement in accordance with industry standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It
 is conducting its business in compliance in all material respects with all applicable laws
 and regulations, both state and federal, and has obtained (or will timely obtain) all regulatory
 approvals necessary to carry on its business as now conducted; there is no statute, rule,
 regulation, order or judgment binding on it and no provision of its operating documents or
 any contract binding it or affecting its property which would prohibit its execution or performance
 of this Agreement. Its execution, delivery or performance of this Agreement will not conflict
 with or violate (a) any provision of the organizational or governance documents of Paralel
 or (b) any law applicable to Paralel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Representations and Warranties of the Trust.</u> The Trust represents and warrants to Paralel that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It
 is a business trust duly organized and existing and in good standing under the laws of the
 state of Massachusetts and is registered with the SEC as an open-end management investment
 company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It
 is empowered under applicable laws and by its Declaration of Trust and Bylaws (collectively,
 the "Organizational Documents") to enter into and perform this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Board of Trustees of the Trust has duly authorized it to enter into and perform this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding
 anything in this Agreement to the contrary, the Trust agrees not to make any modifications
 to a Fund's registration statement or adopt any policies which would affect materially
 the obligations or responsibilities of Paralel hereunder without the prior written approval
 of Paralel, which approval shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 (i) execution, delivery and performance of this Agreement by the Trust does not breach, violate
 or cause a default under any agreement, contract or instrument to which the Trust is a party
 or any judgment, order or decree to which the Trust is subject; (ii) the execution, delivery
 and performance of this Agreement by the Trust has been duly authorized and approved by all
 necessary action; and (iii) upon the execution and delivery of this Agreement by Paralel
 and Trust, this Agreement will be a valid and binding obligation of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 officer position(s) filled by Paralel, to the extent applicable, shall be covered by the
 Trust's Directors & Officers/Errors & Omissions Policy (the "Policy"),
 and the Trust shall use reasonable efforts to ensure

6 of 12

that such coverage be (i) reinstated should the Policy be cancelled; (ii) continued after such officer(s) cease to serve as officer(s) of the Trust on substantially the same terms as such coverage is provided for the other persons serving as officers of the Trust after such persons are no longer officers of the Trust; or (iii) continued in the event the Trust merges or terminates, on substantially the same terms as such coverage is continued for the other Trust officers (but, in any event, for a period of no less than six years). The Trust shall provide Paralel with proof of current coverage, including a copy of the Policy, and shall notify Paralel immediately should the Policy be cancelled or terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Trust's officer position(s) filled by Paralel (if any) are named officer(s) in the Trust's
 corporate resolutions and are subject to the provisions of the Trust's Organizational
 Documents regarding indemnification of its officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Documents</u>.
 The Trust has furnished or will furnish, upon request, Paralel with copies of the Trust's
 Organizational Documents, advisory agreement(s), sub-advisory agreement (if applicable),
 custodian agreement, transfer agency agreement, administration agreement, other service agreements,
 current prospectus, statement of additional information, periodic reports and all forms relating
 to any plan, program or service offered by the Trust or a Fund. The Trust shall furnish,
 within a reasonable time period, to Paralel a copy of any amendment or supplement to any
 of the above-mentioned documents. Upon request, the Trust shall furnish promptly to Paralel
 any additional documents necessary or advisable to perform its functions hereunder. As used
 in this Agreement the terms "registration statement," "prospectus" and
 "statement of additional information" shall mean any registration statement, prospectus
 and statement of additional information filed by the Trust, on behalf of its Funds, with
 the SEC and any amendments and supplements thereto that are filed with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Consultation Between the Parties</u>. Paralel and the Trust shall regularly consult with each other regarding
 Paralel's performance of its obligations under this Agreement. In connection therewith,
 the Trust shall submit to Paralel at a reasonable time in advance of filing with the SEC
 reasonably final copies of any amended or supplemented registration statement (including
 exhibits) under the Securities Act of 1933, as amended (if applicable), and the 1940 Act;
 provided, however, that nothing contained in this Agreement shall in any way limit the Trust's
 right to file at any time such amendments to any registration statement and/or supplements
 to any prospectus or statement of additional information, of whatever character, as the Trust
 may deem advisable, such right being in all respects absolute and unconditional.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Valuation, Custodians, and Pricing Services; Assistance with Regulatory Examinations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Valuation Responsibilities and Pricing Services</u>.

