Introducing the Legal Chain Contract Risk Index™
Average NDA risk score is 52. California pushes it to 67. Massachusetts brings it to 38. Here is what those numbers mean for the agreement you are about to sign.
All US jurisdictions
California
Massachusetts
The Legal Chain Contract Risk Index is a proprietary scoring system measuring the average legal and financial risk embedded in standard US agreements. The inaugural index sets the average NDA risk score at 52 out of 100 across all US jurisdictions. California-governed NDAs average 67. Massachusetts-governed NDAs average 38. The primary drivers are overbroad definitions, unlimited duration, and missing injunctive relief. Every score can be benchmarked against your own document in under five minutes. Try Legal Chain today.
The inaugural Legal Chain Contract Risk Index establishes the first proprietary baseline risk scores for standard US agreements. The NDA is the most commonly signed and least carefully reviewed legal document in the US. These are its numbers. Photo: Unsplash / LinkedIn Sales Solutions
Why an Index Changes the Conversation
Before an index exists, risk is relative. An NDA feels standard or unusual based on experience, intuition, and comparison to other documents the reader has seen. That judgment varies by person. It cannot be communicated with precision. It cannot be tracked over time.
An index changes that. When the average NDA risk score is 52 and California pushes it to 67, a California founder who receives an NDA scoring 74 knows something specific: their document carries more risk than the California average. They can decide, with that information, whether to negotiate, accept, or escalate to an attorney.
Furthermore, an index enables comparison across time. If the average NDA risk score rises from 52 to 58 in the next quarterly update, that tells a specific story about how standard agreements are evolving. Whether that story is about increasing vendor sophistication, legislative changes, or shifting negotiating norms, it is a story that would be invisible without a consistent measurement baseline.
That is what the Legal Chain Contract Risk Index provides. Not a verdict. A reference point.
How the Index Is Calculated
The Index is a composite measure across five weighted dimensions. Each dimension is scored from 0 to 100 independently. The weighted combination produces the overall Index score.
The weighting reflects the relative contribution of each dimension to observed legal and financial harm across documented US contract disputes. Clause imbalance and missing provision density together account for 50 percent of the score because they represent the conditions most predictably present in the agreements that fail at enforcement.
The NDA Index: Average Score by US State
The NDA is the inaugural focus of the Legal Chain Contract Risk Index because it is the most commonly signed and least carefully reviewed legal document in the US business ecosystem. It is typically the first document in any significant business relationship and the last one reviewed before signing.
State-by-state variation in NDA risk is larger than most users expect. The gap between the highest-scoring state (California at 67) and the lowest-scoring state (Massachusetts at 38) reflects the significant differences in how US states treat NDA enforceability, duration, trade secret protection, and the interaction of NDA provisions with employee rights.
The 29-point gap between California (67) and Massachusetts (38) reflects the real legal difference between those jurisdictions’ approaches to NDA enforceability. The same document carries materially different risk depending on which state’s law governs it. Photo: Unsplash / Claire Anderson
What Is Driving the Average NDA Score of 52
Three provision failures account for the majority of NDA risk across all US states. They appear independently and in combination. Together they explain why the average NDA score is 52 rather than 30 or 70.
Present in the majority of NDAs reviewed. Courts in multiple US states have found definitions that cover “all information disclosed in any form” unenforceable. The breadth that feels protective at drafting becomes the weakness that defeats enforcement.
Perpetual NDAs or agreements without defined terms create enforceability risk in California and reasonableness challenges in other states. The standard two-to-five year defined term with separate trade secret provisions is present in fewer NDAs than it should be.
Absent from a significant proportion of NDAs reviewed without legal oversight. Its absence creates a procedural disadvantage at the most critical enforcement moment. It costs nothing to include and is the single highest-value addition to any NDA.
A carve-out without documentation requirements creates a post-hoc defense opportunity. The absence of a mechanism requiring the receiving party to document prior knowledge at disclosure rather than at dispute is the fourth significant driver of Index scores above the median.
