Nightbot song requests and copyright

I plan to start streaming on twitch at a future date, and have had a looming question in the back of my mind with regards to music playing in the background and what can and cannot be played. I follow and subscribe to a number of twitch streamers and they use song requests through nightbot. As I understand it, it plays music directly from URLS from youtube. I am wondering the legality of this as I don’t want to get any of my favorite twitch streamers in trouble. Are twitch streamers free from any copyright repercussions from nightbot song requests? I am assuming that since the music is actually ‘hosted’ on youtube, twitch streamers are safe, and any DMCA requests that twitch receives would be forwarded to youtube to have the source url taken down. Am I correct in this understanding, or do users need to pay attention to copyright when submitting requests?

From the Nightbot FAQ:

Please keep in mind that streaming copyrighted music may cause unforeseen consequences. NightDev is not responsible for what you allow to be streamed through this system, nor is it really feasible for us to easily filter the content requested. We encourage restricting who can request music and promoting the play of remixes and game soundtracks, which are usually okay to be streamed.

In other words, what you do with it is at your own risk.

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