Cash App limits the total amount it will pay you in damages to the fees you paid Cash App in the previous 12 months — which for most free-tier users is close to zero.
The liability cap was changed from a flat $200 cap to a 12-month fee-based limit, fundamentally altering how damages are calculated.
View full change record →Because many Cash App features carry no monthly fees, this liability cap means that in the worst-case scenario — such as unauthorized transactions draining your balance or a Bitcoin custody failure — Cash App's maximum financial obligation to you could be a few dollars in instant transfer fees, leaving you with no meaningful remedy for large losses.
Cross-platform context
See how other platforms handle Liability Cap (12-Month Fee Limit) and similar clauses.
Compare across platforms →If Cash App loses your Bitcoin, freezes your account incorrectly, or causes you significant financial harm, this clause caps how much money you can recover, regardless of the actual loss you suffered.
REGULATORY FRAMEWORK: Liability limitation clauses in consumer financial contracts are evaluated under EFTA §916 (15 U.S.C. §1693n), which establishes specific liability standards for unauthorized EFT errors that cannot be contractually reduced below the statutory floor. The CFPB's Regulation E (12 CFR §1005.6) similarly mandates minimum consumer liability protections for unauthorized transfers that override contractual caps. For the investing service, FINRA rules and SEC Regulation Best Interest (17 CFR §240.15l-1) may conflict with blanket liability limitations. For Bitcoin custody, state money transmission laws in New York (BitLicense, 23 NYCRR Part 200) and California (DFPI) impose specific liability standards.
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