SIPC, the Securities Investor Protection Corporation, protects investors against losses stemming from a financial failure of a member broker-dealer.
Folio Institutional, your custodian, is a member of the SIPC. Your assets are covered up to $500,000 in value, including $100,000 on claims for cash. For additional security, Folio also provides coverage in excess of SIPC limits. In addition, all cash deposits are FDIC insured up to $4.5 million for individual accounts and $9 million for joint accounts. Neither SIPC nor FDIC insurance protect against losses resulting from a decline in the market value of securities.