diff --git a/build.sbt b/build.sbt
index 7a5348bf34..38a9a2a404 100644
--- a/build.sbt
+++ b/build.sbt
@@ -34,7 +34,7 @@ inThisBuild(
       "-unchecked",
       "-Dquill.macro.log=false", // disable quill macro logs
       "-Wunused:all",
-      "-Wconf:any:warning" // TODO: change unused imports to errors, Wconf configuration string is different from scala 2, figure out how!
+      "-Wconf:any:warning", // TODO: change unused imports to errors, Wconf configuration string is different from scala 2, figure out how!
       // TODO "-feature",
       // TODO "-Xfatal-warnings",
       // TODO "-Yexplicit-nulls",
@@ -502,7 +502,8 @@ lazy val models = project
     ), // TODO try to remove this from this module
     // libraryDependencies += D.didScala
   )
-  .settings(libraryDependencies += D.nimbusJwt) //FIXME just for the DidAgent
+  .settings(libraryDependencies += D.nimbusJwt) // FIXME just for the DidAgent
+  .dependsOn(shared)
 
 /* TODO move code from agentDidcommx to here
 models implementation for didcommx () */
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/BackgroundJobError.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/BackgroundJobError.scala
index 8cd4be569d..3ac9e438b9 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/BackgroundJobError.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/BackgroundJobError.scala
@@ -1,15 +1,40 @@
 package org.hyperledger.identus.agent.server.jobs
 
 import org.hyperledger.identus.mercury.HttpResponse
+import org.hyperledger.identus.shared.models._
 
-sealed trait BackgroundJobError
+sealed trait BackgroundJobError(
+    override val statusCode: org.hyperledger.identus.shared.models.StatusCode,
+    override val userFacingMessage: String
+) extends Failure {
+  override val namespace: String = "BackgroundJobError"
+}
 
 object BackgroundJobError {
-  final case class InvalidState(cause: String) extends BackgroundJobError
 
-  final case class ErrorSendingMessage(cause: String) extends BackgroundJobError
-  case object NotImplemented extends BackgroundJobError
-  final case class ErrorResponseReceivedFromPeerAgent(response: HttpResponse) extends BackgroundJobError {
+  final case class InvalidState(cause: String)
+      extends BackgroundJobError(
+        statusCode = StatusCode.InternalServerError,
+        userFacingMessage = s"Invalid State: cause='$cause'"
+      )
+
+  final case class ErrorSendingMessage(cause: String)
+      extends BackgroundJobError(
+        statusCode = StatusCode.BadRequest,
+        userFacingMessage = s"ErrorSendingMessage"
+      )
+
+  case object NotImplemented
+      extends BackgroundJobError(
+        statusCode = StatusCode.UnexpectedNotImplemented,
+        userFacingMessage = s"NotImplemented"
+      )
+  final case class ErrorResponseReceivedFromPeerAgent(response: HttpResponse)
+      extends BackgroundJobError(
+        statusCode = StatusCode.BadRequest,
+        userFacingMessage = s"DIDComm sending error: [${response.status}] - ${response.bodyAsString}"
+      ) {
+
     override def toString: String = s"DIDComm sending error: [${response.status}] - ${response.bodyAsString}"
   }
 }
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/ConnectBackgroundJobs.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/ConnectBackgroundJobs.scala
index 483a7a6d87..5ed92b4441 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/ConnectBackgroundJobs.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/ConnectBackgroundJobs.scala
@@ -6,10 +6,13 @@ import org.hyperledger.identus.agent.walletapi.model.error.DIDSecretStorageError
 import org.hyperledger.identus.agent.walletapi.model.error.DIDSecretStorageError.{KeyNotFoundError, WalletNotFoundError}
 import org.hyperledger.identus.agent.walletapi.service.ManagedDIDService
 import org.hyperledger.identus.agent.walletapi.storage.DIDNonSecretStorage
+import org.hyperledger.identus.connect.core.model.error.ConnectionServiceError.InvalidStateForOperation
+import org.hyperledger.identus.connect.core.model.error.ConnectionServiceError.RecordIdNotFound
 import org.hyperledger.identus.connect.core.model.ConnectionRecord
 import org.hyperledger.identus.connect.core.model.ConnectionRecord.*
 import org.hyperledger.identus.connect.core.service.ConnectionService
 import org.hyperledger.identus.mercury.*
+import org.hyperledger.identus.mercury.model.error.SendMessageError
 import org.hyperledger.identus.resolvers.DIDResolver
 import org.hyperledger.identus.shared.models.WalletAccessContext
 import org.hyperledger.identus.shared.utils.aspects.CustomMetricsAspect
@@ -182,11 +185,11 @@ object ConnectBackgroundJobs extends BackgroundJobsHelper {
             s"Connect - Error processing record: ${record.id}",
             Cause.fail(walletNotFound)
           )
-        case ((walletAccessContext, e)) =>
+        case ((walletAccessContext, errorResponse)) =>
           for {
             connectService <- ZIO.service[ConnectionService]
             _ <- connectService
-              .reportProcessingFailure(record.id, Some(e.toString))
+              .reportProcessingFailure(record.id, Some(errorResponse))
               .provideSomeLayer(ZLayer.succeed(walletAccessContext))
           } yield ()
       })
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/IssueBackgroundJobs.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/IssueBackgroundJobs.scala
index 0780309a28..d85a275e74 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/IssueBackgroundJobs.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/IssueBackgroundJobs.scala
@@ -9,6 +9,7 @@ import org.hyperledger.identus.mercury.protocol.issuecredential.*
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError
 import org.hyperledger.identus.pollux.core.service.CredentialService
+import org.hyperledger.identus.shared.models.Failure
 import org.hyperledger.identus.shared.utils.aspects.CustomMetricsAspect
 import org.hyperledger.identus.shared.utils.DurationOps.toMetricsSeconds
 import zio.*
@@ -618,11 +619,12 @@ object IssueBackgroundJobs extends BackgroundJobsHelper {
           case walletNotFound: WalletNotFoundError            => ZIO.unit
           case CredentialServiceError.RecordNotFound(_, _)    => ZIO.unit
           case CredentialServiceError.UnsupportedDidFormat(_) => ZIO.unit
-          case ((walletAccessContext, e)) =>
+          case failure: Failure                               => ??? // FIXME
+          case ((walletAccessContext, failure)) =>
             for {
               credentialService <- ZIO.service[CredentialService]
               _ <- credentialService
-                .reportProcessingFailure(record.id, Some(e.toString))
+                .reportProcessingFailure(record.id, Some(failure))
                 .provideSomeLayer(ZLayer.succeed(walletAccessContext))
             } yield ()
         }
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala
index f2a3d50280..b89cd14d2a 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala
@@ -17,7 +17,6 @@ import org.hyperledger.identus.castor.core.model.error.DIDResolutionError as Cas
 import org.hyperledger.identus.castor.core.service.DIDService
 import org.hyperledger.identus.mercury.*
 import org.hyperledger.identus.mercury.model.*
-import org.hyperledger.identus.mercury.model.error.TransportError
 import org.hyperledger.identus.mercury.protocol.presentproof.*
 import org.hyperledger.identus.mercury.protocol.reportproblem.v2.{ProblemCode, ReportProblem}
 import org.hyperledger.identus.pollux.core.model.*
@@ -30,7 +29,7 @@ import org.hyperledger.identus.pollux.sdjwt.{HolderPrivateKey, IssuerPublicKey,
 import org.hyperledger.identus.pollux.vc.jwt.{DidResolver as JwtDidResolver, Issuer as JwtIssuer, JWT, JwtPresentation}
 import org.hyperledger.identus.resolvers.DIDResolver
 import org.hyperledger.identus.shared.http.*
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import org.hyperledger.identus.shared.utils.aspects.CustomMetricsAspect
 import org.hyperledger.identus.shared.utils.DurationOps.toMetricsSeconds
 import zio.*
@@ -38,13 +37,15 @@ import zio.json.*
 import zio.json.ast.Json
 import zio.metrics.*
 import zio.prelude.Validation
-import zio.prelude.ZValidation.*
+import zio.prelude.ZValidation.{Failure => ZFailure, *}
 
 import java.time.{Clock, Instant, ZoneId}
 
 object PresentBackgroundJobs extends BackgroundJobsHelper {
-  type ERROR = DIDSecretStorageError | PresentationError | CredentialServiceError | BackgroundJobError |
-    CastorDIDResolutionError | GetManagedDIDError | TransportError
+
+  private type ERROR =
+    /*DIDSecretStorageError | PresentationError | CredentialServiceError | BackgroundJobError | TransportError | */
+    CastorDIDResolutionError | GetManagedDIDError | Failure
 
