Understanding Cursor Privacy Mode and Data Security

Privacy is a top concern when using AI coding assistants. Cursor offers Privacy Mode to ensure your code stays private, but there are nuances to understand about how data is handled, what gets stored, and how to configure maximum privacy. This guide covers everything you need to know about Cursor's privacy and security features.

What is Privacy Mode?

Privacy Mode in Cursor ensures:

• Code is not stored on Cursor's servers (or used for training)
• Conversations are private and not used to improve models
• No telemetry about your coding behavior is collected
• Local processing where possible

Privacy Mode vs Normal Mode

Feature	Normal Mode	Privacy Mode
Code stored for context	Yes	No
Used for model training	No*	No
Telemetry collected	Basic	None
Conversation history	Saved locally	Saved locally
Cloud sync of settings	Yes	No
MCP server calls	Logged	Not logged

*Cursor does not use your code for training in either mode, but Normal Mode may store context temporarily.

Enabling Privacy Mode

Step 1: Open Settings

1. Open Cursor (Cmd/Ctrl + ,)
2. Navigate to Privacy or Security

Step 2: Enable Privacy Mode

{
  "cursor.privacyMode": true,
  "cursor.telemetry.enabled": false,
  "cursor.ai.enableCodebaseIndexing": false
}

Step 3: Verify

Check the status bar:

• Normal: Shows regular cursor icon
• Privacy: Shows a lock icon or "Private" indicator

What Data is Stored Where?

Local Storage (Your Machine)

~/.cursor/                    # Cursor config
  settings.json               # Your settings
  globalStorage/              # Extension data
  workspaceStorage/           # Per-workspace data

~/Library/Application Support/Cursor/  # macOS
%APPDATA%/Cursor/                      # Windows
~/.config/Cursor/                      # Linux

What Gets Stored Locally

Data	Normal	Privacy
Settings	Yes	Yes
Extension data	Yes	Yes
Chat history	Yes	Yes
Search index	Yes	No
File cache	Yes	No
Telemetry	Yes	No

Cloud Storage (Cursor Servers)

In Normal Mode, Cursor may store:

• Authentication tokens
• Settings sync data
• Extension marketplace data

In Privacy Mode:

• Nothing is stored on Cursor's servers

Privacy Best Practices

1. Enable Privacy Mode for Sensitive Projects

# Create a workspace-specific privacy config
# .vscode/settings.json (or .cursor/settings.json)
{
  "cursor.privacyMode": true,
  "cursor.ai.enableCodebaseIndexing": false
}

2. Disable Codebase Indexing

Codebase indexing improves AI context but stores file metadata:

{
  "cursor.ai.enableCodebaseIndexing": false,
  "cursor.ai.enableEmbeddingsSearch": false
}

3. Use Local-Only Models

For maximum privacy, use local models via Ollama:

{
  "cursor.ai.model": "ollama",
  "cursor.ai.ollamaUrl": "http://localhost:11434"
}

4. Clear Chat History Regularly

# macOS
rm -rf ~/Library/Application\ Support/Cursor/globalStorage/state.vscdb

# Windows
# Delete %APPDATA%\Cursor\globalStorage\state.vscdb

# Linux
rm -rf ~/.config/Cursor/globalStorage/state.vscdb

5. Disable Telemetry

{
  "cursor.telemetry.enabled": false,
  "telemetry.telemetryLevel": "off",
  "workbench.enableExperiments": false
}

Enterprise Privacy

Admin Controls

For teams using Cursor Business:

// Admin-configured settings (read-only for users)
{
  "cursor.privacyMode": true,
  "cursor.ai.enableCodebaseIndexing": false,
  "cursor.telemetry.enabled": false,
  "cursor.ai.allowedModels": ["claude-3-5-sonnet", "gpt-4o"]
}

SOC 2 Compliance

Cursor is SOC 2 Type II certified. In Privacy Mode:

• No code leaves your machine
• No training on your data
• Audit logs available for admins

Data Processing Agreement (DPA)

Enterprise customers can request a DPA that covers:

• Data retention policies
• Deletion procedures
• Subprocessor list
• Security measures

Working with Memories

What are Memories?

Memories are cross-session facts that Cursor remembers:

• Your coding preferences
• Project-specific patterns
• Common mistakes to avoid

Memories and Privacy Mode

Important: Memories require Privacy Mode to be disabled:

Privacy Mode ON  → Memories OFF
Privacy Mode OFF → Memories ON

This is because memories are stored on Cursor's servers.

Local Alternatives to Memories

If you need privacy but want persistent context:

1. Use AGENTS.md:

# Project Context

## My Preferences
- I prefer async/await over callbacks
- I use TypeScript strict mode
- I prefer functional components in React

## Project Patterns
- Use Zod for validation
- Use React Query for server state
- Use Tailwind for styling

2. Use Cursor Rules:

---
description: 'My coding preferences'
globs: ['**/*']
alwaysApply: true
---

# Personal Preferences

- Prefer const over let
- Use destructuring for props
- Add JSDoc for public APIs

Privacy for Specific Features

Composer Privacy

{
  "cursor.composer.privacyMode": true,
  "cursor.composer.enableCloudProcessing": false
}

Chat Privacy

{
  "cursor.chat.privacyMode": true,
  "cursor.chat.enableHistory": false
}

MCP Server Privacy

MCP servers may send data to external services:

{
  "cursor.mcp.enableExternalServers": false,
  "cursor.mcp.allowedServers": ["local-memory", "file-system"]
}

Verifying Privacy

Network Monitoring

# Monitor Cursor network traffic
# macOS
sudo tcpdump -i any port 443 | grep cursor

# Check what domains Cursor connects to
lsof -i | grep Cursor

Check Settings

Run this command to verify privacy settings:

# macOS
cat ~/Library/Application\ Support/Cursor/User/settings.json | grep -E "privacy|telemetry"

# Linux
cat ~/.config/Cursor/User/settings.json | grep -E "privacy|telemetry"

Privacy Audit Checklist

• Privacy Mode enabled in settings
• Telemetry disabled
• Codebase indexing disabled
• Chat history cleared
• No cloud sync enabled
• Using local models (optional)
• MCP servers reviewed
• Extension permissions checked

Common Concerns

"Does Cursor train models on my code?"

No. Cursor does not use your code for training in any mode. In Privacy Mode, your code never leaves your machine.

"Can my employer see my Cursor activity?"

In Privacy Mode, no. In team/enterprise plans, admins may see:

• Subscription usage
• Feature adoption
• (But not code content in Privacy Mode)

"What about autocomplete suggestions?"

Autocomplete uses the current file context only. In Privacy Mode:

• No file content sent to servers
• Uses local processing or local models

"Are my API keys safe?"

Yes, when using Privacy Mode:

• API keys stored locally in settings
• Never sent to Cursor servers
• Use environment variables for extra safety:

# .env
OPENAI_API_KEY=sk-...
ANTHROPIC_API_KEY=sk-ant-...

// settings.json
{
  "cursor.ai.openaiApiKey": "${env:OPENAI_API_KEY}"
}

Quick Privacy Configuration

{
  // Maximum privacy settings
  "cursor.privacyMode": true,
  "cursor.telemetry.enabled": false,
  "telemetry.telemetryLevel": "off",
  "cursor.ai.enableCodebaseIndexing": false,
  "cursor.ai.enableEmbeddingsSearch": false,
  "cursor.composer.privacyMode": true,
  "cursor.chat.enableHistory": false,
  "workbench.enableExperiments": false
}

Related Resources

• Cursor Self-Review Hooks Guide
• Cursor Network Fix Guide
• Cursor Local LLM Setup