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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.
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"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 warranties or limitation of liability for incidental or consequential damages, and in those states Vercel's liability is limited to the greatest extent permitted by law. Consumer protection statutes in certain jurisdictions may constrain the enforceability of liability caps in consumer contracts. (2) GOVERNANCE EXPOSURE: High for organizations with significant operational dependencies on Vercel. The $100 minimum liability floor is operationally significant for enterprise users whose actual damages from a service failure could substantially exceed fees paid in the prior six months. The exclusion of data loss and business interruption from recoverable damages is a material risk allocation for platform-dependent operations. (3) JURISDICTION FLAGS: California's consumer protection statutes may limit the enforceability of liability caps in certain consumer contexts. Some states expressly prohibit exclusion of consequential damages in consumer contracts. EEA users should assess whether EU consumer protection law constrains the application of this cap to consumer-facing deployments. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams evaluating Vercel for business-critical infrastructure should assess whether the liability cap is acceptable given the potential impact of service disruptions. Organizations should evaluate whether cyber insurance, business interruption coverage, or other contractual protections address the gap between potential actual damages and the contractual liability ceiling. (5) COMPLIANCE CONSIDERATIONS: Legal teams should note that the liability cap applies to Vercel's liability but the user's own indemnification obligations, breach of usage restrictions, and payment obligations are carved out from the mutual cap, creating an asymmetric risk allocation. Contract review processes should flag this asymmetry and assess whether it is acceptable given the organization's risk profile.
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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.
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