   private type RESOURCES = COMMON_RESOURCES & CredentialService & JwtDidResolver & DIDService & AppConfig &
     MESSAGING_RESOURCES
@@ -82,7 +83,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
     aux(record)
       .tapError({
         (error: PresentationError | DIDSecretStorageError | BackgroundJobError | CredentialServiceError |
-          CastorDIDResolutionError | GetManagedDIDError | TransportError) =>
+          CastorDIDResolutionError | GetManagedDIDError | Failure) =>
           ZIO.logErrorCause(
             s"Present Proof - Error processing record: ${record.id}",
             Cause.fail(error)
@@ -533,7 +534,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
           requestPresentation: RequestPresentation
       ): ZIO[
         PresentationService & DIDNonSecretStorage,
-        PresentationError | DIDSecretStorageError | BackgroundJobError,
+        Failure,
         Unit
       ] = {
         maybeCredentialsToUseJson match {
@@ -645,7 +646,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
 
     def handlePresentationGenerated(id: DidCommID, presentation: Presentation): ZIO[
       JwtDidResolver & COMMON_RESOURCES & MESSAGING_RESOURCES,
-      PresentationError | DIDSecretStorageError | BackgroundJobError | TransportError,
+      Failure,
       Unit
     ] = {
 
@@ -712,7 +713,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
 
     def handleRequestPending(id: DidCommID, record: RequestPresentation): ZIO[
       JwtDidResolver & COMMON_RESOURCES & MESSAGING_RESOURCES,
-      PresentationError | DIDSecretStorageError | BackgroundJobError | TransportError,
+      Failure,
       Unit
     ] = {
       val VerifierSendPresentationRequestMsgSuccess = counterMetric(
@@ -800,7 +801,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
           credentialFormat: CredentialFormat
       ): ZIO[
         AppConfig & JwtDidResolver & COMMON_RESOURCES & MESSAGING_RESOURCES,
-        PresentationError | DIDSecretStorageError | TransportError,
+        Failure,
         Unit
       ] = {
         val result =
@@ -814,7 +815,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
 
       private def handleJWT(id: DidCommID, requestPresentation: RequestPresentation, presentation: Presentation): ZIO[
         AppConfig & JwtDidResolver & COMMON_RESOURCES & MESSAGING_RESOURCES,
-        PresentationError | DIDSecretStorageError | TransportError,
+        Failure,
         Unit
       ] = {
         val clock = java.time.Clock.system(ZoneId.systemDefault)
@@ -887,8 +888,8 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
               case any => ZIO.fail(PresentationReceivedError("Only Base64 Supported"))
             }
             _ <- credentialsClaimsValidationResult match
-              case l @ Failure(_, _) => ZIO.logError(s"CredentialsClaimsValidationResult: $l")
-              case l @ Success(_, _) => ZIO.logInfo(s"CredentialsClaimsValidationResult: $l")
+              case l @ ZFailure(_, _) => ZIO.logError(s"CredentialsClaimsValidationResult: $l")
+              case l @ Success(_, _)  => ZIO.logInfo(s"CredentialsClaimsValidationResult: $l")
             service <- ZIO.service[PresentationService]
             presReceivedToProcessedAspect = CustomMetricsAspect.endRecordingTime(
               s"${id}_present_proof_flow_verifier_presentation_received_to_verification_success_or_failure_ms_gauge",
@@ -899,7 +900,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
                 service
                   .markPresentationVerified(id)
                   .provideSomeLayer(ZLayer.succeed(walletAccessContext)) @@ presReceivedToProcessedAspect
-              case Failure(log, error) =>
+              case ZFailure(log, error) =>
                 for {
                   _ <- service
                     .markPresentationVerificationFailed(id)
@@ -928,7 +929,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
 
       private def handleSDJWT(id: DidCommID, presentation: Presentation): ZIO[
         JwtDidResolver & COMMON_RESOURCES & MESSAGING_RESOURCES,
-        PresentationError | DIDSecretStorageError | TransportError,
+        Failure,
         Unit
       ] = {
         for {
@@ -997,7 +998,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
           presentation: Presentation
       ): ZIO[
         PresentationService & DIDNonSecretStorage & MESSAGING_RESOURCES,
-        PresentationError | DIDSecretStorageError | TransportError,
+        PresentationError | DIDSecretStorageError,
         Unit
       ] = {
         for {
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerError.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerError.scala
index 88e2f5b659..2c46434de9 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerError.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerError.scala
@@ -3,49 +3,39 @@ package org.hyperledger.identus.didcomm.controller
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.shared.models.{Failure, StatusCode}
 
-sealed trait DIDCommControllerError(
-    val statusCode: StatusCode,
-    val userFacingMessage: String
-) extends Failure {
-  override val namespace = "DIDCommControllerError"
+sealed trait DIDCommControllerError extends Failure {
+  override def namespace = "DIDCommControllerError"
 }
 
 object DIDCommControllerError {
-  final case class InvalidContentType(maybeContentType: Option[String])
-      extends DIDCommControllerError(
-        StatusCode.BadRequest,
-        maybeContentType match
-          case Some(value) => s"The 'content-type' request header value is invalid: $value"
-          case None        => s"The 'content-type' request header is undefined"
-      )
-
-  final case class RecipientNotFoundError()
-      extends DIDCommControllerError(
-        StatusCode.UnprocessableContent,
-        "Recipient not found in the DIDComm Message"
-      )
-
-  final case class UnexpectedError(override val statusCode: StatusCode)
-      extends DIDCommControllerError(
-        statusCode,
-        "An unexpected error occurred while processing your request"
-      )
-
-  final case class RequestBodyParsingError(cause: String)
-      extends DIDCommControllerError(
-        StatusCode.BadRequest,
-        s"Unable to parse the request body as a valid DIDComm message: $cause"
-      )
-
-  final case class PeerDIDNotFoundError(did: DidId)
-      extends DIDCommControllerError(
-        StatusCode.UnprocessableContent,
-        s"The Peer DID was not found in this agent: ${did.value}"
-      )
-
-  final case class PeerDIDKeyNotFoundError(did: DidId, keyId: String)
-      extends DIDCommControllerError(
-        StatusCode.UnprocessableContent,
-        s"The Peer DID does not contain the required key: DID=$did, keyId=$keyId"
-      )
+  final case class InvalidContentType(maybeContentType: Option[String]) extends DIDCommControllerError {
+    override def statusCode: StatusCode = StatusCode.BadRequest
+    override def userFacingMessage: String = maybeContentType match
+      case Some(value) => s"The 'content-type' request header value is invalid: $value"
+      case None        => s"The 'content-type' request header is undefined"
+  }
+
+  object RecipientNotFoundError extends DIDCommControllerError {
+    override def statusCode: StatusCode = StatusCode.UnprocessableContent
+    override def userFacingMessage: String = "Recipient not found in the DIDComm Message"
+  }
+
+  final case class UnexpectedError(statusCode: StatusCode) extends DIDCommControllerError {
+    override def userFacingMessage: String = "An unexpected error occurred while processing your request"
+  }
+
+  final case class RequestBodyParsingError(cause: String) extends DIDCommControllerError {
+    override def statusCode: StatusCode = StatusCode.BadRequest
+    override def userFacingMessage: String = s"Unable to parse the request body as a valid DIDComm message: $cause"
+  }
+
+  final case class PeerDIDNotFoundError(did: DidId) extends DIDCommControllerError {
+    override def statusCode: StatusCode = StatusCode.UnprocessableContent
+    override def userFacingMessage: String = s"The Peer DID was not found in this agent: ${did.value}"
+  }
+
+  final case class PeerDIDKeyNotFoundError(did: DidId, keyId: String) extends DIDCommControllerError {
+    override def statusCode: StatusCode = StatusCode.UnprocessableContent
+    override def userFacingMessage: String = s"The Peer DID does not contain the required key: DID=$did, keyId=$keyId"
+  }
 }
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerImpl.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerImpl.scala
index 44d7e1e8e5..b910ace0f4 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerImpl.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/didcomm/controller/DIDCommControllerImpl.scala
@@ -71,7 +71,7 @@ class DIDCommControllerImpl(
     for {
       recipientDid <- ZIO
         .fromOption(msg.recipients.headOption.map(_.header.kid.split("#")(0)))
-        .mapError(_ => RecipientNotFoundError())
+        .mapError(_ => RecipientNotFoundError)
       _ <- ZIO.logInfo(s"Extracted recipient Did => $recipientDid")
       didId = DidId(recipientDid)
       maybePeerDIDRecord <- didNonSecretStorage.getPeerDIDRecord(didId).orDie
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/controller/CredentialIssuerController.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/controller/CredentialIssuerController.scala
index 158bdda0d7..29d81e4321 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/controller/CredentialIssuerController.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/controller/CredentialIssuerController.scala
@@ -166,8 +166,9 @@ case class CredentialIssuerControllerImpl(
               ZIO.unit,
               ZIO.fail(OIDCCredentialIssuerService.Errors.InvalidProof("Invalid proof"))
             )
-            .mapError { case InvalidProof(message) =>
-              badRequestInvalidProof(jwt, message)
+            .mapError {
+              case InvalidProof(message)       => badRequestInvalidProof(jwt, message)
+              case DIDResolutionError(message) => badRequestInvalidProof(jwt, message)
             }
           nonce <- getNonceFromJwt(JWT(jwt))
             .mapError(throwable => badRequestInvalidProof(jwt, throwable.getMessage))
@@ -180,7 +181,9 @@ case class CredentialIssuerControllerImpl(
           sessionWithSubjectDid <- credentialIssuerService
             .updateIssuanceSession(session.withSubjectDid(subjectDid))
             .mapError(ue =>
-              serverError(Some(s"Unexpected error while updating issuance session with subject DID: ${ue.message}"))
+              serverError(
+                Some(s"Unexpected error while updating issuance session with subject DID: ${ue.userFacingMessage}")
+              )
             )
           credentialDefinition <- ZIO
             .fromOption(maybeCredentialDefinition)
@@ -188,7 +191,7 @@ case class CredentialIssuerControllerImpl(
           validatedCredentialDefinition <- credentialIssuerService
             .validateCredentialDefinition(credentialDefinition)
             .mapError(ue =>
-              serverError(Some(s"Unexpected error while validating credential definition: ${ue.message}"))
+              serverError(Some(s"Unexpected error while validating credential definition: ${ue.userFacingMessage}"))
             )
           credential <- credentialIssuerService
             .issueJwtCredential(
@@ -198,9 +201,11 @@ case class CredentialIssuerControllerImpl(
               maybeCredentialIdentifier,
               validatedCredentialDefinition
             )
-            .mapError(ue => serverError(Some(s"Unexpected error while issuing credential: ${ue.message}")))
+            .mapError(ue => serverError(Some(s"Unexpected error while issuing credential: ${ue.userFacingMessage}")))
         } yield ImmediateCredentialResponse(credential.value)
       case None => ZIO.fail(badRequestInvalidProof(jwt = "empty", details = "No proof provided"))
+      // case Some(CwtProof(_, _)) => ??? // TODO
+      // case Some(LdpProof(_, _)) => ??? // TODO
     }
   }
 
