If Vercel's platform causes you harm, the maximum amount you can recover from Vercel is either $20 or whatever you paid them in the past 12 months, whichever is greater, and you cannot recover for lost profits, data loss, or business interruption.
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
For businesses running revenue-generating applications on Vercel, a platform outage or data incident could cause losses that vastly exceed 12 months of platform fees, making this cap a significant risk transfer to the customer.
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 →This cap means that even if a Vercel service failure causes your business significant financial damage, your legal recovery is capped at a relatively small amount, and categories like lost profits or business disruption are entirely excluded from recoverable damages.
How other platforms handle this
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A party's liability for any Liability under these Terms will be reduced proportionately to the extent the relevant Liability was caused or contributed to by the actions (or inactions) of the other party...
The Netflix service and/or some of the Netflix content may not be available at any time as a result of events beyond our reasonable control...we will not be held liable should such events occur.
"TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT WILL VERCEL, ITS AFFILIATES, OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS OR LICENSORS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, REVENUE, BUSINESS, GOODWILL, DATA, OR BUSINESS INTERRUPTION. VERCEL'S TOTAL AGGREGATE LIABILITY FOR ALL CLAIMS RELATED TO THE SERVICE WILL NOT EXCEED THE GREATER OF TWENTY DOLLARS ($20) OR THE AMOUNT YOU PAID VERCEL IN THE LAST 12 MONTHS.Excerpt from Vercel's Terms of Service
(1) REGULATORY LANDSCAPE: Limitation of liability clauses are generally enforceable in commercial agreements under U.S.
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For businesses running revenue-generating applications on Vercel, a platform outage or data incident could cause losses that vastly exceed 12 months of platform fees, making this cap a significant risk transfer to the customer.
This cap means that even if a Vercel service failure causes your business significant financial damage, your legal recovery is capped at a relatively small amount, and categories like lost profits or business disruption are entirely excluded from recoverable damages.
ConductAtlas has identified this type of provision across 286 platforms. See the full comparison.
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