Auto-Renewal Traps

An auto-renewal trap occurs when a contract's cancellation notice deadline passes without action, locking you into another renewal term.

What Is an Auto-Renewal Trap?

Many contracts include auto-renewal clauses that automatically extend the agreement unless you provide written notice before a specific deadline. The notice deadline is calculated as:

notice_deadline = renewal_date - termination_notice_days

For example, a contract renewing on June 1 with a 90-day notice period has a notice deadline of March 3. If you miss March 3, you're locked into another term regardless of whether you wanted to renew.

How Detection Works

Renewly calculates the notice deadline for every contract with an auto-renewal clause:

1. During extraction, the renewal date and termination notice period are identified from the contract text.
2. The notice deadline is computed by subtracting the notice period from the renewal date.
3. If no notice period is found in the contract, a default of 30 days is assumed.
4. The system continuously checks all notice deadlines against today's date and assigns a severity level.

Severity Levels

Each trap alert is assigned a severity based on how close you are to the notice deadline:

• Critical — 14 days or fewer until the notice deadline, or the deadline has already passed (overdue). Immediate action required.
• High — 15 to 30 days until the notice deadline. Start the cancellation or renegotiation process now.
• Medium — 31 to 60 days until the notice deadline. Time to review and plan.
• Info — 61 to 90 days until the notice deadline. Early awareness for planning.

Dashboard Alerts

The Auto-Renewal Traps card on your dashboard displays the top 5 traps by urgency. Each entry shows:

• The contract name and counterparty
• Days remaining until the notice deadline
• Severity badge (Critical, High, Medium, or Info)
• Contract value at risk

The card header shows the total number of active traps and the combined value at risk across all trapped contracts. Click any entry to view the full contract details.

Email Notifications

Trap alerts trigger escalating email notifications at the following intervals before the notice deadline:

• 90 days: Early warning — awareness and planning
• 60 days: Planning reminder — begin reviewing the contract
• 30 days: Action required — initiate cancellation or renegotiation
• 14 days: Urgent — deadline approaching fast
• 7 days: Final warning — last chance to act
• Overdue: Notification that the notice deadline has passed

Each email includes the contract name, notice deadline date, days remaining, contract value, and a direct link to the contract.

How to Respond to a Trap Alert

When you receive a trap alert:

1. Review the contract — Open the contract details and confirm the renewal date and notice period.
2. Decide your action — Do you want to cancel, renegotiate, or allow the renewal?
3. If cancelling: Send written notice to the vendor before the notice deadline. Keep a copy for your records.
4. If renegotiating: Contact the vendor before the deadline to discuss updated terms.
5. If renewing: No action needed — the contract will auto-renew on the renewal date.

Frequently Asked Questions

What if no notice period is found in the contract?

Renewly assumes a default notice period of 30 days when the contract text does not specify one. You can edit the notice period on the contract details page if you know the correct value.

Is trap detection available on all plans?

Yes. Auto-renewal trap detection and alerts are available on both Free and Pro plans at no extra cost.

What if the notice deadline already passed?

The alert will show as Critical (overdue). While you can no longer cancel for this term, the alert helps you plan ahead for the next renewal cycle and update your internal records.

Can I customize the alert timing?

The escalation schedule (7/14/30/60/90 days) is fixed for trap alerts to ensure you never miss a deadline. For standard renewal reminders, see Renewal Alerts.