@@ -223,7 +228,9 @@ case class CredentialIssuerControllerImpl(
         )
         .map(offer => CredentialOfferResponse(offer.offerUri))
         .mapError(ue =>
-          internalServerError(detail = Some(s"Unexpected error while creating credential offer: ${ue.message}"))
+          internalServerError(detail =
+            Some(s"Unexpected error while creating credential offer: ${ue.userFacingMessage}")
+          )
         )
     } yield resp
   }
@@ -236,7 +243,7 @@ case class CredentialIssuerControllerImpl(
       .getIssuanceSessionByIssuerState(request.issuerState)
       .map(session => NonceResponse(session.nonce))
       .mapError(ue =>
-        internalServerError(detail = Some(s"Unexpected error while creating credential offer: ${ue.message}"))
+        internalServerError(detail = Some(s"Unexpected error while creating credential offer: ${ue.userFacingMessage}"))
       )
   }
 
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/domain/Openid4VCIProofJwtOps.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/domain/Openid4VCIProofJwtOps.scala
index efa527df7b..5834ebad98 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/domain/Openid4VCIProofJwtOps.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/domain/Openid4VCIProofJwtOps.scala
@@ -5,7 +5,7 @@ import org.hyperledger.identus.castor.core.model.did.DIDUrl
 import org.hyperledger.identus.pollux.vc.jwt.JWT
 import org.hyperledger.identus.pollux.vc.jwt.JwtSignerImplicits.*
 import org.hyperledger.identus.shared.crypto.Secp256k1PrivateKey
-import zio.{Task, ZIO}
+import zio.*
 
 import java.util.UUID
 import scala.jdk.CollectionConverters.*
@@ -46,36 +46,42 @@ trait Openid4VCIProofJwtOps {
     JWT(makeJwtProof(header, payload, privateKey.asJwtSigner))
   }
 
-  def getKeyIdFromJwt(jwt: JWT): Task[String] = {
+  def getKeyIdFromJwt(jwt: JWT): IO[RuntimeException, String] = { // FIXME RuntimeException
     for {
-      jwsObject <- ZIO.fromTry(Try(JWSObject.parse(jwt.value)))
+      jwsObject <- ZIO.fromTry(Try(JWSObject.parse(jwt.value))).orDie // FIXME
       keyID = jwsObject.getHeader.getKeyID
-      _ <- ZIO.fail(new Exception("Key ID not found in JWT header")) when (keyID == null || keyID.isEmpty)
+      _ <- ZIO.fail(
+        new RuntimeException("Key ID not found in JWT header")
+      ) when (keyID == null || keyID.isEmpty)
     } yield keyID
   }
 
-  def getAlgorithmFromJwt(jwt: JWT): Task[String] = {
+  def getAlgorithmFromJwt(jwt: JWT): IO[RuntimeException, String] = {
     for {
-      jwsObject <- ZIO.fromTry(Try(JWSObject.parse(jwt.value)))
+      jwsObject <- ZIO.fromTry(Try(JWSObject.parse(jwt.value))).orDie // FIXME
       algorithm <- ZIO
         .fromOption(Option(jwsObject.getHeader.getAlgorithm))
-        .mapError(_ => new Exception("Algorithm not found in JWT header"))
+        .mapError(_ => new RuntimeException("Algorithm not found in JWT header"))
     } yield algorithm.getName
   }
 
-  def getNonceFromJwt(jwt: JWT): Task[String] = {
+  def getNonceFromJwt(jwt: JWT): IO[RuntimeException, String] = { // FIXME RuntimeException
     for {
-      jwsObject <- ZIO.fromTry(Try(JWSObject.parse(jwt.value)))
+      jwsObject <- ZIO.fromTry(Try(JWSObject.parse(jwt.value))).orDie // FIXME
       payload = jwsObject.getPayload.toJSONObject
       nonce = payload.get("nonce").asInstanceOf[String]
-      _ <- ZIO.fail(new Exception("Nonce not found in JWT payload")) when (nonce == null || nonce.isEmpty)
+      _ <- ZIO.fail(
+        new RuntimeException("Nonce not found in JWT payload")
+      ) when (nonce == null || nonce.isEmpty)
     } yield nonce
   }
 
-  def parseDIDUrlFromKeyId(jwt: JWT): Task[DIDUrl] = {
+  def parseDIDUrlFromKeyId(jwt: JWT): IO[RuntimeException, DIDUrl] = { // FIXME RuntimeException
     for {
       keyId <- getKeyIdFromJwt(jwt)
-      didUrl <- ZIO.fromEither(DIDUrl.fromString(keyId)).mapError(e => new Exception(e))
+      didUrl <- ZIO
+        .fromEither(DIDUrl.fromString(keyId))
+        .mapError(e => new RuntimeException(e))
     } yield didUrl
   }
 }
diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/service/OIDCCredentialIssuerService.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/service/OIDCCredentialIssuerService.scala
index cee750b525..bb90856cb0 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/service/OIDCCredentialIssuerService.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/oid4vci/service/OIDCCredentialIssuerService.scala
@@ -24,7 +24,7 @@ import org.hyperledger.identus.pollux.vc.jwt.{
   W3cCredentialPayload,
   *
 }
-import org.hyperledger.identus.shared.models.{WalletAccessContext, WalletId}
+import org.hyperledger.identus.shared.models.*
 import zio.*
 
 import java.net.{URI, URL}
@@ -40,7 +40,7 @@ trait OIDCCredentialIssuerService {
   import OIDCCredentialIssuerService.Error
   import OIDCCredentialIssuerService.Errors.*
 
