No matter how much money you lose as a result of using Uniswap's interface, the maximum amount you can recover from Uniswap Labs is $100 (or what you paid them in the past year, whichever is higher).
This analysis describes what Uniswap's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Given that users may execute trades worth thousands or millions of dollars through the interface, a $100 liability ceiling means users bear virtually all financial risk for losses, even those caused by platform failures or errors.
This clause means that if you lose significant funds due to a platform malfunction, erroneous transaction, or other covered event, your financial recovery from Uniswap Labs is capped at $100, regardless of the actual loss.
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"TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL THE LIABILITY OF ANY OF THE UNISWAP PARTIES EXCEED THE GREATER OF (A) $100 OR (B) THE AMOUNT YOU PAID US IN THE LAST 12 MONTHS. THE FOREGOING LIMITATIONS OF LIABILITY WILL APPLY EVEN IF ANY OF THE EVENTS OR CIRCUMSTANCES WERE FORESEEABLE AND EVEN IF ANY OF THE UNISWAP PARTIES WERE ADVISED OF OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES.— Excerpt from Uniswap's Uniswap Terms of Service
(1) REGULATORY LANDSCAPE: Liability caps in consumer-facing financial service agreements may be subject to challenge under applicable consumer protection statutes. In the EU, the Unfair Contract Terms Directive and the UK Consumer Rights Act 2015 may render such caps unenforceable where they exclude liability for loss caused by the service provider's negligence or failure to exercise reasonable care. The FTC Act prohibits unfair or deceptive acts or practices, and an extremely low liability cap paired with broad service risks could attract regulatory attention depending on enforcement posture. (2) GOVERNANCE EXPOSURE: High. A $100 cap on liability for a platform through which users may transact in very large sums of digital assets is a structurally significant risk-allocation provision. It essentially transfers all financial risk for platform-level failures to the user. While liability caps are common in technology services, the extreme disparity between potential user losses and the cap amount distinguishes this provision from typical commercial liability limits. (3) JURISDICTION FLAGS: EU and UK users may find this cap unenforceable under consumer protection law, particularly where losses arise from negligence. California consumer protection statutes may also limit enforcement. Users in jurisdictions with mandatory implied warranties of fitness for purpose or reasonable skill and care may have statutory rights that override this contractual limit. (4) CONTRACT AND VENDOR IMPLICATIONS: Institutional clients or B2B partners incorporating Uniswap's interface into their products should note that this cap would apply to their direct relationship with Uniswap Labs, not to their downstream liability to their own users. Third-party liability chains should be evaluated carefully given that the cap insulates Uniswap from contribution claims. (5) COMPLIANCE CONSIDERATIONS: Legal teams advising institutional users should document this cap prominently in risk disclosures to their own clients. Compliance teams in EU and UK markets should assess whether the cap is enforceable under local law and whether additional contractual protections need to be negotiated directly with Uniswap Labs.
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Given that users may execute trades worth thousands or millions of dollars through the interface, a $100 liability ceiling means users bear virtually all financial risk for losses, even those caused by platform failures or errors.
This clause means that if you lose significant funds due to a platform malfunction, erroneous transaction, or other covered event, your financial recovery from Uniswap Labs is capped at $100, regardless of the actual loss.
ConductAtlas has identified this type of provision across 4 platforms. See the full comparison.
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