diff --git a/src/components/settings/LicenseCard.tsx b/src/components/settings/LicenseCard.tsx
index 7fb968e..021db1f 100644
--- a/src/components/settings/LicenseCard.tsx
+++ b/src/components/settings/LicenseCard.tsx
@@ -16,7 +16,8 @@ const PURCHASE_URL = "https://lacompagniemaximus.com/simpl-resultat";
 
 export default function LicenseCard() {
   const { t } = useTranslation();
-  const { status: licenseStatus, edition, info, error, submitKey } = useLicenseContext();
+  const { status: licenseStatus, edition, info, error, validating, validationError, submitKey } =
+    useLicenseContext();
   const [keyInput, setKeyInput] = useState("");
   const [showInput, setShowInput] = useState(false);
   const [showMachines, setShowMachines] = useState(false);
@@ -178,13 +179,19 @@ export default function LicenseCard() {
             className="w-full px-3 py-2 bg-[var(--background)] border border-[var(--border)] rounded-lg text-sm font-mono focus:outline-none focus:border-[var(--primary)]"
             autoFocus
           />
+          {validationError && (
+            <div className="flex items-start gap-2 text-sm text-[var(--negative)]">
+              <AlertCircle size={16} className="mt-0.5 shrink-0" />
+              <p>{validationError}</p>
+            </div>
+          )}
           <div className="flex gap-2">
             <button
               type="submit"
-              disabled={licenseStatus === "validating" || !keyInput.trim()}
+              disabled={validating || !keyInput.trim()}
               className="flex items-center gap-2 px-4 py-2 bg-[var(--primary)] text-white rounded-lg hover:opacity-90 transition-opacity text-sm disabled:opacity-50"
             >
-              {licenseStatus === "validating" && <Loader2 size={14} className="animate-spin" />}
+              {validating && <Loader2 size={14} className="animate-spin" />}
               {t("license.activate")}
             </button>
             <button
diff --git a/src/contexts/LicenseContext.test.ts b/src/contexts/LicenseContext.test.ts
new file mode 100644
index 0000000..eb7b60a
--- /dev/null
+++ b/src/contexts/LicenseContext.test.ts
@@ -0,0 +1,102 @@
+import { describe, it, expect } from "vitest";
+import { licenseReducer, initialLicenseState } from "./LicenseContext";
+import type { Edition, LicenseInfo } from "../services/licenseService";
+
+const makeInfo = (edition: Exclude<Edition, "free">): LicenseInfo => ({
+  edition,
+  email: "max@example.com",
+  features: [],
+  machine_limit: 3,
+  issued_at: 1,
+  expires_at: 0,
+});
+
+// The CWE-703 retry loop arms exclusively on `status === "error"`, and its
+// LOAD_START clears `error`. A rejected key must therefore never re-enter the
+// load lifecycle: it would arm the auto refresh, which would wipe the very
+// message the user is reading (~1s after submitting an invalid key).
+
+const premiumReady = licenseReducer(
+  licenseReducer(initialLicenseState, { type: "LOAD_START" }),
+  { type: "LOAD_DONE", edition: "premium", info: makeInfo("premium") },
+);
+
+describe("licenseReducer — load lifecycle (CWE-703)", () => {
+  it("LOAD_ERROR preserves the last-known edition and info", () => {
+    const errored = licenseReducer(premiumReady, { type: "LOAD_ERROR", error: "ipc down" });
+    expect(errored.status).toBe("error");
+    expect(errored.error).toBe("ipc down");
+    expect(errored.edition).toBe("premium");
+    expect(errored.info).toEqual(makeInfo("premium"));
+  });
+
+  it("LOAD_START clears the load error but not a pending validation error", () => {