-  def verifyJwtProof(jwt: JWT): IO[InvalidProof, Boolean]
+  def verifyJwtProof(jwt: JWT): IO[InvalidProof | DIDResolutionError, Boolean]
 
   def validateCredentialDefinition(
       credentialDefinition: CredentialDefinition
@@ -70,30 +70,31 @@ trait OIDCCredentialIssuerService {
 }
 
 object OIDCCredentialIssuerService {
-  trait Error {
-    def message: String
+  sealed trait Error extends Failure {
+    override val namespace = "OIDCCredentialIssuerService"
+    override val statusCode = StatusCode.BadRequest
   }
 
   // TODO: use shared Failure trait
   object Errors {
-    case class InvalidProof(message: String) extends Error
+    case class InvalidProof(userFacingMessage: String) extends Error
 
-    case class DIDResolutionError(message: String) extends Error
+    case class DIDResolutionError(userFacingMessage: String) extends Error
 
     case class CredentialConfigurationNotFound(issuerId: UUID, credentialConfigurationId: String) extends Error {
-      override def message: String =
+      override def userFacingMessage: String =
         s"Credential configuration with id $credentialConfigurationId not found for issuer $issuerId"
     }
 
     case class CredentialSchemaError(cause: org.hyperledger.identus.pollux.core.model.error.CredentialSchemaError)
         extends Error {
-      override def message: String = cause.userFacingMessage
+      override def userFacingMessage: String = cause.userFacingMessage
     }
 
-    case class ServiceError(message: String) extends Error
+    case class ServiceError(userFacingMessage: String) extends Error
 
     case class UnexpectedError(cause: Throwable) extends Error {
-      override def message: String = cause.getMessage
+      override def userFacingMessage: String = cause.getMessage // TODO
     }
   }
 }
@@ -129,14 +130,13 @@ case class OIDCCredentialIssuerServiceImpl(
     } yield verificationMethod
   }
 
-  override def verifyJwtProof(jwt: JWT): IO[InvalidProof, Boolean] = {
+  override def verifyJwtProof(jwt: JWT): IO[InvalidProof | DIDResolutionError, Boolean] = {
     for {
       algorithm <- getAlgorithmFromJwt(jwt)
         .mapError(e => InvalidProof(e.getMessage))
       didUrl <- parseDIDUrlFromKeyId(jwt)
         .mapError(e => InvalidProof(e.getMessage))
       verificationMethod <- resolveVerificationMethodByKeyId(didUrl)
-        .mapError(dre => InvalidProof(dre.message))
       publicKey <- JWTVerification.extractPublicKey(verificationMethod).toZIO.mapError(InvalidProof.apply)
       _ <- JWTVerification.validateEncodedJwt(jwt, publicKey).toZIO.mapError(InvalidProof.apply)
     } yield true
diff --git a/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala b/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala
index 779d8fbde0..85a305541e 100644
--- a/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala
+++ b/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala
@@ -1,10 +1,24 @@
 package org.hyperledger.identus.agent.walletapi.model.error
 
 import org.hyperledger.identus.mercury.model.DidId
+import org.hyperledger.identus.shared.models._
 
-sealed trait DIDSecretStorageError extends Throwable
+sealed trait DIDSecretStorageError(
+    override val statusCode: StatusCode,
+    override val userFacingMessage: String
+) extends Failure {
+  override val namespace: String = "DIDSecretStorageError"
+}
 
 object DIDSecretStorageError {
-  case class KeyNotFoundError(didId: DidId, keyId: String) extends DIDSecretStorageError
-  case class WalletNotFoundError(didId: DidId) extends DIDSecretStorageError
+  case class KeyNotFoundError(didId: DidId, keyId: String)
+      extends DIDSecretStorageError(
+        StatusCode.NotFound,
+        s"The not found: keyId='$keyId', didId='$didId'"
+      )
+  case class WalletNotFoundError(didId: DidId)
+      extends DIDSecretStorageError(
+        StatusCode.NotFound,
+        s"The DID not Found in Wallet: didId='$didId'"
+      )
 }
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/model/ConnectionRecord.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/model/ConnectionRecord.scala
index 13eccd9c81..db640624d2 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/model/ConnectionRecord.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/model/ConnectionRecord.scala
@@ -3,6 +3,7 @@ package org.hyperledger.identus.connect.core.model
 import org.hyperledger.identus.connect.core.model.ConnectionRecord.{ProtocolState, Role}
 import org.hyperledger.identus.mercury.protocol.connection.{ConnectionRequest, ConnectionResponse}
 import org.hyperledger.identus.mercury.protocol.invitation.v2.Invitation
+import org.hyperledger.identus.shared.models.Failure
 
 import java.time.temporal.ChronoUnit
 import java.time.Instant
@@ -42,7 +43,7 @@ case class ConnectionRecord(
     connectionResponse: Option[ConnectionResponse],
     metaRetries: Int,
     metaNextRetry: Option[Instant],
-    metaLastFailure: Option[String]
+    metaLastFailure: Option[Failure]
 ) {
   def withTruncatedTimestamp(unit: ChronoUnit = ChronoUnit.MICROS): ConnectionRecord = copy(
     createdAt = createdAt.truncatedTo(unit),
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepository.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepository.scala
index 8407d4f751..9ad70b3160 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepository.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepository.scala
@@ -3,6 +3,7 @@ package org.hyperledger.identus.connect.core.repository
 import org.hyperledger.identus.connect.core.model.ConnectionRecord
 import org.hyperledger.identus.connect.core.model.ConnectionRecord.ProtocolState
 import org.hyperledger.identus.mercury.protocol.connection.*
+import org.hyperledger.identus.shared.models.Failure
 import org.hyperledger.identus.shared.models.WalletAccessContext
 import zio.{UIO, URIO}
 
@@ -67,7 +68,7 @@ trait ConnectionRepository {
 
   def updateAfterFail(
       recordId: UUID,
-      failReason: Option[String],
+      failReason: Option[Failure],
   ): URIO[WalletAccessContext, Unit]
 
 }
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositoryInMemory.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositoryInMemory.scala
index 0ebb7d0a8c..316abdc6c3 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositoryInMemory.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositoryInMemory.scala
@@ -3,7 +3,7 @@ package org.hyperledger.identus.connect.core.repository
 import org.hyperledger.identus.connect.core.model.ConnectionRecord
 import org.hyperledger.identus.connect.core.model.ConnectionRecord.ProtocolState
 import org.hyperledger.identus.mercury.protocol.connection.{ConnectionRequest, ConnectionResponse}
-import org.hyperledger.identus.shared.models.{WalletAccessContext, WalletId}
+import org.hyperledger.identus.shared.models.*
 import zio.*
 
 import java.time.Instant
@@ -113,7 +113,7 @@ class ConnectionRepositoryInMemory(walletRefs: Ref[Map[WalletId, Ref[Map[UUID, C
 
   def updateAfterFail(
       recordId: UUID,
-      failReason: Option[String],
+      failReason: Option[Failure],
   ): URIO[WalletAccessContext, Unit] = for {
     maybeRecord <- findById(recordId)
     record <- ZIO.getOrFailWith(new RuntimeException(s"Record not found for Id: $recordId"))(maybeRecord).orDie
@@ -131,7 +131,7 @@ class ConnectionRepositoryInMemory(walletRefs: Ref[Map[WalletId, Ref[Map[UUID, C
 
   def updateAfterFailForAllWallets(
       recordId: UUID,
-      failReason: Option[String],
+      failReason: Option[Failure],
   ): Task[Int] = walletRefs.get.flatMap { wallets =>
     ZIO.foldLeft(wallets.values)(0) { (acc, walletRef) =>
       for {
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionService.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionService.scala
index 8cab80087f..9b4409bb9a 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionService.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionService.scala
@@ -5,7 +5,7 @@ import org.hyperledger.identus.connect.core.model.error.ConnectionServiceError.*
 import org.hyperledger.identus.connect.core.model.ConnectionRecord
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.connection.{ConnectionRequest, ConnectionResponse}
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.*
 
 import java.time.Duration
@@ -86,6 +86,6 @@ trait ConnectionService {
 
   def reportProcessingFailure(
       recordId: UUID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit]
 }
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceImpl.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceImpl.scala
index 08f4bafb53..cd703af4b1 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceImpl.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceImpl.scala
@@ -9,7 +9,7 @@ import org.hyperledger.identus.connect.core.repository.ConnectionRepository
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.connection.*
 import org.hyperledger.identus.mercury.protocol.invitation.v2.Invitation
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import org.hyperledger.identus.shared.utils.aspects.CustomMetricsAspect
 import org.hyperledger.identus.shared.utils.Base64Utils
 import org.hyperledger.identus.shared.validation.ValidationUtils
@@ -295,9 +295,9 @@ private class ConnectionServiceImpl(
     } yield record
   }
 
