When a user holds a short stock position, the clearing broker is obligated to deliver shares by the settlement date. If these shares cannot be borrowed, or are recalled by the lender, or if a "fail to deliver" occurs with the clearinghouse, a close-out may be initiated. If we are unable to borrow shares for delivery by the settlement date (T+1), a close-out will be initiated on T+2 at approximately 9:30 AM ET. Lenders can recall shares at any time. If we cannot replace these recalled shares, a buy-in will be executed by the lender. If we have a net short settlement obligation with the clearinghouse and cannot obtain the shares, a close-out will be initiated prior to the open of regular trading hours on the day following the settlement day.

Please read Important Risk Disclosures With Respect To Participating In Fully Paid Securities Lending Transactions carefully before deciding whether to participate in lending Fully Paid Securities or agreeing to enter into a Master Securities Lending Agreement with Alpaca Securities LLC.

These disclosures describe important characteristics of, and risks associated with engaging in, securities-lending transactions. 

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Please note that diversification does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.