diff --git a/docs/CLOUD.md b/docs/CLOUD.md
index 002cb5155..3d3391172 100644
--- a/docs/CLOUD.md
+++ b/docs/CLOUD.md
@@ -31,7 +31,7 @@ For organisations that need multi-tenant management:
 |---|---|
 | Multi-Tenant Mode | `multi_tenant` |
 | Multi-User Mode | `multi_user` |
-| Unlimited Instances | `unlimited` |
+| Hosted Capacity Policy | `unlimited` |
 
 See [Plans & Entitlements](PULSE_PRO.md) for the full feature matrix.
 
diff --git a/docs/release-control/v6/internal/subsystems/cloud-paid.md b/docs/release-control/v6/internal/subsystems/cloud-paid.md
index eef32da95..2f25c0b15 100644
--- a/docs/release-control/v6/internal/subsystems/cloud-paid.md
+++ b/docs/release-control/v6/internal/subsystems/cloud-paid.md
@@ -533,6 +533,12 @@ Community limit enforcement.
     entitlement refresh paths may preserve historical billing fields for old
     state, but new trial or hosted workspaces must not mint quickstart credits
     or imply a managed-model allowance as part of the commercial contract.
+18. Keep the `unlimited` feature key neutral in shared metadata. It is a
+    hosted/MSP capacity-policy marker, not a self-hosted monitoring-volume
+    product promise. Runtime and generated feature catalogs must label it as
+    hosted capacity policy, keep it hidden from self-hosted plan cards, and
+    avoid customer-facing "Unlimited Instances" copy that sounds like the old
+    capped self-hosted packaging.
 
 ## Current State
 
@@ -1787,7 +1793,10 @@ The same runtime-readiness rule also excludes placeholder and plan-marker
 entries like `white_label`, `multi_user`, and `unlimited` from dev/demo
 entitlement payloads when there is no corresponding operable runtime surface;
 those belong in tier metadata and plan semantics, not in live capability
-advertising for a free dev shell.
+advertising for a free dev shell. The `unlimited` feature key is a hosted/MSP
+capacity-policy marker and must use neutral hosted-capacity wording in shared
+metadata rather than customer-facing "Unlimited Instances" copy that implies a
+self-hosted monitoring-volume tier.
 The same distinction applies to customer-facing self-hosted billing
 presentation. `frontend-modern/src/components/Settings/useProLicensePanelState.ts`
 and `frontend-modern/src/utils/licensePresentation.ts` may label operable
diff --git a/frontend-modern/src/utils/selfHostedFeatureCatalog.generated.ts b/frontend-modern/src/utils/selfHostedFeatureCatalog.generated.ts
index 0819178fe..5911511de 100644
--- a/frontend-modern/src/utils/selfHostedFeatureCatalog.generated.ts
+++ b/frontend-modern/src/utils/selfHostedFeatureCatalog.generated.ts
@@ -335,8 +335,8 @@ export const SELF_HOSTED_FEATURE_CATALOG: readonly GeneratedSelfHostedFeatureCat
   },
   {
     "key": "unlimited",
-    "displayName": "Unlimited Instances",
-    "comparisonName": "Unlimited Instances",
+    "displayName": "Hosted Capacity Policy",
+    "comparisonName": "Hosted Capacity Policy",
     "showInComparisonTable": false,
     "displayableInSelfHostedPlan": false,
     "roles": {
diff --git a/internal/license/coverage_additional_test.go b/internal/license/coverage_additional_test.go
index a1b0a683c..f6b63aa3c 100644
--- a/internal/license/coverage_additional_test.go
+++ b/internal/license/coverage_additional_test.go
@@ -86,7 +86,7 @@ func TestGetFeatureDisplayNameCoversKnownFeaturesAndFallback(t *testing.T) {
 		{feature: FeatureMultiUser, want: "Multi-User Mode"},
 		{feature: FeatureWhiteLabel, want: "White-Label Branding"},
 		{feature: FeatureMultiTenant, want: "Multi-Tenant Mode"},
-		{feature: FeatureUnlimited, want: "Unlimited Instances"},
+		{feature: FeatureUnlimited, want: "Hosted Capacity Policy"},
 		{feature: FeatureAgentProfiles, want: "Centralized Agent Profiles"},
 		{feature: FeatureAuditLogging, want: "Audit Logging"},
 		{feature: FeatureSSO, want: "Basic SSO (OIDC)"},
diff --git a/pkg/licensing/features.go b/pkg/licensing/features.go
index 7afcfbfe3..06c2ab980 100644
--- a/pkg/licensing/features.go
+++ b/pkg/licensing/features.go
@@ -38,7 +38,7 @@ const (
 	FeatureMultiUser   = "multi_user"   // Multi-user (likely merged with RBAC)
 	FeatureWhiteLabel  = "white_label"  // Custom branding - NOT IMPLEMENTED YET
 	FeatureMultiTenant = "multi_tenant" // Multi-tenant organizations
-	FeatureUnlimited   = "unlimited"    // Unlimited instances (for MSP/volume deals)
+	FeatureUnlimited   = "unlimited"    // Hosted capacity policy marker for MSP/enterprise deals
 
 	// Internal-only runtime capabilities. These must never be added to public
 	// tier defaults or public pricing contracts.
@@ -297,7 +297,7 @@ var proFeatures = appendFeatures(relayFeatures,
 	FeatureAdvancedReporting,
 )
 
-// mspFeatures adds multi-tenant and unlimited on top of pro.
+// mspFeatures adds multi-tenant and hosted capacity policy on top of pro.
 var mspFeatures = appendFeatures(proFeatures,
 	FeatureUnlimited,
 	FeatureMultiTenant,
diff --git a/pkg/licensing/features_test.go b/pkg/licensing/features_test.go
index 953262e14..b9aec8493 100644
--- a/pkg/licensing/features_test.go
+++ b/pkg/licensing/features_test.go
@@ -231,7 +231,7 @@ func TestGetFeatureDisplayName(t *testing.T) {
 		{FeatureMultiUser, "Multi-User Mode"},
 		{FeatureWhiteLabel, "White-Label Branding"},
 		{FeatureMultiTenant, "Multi-Tenant Mode"},
-		{FeatureUnlimited, "Unlimited Instances"},
+		{FeatureUnlimited, "Hosted Capacity Policy"},
 		{FeatureAgentProfiles, "Centralized Agent Profiles"},
 		{FeatureAuditLogging, "Audit Logging"},
 		{FeatureSSO, "Basic SSO (OIDC)"},
diff --git a/pkg/licensing/self_hosted_feature_catalog.go b/pkg/licensing/self_hosted_feature_catalog.go
index fa060a221..3c0e747df 100644
--- a/pkg/licensing/self_hosted_feature_catalog.go
+++ b/pkg/licensing/self_hosted_feature_catalog.go
@@ -290,8 +290,8 @@ var featureMetadataCatalog = map[string]FeatureMetadata{
 	},
 	FeatureUnlimited: {
 		Key:                 FeatureUnlimited,
-		DisplayName:         "Unlimited Instances",
-		ComparisonName:      "Unlimited Instances",
+		DisplayName:         "Hosted Capacity Policy",
+		ComparisonName:      "Hosted Capacity Policy",
 		DisplayableInPlanUI: false,
 		SelfHostedRoles: SelfHostedFeatureRoles{
 			Community: SelfHostedFeatureRoleHidden,