Fully Paid Lending isn't appropriate for everyone. Clients with very short-term liquidity needs should not consider the program.
A primary risk is counterparty default. TD Ameritrade Institutional is your counter party on fully paid lending transactions. If TD Ameritrade Institutional were to default on its obligations as defined in the MSLA, you would have the right to withdraw the collateral from the custodian bank in the manner described in the Collateral Administration Agreements.
Please refer to the other FAQs on this page to gain a better understanding of the program benefits and risk considerations.