+    const rejected = licenseReducer(
+      licenseReducer(premiumReady, { type: "VALIDATE_START" }),
+      { type: "VALIDATE_ERROR", error: "invalid key" },
+    );
+    const refreshed = licenseReducer(rejected, { type: "LOAD_START" });
+    expect(refreshed.status).toBe("loading");
+    expect(refreshed.error).toBeNull();
+    expect(refreshed.validationError).toBe("invalid key");
+  });
+});
+
+describe("licenseReducer — key validation is orthogonal to the load lifecycle", () => {
+  it("VALIDATE_ERROR on a ready license keeps status ready (retry never arms)", () => {
+    const validating = licenseReducer(premiumReady, { type: "VALIDATE_START" });
+    expect(validating.status).toBe("ready");
+    expect(validating.validating).toBe(true);
+
+    const rejected = licenseReducer(validating, { type: "VALIDATE_ERROR", error: "invalid key" });
+    expect(rejected.status).toBe("ready");
+    expect(rejected.validating).toBe(false);
+    expect(rejected.validationError).toBe("invalid key");
+    expect(rejected.edition).toBe("premium");
+    expect(rejected.info).toEqual(makeInfo("premium"));
+  });
+
+  it("VALIDATE_ERROR during a boot error keeps status error (load retry keeps running)", () => {
+    const bootError = licenseReducer(
+      licenseReducer(initialLicenseState, { type: "LOAD_START" }),
+      { type: "LOAD_ERROR", error: "boot fail" },
+    );
+    const rejected = licenseReducer(
+      licenseReducer(bootError, { type: "VALIDATE_START" }),
+      { type: "VALIDATE_ERROR", error: "invalid key" },
+    );
+    expect(rejected.status).toBe("error");
+    expect(rejected.error).toBe("boot fail");
+    expect(rejected.validationError).toBe("invalid key");
+    expect(rejected.edition).toBe("free");
+  });
+
+  it("VALIDATE_START clears the previous validation error", () => {
+    const rejected = licenseReducer(
+      licenseReducer(premiumReady, { type: "VALIDATE_START" }),
+      { type: "VALIDATE_ERROR", error: "invalid key" },
+    );
+    const resubmit = licenseReducer(rejected, { type: "VALIDATE_START" });
+    expect(resubmit.validating).toBe(true);
+    expect(resubmit.validationError).toBeNull();
+  });
+
+  it("VALIDATE_DONE resets the full state, recovering from a boot error", () => {
+    const bootError = licenseReducer(
+      licenseReducer(initialLicenseState, { type: "LOAD_START" }),
+      { type: "LOAD_ERROR", error: "boot fail" },
+    );
+    const done = licenseReducer(
+      licenseReducer(bootError, { type: "VALIDATE_START" }),
+      { type: "VALIDATE_DONE", info: makeInfo("base") },
+    );
+    expect(done).toEqual({
+      status: "ready",
+      edition: "base",
+      info: makeInfo("base"),
+      error: null,
+      validating: false,
+      validationError: null,
+    });
+  });
+});
diff --git a/src/contexts/LicenseContext.tsx b/src/contexts/LicenseContext.tsx
index 13425da..b2fc252 100644
--- a/src/contexts/LicenseContext.tsx
+++ b/src/contexts/LicenseContext.tsx
@@ -28,45 +28,71 @@ import {
  * retry with capped exponential backoff. Consumers must render a neutral
  * placeholder while `status !== "ready"` — never the upsell — so a transient IPC
  * failure never locks a paying user out.
+ *
+ * Key validation is orthogonal to that load lifecycle: a rejected `submitKey`
+ * leaves the stored license — and therefore `status` — untouched, and surfaces
+ * `validationError` instead. The retry loop keys off `status === "error"`, so
+ * it can never arm on a bad key and auto-clear the message the user is reading,
+ * and `ready` consumers never regress on a typo'd key.
  */
 
