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Legal InsightsMarch 28, 2026 · 12 days ago

How to Read Your Contract Risk Score

A risk score of 74 — is that bad? Here's exactly how LexAI calculates contract risk and what each band means for your business.

LT

LexAI Team

When LexAI assigns a risk score to your contract, it is not a random number. It is a weighted calculation based on the severity and frequency of risk items found in the document.

The scoring model

Every identified risk is classified as:

  • High (weight: 100) — clauses that could expose you to significant liability
  • Medium (weight: 55) — clauses worth negotiating but not deal-breakers
  • Low (weight: 20) — minor or standard clauses with minimal risk
  • The final score is the average of all weighted risks, capped at 100.

    What the bands mean

    Scores 0 to 29 are Low risk. Scores 30 to 59 are Medium. Scores 60 to 79 are High. Scores 80 to 100 are Critical and legal review is strongly recommended.

    Common high-risk clauses

  • Unlimited liability provisions
  • Automatic renewal with long notice periods
  • One-sided IP assignment
  • Broad indemnification obligations
  • Unilateral amendment rights
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