This provision establishes California law as the governing law for the agreement, applies the agreement to all past, present, and future margin accounts with Robinhood or any introducing broker, and limits Robinhood's liability for losses caused by events beyond its reasonable control including market suspensions, trading halts, and macroeconomic or political events.
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 force majeure clause includes unusually heavy trading in securities as an event beyond Robinhood's reasonable control, which may be relevant in high-volatility market conditions. This formulation means that losses arising from trading halts or platform unavailability during high-volume periods may not give rise to liability claims against Robinhood under this agreement.
The agreement establishes California as the governing law and limits Robinhood's liability for losses arising from events including government restrictions, exchange rulings, trading suspensions, unusually heavy trading volume, and macroeconomic or geopolitical events. The retroactive application of the agreement to all previously opened margin accounts should be noted.
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Compare across platforms →"This Agreement and its enforcement shall be governed by the laws of the state of California and shall cover individually and collectively all margin accounts which the Customer has previously opened, now has open or may reopen with Robinhood, or any introducing broker, and any and all previous, current and future transactions in such accounts. Robinhood shall not be liable for losses caused directly or indirectly by any events beyond Robinhood's reasonable control, including without limitation, government restrictions, exchange or market rulings, suspension of trading or unusually heavy trading in securities, a general change in economic, political or financial conditions, war, or strikes.Excerpt from Robinhood's Margin Account Rules
(1) REGULATORY LANDSCAPE: California law governs the agreement, which engages California contract law, consumer protection statutes, and potentially California Corporations Code provisions applicable to broker-dealers operating in the state.
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The force majeure clause includes unusually heavy trading in securities as an event beyond Robinhood's reasonable control, which may be relevant in high-volatility market conditions. This formulation means that losses arising from trading halts or platform unavailability during high-volume periods may not give rise to liability claims against Robinhood under this agreement.
The agreement establishes California as the governing law and limits Robinhood's liability for losses arising from events including government restrictions, exchange rulings, trading suspensions, unusually heavy trading volume, and macroeconomic or geopolitical events. The retroactive application of the agreement to all previously opened margin accounts should be noted.
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