If you have a margin account, you authorize Robinhood to lend securities held in your margin account and agree that you may lose more than the assets deposited in your account. Robinhood may issue margin calls and liquidate your positions without prior notice to you.
Forced liquidation without notice means your positions can be sold at the worst possible time — during a market crash — potentially locking in maximum losses without giving you any chance to add funds or reduce risk.
Robinhood's Customer Agreement significantly restricts your legal rights by requiring all disputes — including those involving investment losses — to be resolved through binding arbitration rather than court, and explicitly waives your right to join a class action lawsuit. If you have a margin account, Robinhood can liquidate any of your securities positions without prior notice and can lend your securities to third parties. You can opt out of the arbitration clause by sending written notice to Robinhood within 30 days of account opening, as specified in the agreement.
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