If set forth in the Services, Paralel may assist the Trust in calculating fair values and apply securities pricing information as required or authorized under the terms of the valuation policies and procedures of the Trust ("Valuation Procedures"). This may include utilizing (i) pricing information from third-party pricing services, (ii) fair value pricing information from third-party pricing services to apply to prices pursuant to the Valuation Procedures, , and (iii) such other prices or valuations obtained from the Trust, the Adviser, Sub-Adviser, Valuation Designee of the Trust, third-party pricing service, or other third party, as directed by the Trust (collectively, any party providing pricing or valuation information to Paralel related to the Services described above, including, but not limited to, the Trust, the Adviser, Sub-Adviser(s), Valuation Designee of the Fund(s), third-party pricing service, or other third party as directed by the Trust, referred to as the "Trust Valuation Providers").

The Trust acknowledges that, while Paralel may provide assistance with valuation calculations as provided in the Services and set forth in the Valuation Procedures, Paralel (i) does not provide valuations

7 of 12

with respect to the Trust's securities (ii) does not and is not responsible for valuing a Fund's securities, except to apply such calculations as set forth in the Services, (iii) does not verify any valuations provided to it by the Trust or any Trust Valuation Provider, and does not verify the existence of any assets referenced, but instead relies exclusively on information about prices, valuations and the existence of assets provided to it by the Trust or the Trust Valuation Providers, and (iv) shall have no responsibility and shall be without liability for, and be fully indemnified by the Trust, any claim, loss or damage arising with respect to pricing, valuation, verification, and/or existence of such securities held by a Fund or the Trust. The Trust further acknowledges that (i) the valuation of its securities remains the sole responsibility of the Trust; (ii) it is the Trust's obligation to select and complete appropriate diligence on all pricing services, even if recommended or otherwise utilized by Paralel in its services, and (iii) Paralel is not the guarantor of the accuracy of the security prices received from any third-party pricing service or Trust Valuation Provider, and Paralel will not liable to the Trust for incorrect prices, errors, or other mistakes or issues (and shall be indemnified by Trust for any claims against or losses of Paralel related to such issues) occurring with respect to valuing the Trust's assets or calculating the net asset value of the Trust when calculations are based upon inaccurate prices provided by pricing services, the Trust, or any Trust Valuation Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Custodians and Verification</u>. The Trust acknowledges that Paralel may rely on and shall have no responsibility
 to validate the existence of assets reported by the Trust, a Fund's adviser, sub-adviser(s),
 Valuation Designee or a Fund's custodian, other than Paralel's completion of a
 reconciliation of the assets reported by such parties. The Trust acknowledges that it is
 the responsibility of the Trust to validate the existence of assets reported to Paralel.
 Paralel may rely, and has no duty to investigate the representations of, the adviser, sub-adviser,
 Trust, or the Trust's custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Examinations</u>.
 Paralel shall provide reasonable assistance in connection with any examination of or inquiry
 related to the Trust or a Fund by a regulatory authority that includes a review of Trust
 records maintained by Paralel. Paralel reserves the right to charge a reasonable fee for
 such services at its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Business Continuity Plan</u>. Paralel shall maintain in effect a business continuity plan and enter
 into any agreements necessary with appropriate parties making reasonable provisions for emergency
 use of electronic data processing equipment customary in the industry. In the event of equipment
 failures, Paralel shall, at no additional expense to the Trust, take commercially reasonable
 steps to minimize service interruptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Duration and Termination of this Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Term</u>. This Agreement shall become effective as of the date first written above (the "Start
 Date") and shall continue thereafter throughout the period that ends three (3) years
 after the Start Date (the "Initial Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Renewal Terms:</u> If not sooner terminated, this Agreement shall renew at the end of the Initial
 Term and shall thereafter continue for successive annual periods (each a "Renewal Term"
 and collectively with the Initial Term, a "Term") until terminated as provided
 herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination:</u> Either party may terminate this Agreement, without payment of penalty, if upon at least
 ninety (90) days prior to the end of applicable Term it gives the other party a written notice
 of non-renewal and termination, with such termination coinciding at the end of the applicable
 Term or otherwise negotiated date.

