Coinbase · Coinbase User Agreement · View original document ↗

Limitation of Liability Cap

High severity Uncommon · 19 of 343 platforms
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Recent governance activity Coinbase recorded 4 documented changes in the last 30 days.
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This analysis describes what Coinbase'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 liability cap defines the maximum financial exposure Coinbase assumes for platform-related incidents, regardless of the cause or the user's actual losses. This limitation applies across all categories of potential harm, including those arising from negligence or unauthorized use, and establishes a predictable ceiling on the company's liability obligations.

Recent Activity

This document changed recently

High May 15, 2026

The updated terms establish a new arrangement for USDC designated as 'Secured USDC' in connection with the Coinbase One Card. Under the revised language, if you designate USDC in your wallet as Secured USDC, you agree that Coinbase may transfer that amount to a third party designated as the secured party, and you will be restricted from withdrawing or transferring those funds. Additionally, the secured party's instructions to Coinbase regarding those assets take priority over any conflicting instructions you provide. The agreement states that you consent to all such permitted transfers. This arrangement operates independently of amounts owed to Coinbase, meaning Secured USDC will not be debited to satisfy debts you owe to Coinbase.

View change record →
Medium May 2, 2026

The updated terms eliminate language that previously allowed Coinbase to restrict your withdrawals if you designated USDC as Secured USDC and to comply with third-party secured party instructions without your consent. Under the revised agreement, Coinbase will not transfer, loan, or otherwise handle your Supported Digital Assets except as required by law or as you instruct. This means the One Card Secured USDC mechanism is no longer integrated into the core asset protection clause, and users no longer face withdrawal restrictions or loss of instruction authority tied to that designation. If you currently hold Secured USDC under a separate One Card cardholder agreement, that agreement remains in effect but is no longer cross-referenced in the main User Agreement's asset protection section.

View change record →
Medium May 1, 2026

The updated terms establish a new exception to the prior prohibition on transferring user digital assets. Previously, Coinbase stated it would not transfer assets except as required by law or per user instruction. The revised language now permits Coinbase to transfer USDC designated as 'Secured USDC' to third parties pursuant to a Coinbase One Card cardholder agreement. Users who elect to use this feature agree they will be restricted from withdrawing or transferring the secured portion, and they consent to Coinbase following instructions from a designated secured party without further user approval, even if those instructions conflict with the user's own orders to Coinbase. The full terms of this arrangement are stated to be in Appendix 4, which is not included in this summary.

View change record →

Clause Stability Stable

0
Changes
3
Months Monitored
May 7, 2026
First Seen
May 7, 2026
Last Seen
This clause type exists across 912 other provisions on other platforms.

Consumer impact (what this means for users)

Users' ability to recover damages from Coinbase for platform-related incidents is restricted to a specified maximum amount, with broad categories of damages expressly excluded from recovery. This structure means that losses exceeding the cap—including lost profits and consequential damages—fall outside the scope of Coinbase's liability under the agreement.

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 SHALL COINBASE, ITS AFFILIATES AND SERVICE PROVIDERS, OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES OR REPRESENTATIVES, BE LIABLE (A) FOR ANY AMOUNT GREATER THAN THE VALUE OF THE DIGITAL CURRENCY ON DEPOSIT IN YOUR COINBASE ACCOUNT AT THE TIME OF THE EVENT GIVING RISE TO THE LIABILITY OR ONE HUNDRED DOLLARS ($100), WHICHEVER IS GREATER, OR (B) FOR ANY LOST PROFITS OR ANY SPECIAL, INCIDENTAL, INDIRECT, INTANGIBLE, OR CONSEQUENTIAL DAMAGES, WHETHER BASED IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH AUTHORIZED OR UNAUTHORIZED USE OF THE COINBASE SITE OR COINBASE SERVICES, OR THIS AGREEMENT, EVEN IF AN AUTHORIZED REPRESENTATIVE OF COINBASE HAS BEEN ADVISED OF OR KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

— Excerpt from Coinbase's Coinbase User Agreement

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Coinbase User Agreement
Entity
Coinbase
Document last updated
May 5, 2026
Tracking information
First tracked
May 21, 2026
Last verified
May 21, 2026
Record ID
CA-P-004746
Document ID
CA-D-00047
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
144d728e6ebf97624553aa154f83f0328e1dee9c75ab4de6cdeee73980db79c6
Analysis generated
May 21, 2026 02:35 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Coinbase
Document: Coinbase User Agreement
Record ID: CA-P-004746
Captured: 2026-05-21 02:35:56 UTC
SHA-256: 144d728e6ebf9762…
URL: https://conductatlas.com/platform/coinbase/coinbase-user-agreement/limitation-of-liability-cap/
Accessed: June 10, 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 Coinbase's Limitation of Liability Cap clause do?

The liability cap defines the maximum financial exposure Coinbase assumes for platform-related incidents, regardless of the cause or the user's actual losses. This limitation applies across all categories of potential harm, including those arising from negligence or unauthorized use, and establishes a predictable ceiling on the company's liability obligations.

How does this clause affect you?

Users' ability to recover damages from Coinbase for platform-related incidents is restricted to a specified maximum amount, with broad categories of damages expressly excluded from recovery. This structure means that losses exceeding the cap—including lost profits and consequential damages—fall outside the scope of Coinbase's liability under the agreement.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 19 platforms. See the full comparison.

Is ConductAtlas affiliated with Coinbase?

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