diff --git a/src/wingfoot/cli.py b/src/wingfoot/cli.py
index cd82178..174a2e9 100644
--- a/src/wingfoot/cli.py
+++ b/src/wingfoot/cli.py
@@ -9,7 +9,14 @@
 from . import http as _http
 from .directory import directory_json
 from .doctor import doctor
-from .keys import Identity, ephemeral_identity, generate_private_key, load_identity, save_identity
+from .keys import (
+    Identity,
+    IdentityError,
+    ephemeral_identity,
+    generate_private_key,
+    load_identity,
+    save_identity,
+)
 from .register import PROVIDERS, register
 from .rfc9421 import sign_directory, sign_request
 from .verifier import _Colors, demo, start_verifier
@@ -198,6 +205,10 @@ def main(argv=None) -> int:
         return args.func(args)
     except KeyboardInterrupt:
         return 130
+    except IdentityError as exc:
+        C = _Colors()
+        print(f"{C.red}wingfoot:{C.reset} {exc}", file=sys.stderr)
+        return 2
 
 
 if __name__ == "__main__":
diff --git a/src/wingfoot/keys.py b/src/wingfoot/keys.py
index 80298ac..c9e3f6c 100644
--- a/src/wingfoot/keys.py
+++ b/src/wingfoot/keys.py
@@ -72,6 +72,14 @@ def keyid_for(public_key: Ed25519PublicKey) -> str:
 DEFAULT_HOME = Path.home() / ".wingfoot"
 
 
+class IdentityError(ValueError):
+    """A stored identity exists but can't be loaded (corrupt key or config).
+
+    Subclasses ``ValueError`` so existing ``except ValueError`` handlers keep
+    working; the CLI catches it to print a clean message instead of a traceback.
+    """
+
+
 @dataclass
 class Identity:
     private_key: Ed25519PrivateKey
@@ -107,15 +115,31 @@ def save_identity(identity: Identity, home: Path = DEFAULT_HOME) -> Path:
 
 
 def load_identity(home: Path = DEFAULT_HOME) -> Identity | None:
+    """Load the persisted identity, or ``None`` if none has been created.
+
+    Raises :class:`IdentityError` (with a re-run hint) when an identity exists but
+    is unreadable — a corrupt key file, a truncated/edited ``config.json``, or a
+    missing ``agent_url`` — so callers get an actionable message, not a raw
+    ``JSONDecodeError``/``KeyError``.
+    """
     key_path = home / "private_key.pem"
     config_path = home / "config.json"
     if not key_path.exists() or not config_path.exists():
         return None
-    private_key = serialization.load_pem_private_key(key_path.read_bytes(), password=None)
+    try:
+        private_key = serialization.load_pem_private_key(key_path.read_bytes(), password=None)
+    except ValueError as exc:
+        raise IdentityError(f"private key in {home} is unreadable ({exc}); re-run `wingfoot init`") from exc
     if not isinstance(private_key, Ed25519PrivateKey):
-        raise ValueError("stored key is not an Ed25519 private key")
-    config = json.loads(config_path.read_text())
-    return Identity(private_key=private_key, agent_url=config["agent_url"])
+        raise IdentityError(f"stored key in {home} is not an Ed25519 private key; re-run `wingfoot init`")
+    try:
+        config = json.loads(config_path.read_text())
+        agent_url = config["agent_url"]
+    except (json.JSONDecodeError, KeyError, TypeError) as exc:
+        raise IdentityError(
+            f"identity config {config_path} is corrupt or incomplete ({exc}); re-run `wingfoot init`"
+        ) from exc
+    return Identity(private_key=private_key, agent_url=agent_url)
 
 
 def ephemeral_identity(agent_url: str) -> Identity:
diff --git a/tests/test_keys.py b/tests/test_keys.py
new file mode 100644
index 0000000..660c8a5
--- /dev/null
+++ b/tests/test_keys.py
@@ -0,0 +1,55 @@
+"""Loading and persisting the on-disk identity."""
+import pytest
+
+from wingfoot.cli import main
+from wingfoot.keys import (
+    Identity,
+    IdentityError,
+    generate_private_key,
+    load_identity,
+    save_identity,
+)
+
+
+def _make_identity(home):
+    ident = Identity(private_key=generate_private_key(), agent_url="https://bot.example")
+    save_identity(ident, home)
+    return ident
+
+
+def test_load_identity_none_when_absent(tmp_path):
+    assert load_identity(tmp_path) is None
+
+
+def test_save_then_load_roundtrip(tmp_path):
+    saved = _make_identity(tmp_path)
+    loaded = load_identity(tmp_path)
+    assert loaded is not None
+    assert loaded.agent_url == "https://bot.example"
+    assert loaded.keyid == saved.keyid
+
+
+def test_corrupt_config_raises_identity_error(tmp_path):
+    _make_identity(tmp_path)
+    (tmp_path / "config.json").write_text('{ "keyid": "abc"')  # truncated JSON
+    with pytest.raises(IdentityError) as exc:
+        load_identity(tmp_path)
+    assert "wingfoot init" in str(exc.value)
+
+
+def test_config_missing_agent_url_raises_identity_error(tmp_path):
+    _make_identity(tmp_path)
+    (tmp_path / "config.json").write_text('{"keyid": "abc"}')  # valid JSON, no agent_url
+    with pytest.raises(IdentityError):
+        load_identity(tmp_path)
+
+
+def test_cli_reports_corrupt_identity_cleanly(tmp_path, monkeypatch, capsys):
+    """A corrupt identity should exit 2 with a clean message, not a traceback."""
+    _make_identity(tmp_path)
+    (tmp_path / "config.json").write_text("not json")
+    # `directory` loads the default-home identity; point loading at our tmp home.
+    monkeypatch.setattr("wingfoot.cli.load_identity", lambda *a, **k: load_identity(tmp_path))
+    rc = main(["directory"])
+    assert rc == 2
+    assert "wingfoot:" in capsys.readouterr().err