8 of 12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination for Cause</u>. Paralel or Trust may, by written notice to the other, terminate this Agreement
 if any of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The other party breaches any material term, condition or provision of this Agreement, which breach, if capable of being cured, is not cured within 30 calendar days after the non-breaching party gives the other party written notice of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The other party (i) terminates or suspends its business, (ii) becomes insolvent, admits in writing its inability to pay its debts as they mature, makes an assignment for the benefit of creditors, or becomes subject to direct control of a trustee, receiver or analogous authority, (iii) becomes subject to any bankruptcy, insolvency or analogous proceeding, or (iv) where the other party is the Trust, and Trust becomes subject to a material Action (as defined below) or an Action that Paralel reasonably determines could cause Paralel reputational harm (including any Action against an investment adviser, or other service provider of Trust), or (v) where the other party is Trust, material changes in governing documents, bylaws, or registration statement, or other assumptions relied upon by Paralel or the assumptions set forth are determined by Paralel, in its reasonable discretion, to materially affect the services provided by Paralel. "Action" means any civil, criminal, regulatory or administrative lawsuit, allegation, demand, claim, counterclaim, action, dispute, sanction, suit, request, inquiry, investigation, arbitration or proceeding, in each case, made, asserted, commenced or threatened by any person, including any government entity or authority.

If any such event occurs, the termination will become effective immediately, or on the date stated in the written notice of termination, or other such date as agreed to by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Deliveries Upon Termination</u>. Upon termination of this Agreement, Paralel agrees to cooperate in
 the orderly transfer of administrative duties and shall deliver to the Trust or as otherwise
 directed by the Trust (at the expense of the Trust) all records and other documents made
 or accumulated in the performance of its duties for the Trust hereunder. In the event Paralel
 gives notice of termination under this Agreement, it will continue to provide the Services
 contemplated hereunder after such termination at the contractual rate for up to 120 days,
 provided that the Trust uses all reasonable commercial efforts to appoint such replacement
 on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Fees and Expenses Upon Termination</u> *.* Should either party exercise its right to terminate,
 all reasonable out-of-pocket expenses or costs associated with the movement of records and
 material will be borne by the Trust. Additionally, the Trust agrees to pay to Paralel a reasonable
 fee (determined by Paralel) for Paralel's services provided in connection with the Trust
 liquidating or converting to another service provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Assignment</u>.
 This Agreement shall extend to and shall be binding upon the parties hereto and their respective
 successors and permitted assigns; provided, however, that this Agreement shall not be assignable
 by the Trust without the prior written consent of Paralel, or by Paralel without the prior
 written consent of the Trust (except for assignment by Paralel to an affiliate under common
 control).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Governing Law</u>. The provisions of this Agreement shall be construed and interpreted in accordance
 with the laws of the State of Colorado and the 1940 Act and the rules thereunder. To the
 extent that the laws of the State of Colorado conflict with the 1940 Act or such rules, the
 latter shall control. Each party to this Agreement, by its execution hereof (i) irrevocably
 submits to the nonexclusive jurisdiction of the state courts of the State of Colorado or
 the United States District Courts for the State of Colorado for the purpose of any action
 between the parties

