§ 01 — explainable legal check · Chainlink CRE
ClauseGuard reads a contract the way a careful lawyer would — clause by clause — and shows you exactly which words are risky, the law behind each flag, and a fairer way to say it. No black box. Just the text, the rule, and the reason.
The Tenant shall pay the monthly rent of €1,200 on the first day of each month. Late payment after three (3) days shall incur a penalty of 5% of the monthly rent per day of delay.
Dir. 93/13/EEC Annex 1(e) ? disproportionate penaltyThe Landlord may enter the premises at any time, without notice, for any purpose the Landlord deems appropriate.
Dir. 93/13/EEC Art. 3(1) ? significant imbalanceIn the event of any dispute, the Tenant waives all rights to bring a claim before a court and agrees that the Landlord's decision shall be final and binding.
Dir. 93/13/EEC Annex 1(q) ? excludes legal remediesThe Tenant shall be solely liable for any and all repairs, including structural defects, at their own cost, regardless of cause.
Dir. 93/13/EEC Art. 3(1) ? significant imbalanceThe Landlord may terminate this agreement at any time, for any reason, with no notice and no refund of prepaid rent.
Dir. 93/13/EEC Annex 1(g) ? termination without noticeDocument hash = SHA-256 of the exact text. Report hash = SHA-256 of the canonical report (document hash + ruleset + findings). Same text → same hashes, on any computer.
With an EVM wallet (use a testnet like Sepolia), this sends a 0-value transaction to yourself with the report hash as data, a public timestamp that the reviewed version existed.
The Chainlink CRE workflow writes this review to ClauseGuardRegistry. ClauseGuardGate refuses signing and escrow release while needsLawyer is set, until an approved lawyer approves this exact report hash. Below is an in-browser simulation of the same rules (no wallet, no transaction).
The CRE workflow also checks, under DON consensus, that the cited EU acts are in force (EUR-Lex) and that the counterparty LEI is active (GLEIF); any problem sets needsLawyer.
The CRE workflow runs the same EUR-Lex query under DON consensus; if a cited act is no longer in force, needsLawyer is set on-chain.
1) The text is split into sentences. 2) rules check for clauses a party needs (termination, metering, curtailment, force majeure, liability cap, data protection, payment terms…) and for risky wording (unilateral changes, one-sided liability exclusions, uncapped termination fees, tokens without securities/KYC disclosure). Rules only run when relevant (e.g. token rules only when tokens or investors are mentioned). 3) Score = share of applicable checks passed, weighted by severity. 4) Hashes are computed with Web Crypto. The same engine is available as POST /api/review for AI agents and the Chainlink CRE workflow in the repo.