No, we are not setting our self up for liability because we tell our parents in writing way before senior year what our process is (in addition , we ran it through legal).
Most ED 2 applications happen after the RD applications at the beginning of the year. Most ED responses are due before the end of the calendar year (December 31), when most RD applications are due.
In addition, we have until mid February to send mid-year reports for RD applications. By this time students will have had 2 months from the time that they hear from their ED 1 school.