The investments and cash in your Alpaca investing account are generally protected by SIPC insurance. However, stocks on loan are not covered by SIPC. Instead, cash collateral held at our third-party custodian, BMO Bank is used to safeguard your loaned stocks. We maintain cash equivalent to at least 100% of the value of your loaned stocks. In the event that Alpaca files for bankruptcy and is unable to return your stocks, this bank would compensate you in cash for the value of your loaned securities. Additionally, any cash held at this third-party bank would be covered under FDIC insurance, but only up to the $250,000 limit.

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.