diff --git a/src/api-client/graph.js b/src/api-client/graph.js
index 5fa813c275..c2815ed129 100644
--- a/src/api-client/graph.js
+++ b/src/api-client/graph.js
@@ -41,7 +41,7 @@ function addGraphMethods(client) {
       if (resp.status === 200 || resp.status === 201) {
         return true;
       }
-      else if (resp.status === 401) {
+      else if (resp.status === 404) {
         return false;
       }
       else {
diff --git a/src/model/RenkuModels.js b/src/model/RenkuModels.js
index 59ca5a8a13..eeca9d18f5 100644
--- a/src/model/RenkuModels.js
+++ b/src/model/RenkuModels.js
@@ -64,6 +64,8 @@ const projectSchema = new Schema({
       external_url: {initial: '',},
       path_with_namespace: {initial: null},
       owner: {initial: null},
+      graphWebhookStatus: {initial: null},
+      graphWebhookCreated: {initial: null}
     }
   },
   visibility: {
diff --git a/src/project/Project.js b/src/project/Project.js
index 99ee4b5a60..f0e4130e31 100644
--- a/src/project/Project.js
+++ b/src/project/Project.js
@@ -271,7 +271,7 @@ class View extends Component {
     stopNotebookServer: (serverName) => {
       this.stopNotebookServer(serverName);
     },
-    onGraphWebhookCreate: (e) => { 
+    createGraphWebhook: (e) => { 
       e.preventDefault();
       this.createGraphWebhook();
     },
diff --git a/src/project/Project.present.js b/src/project/Project.present.js
index 04f606ce7c..d4c1c61cc4 100644
--- a/src/project/Project.present.js
+++ b/src/project/Project.present.js
@@ -77,6 +77,13 @@ function isRequestPending(props, request) {
   return requests[request] === SpecialPropVal.UPDATING;
 }
 
+function webhookError(props) {
+  if (props == null || props === SpecialPropVal.UPDATING || props === true || props === false) {
+    return false;
+  }
+  return true;
+}
+
 class ImageBuildInfo extends Component {
   render() {
     const imageBuild = this.props.imageBuild || {status: 'success'};
@@ -137,67 +144,89 @@ class MergeRequestSuggestions extends Component {
  */
 class KnowledgeGraphIntegrationWarningBanner extends Component {
   render() {
-    const errorKnowledgeGraph = this.props.core.graphWebhookError;
-    if (errorKnowledgeGraph) {
-      return(
-        <Row>
-          <Col xs={12} md={12}>
-            <UncontrolledAlert color="danger">
-              Some error occured with the Knowledge-graph integration.
-            </UncontrolledAlert>
-          </Col>
-        </Row>
+    const status = this.props.core.graphWebhookStatus;
+    if (status === false) {
+      const isPrivate = this.props.visibility && this.props.visibility.level === "private" ? true : false;
+      return (
+        <KnowledgeGraphWarning
+          webhook={this.props.core.graphWebhookCreated}
+          create={this.props.createGraphWebhook}
+          isPrivate={isPrivate} />
       )
     }
-
-    const doesUserHaveRights = this.props.core.graphWebhookPossible;
-    if (!doesUserHaveRights) return null;
-    const isProjectedIntegrated = this.props.core.graphWebhookAvailable;
-    const created = this.props.core.graphWebhookCreated;
-    if (isProjectedIntegrated && !created) return null;
-    const loading = this.props.core.graphWebhookLoading;
-    return (
-      <Row>
-        <Col xs={12} md={12}>
-          <KnowledgeGraphWarning
-            createWebhook={ this.props.onGraphWebhookCreate }
-            loading={ loading }
-            done={ isProjectedIntegrated }
-          />
-        </Col>
-      </Row>
-    )
+    const error = webhookError(status);
+    if (error) {
+      return (
+        <UncontrolledAlert color="warning">
+          An error has occured while checking webhook state: &quot;
+          <span className="font-italic">{status.message}</span>&quot;
+          <br />Please try to reload the page.
+        </UncontrolledAlert>
+      )
+    }
+    return null;
   }
 }
 
