---
title: "Critical escalation rules (override score)"
slug: "readiness-quiz/critical-escalation-rules-override-score"
section: "Readiness quiz"
description: "Securities / fundraising: if an adviser will solicit investors, negotiate trades or receive a close contingent fee, pause and seek securities counsel befor"
internal_only: false
---

# Critical escalation rules (override score)

- **Securities / fundraising:** if an adviser will solicit investors, negotiate trades or receive a close-contingent fee, pause and seek securities counsel before proceeding; SEC guidance identifies registration risk. [Broker-Dealers — US SEC](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/broker-dealers)
- **Funding instrument:** if dilution, SAFE conversion rights or board approval are unclear, review documents with qualified counsel; YC describes the SAFE structures but does not replace legal advice. [The SAFE — Y Combinator](https://www.ycombinator.com/safe)
- **Confidentiality / AI:** if the plan includes uploading unapproved pitch decks, personal data or board papers to a third-party AI system, obtain approval and controls before upload; NIST offers voluntary risk guidance. [NIST Generative AI Profile, AI RMF](https://www.nist.gov/publications/artificial-intelligence-risk-management-framework-generative-artificial-intelligence)
- **Founder safety / unlawful action:** urgent legal, employment or safeguarding issues are never resolved by a numerical quiz.