You are misreading the clause. It is talking about "confidentiality obligations", not "confidential obligations." That is, obligations to keep information conf

You are misreading the clause. It is talking about "confidentiality obligations", not "confidential obligations." That is, obligations to keep information confidential, not obligations that are themselves confidential. And below, they define confidential information clearly: '"Confidential Information" means information disclosed by a party to the other party under this Agreement that is marked as confidential or would normally be considered confidential under the circumstances. Customer Data is Customer's Confidential Information.' They explicitly state that "Customer Data is Customer's Confidential Information." They are indeed saying that if they release the contents of an email, and it costs you a million dollars, then they are liable for that.