You authorize Robinhood Securities to lend, either separately or together with the securities of other customers, your securities to itself or to others, and to use such securities for delivery against short sales or other purposes. You acknowledge that you will not receive any interest, compensation, or other benefit in connection with any such lending of your securities. Robinhood may receive compensation in connection with lending your securities.
Robinhood profits from lending your securities while you receive zero compensation, and if the borrower fails to return the securities, there is counterparty risk to your holdings.
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.
Your genetic data may be transferred to a new owner as a business asset. Here is what the Terms of Service actually say and what you can do right now.