> ## Documentation Index
> Fetch the complete documentation index at: https://docs.mixus.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk Detection

> Automatic flagging of high-risk contract changes

# Automatic Risk Detection

When editing legal documents, certain changes carry more risk than others.
Our system automatically identifies and flags high-risk modifications so you
can give them appropriate attention.

## What We Flag

<CardGroup cols={2}>
  <Card title="Indemnification" icon="shield">
    Changes to indemnification obligations, scope, caps, or carve-outs
  </Card>

  <Card title="Liability" icon="scale-unbalanced">
    Modifications to liability limitations, caps, or types of recoverable
    damages
  </Card>

  <Card title="Termination" icon="door-open">
    Changes to termination rights, notice periods, or termination triggers
  </Card>

  <Card title="Confidentiality" icon="user-secret">
    Strengthening or weakening of confidentiality terms
  </Card>

  <Card title="Intellectual Property" icon="lightbulb">
    Changes to IP ownership, licensing, or assignment provisions
  </Card>

  <Card title="Non-Standard Language" icon="triangle-exclamation">
    Introduction of unusual or non-market terms
  </Card>
</CardGroup>

***

## Risk Levels

Each flagged item is assigned a risk level:

### 🔴 High Risk

Changes that could have significant legal or financial impact. These require
senior review and explicit approval.

**Examples:**

* Removing an indemnification cap
* Expanding liability to include consequential damages
* Eliminating a party's termination rights
* Significantly shortening notice periods

### 🟠 Medium Risk

Notable changes that are worth reviewing but may be acceptable depending on
context and negotiation strategy.

**Examples:**

* Modifying the scope of indemnification
* Adjusting liability cap amounts
* Adding new termination triggers
* Expanding confidentiality exceptions

### 🟢 Low Risk

Minor changes noted for completeness. Generally acceptable but included in
reporting for full transparency.

**Examples:**

* Clarifying language without changing meaning
* Standardizing terminology
* Minor formatting adjustments to key provisions

***

## Checked Areas

For every legal document, we analyze changes to these critical areas:

### Indemnification

We track whether indemnification provisions have been:

| Status        | Meaning                                   |
| ------------- | ----------------------------------------- |
| **Unchanged** | No modifications to indemnification terms |
| **Expanded**  | Broader indemnification obligations       |
| **Reduced**   | Narrower indemnification obligations      |
| **Removed**   | Indemnification provisions deleted        |

### Liability

We monitor liability provisions for:

| Status        | Meaning                              |
| ------------- | ------------------------------------ |
| **Unchanged** | No modifications to liability terms  |
| **Expanded**  | Greater potential liability exposure |
| **Limited**   | New or strengthened liability caps   |
| **Removed**   | Liability limitations deleted        |

### Termination

We watch for changes to termination terms:

| Status        | Meaning                                     |
| ------------- | ------------------------------------------- |
| **Unchanged** | No modifications to termination terms       |
| **Modified**  | Changes to termination rights or procedures |

### Confidentiality

We assess changes to confidentiality obligations:

| Status           | Meaning                                    |
| ---------------- | ------------------------------------------ |
| **Unchanged**    | No modifications to confidentiality terms  |
| **Strengthened** | More protective confidentiality provisions |
| **Weakened**     | Less protective confidentiality provisions |

***

## The Risk Report

When risks are detected, you receive a detailed risk report:

<Frame>
  ```markdown theme={null}
  # Risk Analysis Report

  **Overall Risk Score:** 65/100
  **High Risk Items:** 2

  ## Checked Areas

  | Area            | Status    |
  | --------------- | --------- |
  | Indemnification | expanded  |
  | Liability       | unchanged |
  | Termination     | modified  |
  | Confidentiality | unchanged |

  ## High Risk Flags

  ### 1. Indemnification Clause

  **Risk Type:** liability_expansion
  **Section:** Section 8.1

  The indemnification scope has been expanded to include
  "all claims arising from or related to" rather than
  "claims directly caused by."

  **Recommendation:** Review with senior counsel. This
  expansion significantly increases indemnification exposure.

  ### 2. Termination Notice Period

  **Risk Type:** term_modification
  **Section:** Section 12.2

  Notice period reduced from 90 days to 30 days.

  **Recommendation:** Confirm this shorter notice period
  is acceptable given business requirements.

  ```
</Frame>

***

## How Risk Detection Works

<Steps>
  <Step title="Change Extraction">
    We identify all modifications in the document by analyzing tracked changes.
  </Step>

  <Step title="Clause Classification">
    Each change is mapped to the relevant legal provision type (indemnification,
    liability, termination, etc.).
  </Step>

  <Step title="Risk Assessment">
    Changes are evaluated against legal risk criteria, considering both the
    type of change and the specific provision affected.
  </Step>

  <Step title="Report Generation">
    Flagged items are compiled into a comprehensive risk report with
    recommendations.
  </Step>
</Steps>

***

## When Risk Detection Runs

Risk detection runs automatically for:

* ✅ All documents classified as legal contracts
* ✅ Documents processed with "legal" or "enterprise" validation tier
* ✅ Any document where you explicitly enable risk analysis

<Note>
  For non-legal documents, risk detection is skipped unless you specifically
  request it. This keeps processing efficient for general documents.
</Note>

***

## What This Means for Your Workflow

### Before Risk Detection

Traditional workflow:

1. Junior associate makes changes
2. Senior associate reviews every change manually
3. Hours spent reading through redlines
4. Risk of missing subtle but important changes

### With Risk Detection

New workflow:

1. Changes are made with AI assistance
2. High-risk changes are automatically flagged
3. Senior review focused on flagged items
4. Comprehensive coverage, efficient review

<Card title="See the Full Process" icon="route" href="/legal-ai/how-it-works">
  Learn how risk detection fits into our complete document processing workflow.
</Card>

```
```