At Robinhood, we want to help you make informed investing decisions and will let you know about potential risks when investing in certain securities.

We flag certain securities, such as:

• Complex financial products (like leveraged exchange-traded funds (ETFs))
• Companies that are failing to meet the listing standards of Nasdaq or NYSE
• Companies that have filed for bankruptcy
• Stocks that may have experienced recent elevated volatility

Temporary and permanent labels or flags are shown in different ways:

• For assets with temporary alerts, you’ll get an alert message about the potential risk for the asset, like for elevated volatility
• For securities with permanent alerts, you’ll see a yellow, oval-shaped label next to the security’s name, such as for bankruptcy

The following labels alert you to securities that may introduce more investment risk, such as complex financial products like ETFs that are:

• Leveraged
• Inverse
• Volatility-linked
• Leveraged inverse
• Leveraged volatility
• Inverse volatility
• Leveraged inverse volatility

Products with these labels are risky and typically not for buy-and-hold investors. Some advanced traders might hold them for a day, but holding them for longer may increase the risk even further.

These products are also volatile, can cause considerable losses, and may not be suitable for all investors. Learn more about a specific product in its prospectus and more about these products on FINRA’s website.

We label companies that are failing to meet the listing standards of Nasdaq or NYSE. You may continue to trade the security that’s noncompliant with the listing standards. However, you should keep an eye on the status change and be aware of the risks. It is also possible for a company to get out of this status.

Here are a few potential reasons for this flag:

• Failing to meet minimum financial standards
• Failing to maintain a minimum stock price
• Failing to meet corporate governance requirements

To learn more, visit Nasdaq or NYSE, or reach out to the company’s investor relations.

We label companies that have filed for bankruptcy. You may still be able to place a trade for a company that has filed for bankruptcy. While it’s possible for a company to emerge from bankruptcy, shareholders are likely to suffer heavy losses, or to find that their shares become worthless. Read more about what happens to shares in bankruptcy on the SEC's website.

We also flag stocks that have experienced recent elevated volatility. Elevated volatility may be a caution sign to do more research on the company, such as its performance and expectations, the stock’s 52-week high and low, earnings reports, and any recent announcements.

To determine whether a stock has experienced recent elevated volatility, we compare the stock’s daily return with its daily returns over the last year (252 trading days). If a stock’s most recent daily return is 6 or more standard deviations outside of its historical performance (higher or lower), then it’s flagged with elevated volatility.

We perform the elevated volatility calculation once around the middle of the trading day (comparing the midday price with the last closing price), and once at the end of the trading day (comparing the closing price with the previous closing price). The closing price is the price at which a trade was last executed during a trading session.

These labels are updated 24 hours after their most recent flag.

The alerts are created using information from third-party data providers. Robinhood doesn’t guarantee their accuracy or timeliness. Given that some data may not be available for selected securities, or the delay in having the alerts publicly posted, Robinhood can’t guarantee that all labels will be posted for all alert conditions.

Robinhood’s goal is to flag complex financial products (like leveraged or inverse ETFs or exchange-traded notes), but this isn’t exhaustive, as there are other complex products other than these which aren’t flagged at this time.

The alerts are provided for informational purposes only and aren’t a recommendation of any security or investment strategy, nor are they a recommendation to avoid, or sell a security. You shouldn’t buy or sell any security without first determining if it is appropriate for your portfolio or investment strategy. All investments involve risks, including the loss of principal.