Motley Fool Pro Terms of Service

Welcome to Motley Fool Pro (the "Service"). This page sets forth the special Terms and Conditions by which The Motley Fool provides you with access to the Service (the "Terms"). It supplements the Fool's Rules (our standard terms and conditions), which are incorporated by reference. By subscribing to, and using the Service you are agreeing to abide by these Terms as well as the Fool's Rules INCLUDING THE BINDING ARBITRATION AND CLASS ACTION WAIVER DETAILED IN SECTION 10 OF THE FOOL'S RULES.

Motley Fool Pro

The Service is an actively managed $1 million real-money portfolio that employs a wide range of trading strategies, including all forms of options, leverage and shorting. The Service can be involved with any asset class, including stocks, bonds, ETFs, commodities, currencies, and anything which can conceivably be publicly traded. The Service may use unlimited leverage on any or all of its positions, but will never have more than 120% long exposure. The Motley Fool is funding the portfolio and consequently, any realized gains or losses will belong to The Motley Fool.

The Motley Fool strives to operate with the highest level of integrity and to treat everyone — our customers, employees and community — fairly. With that in mind, we've put in place guidelines with respect to the Service in addition to our standard trading rules. They include:

  • Employees and contractors cannot trade based upon any knowledge of an upcoming trade alert.  They may only trade in the security after the trade confirmation has been published.  
  • The Service is committed to making its transaction between 24 hours and 30 days from the time the trade alert has been published.
  • If one of The Motley Fool's other services has issued an Intent or Alert to trade, the Service will refrain from issuing its trade alert in the security for 24 hours.

Please note there may be occasions where the Service takes a position with respect to a security that is counter to that of another Fool premium service.   

An affiliate of The Motley Fool provides investment products that may hold securities mentioned in our publications. Editorial personnel have no nonpublic knowledge of the affiliate's holdings, and the affiliate's personnel have no knowledge of any editorial content before it is published.

A Word of Caution

As stated above, the Service may use a mix of investing strategies including buying, selling, and shorting securities as well as options (in all its forms and permutations), leverage, and other trading methods permissible under U.S. law. Regardless of the action taken by the Service, it is in the capacity of a responsible investor and not a speculator.  That doesn't mean our trades will always turn out to be winners.  It means that we have done our best to do our homework and consider the inherent risks before pledging our money. We urge you to do the same. Some of these inherent risks include:

  • Leveraging increases the risk of total loss, as small fluctuations in value may have far greater impact on your portfolio.
  • Illiquid or hard to trade assets can rapidly fluctuate in price, and may be hard or impossible to trade without a specialized broker or a significant margin account.
  • Trading in currencies can be riskier than trading in other assets, as currencies are subject to the control of their respective governments.
  • When shorting an asset, the risk of loss is hypothetically unlimited, as investors who short may be required to purchase shares to cover at any time, and at any price.
  • Shorting requires a margin account. Your broker may require additional capital in your margin account based on their policies and applicable regulations. These amounts may be significant, and failing to have access to sufficient capital may cause your broker to liquidate or close your positions without warning, in accordance with their policies.
  • A stock can become the subject of a short squeeze whereby many short positions attempt to cover at the same time.  This can drive up the price   and force investors to cover at unexpectedly higher prices.
  • Investors are liable for any dividends paid out during the time they hold a short position.
  • If a stock is heavily shorted, your broker may charge a "hard-to-borrow" fee before borrowing shares for your account, or may charge the fee while the shares are held short. These fees can be incurred without prior notice, and can be in excess of 100% annualized.
  • Most brokers will pay you interest based on the cash they receive from shorting, subject to "short rebate fees". These fees are levied regardless of the general interest rate. In times of low interest rates, you are responsible for paying the difference between the interest rate and the rebate fee.

We want to help you make money. However, The Motley Fool is not in the business of rendering personalized investment advice. We don't (and can't) know your financial situation, risk tolerances, or investing objectives. Accordingly, the decisions made and actions taken by the Service do not constitute a recommendation that a particular security, strategy or action taken is suitable for you or any specific person for that matter.

The Service bases its recommendations and forecasts on techniques, information and sources believed to be reliable in the past and cannot guarantee future accuracy and results. The Motley Fool and the writers will not be liable for any investment decision you make, or action you take based upon reliance of any material you read here. The Motley Fool is a company of investors writing for investors and as such, the writers (and/or the company) may own stocks mentioned by the Service. For more information about writer disclosure, as well as a list of places where you can view stocks our writers and analysts own, see our disclosure policy.

Disclaimer of Warranties and Liabilities

By using the Service, you agree that The Motley Fool, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based upon reliance on any information we publish. Please remember that past results are not necessarily indicative of future performance.

Under no circumstances will The Motley Fool, its employees, or its agents be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any material on our sites, even if we have been advised of the possibility of such damages. This includes, but is no way limited to, loss or injury caused in whole or in part by our negligence or by things beyond our control in creating or delivering the Service or any of our services. This disclaimer of liability does not apply in New Jersey.

Although this is included in the Fool's Rules, it bears repeating (and capitalizing):

ALL INFORMATION PROVIDED OR MADE AVAILABLE THROUGH THE SERVICE ARE PROVIDED "AS IS." THE MOTLEY FOOL HEREBY DISCLAIMS ALL REPRESENTATIONS, WARRANTIES AND CONDITIONS, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. WITH RESPECT TO OUR WEBSITES, OUR SERVICES, ANY CONTENT, TOOLS, OR PRODUCTS, YOU EXPRESSLY AGREE THAT YOU WILL ASSUME THE ENTIRE RISK AS TO THE QUALITY AND THE PERFORMANCE OF OUR SERVICES AND THE ACCURACY AND COMPLETENESS OF ITS CONTENT.

Some States do not allow exclusion of implied warranties or limitation of liability for incidental or consequential damages, so the above limitations or exclusions may not apply to you. In such states, our liability and that of our third party content providers will be limited to the greatest extent permitted by law. This disclaimer of warranties does not apply in New Jersey.

The Service Is Intended for U.S. Residents Only

The Service is aimed at, and published for individuals residing in the United States. The Motley Fool makes no representation that the materials provided, and actions taken by the Service are appropriate for users outside the United States or permitted under the laws of other jurisdictions. 

If you choose to access or use the Service from a location other than the United States, you do so at your own initiative and risk, and you bear full responsibility for compliance with any applicable local laws.

Everything Else

Please read the Fool's Rules for more details on our rules and policies including our dispute resolution procedures. If you see something that you think is a violation of the Fool's Rules or these Terms, please notify us at FoolAlert@Fool.com.

The Motley Fool reserves the right to change the Fool's Rules or these Terms at any time. Changes will be posted on the applicable Web page.

Last updated July 26th, 2017