9 of 12

arising in whole or in part under or in connection with this Agreement, and (ii) waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Names</u>.
 The obligations of the Trust entered into in the name or on behalf thereof by any director,
 shareholder, representative, or agent thereof are made not individually, but in such capacities,
 and are not binding upon any of the directors, shareholders, representatives or agents of
 the Trust personally, but bind only the property of the Trust, and all persons dealing with
 the Trust must look solely to the property of the Trust for the enforcement of any claims
 against the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendments to this Agreement</u>. This Agreement may only be amended by the parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Notices</u>.
 Any notice, advice or report to be given pursuant to this Agreement shall be made in writing
 and deemed to have been given and received (a) when personally delivered, or delivered by
 same-day courier; or (b) on the third business day after mailing by registered or certified
 mail, postage prepaid, return receipt requested; or (c) upon delivery when sent by prepaid
 overnight express delivery service (e.g., FedEx, UPS); or (d) when sent by email, upon the
 receipt by the sending party of confirmation of receipt by the receiving party, which shall
 not be unduly withheld by the receiving party;

To Paralel:

Paralel Technologies LLC

1700 Broadway Suite 1850

Denver, Colorado 80290

Attn: General Counsel

Email:

To the Trust:

PFS Funds

1939 Friendship Drive, Suite C

El Cajon, California 92020

Email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Counterparts</u>.
 This Agreement may be executed by the parties hereto on any number of counterparts, and all
 of said counterparts taken together shall be deemed to constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Entire Agreement</u>. This Agreement, together with any Appendices embodies the entire agreement
 and understanding among the parties and supersedes all prior agreements and understandings
 relating to the subject matter hereof; provided, however, that Paralel may embody in one
 or more separate documents its agreement, if any, with respect to delegated duties and oral
 instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Severability</u>.
 Any covenant, provision, agreement or term contained in this Agreement that is prohibited
 or that is

10 of 12

held to be void or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such prohibition or unenforceability, without in any way invalidating, effecting or impairing the other provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Survival</u>.
 The provisions of Sections 4, 7, 11(f), 11(g), 16 (as applicable), 18, 24 and this Section
 25 hereof shall survive termination of this Agreement.

*[signature page follows]*

11 of 12

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

**PFS Funds**

a Massachusetts business trust

on behalf of each of its Funds listed on Appendix A

By: <u>/s/ Jeffrey R. Provence</u> 

Name: Jeffrey R. Provence

Title: Trustee, Secretary and Treasurer<br>

**PARALEL TECHNOLOGIES LLC,**

A Delaware limited liability company

By: <u>/s/ Jeremy May</u> 

Name: Jeremy May

Title: Chief Executive Officer

12 of 12

**<u>APPENDIX A</u>**

**LIST OF FUNDS**

Potomac Managed Volatility Fund

Potomac Tactical Rotation Fund

Potomac Tactical Opportunities Fund

Potomac Defensive Bull Fund

Exhibit A-1

**<u>APPENDIX B</u>**

**SERVICES**

The below services to be performed by Paralel are included in the compensation noted on <u>Appendix C</u>.

**Fund Accounting**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Calculate
 daily net asset values (NAVs) in conformance with generally accepted accounting principles
 and SEC regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Apply
 security valuations provided by the Fund's adviser, consistent with pricing and valuation
 policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Transmit
 NAVs to the adviser, NASDAQ, transfer agent, custodian and other third parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Reconcile
 cash & positions with the custodian, as applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Provide
 data and reports to support preparation of financial statements and regulatory filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Maintain
 required accounting records in accordance with the 1940 Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Coordinate
 data reporting to outside agencies including Morningstar, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Calculate
 SEC standardized total return performance

Any addition of new services, or revision to, the services listed above (including but not limited to new or revised services related to regulatory changes or special projects) shall be subject to additional fees as determined by Paralel. Paralel is not responsible for any services that are not specifically set forth above.