-  def reportProcessingFailure(
+  override def reportProcessingFailure(
       recordId: UUID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] =
     connectionRepository.updateAfterFail(recordId, failReason)
 
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceNotifier.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceNotifier.scala
index 4aeec45ac5..8037fb1ed8 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceNotifier.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/ConnectionServiceNotifier.scala
@@ -6,7 +6,7 @@ import org.hyperledger.identus.connect.core.model.ConnectionRecord
 import org.hyperledger.identus.event.notification.{Event, EventNotificationService}
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.connection.{ConnectionRequest, ConnectionResponse}
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.{UIO, URIO, URLayer, ZIO, ZLayer}
 
 import java.time.Duration
@@ -103,7 +103,7 @@ class ConnectionServiceNotifier(
 
   override def reportProcessingFailure(
       recordId: UUID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] =
     svc.reportProcessingFailure(recordId, failReason)
 
diff --git a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/MockConnectionService.scala b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/MockConnectionService.scala
index ddcc93828e..9d30a2abde 100644
--- a/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/MockConnectionService.scala
+++ b/connect/core/src/main/scala/org/hyperledger/identus/connect/core/service/MockConnectionService.scala
@@ -5,7 +5,7 @@ import org.hyperledger.identus.connect.core.model.error.ConnectionServiceError.*
 import org.hyperledger.identus.connect.core.model.ConnectionRecord
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.connection.{ConnectionRequest, ConnectionResponse}
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.{mock, UIO, URIO, URLayer, ZIO, ZLayer}
 import zio.mock.{Mock, Proxy}
 
@@ -126,7 +126,7 @@ object MockConnectionService extends Mock[ConnectionService] {
 
       override def reportProcessingFailure(
           recordId: UUID,
-          failReason: Option[String]
+          failReason: Option[Failure]
       ): URIO[WalletAccessContext, Unit] = ???
     }
   }
diff --git a/connect/core/src/test/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositorySpecSuite.scala b/connect/core/src/test/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositorySpecSuite.scala
index acb1226c64..ac7b1a6f6c 100644
--- a/connect/core/src/test/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositorySpecSuite.scala
+++ b/connect/core/src/test/scala/org/hyperledger/identus/connect/core/repository/ConnectionRepositorySpecSuite.scala
@@ -5,6 +5,7 @@ import org.hyperledger.identus.connect.core.model.ConnectionRecord.*
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.connection.{ConnectionRequest, ConnectionResponse}
 import org.hyperledger.identus.mercury.protocol.invitation.v2.Invitation
+import org.hyperledger.identus.shared.models.*
 import org.hyperledger.identus.shared.models.{WalletAccessContext, WalletId}
 import zio.{Cause, Exit, ZIO, ZLayer}
 import zio.test.*
@@ -335,13 +336,16 @@ object ConnectionRepositorySpecSuite {
       }
     },
     test("updateFail (fail one retry) updates record") {
-      val failReason = Some("Just to test")
+      val failReason = Some(FailureInfo("ConnectionRepositorySpecSuite", StatusCode(999), "Just to test"))
       for {
         repo <- ZIO.service[ConnectionRepository]
         aRecord = connectionRecord
         _ <- repo.create(aRecord)
         record <- repo.findById(aRecord.id)
-        count <- repo.updateAfterFail(aRecord.id, Some("Just to test")) // TEST
+        count <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("ConnectionRepositorySpecSuite", StatusCode(999), "Just to test"))
+        ) // TEST
         updatedRecord1 <- repo.findById(aRecord.id)
         response = ConnectionResponse.makeResponseFromRequest(connectionRequest.makeMessage).toOption.get
         _ <- repo.updateWithConnectionResponse(
diff --git a/connect/sql-doobie/src/main/resources/sql/connect/V8__clear_content_of_meta_last_failure.sql b/connect/sql-doobie/src/main/resources/sql/connect/V8__clear_content_of_meta_last_failure.sql
new file mode 100644
index 0000000000..bf1eddfb59
--- /dev/null
+++ b/connect/sql-doobie/src/main/resources/sql/connect/V8__clear_content_of_meta_last_failure.sql
@@ -0,0 +1,2 @@
+-- Clear content of meta_last_failure
+UPDATE public.connection_records SET meta_last_failure=NULL;
\ No newline at end of file
diff --git a/connect/sql-doobie/src/main/scala/org/hyperledger/identus/connect/sql/repository/JdbcConnectionRepository.scala b/connect/sql-doobie/src/main/scala/org/hyperledger/identus/connect/sql/repository/JdbcConnectionRepository.scala
index def56b6df9..18d8a1ac05 100644
--- a/connect/sql-doobie/src/main/scala/org/hyperledger/identus/connect/sql/repository/JdbcConnectionRepository.scala
+++ b/connect/sql-doobie/src/main/scala/org/hyperledger/identus/connect/sql/repository/JdbcConnectionRepository.scala
@@ -15,9 +15,10 @@ import org.hyperledger.identus.mercury.protocol.connection.*
 import org.hyperledger.identus.mercury.protocol.invitation.v2.Invitation
 import org.hyperledger.identus.shared.db.ContextAwareTask
 import org.hyperledger.identus.shared.db.Implicits.*
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.*
 import zio.interop.catz.*
+import zio.json.*
 
 import java.time.Instant
 import java.util.UUID
@@ -45,6 +46,9 @@ class JdbcConnectionRepository(xa: Transactor[ContextAwareTask], xb: Transactor[
   given connectionResponseGet: Get[ConnectionResponse] = Get[String].map(decode[ConnectionResponse](_).getOrElse(???))
   given connectionResponsePut: Put[ConnectionResponse] = Put[String].contramap(_.asJson.toString)
 
+  given failureGet: Get[Failure] = Get[String].temap(_.fromJson[FailureInfo])
+  given failurePut: Put[Failure] = Put[String].contramap(_.asFailureInfo.toJson)
+
   override def create(record: ConnectionRecord): URIO[WalletAccessContext, Unit] = {
     val cxnIO = sql"""
         | INSERT INTO public.connection_records(
@@ -327,7 +331,7 @@ class JdbcConnectionRepository(xa: Transactor[ContextAwareTask], xb: Transactor[
 
   def updateAfterFail(
       recordId: UUID,
-      failReason: Option[String],
+      failReason: Option[Failure],
   ): URIO[WalletAccessContext, Unit] = {
     val cxnIO = sql"""
         | UPDATE public.connection_records
diff --git a/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala b/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala
index 8d0b39acf0..4ea83a1357 100644
--- a/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala
+++ b/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala
@@ -1,11 +1,18 @@
 package org.hyperledger.identus.mercury.model
 
-package object error {
+import org.hyperledger.identus.shared.models._
 
-  sealed trait MercuryError
+package object error {
 
-  trait TransportError extends MercuryError
+  sealed trait MercuryError extends Failure {
+    override val namespace: String = "MercuryError"
+  }
 
-  sealed case class SendMessageError(cause: Throwable, mData: Option[String] = None) extends TransportError
+  sealed case class SendMessageError(cause: Throwable, mData: Option[String] = None) extends MercuryError {
+    override val statusCode = StatusCode.BadRequest
+    override val userFacingMessage =
+      s"Error when sending message: ${cause.getMessage};${mData.map(e => s" DATA:'$e'").getOrElse("")}. "
+        + cause.getMessage
+  }
 
