Robinhood's Updated Terms Of Service

I asked chat GPT for a quick rundown 

Here’s a summary of the most important points from the Robinhood Crypto Customer Agreement (as revised June 30, 2025) that you should be aware of:

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🚨 Key Warnings and Disclaimers

• No FDIC or SIPC protection: Your crypto holdings on Robinhood Crypto (RHC) are not insured. If Robinhood goes bankrupt, you may lose your funds.

• Robinhood Crypto is NOT a broker-dealer: It is separate from Robinhood Financial (stocks/options).

• Use at your own risk: RHC provides no investment advice, no trading guarantees, and assumes no responsibility for your decisions.

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🔐 Account Rules & Risks

• Self-directed account: You bear all responsibility for trades, transfers, and security.

• Account closure: If you want to close your account, it must have a zero balance—any dust (tiny crypto balance) may be forfeited.

• Suspension rights: RHC can freeze or suspend your account at any time (e.g., for AML concerns, inactivity, suspicious activity, or legal compliance).

• Dormancy = loss: If your account is inactive, your assets may be liquidated and turned over to the government under escheatment laws.

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⚖️ Legal & Arbitration

• Binding arbitration: You agree to resolve all disputes through binding arbitration. You waive your right to a jury trial or to participate in a class action.

• Changes can be made unilaterally: Robinhood can update this agreement at any time by posting changes—continued use = acceptance.

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💸 Fees & Transactions

• Fees may change without notice: Always check the RHC Fee Schedule.

• Network fees (miner fees) apply for wallet transfers and staking.

• Order “collaring”: Market orders are automatically converted to limit orders with collars (1% above ask for buys, 5% below bid for sells) to avoid extreme slippage.

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💼 Custody and Ownership

• You own your crypto, but Robinhood is the custodian—it uses shared wallets and tracks balances internally.

• No lending or rehypothecation of your crypto is allowed.

• UCC designation: Your crypto is treated as a “financial asset” under California law, which means it’s held for your benefit and not Robinhood's property.

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🔁 Wallet Transfers

• Send/Receive capabilities require extra verification: You must opt in and set up 2FA with a supported app.

• Send errors = your loss: If you send crypto to the wrong address or unsupported coin type, it's your responsibility—Robinhood won't retrieve it.

• Receive errors = your loss: Same as above, double-check wallet addresses and tags.

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📈 Staking

• Optional but risky: You can stake certain crypto, but rewards are not guaranteed.

• Slashing risk: If a validator behaves incorrectly, you could lose funds. Robinhood may reimburse only under limited conditions.

• Restaking: You can choose to restake rewards automatically.

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🌍 Regulatory Compliance

• Sanctions enforcement: Your account may be blocked if you access it from sanctioned jurisdictions.

• KYC required: You must provide valid identification. Background checks and restrictions may apply.

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📬 Communication

• Electronic delivery only: By using the platform, you consent to receive all documents electronically.

• Oral instructions allowed: They may act on verbal instructions if they believe it came from you.