Acorns · Acorns Terms of Service · View original document ↗

Limitation of Liability — 12-Month Fee Cap

High severity Rare · 1 of 343 platforms
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Document Record

What it is

Even if Acorns makes a serious mistake that costs you money, the most you can recover from them is capped at whatever fees you paid Acorns in the past 12 months — not your actual investment losses.

This analysis describes what Acorns's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The dual-layer liability structure operates to restrict the scope of recoverable damages and establish a monetary ceiling based on historical fees paid. This provision allocates financial risk by excluding certain damage categories entirely and limiting aggregate exposure to a defined, user-specific amount.

Consumer impact (what this means for users)

This cap means that if Acorns makes an error that costs you hundreds or thousands of dollars in investment losses, your maximum legal recovery is limited to a few months of subscription fees — a significant financial risk for anyone with substantial assets on the platform.

How other platforms handle this

Synthesia Medium

To the maximum extent permitted by applicable law, in no event will Synthesia's aggregate liability to you under or in connection with this Agreement exceed the total fees paid or payable by you to Synthesia in the twelve (12) month period immediately preceding the event giving rise to the claim. In...

ConvertKit Medium

To the maximum extent permitted by applicable law, Kit shall not be liable for any indirect, incidental, special, consequential or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting ...

Pinterest Medium

To the maximum extent permitted by applicable law, Pinterest shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, res...

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▸ View Original Clause Language DOCUMENT RECORD
"
IN NO EVENT WILL ACORNS, ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR THIRD-PARTY SERVICE PROVIDERS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO YOUR USE OF THE SERVICES. IN NO EVENT SHALL ACORNS' TOTAL LIABILITY TO YOU FOR ALL DAMAGES, LOSSES, AND CAUSES OF ACTION EXCEED THE AMOUNT OF FEES PAID BY YOU TO ACORNS IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

— Excerpt from Acorns's Acorns Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY FRAMEWORK: Limitation of liability clauses in investment adviser agreements are evaluated under the Investment Advisers Act of 1940, Section 206 (anti-fraud provisions), which prohibits advisers from contracting out of fiduciary liability. The SEC has taken the position that certain liability caps may be inconsistent with an investment adviser's fiduciary duty under the Advisers Act. FTC Act Section 5 also applies if the cap is deemed deceptive. State securities laws (Blue Sky laws) in California, New York, and Texas impose additional fiduciary standards that may limit enforceability. (2)

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • SEC
    The SEC regulates investment adviser fiduciary duties and has scrutinized liability cap provisions in registered investment adviser agreements as potentially inconsistent with the Investment Advisers Act of 1940.
    File a complaint →
  • CFPB
    The CFPB has authority over unfair, deceptive, or abusive acts in consumer financial products, which may apply if the liability cap is deemed to undermine reasonable consumer expectations in a banking or payment context.
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Acorns Terms of Service
Entity
Acorns
Document last updated
May 5, 2026
Tracking information
First tracked
April 18, 2026
Last verified
April 18, 2026
Record ID
CA-P-002882
Document ID
CA-D-00171
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
3556a6294c711a9f21e9724c15204e0cd4633d587f15678cae73f7e8ac9a9bb4
Analysis generated
April 18, 2026 10:31 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Acorns
Document: Acorns Terms of Service
Record ID: CA-P-002882
Captured: 2026-04-18 10:31:41 UTC
SHA-256: 3556a6294c711a9f…
URL: https://conductatlas.com/platform/acorns/acorns-terms-of-service/limitation-of-liability-12-month-fee-cap/
Accessed: June 17, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Acorns's Limitation of Liability — 12-Month Fee Cap clause do?

The dual-layer liability structure operates to restrict the scope of recoverable damages and establish a monetary ceiling based on historical fees paid. This provision allocates financial risk by excluding certain damage categories entirely and limiting aggregate exposure to a defined, user-specific amount.

How does this clause affect you?

This cap means that if Acorns makes an error that costs you hundreds or thousands of dollars in investment losses, your maximum legal recovery is limited to a few months of subscription fees — a significant financial risk for anyone with substantial assets on the platform.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.

Is ConductAtlas affiliated with Acorns?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Acorns.