-type LicenseStatus = "idle" | "loading" | "ready" | "validating" | "error";
+type LicenseStatus = "idle" | "loading" | "ready" | "error";
 
 interface LicenseState {
   status: LicenseStatus;
   edition: Edition;
   info: LicenseInfo | null;
+  /** Load-lifecycle error — target of the CWE-703 retry loop. */
   error: string | null;
+  validating: boolean;
+  /** Key-submission error — never retried, cleared on the next submit. */
+  validationError: string | null;
 }
 
 type LicenseAction =
   | { type: "LOAD_START" }
   | { type: "LOAD_DONE"; edition: Edition; info: LicenseInfo | null }
+  | { type: "LOAD_ERROR"; error: string }
   | { type: "VALIDATE_START" }
   | { type: "VALIDATE_DONE"; info: LicenseInfo }
-  | { type: "ERROR"; error: string };
+  | { type: "VALIDATE_ERROR"; error: string };
 
-const initialState: LicenseState = {
+/** Exported for unit tests only — not part of the context API. */
+export const initialLicenseState: LicenseState = {
   status: "idle",
   edition: "free",
   info: null,
   error: null,
+  validating: false,
+  validationError: null,
 };
 
-function reducer(state: LicenseState, action: LicenseAction): LicenseState {
+/** Exported for unit tests only — not part of the context API. */
+export function licenseReducer(state: LicenseState, action: LicenseAction): LicenseState {
   switch (action.type) {
     case "LOAD_START":
       return { ...state, status: "loading", error: null };
     case "LOAD_DONE":
-      return { status: "ready", edition: action.edition, info: action.info, error: null };
-    case "VALIDATE_START":
-      return { ...state, status: "validating", error: null };
-    case "VALIDATE_DONE":
-      return { status: "ready", edition: action.info.edition, info: action.info, error: null };
-    case "ERROR":
+      return { ...state, status: "ready", edition: action.edition, info: action.info, error: null };
+    case "LOAD_ERROR":
       // Preserve the last-known edition: an error must not downgrade a paying
       // user to the upsell (that is what fail-closed + `ready` guard protect).
       return { ...state, status: "error", error: action.error };
+    case "VALIDATE_START":
+      return { ...state, validating: true, validationError: null };
+    case "VALIDATE_DONE":
+      return {
+        status: "ready",
+        edition: action.info.edition,
+        info: action.info,
+        error: null,
+        validating: false,
+        validationError: null,
+      };
+    case "VALIDATE_ERROR":
+      // Status untouched: "ready" stays ready (no gating flash on a typo'd
+      // key), and a boot-error retry loop keeps running through the failure.
+      return { ...state, validating: false, validationError: action.error };
   }
 }
 
@@ -80,6 +106,8 @@ interface LicenseContextValue {
   features: string[];
   info: LicenseInfo | null;
   error: string | null;
+  validating: boolean;
+  validationError: string | null;
   refresh: () => Promise<void>;
   submitKey: (key: string) => Promise<SubmitKeyResult>;
 }
@@ -91,7 +119,7 @@ const RETRY_BASE_MS = 1000;
 const RETRY_MAX_MS = 30_000;
 
 export function LicenseProvider({ children }: { children: ReactNode }) {
-  const [state, dispatch] = useReducer(reducer, initialState);
+  const [state, dispatch] = useReducer(licenseReducer, initialLicenseState);
   const retryAttempt = useRef(0);
 
   const refresh = useCallback(async () => {
@@ -101,7 +129,7 @@ export function LicenseProvider({ children }: { children: ReactNode }) {
       dispatch({ type: "LOAD_DONE", edition, info });
     } catch (e) {
       dispatch({
-        type: "ERROR",
+        type: "LOAD_ERROR",
         error: e instanceof Error ? e.message : String(e),
       });
     }
@@ -115,7 +143,7 @@ export function LicenseProvider({ children }: { children: ReactNode }) {
       return { ok: true, info };
     } catch (e) {
       const message = e instanceof Error ? e.message : String(e);
-      dispatch({ type: "ERROR", error: message });
+      dispatch({ type: "VALIDATE_ERROR", error: message });
       return { ok: false, error: message };
     }
   }, []);
@@ -125,9 +153,10 @@ export function LicenseProvider({ children }: { children: ReactNode }) {
     void refresh();
   }, [refresh]);
 
-  // Error recovery: retry with capped exponential backoff (CWE-703).
+  // Error recovery: retry with capped exponential backoff (CWE-703). Load
+  // errors only by construction — validation failures never set status.
   useEffect(() => {
-    if (state.status === "ready" || state.status === "validating") {
+    if (state.status === "ready") {
       retryAttempt.current = 0;
       return;
     }
@@ -147,6 +176,8 @@ export function LicenseProvider({ children }: { children: ReactNode }) {
     features: state.info?.features ?? [],
     info: state.info,
     error: state.error,
+    validating: state.validating,
+    validationError: state.validationError,
     refresh,
     submitKey,
   };
diff --git a/src/hooks/useIsPremium.test.ts b/src/hooks/useIsPremium.test.ts
index 305c7ad..0c7bb0c 100644
--- a/src/hooks/useIsPremium.test.ts
+++ b/src/hooks/useIsPremium.test.ts
@@ -18,6 +18,8 @@ describe("useIsPremium", () => {
       features: [],
       info: null,
       error: null,
+      validating: false,
+      validationError: null,
       refresh: vi.fn(),
       submitKey: vi.fn(),
     });
@@ -31,6 +33,8 @@ describe("useIsPremium", () => {
       features: [],
       info: null,
       error: null,
+      validating: false,
+      validationError: null,
       refresh: vi.fn(),
       submitKey: vi.fn(),
     });
@@ -44,6 +48,8 @@ describe("useIsPremium", () => {
       features: [],
       info: null,
       error: null,
+      validating: false,
+      validationError: null,
       refresh: vi.fn(),
       submitKey: vi.fn(),
     });