 class KnowledgeGraphWarning extends Component {
   render() {
-    if (this.props.done) {
+    const webhook = this.props.webhook;
+    if (webhook === true) {
       return (
         <UncontrolledAlert color="success">
-          Webhook successfully created.
+          Lineage computation successfully activated.
         </UncontrolledAlert>
       )
     }
-    return (
-      <UncontrolledAlert color="warning">
-        Knowledge-graph integration is not turned on. <KnowledgeGraphLink {...this.props}/>
-      </UncontrolledAlert>
-    )
+    else if (webhook === false || webhook ===  SpecialPropVal.UPDATING) {
+      const updating = webhook === SpecialPropVal.UPDATING ? true : false;
+      return (
+        <UncontrolledAlert color="warning">
+          Lineage computation is turned off. <KnowledgeGraphLink {...this.props} updating={updating} />
+          <KnowledgeGraphPrivateWarning {...this.props} />
+        </UncontrolledAlert>
+      )
+    }
+    else {
+      let error;
+      if (webhookError(webhook)) {
+        error = `An error has occured with the Lineage computation: "${webhook.message}".`;
+      }
+      else {
+        error = "An unknown error has occured with the Lineage computation.";
+      }
+      return (
+        <UncontrolledAlert color="danger">
+          {error}
+          <br />Try again: <KnowledgeGraphLink {...this.props} />
+        </UncontrolledAlert>
+      )
+    }
+  }
+}
+
+class KnowledgeGraphPrivateWarning extends Component {
+  render() {
+    if (!this.props.isPrivate) return null;
+    return [
+      <br key="wrapword" />,
+      <span key="warning" className="font-italic">
+        <span className="font-weight-bold">WARNING! </span>
+        Some metadata may become public even for private projects. This is not reversible.
+      </span>
+    ]
   }
 }
 
 class KnowledgeGraphLink extends Component {
   render() {
-    if (this.props.loading) {
+    if (this.props.updating) {
       return (
-        <span>
-          Turning it on... <Loader size="12" inline="true" />
-        </span>
+        <span>Turning it on... <Loader size="12" inline="true" /></span>
       )
     }
     return (
-      <Button color="link alert-link" onClick={this.props.createWebhook}>Turn it on now.</Button>
+      <Button color="link alert-link" onClick={this.props.create}>Turn it on now.</Button>
     )
   }
 }
diff --git a/src/project/Project.state.js b/src/project/Project.state.js
index ad3cb73a8d..226ec3dc6c 100644
--- a/src/project/Project.state.js
+++ b/src/project/Project.state.js
@@ -37,30 +37,25 @@ class ProjectModel extends StateModel {
   }
 
   fetchGraphWebhookStatus(client, id) {
-    // temporary value to avoid fake warning.
-    this.set('core.graphWebhookAvailable', true);
+    this.set('core.graphWebhookCreated', false);
+    this.setUpdating({core: {graphWebhookStatus: true}});
     return client.checkGraphWebhook(id)
       .then((resp) => {
-        this.set('core.graphWebhookAvailable', resp);
+        this.set('core.graphWebhookStatus', resp);
       })
       .catch((err) => {
-        this.set('core.graphWebhookError', err);
+        this.set('core.graphWebhookStatus', err);
       });
   }
 
   createGraphWebhook(client, id) {
-    this.set('core.graphWebhookLoading', true);
+    this.setUpdating({core: {graphWebhookCreated: true}});
     return client.createGraphWebhook(id)
       .then((resp) => {
-        this.set('core.graphWebhookAvailable', resp);
-        this.set('core.graphWebhookLoading', false);
-        if (resp) {
-          // we need this to display a positive feedback when the webhook is created
-          this.set('core.graphWebhookCreated', true);
-        }
+        this.set('core.graphWebhookCreated', resp);
       })
       .catch((err) => {
-        this.set('core.graphWebhookError', err);
+        this.set('core.graphWebhookCreated', err);
       });
   }
 
diff --git a/src/project/new/ProjectNew.present.js b/src/project/new/ProjectNew.present.js
index be832454e5..f00e132bb0 100644
--- a/src/project/new/ProjectNew.present.js
+++ b/src/project/new/ProjectNew.present.js
@@ -192,11 +192,19 @@ class DataVisibility extends Component {
     const options = visibilities.map(v =>
       <option key={v.value} value={v.value}>{v.name}</option>
     )
+    let warningPrivate = null;
+    if (this.props.value === "private") {
+      warningPrivate = <FormText color="danger">
+        Please be aware that some metadata may become public even for private projects
+        due to Lineage computation.
+      </FormText>;
+    }
     return <FormGroup>
       <Label>Visibility</Label>
       <Input type="select" placeholder="visibility" value={this.props.value} onChange={this.props.onChange}>
         {options}
       </Input>
+      {warningPrivate}
       <FormText color="muted">{vizExplanation}</FormText>
     </FormGroup>
   }