Options trading involves significant risk and is not appropriate for all investors. You represent that you have read and understood the Characteristics and Risks of Standardized Options disclosure document and that you are financially able to bear the risks of options trading. Robinhood may, in its sole discretion, restrict your ability to trade options at any time without prior notice. You acknowledge that options transactions may result in the loss of your entire investment.
Options are complex leveraged products where losses can equal 100% of your investment, and Robinhood can revoke your access without warning, potentially trapping you in existing positions you can only close but not manage.
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.