 }
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/IssueCredentialRecord.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/IssueCredentialRecord.scala
index 030fa2865a..108d7c2a1d 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/IssueCredentialRecord.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/IssueCredentialRecord.scala
@@ -11,7 +11,7 @@ import org.hyperledger.identus.mercury.protocol.issuecredential.{
 }
 import org.hyperledger.identus.pollux.anoncreds.AnoncredCredentialRequestMetadata
 import org.hyperledger.identus.pollux.core.model.IssueCredentialRecord.*
-import org.hyperledger.identus.shared.models.KeyId
+import org.hyperledger.identus.shared.models.*
 
 import java.time.temporal.ChronoUnit
 import java.time.Instant
@@ -40,7 +40,7 @@ final case class IssueCredentialRecord(
     issuingDID: Option[CanonicalPrismDID],
     metaRetries: Int,
     metaNextRetry: Option[Instant],
-    metaLastFailure: Option[String],
+    metaLastFailure: Option[Failure],
 ) {
   def offerCredentialFormatAndData: Option[(IssueCredentialOfferFormat, OfferCredential)] =
     offerCredentialData.map { data =>
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/PresentationRecord.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/PresentationRecord.scala
index 92ba7a493c..6847451cfd 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/PresentationRecord.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/model/PresentationRecord.scala
@@ -2,6 +2,7 @@ package org.hyperledger.identus.pollux.core.model
 
 import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.presentproof.{Presentation, ProposePresentation, RequestPresentation}
+import org.hyperledger.identus.shared.models.Failure
 
 import java.time.temporal.ChronoUnit
 import java.time.Instant
@@ -30,7 +31,7 @@ final case class PresentationRecord(
     sdJwtClaimsToDisclose: Option[SdJwtCredentialToDisclose],
     metaRetries: Int,
     metaNextRetry: Option[Instant],
-    metaLastFailure: Option[String],
+    metaLastFailure: Option[Failure],
 ) {
   def withTruncatedTimestamp(unit: ChronoUnit = ChronoUnit.MICROS): PresentationRecord =
     copy(
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepository.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepository.scala
index 713c34ce8c..2ac6c75c7a 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepository.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepository.scala
@@ -4,7 +4,7 @@ import org.hyperledger.identus.mercury.protocol.issuecredential.{IssueCredential
 import org.hyperledger.identus.pollux.anoncreds.AnoncredCredentialRequestMetadata
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.IssueCredentialRecord.ProtocolState
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext}
+import org.hyperledger.identus.shared.models.*
 import zio.*
 
 trait CredentialRepository {
@@ -98,7 +98,7 @@ trait CredentialRepository {
 
   def updateAfterFail(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit]
 
 }
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositoryInMemory.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositoryInMemory.scala
index cb1594262d..aa7d5390f2 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositoryInMemory.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositoryInMemory.scala
@@ -4,7 +4,7 @@ import org.hyperledger.identus.mercury.protocol.issuecredential.{IssueCredential
 import org.hyperledger.identus.pollux.anoncreds.AnoncredCredentialRequestMetadata
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.IssueCredentialRecord.ProtocolState
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext, WalletId}
+import org.hyperledger.identus.shared.models.*
 import zio.*
 
 import java.time.Instant
@@ -327,9 +327,9 @@ class CredentialRepositoryInMemory(
     } yield ()
   }
 
-  def updateAfterFail(
+  override def updateAfterFail(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] = for {
     storeRef <- walletStoreRef
     maybeRecord <- findById(recordId)
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepository.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepository.scala
index 2e80f3af54..789a25473d 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepository.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepository.scala
@@ -3,7 +3,7 @@ package org.hyperledger.identus.pollux.core.repository
 import org.hyperledger.identus.mercury.protocol.presentproof.*
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.PresentationRecord.ProtocolState
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.*
 
 trait PresentationRepository {
@@ -73,6 +73,6 @@ trait PresentationRepository {
 
   def updateAfterFail(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit]
 }
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositoryInMemory.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositoryInMemory.scala
index c1194838bb..4f646f3bee 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositoryInMemory.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositoryInMemory.scala
@@ -4,7 +4,7 @@ import org.hyperledger.identus.mercury.protocol.presentproof.*
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.PresentationRecord.ProtocolState
 import org.hyperledger.identus.shared.db.Implicits.*
-import org.hyperledger.identus.shared.models.{WalletAccessContext, WalletId}
+import org.hyperledger.identus.shared.models.*
 import zio.*
 import zio.json.*
 import zio.json.ast.Json
@@ -324,9 +324,9 @@ class PresentationRepositoryInMemory(
     result.ensureOneAffectedRowOrDie
   }
 
-  def updateAfterFail(
+  override def updateAfterFail(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] = {
     val result =
       for {
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialService.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialService.scala
index f2430246e4..047748a844 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialService.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialService.scala
@@ -14,7 +14,7 @@ import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError.*
 import org.hyperledger.identus.pollux.vc.jwt.Issuer
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext}
+import org.hyperledger.identus.shared.models.*
 import zio.{Duration, IO, UIO, URIO, ZIO}
 
 import java.nio.charset.StandardCharsets
@@ -149,7 +149,7 @@ trait CredentialService {
 
   def reportProcessingFailure(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit]
 
   def getJwtIssuer(
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceImpl.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceImpl.scala
index 3cf773fa07..c0af18ac02 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceImpl.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceImpl.scala
@@ -24,7 +24,7 @@ import org.hyperledger.identus.pollux.sdjwt.*
 import org.hyperledger.identus.pollux.vc.jwt.{Issuer as JwtIssuer, *}
 import org.hyperledger.identus.shared.crypto.{Ed25519KeyPair, Ed25519PublicKey, Secp256k1KeyPair}
 import org.hyperledger.identus.shared.http.{DataUrlResolver, GenericUriResolver}
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext}
+import org.hyperledger.identus.shared.models.*
 import org.hyperledger.identus.shared.utils.aspects.CustomMetricsAspect
 import zio.*
 import zio.json.*
@@ -857,7 +857,7 @@ class CredentialServiceImpl(
 
   override def reportProcessingFailure(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] =
     credentialRepository.updateAfterFail(recordId, failReason)
 
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceNotifier.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceNotifier.scala
index 42599e6b2f..ab1ecf2e8c 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceNotifier.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/CredentialServiceNotifier.scala
@@ -9,7 +9,7 @@ import org.hyperledger.identus.pollux.core.model.{DidCommID, IssueCredentialReco
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError.*
 import org.hyperledger.identus.pollux.vc.jwt.Issuer
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext}
+import org.hyperledger.identus.shared.models.*
 import zio.{Duration, UIO, URIO, URLayer, ZIO, ZLayer}
 
 import java.util.UUID
@@ -187,7 +187,7 @@ class CredentialServiceNotifier(
 
   override def reportProcessingFailure(
       recordId: DidCommID,
-      failReason: Option[_root_.java.lang.String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] =
     svc.reportProcessingFailure(recordId, failReason)
 
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockCredentialService.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockCredentialService.scala
index 1ee2264c0c..29533eb4d1 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockCredentialService.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockCredentialService.scala
@@ -8,7 +8,7 @@ import org.hyperledger.identus.pollux.core.model.{DidCommID, IssueCredentialReco
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError
 import org.hyperledger.identus.pollux.core.model.error.CredentialServiceError.*
 import org.hyperledger.identus.pollux.vc.jwt.Issuer
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext}
+import org.hyperledger.identus.shared.models.*
 import zio.{mock, Duration, IO, UIO, URIO, URLayer, ZIO, ZLayer}
 import zio.mock.{Mock, Proxy}
 
@@ -99,7 +99,7 @@ object MockCredentialService extends Mock[CredentialService] {
   object MarkCredentialPublicationPending extends Effect[DidCommID, CredentialServiceError, IssueCredentialRecord]
   object MarkCredentialPublicationQueued extends Effect[DidCommID, CredentialServiceError, IssueCredentialRecord]
   object MarkCredentialPublished extends Effect[DidCommID, CredentialServiceError, IssueCredentialRecord]
-  object ReportProcessingFailure extends Effect[(DidCommID, Option[String]), Nothing, Unit]
+  object ReportProcessingFailure extends Effect[(DidCommID, Option[Failure]), Nothing, Unit]
 
   override val compose: URLayer[mock.Proxy, CredentialService] = ZLayer {
     for {
@@ -244,7 +244,7 @@ object MockCredentialService extends Mock[CredentialService] {
 
       override def reportProcessingFailure(
           recordId: DidCommID,
-          failReason: Option[String]
+          failReason: Option[Failure]
       ): URIO[WalletAccessContext, Unit] =
         proxy(ReportProcessingFailure, recordId, failReason)
 
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockPresentationService.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockPresentationService.scala
index b1dbadc82e..36a68da0bb 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockPresentationService.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/MockPresentationService.scala
@@ -14,7 +14,7 @@ import org.hyperledger.identus.pollux.core.model.presentation.Options
 import org.hyperledger.identus.pollux.core.service.serdes.{AnoncredCredentialProofsV1, AnoncredPresentationRequestV1}
 import org.hyperledger.identus.pollux.sdjwt.{HolderPrivateKey, PresentationCompact}
 import org.hyperledger.identus.pollux.vc.jwt.{Issuer, PresentationPayload, W3cCredentialPayload}
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.{mock, IO, URLayer, ZIO, ZLayer}
 import zio.json.*
 import zio.mock.{Mock, Proxy}
@@ -261,7 +261,7 @@ object MockPresentationService extends Mock[PresentationService] {
 
       override def reportProcessingFailure(
           recordId: DidCommID,
-          failReason: Option[String]
+          failReason: Option[Failure]
       ): IO[PresentationError, Unit] = ???
 