 

Exhibit B-1

**<u>APPENDIX C</u>**

**FEES AND EXPENSES**

[Redacted]

Exhibit C-1

**<u>APPENDIX D</u>**

**<u>ADDITIONAL TERMS APPLICABLE TO DATA SERVICES</u>**

In addition to the terms and conditions otherwise contained in the Agreement, the following terms and conditions apply to any services requiring third-party valuation, pricing, or security level data, or any other reference or similar data (as defined generally below as "Data") (herein referred to as "Data Services").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Provision of Services.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Paralel
 may engage third-party persons or organizations (referred to as a "Supplier") to
 assist in the provision of its duties of providing the Data Services; provided that, in such
 event, Paralel shall not be relieved of any of its obligations otherwise applicable under
 the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Use of Data; No Warranty; Termination of Rights.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 part of the provision of the Data Services, Paralel may provide or utilize security and/or
 issuer level reference data, risk metrics calculations, liquidity data, taxonomy data and
 other similar holdings classifications, as well as pricing or other market data (collectively,
 the "Data") that may be supplied by Paralel or a third-party Suppliers. Any Data
 being provided to the Trust by Paralel directly or by a Suppliers are being supplied to the
 Trust for the sole purpose of completion of the Data Services. The Trust may use the Data
 only for purposes necessary for the Data Services. The Trust does not have any license or
 right to use the Data for purposes beyond the Data Services, including, but not limited to,
 resale to other users or use to create any type of historical database. Data cannot be passed
 to or shared with any other non-affiliated entity or used by Trust in a third party hosted
 system except as to complete the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Trust acknowledges the proprietary rights that Paralel and its Suppliers have in the Data.
 Paralel and/or Supplier shall retain any intellectual property rights in the Data supplied
 to Trust in the provision of the Data Services under this Agreement. Trust acknowledges the
 confidentiality provisions of the Agreement applies to any Data provided by Suppliers as
 part of the Data Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) When
 required in Paralel's agreement with a Supplier ("Supplier Agreement"), the
 Trust acknowledges that such Supplier shall be considered a third-party beneficiary under
 this Agreement as it relates to the Data supplied by such Supplier in the Data Services and
 may enforce its rights under the applicable provisions of this Agreement. Upon termination
 of a Supplier Agreement or by request of Supplier (which may be communicated to Paralel,
 who shall notify the Trust), the Trust agrees to cease use of and delete any Data related
 to such Supplier Agreement from its systems, except as may be required by applicable law
 or regulatory requirements. Upon reasonable prior notice, Trust agrees to provide a Supplier
 with limited audit rights to reasonably ensure that Trust's use of that Supplier's
 Data (or its deletion, if applicable) is in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In
 reports or other materials created for the Trust or by the Trust using Data or as part of
 the Data Services, Paralel may require the inclusion of certain disclaimers that may be now
 or later required under a Supplier Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Paralel
 and its Suppliers shall have no liability to the Trust, any Fund, or other third party, for
 errors, omissions or malfunctions in the Data or related services, other than the obligation
 of Paralel to