“An average NDA risk score of 52 means that the typical non-disclosure agreement signed without legal review carries meaningful legal and financial exposure across each of the five dimensions we measure. Not catastrophic. Not negligible. Meaningful and addressable. The Index exists to make that addressable.”
Benchmarking Your NDA Against the Index
The Index is not useful as a number in isolation. It is useful as a comparison. A score of 52 for an NDA governed by Texas law is slightly below the Texas average of 58. A score of 62 for an NDA governed by Massachusetts law is significantly above the Massachusetts average of 38.
Legal Chain’s AI review evaluates any uploaded NDA across all five Index dimensions and produces a score that is automatically benchmarked against the Index baseline for that document type in the applicable US state.
The output tells you three things. First, the overall Index score for your specific document. Second, which dimensions are driving your score above the baseline. Third, what specific provisions would need to change to reduce the score to at or below the state average.
This gives any user — founder, freelancer, nonprofit director, small business owner — the same reference point that a legal operations team at a large company has when evaluating an incoming agreement. Not a legal opinion. A benchmark.
For NDAs where the score reflects significant enforceability risk, unusual one-sided provisions, or complex regulatory overlay, Legal Chain’s Global Lawyer Finder connects users with vetted attorneys specializing in NDA and trade secret matters in their jurisdiction. Legal Chain is software, not a law firm. Legal Chain currently supports US jurisdictions.
Where does your NDA score on the Index? Find out free.
Upload any NDA. Legal Chain benchmarks it against the Contract Risk Index for your state in under five minutes. No credit card required.
Try Legal Chain TodayFrequently Asked Questions
What is the Legal Chain Contract Risk Index?
A proprietary scoring system measuring the average legal and financial risk in standard US agreements across contract types, industries, and jurisdictions. Calculated from five weighted dimensions: clause imbalance (25%), missing provision density (25%), enforceability risk (20%), liability exposure ratio (20%), and version integrity risk (10%). Scores range from 0 to 100. Updated quarterly. The inaugural index established the average NDA risk score at 52 across all US jurisdictions.
What is the average NDA risk score?
52 out of 100 across all US jurisdictions in the inaugural index. State variation is significant: California averages 67 (driven by BPC 16600 complexity and CPRA obligations), Florida averages 63, Texas 58, New York 49, Delaware 44, and Massachusetts 38 (the lowest, reflecting the most developed body of NDA case law of any US state). Primary drivers across all states: overbroad definitions, unlimited duration, missing injunctive relief.
How is the Legal Chain Contract Risk Index calculated?
Five weighted dimensions: clause imbalance (25%), missing provision density (25%), enforceability risk in the applicable US jurisdiction (20%), liability exposure ratio (20%), and version integrity risk (10%). Each is scored 0 to 100 independently, then combined into a composite score benchmarked against the typical range for that document type in that state.
How can I benchmark my NDA against the Legal Chain Contract Risk Index?
Upload any NDA to Legal Chain at legalcha.in/beta. The AI review evaluates the document across all five Index dimensions, produces a score, and benchmarks it against the Index baseline for that document type in the applicable US state. Complete in under five minutes. No credit card required. Legal Chain is software, not a law firm. The Index score does not constitute legal advice.
Index disclaimer
The Legal Chain Contract Risk Index is a proprietary analytical measure developed by the Legal Chain CLO and AI review team. Index scores are composite analytical measures based on published US case law, regulatory standards, and applicable statutes. They do not constitute legal opinions or legal advice. Contract enforceability is highly fact-specific and jurisdiction-dependent. Legal Chain is a technology platform and is not a law firm. Index scores should not be used as a substitute for professional legal review. For advice regarding specific agreements, consult a licensed attorney in your jurisdiction. Legal Chain currently supports US jurisdictions only.
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Legal Chain is a technology platform. Not legal advice.