     }
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationService.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationService.scala
index f7b0fe9b09..6038278a1c 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationService.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationService.scala
@@ -9,7 +9,7 @@ import org.hyperledger.identus.pollux.core.model.presentation.*
 import org.hyperledger.identus.pollux.core.service.serdes.{AnoncredCredentialProofsV1, AnoncredPresentationRequestV1}
 import org.hyperledger.identus.pollux.sdjwt.{HolderPrivateKey, PresentationCompact}
 import org.hyperledger.identus.pollux.vc.jwt.*
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.*
 import zio.json.ast
 
@@ -168,7 +168,7 @@ trait PresentationService {
 
   def reportProcessingFailure(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): ZIO[WalletAccessContext, PresentationError, Unit]
 
 }
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceImpl.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceImpl.scala
index d153000be6..acdc2adc06 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceImpl.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceImpl.scala
@@ -18,7 +18,7 @@ import org.hyperledger.identus.pollux.core.repository.{CredentialRepository, Pre
 import org.hyperledger.identus.pollux.core.service.serdes.*
 import org.hyperledger.identus.pollux.sdjwt.{CredentialCompact, HolderPrivateKey, PresentationCompact, SDJWT}
 import org.hyperledger.identus.pollux.vc.jwt.*
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import org.hyperledger.identus.shared.utils.aspects.CustomMetricsAspect
 import zio.*
 import zio.json.*
@@ -1100,7 +1100,7 @@ private class PresentationServiceImpl(
 
   def reportProcessingFailure(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): ZIO[WalletAccessContext, PresentationError, Unit] =
     for {
       _ <- getRecord(recordId)
diff --git a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceNotifier.scala b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceNotifier.scala
index 41fd7636cc..c8558054c0 100644
--- a/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceNotifier.scala
+++ b/pollux/core/src/main/scala/org/hyperledger/identus/pollux/core/service/PresentationServiceNotifier.scala
@@ -15,7 +15,7 @@ import org.hyperledger.identus.pollux.core.model.presentation.Options
 import org.hyperledger.identus.pollux.core.service.serdes.{AnoncredCredentialProofsV1, AnoncredPresentationRequestV1}
 import org.hyperledger.identus.pollux.sdjwt.{HolderPrivateKey, PresentationCompact}
 import org.hyperledger.identus.pollux.vc.jwt.{Issuer, PresentationPayload, W3cCredentialPayload}
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.{IO, URLayer, ZIO, ZLayer}
 import zio.json.*
 
@@ -280,7 +280,7 @@ class PresentationServiceNotifier(
 
   override def reportProcessingFailure(
       recordId: DidCommID,
-      failReason: Option[_root_.java.lang.String]
+      failReason: Option[Failure]
   ): ZIO[WalletAccessContext, PresentationError, Unit] = svc.reportProcessingFailure(recordId, failReason)
 }
 
diff --git a/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositorySpecSuite.scala b/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositorySpecSuite.scala
index 68eda6c637..68e27c307d 100644
--- a/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositorySpecSuite.scala
+++ b/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/CredentialRepositorySpecSuite.scala
@@ -5,7 +5,7 @@ import org.hyperledger.identus.mercury.model.DidId
 import org.hyperledger.identus.mercury.protocol.issuecredential.{IssueCredential, RequestCredential}
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.IssueCredentialRecord.*
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext, WalletId}
+import org.hyperledger.identus.shared.models.*
 import zio.{Exit, ZIO, ZLayer}
 import zio.test.*
 import zio.test.Assertion.*
@@ -388,12 +388,15 @@ object CredentialRepositorySpecSuite {
     test("updateFail (fail one retry) updates record") {
       val aRecord = issueCredentialRecord(CredentialFormat.JWT)
 
-      val failReason = Some("Just to test")
+      val failReason = FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "Just to test")
       for {
         repo <- ZIO.service[CredentialRepository]
         _ <- repo.create(aRecord)
         record0 <- repo.findById(aRecord.id)
-        _ <- repo.updateAfterFail(aRecord.id, Some("Just to test")) // TEST
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "Just to test"))
+        )
         updatedRecord1 <- repo.findById(aRecord.id)
         _ <- repo.updateProtocolState(aRecord.id, ProtocolState.OfferPending, ProtocolState.OfferSent)
         updatedRecord2 <- repo.findById(aRecord.id)
@@ -401,7 +404,7 @@ object CredentialRepositorySpecSuite {
         assertTrue(record0.isDefined) &&
         assertTrue(record0.get.metaRetries == maxRetries) &&
         assertTrue(updatedRecord1.get.metaRetries == (maxRetries - 1)) &&
-        assertTrue(updatedRecord1.get.metaLastFailure == failReason) &&
+        assertTrue(updatedRecord1.get.metaLastFailure.get == failReason) &&
         assertTrue(updatedRecord1.get.metaNextRetry.isDefined) &&
         // continues to work normally after retry
         assertTrue(updatedRecord2.get.metaNextRetry.isDefined) &&
@@ -416,12 +419,30 @@ object CredentialRepositorySpecSuite {
         repo <- ZIO.service[CredentialRepository]
         _ <- repo.create(aRecord)
         record0 <- repo.findById(aRecord.id)
-        _ <- repo.updateAfterFail(aRecord.id, Some("1 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("2 - Just to test"))
-        - <- repo.updateAfterFail(aRecord.id, Some("3 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("4 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("5 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("6 - Just to test"))
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "1 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "2 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "3 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "4 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "5 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "6 - Just to test"))
+        )
         // The 6 retry should not happen since the max retries is 5
         // (but should also not have an effect other that update the error message)
         updatedRecord1 <- repo.findById(aRecord.id)
@@ -431,7 +452,11 @@ object CredentialRepositorySpecSuite {
         assertTrue(record0.get.metaRetries == maxRetries) &&
         assertTrue(updatedRecord1.get.metaRetries == 0) && // assume the max retries is 5
         assertTrue(updatedRecord1.get.metaNextRetry.isEmpty) &&
-        assertTrue(updatedRecord1.get.metaLastFailure == Some("6 - Just to test"))
+        assertTrue(
+          updatedRecord1.get.metaLastFailure == Some(
+            FailureInfo("CredentialRepositorySpecSuite", StatusCode(999), "6 - Just to test")
+          )
+        )
 
       }
     }
diff --git a/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositorySpecSuite.scala b/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositorySpecSuite.scala
index 04331c6eb5..47bd53dda6 100644
--- a/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositorySpecSuite.scala
+++ b/pollux/core/src/test/scala/org/hyperledger/identus/pollux/core/repository/PresentationRepositorySpecSuite.scala
@@ -5,7 +5,7 @@ import org.hyperledger.identus.mercury.protocol.presentproof.{Presentation, Prop
 import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.model.PresentationRecord.*
 import org.hyperledger.identus.pollux.core.service.serdes.{AnoncredCredentialProofV1, AnoncredCredentialProofsV1}
-import org.hyperledger.identus.shared.models.{WalletAccessContext, WalletId}
+import org.hyperledger.identus.shared.models.*
 import zio.{ZIO, ZLayer}
 import zio.test.*
 import zio.test.Assertion.*
@@ -317,12 +317,15 @@ object PresentationRepositorySpecSuite {
     test("updateFail (fail one retry) updates record") {
       val aRecord = presentationRecord
 
