This analysis describes what Robinhood'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
The clause establishes Robinhood's unilateral authority to execute forced liquidations based on margin thresholds it sets (which may exceed regulatory minimums) or its own risk assessment, without requiring advance notification to the account holder.
The updated terms establish new fiduciary verification and personal liability provisions for trust and custodial accounts. Trustees are now required to complete Robinhood's identity verification and onboarding before accessing trust accounts, notify Robinhood promptly of any material changes to the trust (amendments, revocation, trustee changes), and provide the correct taxpayer identification number for the trust. The revised language states that trustees are personally liable for obligations, debts, or negative equity arising from instructions given outside the scope of their authority under the trust instrument or applicable law. Robinhood reserves the right to freeze trust accounts or request updated documentation at any time, and will rely on instructions from any onboarded trustee without requiring consent from co-trustees or verifying compliance with the trust instrument. You should consult a tax advisor regarding the appropriate taxpayer identification number for your trust and review your fiduciary authority under the applicable trust instrument before executing trades.
View change record →Users operating margin accounts agree that positions may be closed by the firm without advance notice based on equity levels, margin call defaults, or the firm's discretionary determination of protective necessity. The terms specify that margin call extensions are not available.
Cross-platform context
See how other platforms handle Margin Liquidation Without Prior Notice and similar clauses.
Compare across platforms →"You understand that Robinhood Securities may, at its sole discretion, and without prior notice to you, liquidate all or any part of the assets in your account (including but not limited to any securities held in your account) if: (i) the equity in your account falls below the maintenance margin requirements set by Robinhood Securities (which may be higher than those required by FINRA and applicable exchanges); (ii) you fail to meet a margin call; (iii) Robinhood Securities determines, at its sole discretion, that such action is necessary for its protection. You are not entitled to an extension of time on a margin call.Excerpt from Robinhood's Customer Agreement (PDF)
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The clause establishes Robinhood's unilateral authority to execute forced liquidations based on margin thresholds it sets (which may exceed regulatory minimums) or its own risk assessment, without requiring advance notification to the account holder.
Users operating margin accounts agree that positions may be closed by the firm without advance notice based on equity levels, margin call defaults, or the firm's discretionary determination of protective necessity. The terms specify that margin call extensions are not available.
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