Robinhood may, in its discretion and without prior notice to you, liquidate any or all securities or other property in your account to satisfy any margin deficiency or other obligation you owe to Robinhood. You acknowledge that Robinhood is not obligated to make a margin call prior to liquidating your positions, and that market conditions may prevent Robinhood from liquidating positions at favorable prices. You will remain liable for any deficiency balance remaining in your account after liquidation.
Forced liquidation can lock in losses at the worst possible moment, and you remain on the hook for any shortfall — meaning you could lose more than you originally invested in a margin account.
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.