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 the firm's unilateral authority to adjust margin terms and execute account liquidations based on its assessment of risk exposure, without requiring advance customer notification or approval before taking action.
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 →Customers operating margin accounts agree that positions may be liquidated without advance notice when margin requirements are triggered or when the firm determines action is necessary to protect its interests, meaning account positions are subject to forced sale at times determined by the firm rather than the account holder.
Cross-platform context
See how other platforms handle Margin Account Liquidation Without Prior Notice and similar clauses.
Compare across platforms →"We can increase our house margin requirements at any time without advance notice. You understand that we have the right to liquidate any or all securities or other property in your account(s), including in any account you may have with our affiliates, at any time, without prior notice to you, to meet a margin call or to protect our interests.Excerpt from Robinhood's Customer Agreement (PDF)
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The clause establishes the firm's unilateral authority to adjust margin terms and execute account liquidations based on its assessment of risk exposure, without requiring advance customer notification or approval before taking action.
Customers operating margin accounts agree that positions may be liquidated without advance notice when margin requirements are triggered or when the firm determines action is necessary to protect its interests, meaning account positions are subject to forced sale at times determined by the firm rather than the account holder.
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