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@Oz review the engagement letter for compliance issues and flag anything that needs attention
+1 — @Oz also cross-reference SEC disclosure requirements. Client filed a Form S-1 last quarter so the liability cap and confidentiality provisions both need to clear public company standards, not just standard ABA rules.
Reviewing the engagement letter and cross-referencing with regulatory filings to identify potential conflicts of interest and compliance gaps.
The engagement letter contains standard provisions. Two clauses require attention: the liability cap in Section 4.2 references an outdated threshold, and the confidentiality provision in Section 7 lacks a carve-out for regulatory disclosures.
The Section 4.2 liability cap issue is a red flag — we flagged the same outdated threshold in the Morrison deal last quarter and it caused significant delays. Marc, I think this needs senior partner review before we proceed.
Agreed. @Oz pull the Morrison engagement letter so Rina can compare the cap language side by side.
Also taking the Section 7 confidentiality issue — the missing regulatory carve-out is a compliance requirement, not optional. I'll draft a redline and share it here by EOD.
Current — Engagement_Letter_v3
"Liability shall not exceed $500,000 or fees paid in the preceding 6 months, whichever is lower."
Outdated thresholdReference — Morrison_v2
"Liability shall not exceed $2,000,000 or fees paid in the preceding 12 months, whichever is lower."
Current standard- Morrison cap language retrieved — recommending $2M / 12-month standard
- Section 7 carve-out drafted above — ready for Rina's redline
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In February 2026, a federal court ruled that AI conversations have no expectation of privacy. Faradex can be subpoenaed like any U.S. company — but your prompts and documents exist only in RAM. There is nothing on disk to produce.
Faradex vs. The Field
How the categories of AI tools stack up on what matters most.
Vertical AI (Harvey, CoCounsel) | Consumer AI (ChatGPT, Copilot, Claude) | Agentic Tools (Cowork, Claude Code) | Faradex | |
|---|---|---|---|---|
| Agentic AI | ||||
| Private Server | ||||
| Team collaboration | ||||
| No public disclosure risk | ? | ? | ||
| Zero document retention | ||||
| Only you can access your files | ||||
| AI providers never see your data |
Comparison reflects publicly available product documentation as of May 2026.
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A new era demanded a new approach to security. Faradex was designed from the ground up for the way firms will work with powerful agentic AIs.
Your files and conversations never touch a hard drive. They live in temporary memory inside a server that belongs only to your firm. No one else can see in. Not other customers, not Faradex, not Amazon. Every 24 hours, the entire environment is destroyed and rebuilt clean.
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You cannot subpoena what does not exist. You cannot preserve what was never stored.
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