For all I know Kagi could be charging me $10 AND selling my data (with way more accuracy than any other search engine) at the same time

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They could be, but the data wouldn’t mean anything because it is for an anonymous person. I’m not sure who would benefit or get hurt by this. However, it does raise the risk that if you fail to login with a VPN that one time, then all the data could potentially be linked back to you.

Unfortunately it isn’t an “open source” model that would allow us to verify the code.