TL;DR: No, you don’t. The purpose of our down market insurance is so you never owe us more than your monthly membership fee.
Your account has no leverage and no margin debt. If the market falls, your take-home value (your gains) can decrease — even to zero — but you won’t get a margin call or be asked to pay us back.
How the protection works
The portion of your account equal to the principal we’ve advanced is invested in a buffered (defined-outcome) ETF linked to the S&P 500. That fund aims to cushion part of a decline over a 12-month outcome period in exchange for a cap on gains for that sleeve. Anything above that principal is in uncapped S&P 500 exposure.
Example
If we advanced $10,000 for you and, years later, your position is worth $14,549.35:
$10,000 is in the capped, buffered ETF (downside cushion, capped upside).
$4,549.35 is in uncapped S&P 500 exposure (full upside, no cap).
By the time your position grows far above the protected amount, most or all will be uncapped — unless markets fall back toward the original $10,000.