-      val failReason = Some("Just to test")
+      val failReason = Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "Just to test"))
       for {
         repo <- ZIO.service[PresentationRepository]
         tmp <- repo.createPresentationRecord(aRecord)
         record0 <- repo.findPresentationRecord(aRecord.id)
-        _ <- repo.updateAfterFail(aRecord.id, Some("Just to test")) // TEST
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "Just to test"))
+        ) // TEST
         updatedRecord1 <- repo.findPresentationRecord(aRecord.id)
         _ <- repo.updatePresentationRecordProtocolState(
           aRecord.id,
@@ -348,12 +351,30 @@ object PresentationRepositorySpecSuite {
         repo <- ZIO.service[PresentationRepository]
         _ <- repo.createPresentationRecord(aRecord)
         record0 <- repo.findPresentationRecord(aRecord.id)
-        _ <- repo.updateAfterFail(aRecord.id, Some("1 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("2 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("3 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("4 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("5 - Just to test"))
-        _ <- repo.updateAfterFail(aRecord.id, Some("6 - Just to test"))
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "1 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "2 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "3 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "4 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "5 - Just to test"))
+        )
+        _ <- repo.updateAfterFail(
+          aRecord.id,
+          Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "6 - Just to test"))
+        )
         // The 6 retry should not happen since the max retries is 5
         // (but should also not have an effect other that update the error message)
         updatedRecord1 <- repo.findPresentationRecord(aRecord.id)
@@ -362,8 +383,11 @@ object PresentationRepositorySpecSuite {
         assertTrue(record0.get.metaRetries == maxRetries) &&
         assertTrue(updatedRecord1.get.metaRetries == 0) && // assume the max retries is 5
         assertTrue(updatedRecord1.get.metaNextRetry.isEmpty) &&
-        assertTrue(updatedRecord1.get.metaLastFailure.contains("6 - Just to test"))
-
+        assertTrue(
+          updatedRecord1.get.metaLastFailure.contains(
+            FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "6 - Just to test")
+          )
+        )
       }
     }
   ).provideSomeLayer(ZLayer.succeed(WalletAccessContext(WalletId.random)))
@@ -413,7 +437,13 @@ object PresentationRepositorySpecSuite {
         record1 = presentationRecord
         record2 = presentationRecord
         _ <- repo.createPresentationRecord(record1).provide(wallet1)
-        exit <- repo.updateAfterFail(record2.id, Some("fail reason")).provide(wallet2).exit
+        exit <- repo
+          .updateAfterFail(
+            record2.id,
+            Some(FailureInfo("PresentationRepositorySpecSuite", StatusCode(999), "fail reason"))
+          )
+          .provide(wallet2)
+          .exit
       } yield assert(exit)(dies(hasMessage(equalTo("Unexpected affected row count: 0"))))
     },
     test("unable to updatePresentationRecordProtocolState PresentationRecord outside of the wallet") {
diff --git a/pollux/sql-doobie/src/main/resources/sql/pollux/V23__clear_content_of_meta_last_failure.sql b/pollux/sql-doobie/src/main/resources/sql/pollux/V23__clear_content_of_meta_last_failure.sql
new file mode 100644
index 0000000000..403c9d44fe
--- /dev/null
+++ b/pollux/sql-doobie/src/main/resources/sql/pollux/V23__clear_content_of_meta_last_failure.sql
@@ -0,0 +1,3 @@
+-- Clear content of meta_last_failure
+UPDATE public.issue_credential_records SET meta_last_failure=NULL;
+UPDATE public.presentation_records SET meta_last_failure=NULL;
\ No newline at end of file
diff --git a/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcCredentialRepository.scala b/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcCredentialRepository.scala
index 3d079f4865..2cab203276 100644
--- a/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcCredentialRepository.scala
+++ b/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcCredentialRepository.scala
@@ -15,7 +15,7 @@ import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.repository.CredentialRepository
 import org.hyperledger.identus.shared.db.ContextAwareTask
 import org.hyperledger.identus.shared.db.Implicits.*
-import org.hyperledger.identus.shared.models.{KeyId, WalletAccessContext}
+import org.hyperledger.identus.shared.models.*
 import zio.*
 import zio.interop.catz.*
 import zio.json.*
@@ -55,6 +55,10 @@ class JdbcCredentialRepository(xa: Transactor[ContextAwareTask], xb: Transactor[
 
   given keyIdGet: Get[KeyId] = Get[String].map(KeyId(_))
   given keyIdPut: Put[KeyId] = Put[String].contramap(_.value)
+
+  given failureGet: Get[Failure] = Get[String].temap(_.fromJson[FailureInfo])
+  given failurePut: Put[Failure] = Put[String].contramap(_.asFailureInfo.toJson)
+
   override def create(record: IssueCredentialRecord): URIO[WalletAccessContext, Unit] = {
     val cxnIO = sql"""
         | INSERT INTO public.issue_credential_records(
@@ -546,7 +550,7 @@ class JdbcCredentialRepository(xa: Transactor[ContextAwareTask], xb: Transactor[
 
   def updateAfterFail(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] = {
     val cxnIO = sql"""
         | UPDATE public.issue_credential_records
diff --git a/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcPresentationRepository.scala b/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcPresentationRepository.scala
index 6123d81785..5d98bd1f23 100644
--- a/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcPresentationRepository.scala
+++ b/pollux/sql-doobie/src/main/scala/org/hyperledger/identus/pollux/sql/repository/JdbcPresentationRepository.scala
@@ -16,7 +16,7 @@ import org.hyperledger.identus.pollux.core.model.*
 import org.hyperledger.identus.pollux.core.repository.PresentationRepository
 import org.hyperledger.identus.shared.db.ContextAwareTask
 import org.hyperledger.identus.shared.db.Implicits.*
-import org.hyperledger.identus.shared.models.WalletAccessContext
+import org.hyperledger.identus.shared.models.*
 import zio.*
 import zio.interop.catz.*
 import zio.json.*
@@ -161,6 +161,9 @@ class JdbcPresentationRepository(
     Get[String].map(decode[ProposePresentation](_).getOrElse(???))
   given proposePresentationPut: Put[ProposePresentation] = Put[String].contramap(_.asJson.toString)
 
+  given failureGet: Get[Failure] = Get[String].temap(_.fromJson[FailureInfo])
+  given failurePut: Put[Failure] = Put[String].contramap(_.asFailureInfo.toJson)
+
   override def createPresentationRecord(record: PresentationRecord): URIO[WalletAccessContext, Unit] = {
     val cxnIO = sql"""
         | INSERT INTO public.presentation_records(
@@ -488,7 +491,7 @@ class JdbcPresentationRepository(
 
   def updateAfterFail(
       recordId: DidCommID,
-      failReason: Option[String]
+      failReason: Option[Failure]
   ): URIO[WalletAccessContext, Unit] = {
     val cxnIO = sql"""
         | UPDATE public.presentation_records
diff --git a/shared/core/src/main/scala/org/hyperledger/identus/shared/models/Failure.scala b/shared/core/src/main/scala/org/hyperledger/identus/shared/models/Failure.scala
index 3a895223f3..7a7c800ac9 100644
--- a/shared/core/src/main/scala/org/hyperledger/identus/shared/models/Failure.scala
+++ b/shared/core/src/main/scala/org/hyperledger/identus/shared/models/Failure.scala
@@ -1,11 +1,16 @@
 package org.hyperledger.identus.shared.models
 
 import zio.{URIO, ZIO}
+import zio.json._
 
 trait Failure {
-  val namespace: String
-  val statusCode: StatusCode
-  val userFacingMessage: String
+  def namespace: String
+  def statusCode: StatusCode
+  def userFacingMessage: String
+
+  def toUnmanagedFailureException = UnmanagedFailureException(this)
+
+  def asFailureInfo = FailureInfo(namespace, statusCode, userFacingMessage)
 }
 
 object Failure {
@@ -16,11 +21,17 @@ object Failure {
   }
 }
 
+final case class FailureInfo(namespace: String, statusCode: StatusCode, userFacingMessage: String) extends Failure
+object FailureInfo {
+  given decoder: JsonDecoder[FailureInfo] = DeriveJsonDecoder.gen[FailureInfo]
+  given encoder: JsonEncoder[FailureInfo] = DeriveJsonEncoder.gen[FailureInfo]
+}
+
 case class UnmanagedFailureException(val failure: Failure) extends Throwable {
   override def getMessage: String = failure.toString
 }
 
-sealed class StatusCode(val code: Int)
+sealed case class StatusCode(val code: Int)
 
 object StatusCode {
   val BadRequest: StatusCode = StatusCode(400)
@@ -30,5 +41,9 @@ object StatusCode {
   val UnprocessableContent: StatusCode = StatusCode(422)
 
   val InternalServerError: StatusCode = StatusCode(500)
+  val UnexpectedNotImplemented: StatusCode = StatusCode(501)
   val BadGateway: StatusCode = StatusCode(502)
+
+  given decoder: JsonDecoder[StatusCode] = JsonDecoder.int.map(e => StatusCode(e))
+  given encoder: JsonEncoder[StatusCode] = JsonEncoder.int.contramap((e: StatusCode) => e.code)
 }