The agreement caps Vercel's total liability for direct damages at the greater of $100 or fees paid by the user in the six months preceding the event giving rise to the claim, and excludes all indirect, consequential, punitive, and incidental damages. Exceptions apply to the user's own breach of usage restrictions, confidentiality, payment, representations, warranties, and indemnity obligations.
This analysis describes what Vercel'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
This provision establishes a monetary ceiling on Vercel's liability for service failures, data loss, or business interruption that may be substantially lower than actual damages for organizations with significant operational dependencies on the platform. The exclusion of consequential damages applies broadly, including to data corruption and loss of business scenarios.
Interpretive note: Enforceability of the liability cap in consumer contexts varies by state; the agreement itself acknowledges that some states do not permit certain exclusions.
The updated terms establish that users are legally responsible for configuring autonomous AI features and third-party tools, must monitor their settings and output, and are bound by the autonomous actions those tools take on their behalf. Users also bear the cost of any services those third-party tools consume through the Vercel platform. The terms state that Vercel is not responsible for loss, damage, or liability arising from AI or third-party tool actions. You can manage this responsibility by carefully configuring settings, permissions, and safeguards before enabling AI features or third-party integrations, and by establishing human review processes for AI-generated output.
View change record →Under this clause, Vercel's maximum financial liability for direct damages is limited to the greater of $100 or six months of fees paid, regardless of the nature or scale of the service failure. All claims for indirect, consequential, exemplary, and punitive damages are excluded under these terms.
Cross-platform context
See how other platforms handle Limitation of Liability Cap and similar clauses.
Compare across platforms →"EXCEPT FOR YOUR BREACH OF SECTIONS 11 (USAGE RESTRICTIONS), 16 (CONFIDENTIALITY; PROPRIETARY RIGHTS), AND 17 (PAYMENT OF FEES), OR YOUR BREACH OF ANY REPRESENTATIONS OR WARRANTIES OR YOUR INDEMNITY OBLIGATIONS, NEITHER PARTY NOR ITS SUPPLIERS (INCLUDING BUT NOT LIMITED TO ALL EQUIPMENT AND TECHNOLOGY SUPPLIERS), OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHER THEORY: (A) FOR ERROR OR INTERRUPTION OF USE OR FOR LOSS OR INACCURACY OR CORRUPTION OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES; OR (C) FOR ANY DIRECT DAMAGES, COSTS, LOSSES, OF LIABILITIES IN AMOUNTS THAT, TOGETHER WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE GREATER OF ONE HUNDRED DOLLARS AND THE FEES PAID BY YOU TO VERCEL FOR THE SERVICES UNDER THIS AGREEMENT IN THE 6 MONTHS PRIOR TO THE ACT THAT GAVE RISE TO THE LIABILITY.Excerpt from Vercel's Terms of Service
(1) REGULATORY LANDSCAPE: Liability limitation clauses are standard in cloud service agreements and are generally enforceable in commercial contexts under California law; however, the agreement notes that certain states do not permit exclusion of implied …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
Get the research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.
This provision establishes a monetary ceiling on Vercel's liability for service failures, data loss, or business interruption that may be substantially lower than actual damages for organizations with significant operational dependencies on the platform. The exclusion of consequential damages applies broadly, including to data corruption and loss of business scenarios.
Under this clause, Vercel's maximum financial liability for direct damages is limited to the greater of $100 or six months of fees paid, regardless of the nature or scale of the service failure. All claims for indirect, consequential, exemplary, and punitive damages are excluded under these terms.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Vercel.