Exhibit D-1

endeavor, upon receipt of notice from the Trust, to correct a malfunction, error, or omission in any Data or related services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Trust acknowledges that the Data and related services are intended for use as an aid to institutional
 investors, registered brokers or professionals of similar sophistication in making informed
 judgments concerning securities, in connection to the Data Services. The Trust accepts responsibility
 for, and acknowledges it exercises its own independent judgment in, its selection of the
 Data and related services, its selection of the use or intended use of such, and any results
 obtained. Nothing contained herein shall be deemed to be a waiver of any rights existing
 under applicable law for the protection of investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Trust shall indemnify Paralel and its Suppliers against and hold Paralel and its Suppliers
 harmless from any and all losses, damages, liability, costs, including attorney's fees, resulting
 directly or indirectly from any claim or demand against Paralel or its Suppliers by a third
 party arising out of or related to the accuracy or completeness of any Data or related services
 received by the Trust, or any data, information, service, report, analysis or publication
 derived therefrom. Neither Paralel nor its Suppliers shall be liable for any claim or demand
 against the Trust by a third party related to the Data or provision of the Data Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Paralel
 and its Suppliers, nor the Trust shall be liable for (i) any special, indirect or consequential
 damages (even if advised of the possibility of such), (ii) any delay by reason of circumstances
 beyond its control, including acts of civil or military authority, national emergencies,
 labor difficulties, fire, mechanical breakdown, flood or catastrophe, acts of God, insurrection,
 war, riots, or failure beyond its control of transportation or power supply, or (iii) any
 claim that arose more than one year prior to the institution of suit therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) THE
 TRUST HEREBY ACCEPTS THE DATA AS IS, WHERE IS, Paralel AND ITS SUPPLIERS MAKE NO WARRANTIES,
 EXPRESS OR IMPLIED, AS TO MERCHANTABILITY, FITNESS OR ANY OTHER MATTER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Provisions applicable to Data from Suppliers containing evaluations.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 the event that the Trust at any time receives Data from Supplier containing evaluations,
 rather than market quotations, for certain securities or certain other data related to such
 securities, the following provisions will apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Evaluated
 securities are typically complicated financial instruments. There are many methodologies
 (including computer-based analytical modeling and individual security evaluations) available
 to generate approximations of the market value of such securities, and there is significant
 professional disagreement about which is best. No evaluation method, including those used
 by Supplier, may consistently generate approximations that correspond to actual "traded"
 prices of the instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Supplier
 methodologies used to provide the pricing portion of certain Data may rely on evaluations;
 however, the Trust acknowledges that there may be errors or defects in Supplier's software,
 databases, or methodologies that may cause resultant evaluations to be inappropriate for
 use in certain applications; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The
 Trust assumes all responsibility for edit checking, external verification of evaluations,
 and ultimately the appropriateness of use of evaluations and other pricing data provided
 via the Service in Trust's applications, regardless of any efforts made by Supplier
 in this respect. The Trust shall indemnify and hold Supplier and Paralel completely harmless
 in the event that errors, defects, or inappropriate evaluations are made available via the
 Data.

Exhibit D-2

## Ex-99.I

PRACTUS

JOHN H. LIVELY, Managing Partner

john.lively@practus.com

11300 Tomahawk Creek Pkwy., Suite 310

Leawood, KS 66211

(913) 660-0778

October 28, 2025

PFS Funds

1939 Friendship Drive, Suite C

El Cajon, California 92020

Ladies and Gentlemen:

We hereby consent to the use of our name and to the reference to our firm in the Prospectus and under the caption "Fund Services" in the Statement of Additional Information for the Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac Tactical Rotation Fund, and Potomac Tactical Opportunities Fund, each a series of PFS Funds (the "Trust"), which is included in Post-Effective Amendment No. 264 to the Registration Statement under the Securities Act of 1933, as amended (No. 333-94671), and Amendment No. 264 to Registration Statement under the Investment Company Act of 1940, as amended (No. 811-09781), on Form N-1A of the Trust.

Sincerely,

/s/ John H. Lively

On behalf of Practus, LLP

## Ex-99.J

Cohen & C<u>o</u>

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in this Registration Statement on Form N-1A of our report dated August 20, 2025, relating to the financial statements and financial highlights of Potomac Defensive Bull Fund, Potomac Managed Volatility Fund, Potomac Tactical Opportunities Fund, and Potomac Tactical Rotation Fund, each a series of PFS Funds, which are included in Form N-CSR for the year ended June 30, 2025, and to the references to our firm under the headings "Other Fund Service Providers" and "Financial Highlights" in the Prospectus and "Independent Registered Public Accounting Firm" in the Statement of Additional Information.

/s/ Cohen & Company, Ltd.

COHEN & COMPANY, LTD.

Milwaukee, Wisconsin

October 27, 2025