diff --git a/README.md b/README.md
index 5018f3c..e33527b 100644
--- a/README.md
+++ b/README.md
@@ -105,6 +105,8 @@ When a verb request omits `x402`, the runtime fabricates defaults from the live
 
 When `VERIFY_SCHEMA_CACHED_ONLY=1` (the default), `/verify?schema=1` returns HTTP `202` with `validator_not_warmed_yet` if the validator for that verb has not been compiled yet. `POST /debug/prewarm` can queue validator warmup, and `GET /debug/validators` shows cache state.
 
+If `/verify` exceeds `VERIFY_MAX_MS`, the runtime returns HTTP `502` with `failure_type: "availability"`, `retryable: true`, and the message `Verification service did not respond. Receipt may still be valid; retry recommended.` Clients should treat that as transient service unavailability, not a cryptographic proof failure.
+
 ## ENS verification inputs
 
 When `ens=1`, the runtime resolves TXT records directly on the signer ENS name and reads:
diff --git a/docs/OPERATIONS.md b/docs/OPERATIONS.md
index 2a8c43d..8c159b7 100644
--- a/docs/OPERATIONS.md
+++ b/docs/OPERATIONS.md
@@ -144,6 +144,12 @@ This is expected when:
 
 Use `/debug/prewarm`, retry later, or disable cached-only mode.
 
+### `/verify` returns HTTP `502`
+
+This indicates a transient verify availability failure, not proof invalidity. The runtime emits `failure_type: "availability"`, `retryable: true`, and a retry-oriented message so callers can distinguish service timeouts from cryptographic failures.
+
+Given the current server implementation, this points more strongly to process stall/crash or an upstream proxy timeout than to cold schema loading alone, because cold validator loading under cached-only mode returns HTTP `202` instead of timing out. If the request used `ens=1&refresh=1` or `schema=1` with cached-only mode disabled, blocked upstream fetches or ENS/schema slowness are also plausible contributors.
+
 ### ENS verification fails before signature checks
 
 Check:
diff --git a/runtime/tests/runtime-signing.test.mjs b/runtime/tests/runtime-signing.test.mjs
index ecbb2fb..52ff4fe 100644
--- a/runtime/tests/runtime-signing.test.mjs
+++ b/runtime/tests/runtime-signing.test.mjs
@@ -1,6 +1,7 @@
 import test from "node:test";
 import assert from "node:assert/strict";
 import { spawnSync, spawn } from "node:child_process";
+import http from "node:http";
 import net from "node:net";
 import { generateKeyPairSync, createHash } from "node:crypto";
 
@@ -246,6 +247,48 @@ test("/verify?ens=1&strict_kid=1 rejects a receipt when ENS publishes a differen
   }
 });
 
+test("/verify surfaces transient timeout failures separately from cryptographic failures", async () => {
+  const keys = makeKeys();
+  const rpcPort = await freePort();
+  const rpcHang = http.createServer((req, res) => {
+    req.on("data", () => {});
+    req.on("end", () => {});
+  });
+  await new Promise((resolve) => rpcHang.listen(rpcPort, "127.0.0.1", resolve));
+
+  const srv = await startServer({
+    VERIFY_MAX_MS: "50",
+    RECEIPT_SIGNING_PRIVATE_KEY_PEM_B64: keys.privatePemB64,
+    RECEIPT_SIGNING_PUBLIC_KEY_B64: keys.publicRaw32B64,
+    RECEIPT_SIGNER_ID: "runtime.commandlayer.eth",
+    ETH_RPC_URL: `http://127.0.0.1:${rpcPort}`,
+  });
+
+  try {
+    const response = await createDescribeReceipt(srv.base);
+
+    const verifyResp = await fetch(`${srv.base}/verify?ens=1&refresh=1`, {
+      method: "POST",
+      headers: { "content-type": "application/json" },
+      body: JSON.stringify(response),
+    });
+    const verifyJson = await verifyResp.json();
+
+    assert.equal(verifyResp.status, 502);
+    assert.equal(verifyJson.ok, false);
+    assert.equal(verifyJson.failure_type, "availability");
+    assert.equal(verifyJson.retryable, true);
+    assert.equal(verifyJson.reason, "verify_service_unavailable");
+    assert.match(String(verifyJson.message), /Receipt may still be valid; retry recommended\./);
+    assert.equal(verifyJson.checks?.hash_matches, null);
+    assert.equal(verifyJson.checks?.signature_valid, null);
+    assert.equal(verifyJson.checks?.ens_match, null);
+  } finally {
+    await stop(srv.proc);
+    await new Promise((resolve, reject) => rpcHang.close((err) => (err ? reject(err) : resolve())));
+  }
+});
+
 test("fabricated x402 defaults use v1.1.0", async () => {
   const keys = makeKeys();
   const srv = await startServer({
diff --git a/server.mjs b/server.mjs
index 3dc42a4..3c398cc 100644
--- a/server.mjs
+++ b/server.mjs
@@ -1801,10 +1801,31 @@ app.post("/verify", async (req, res) => {
       new Promise((_, rej) => setTimeout(() => rej(new Error("verify_timeout")), VERIFY_MAX_MS)),
     ]);
   } catch (e) {
-    return res.status(500).json({
+    const errorMessage = e?.message || "verify failed";
+    const transient = errorMessage === "verify_timeout";
+
+    if (transient) {
+      console.error("[verify] transient availability failure", {
+        error: errorMessage,
+        want_ens: wantEns,
+        want_schema: wantSchema,
+        refresh,
+        strict_kid: strictKid,
+        verb: receipt?.x402?.verb ?? null,
+        signer_id: proof?.signer_id ?? null,
+      });
+    }
+
+    return res.status(transient ? 502 : 500).json({
       ok: false,
-      error: e?.message || "verify failed",
-      checks: { schema_valid: null, hash_matches: null, signature_valid: false, ens_match: null },
+      error: errorMessage,
+      failure_type: transient ? "availability" : "application",
+      retryable: transient,
+      message: transient
+        ? "Verification service did not respond. Receipt may still be valid; retry recommended."
+        : "Verification failed.",
+      reason: transient ? "verify_service_unavailable" : "verify_failed",
+      checks: { schema_valid: null, hash_matches: null, signature_valid: null, ens_match: null },
       ...instancePayload(),
     });
   }