diff --git a/crates/sage-api/src/types/error_kind.rs b/crates/sage-api/src/types/error_kind.rs
index 623bd4db..99581a66 100644
--- a/crates/sage-api/src/types/error_kind.rs
+++ b/crates/sage-api/src/types/error_kind.rs
@@ -9,5 +9,6 @@ pub enum ErrorKind {
     NotFound,
     Unauthorized,
     Internal,
+    DatabaseMigration,
     Nfc,
 }
diff --git a/crates/sage-cli/src/rpc.rs b/crates/sage-cli/src/rpc.rs
index 843553d5..20dfcdca 100644
--- a/crates/sage-cli/src/rpc.rs
+++ b/crates/sage-cli/src/rpc.rs
@@ -23,6 +23,7 @@ impl_endpoints! {
                 Self::Start => {
                     let mut sage = Sage::new(&path);
                     let mut receiver = sage.initialize().await?;
+                    sage.switch_wallet().await?;
                     tokio::spawn(async move { while let Some(_message) = receiver.recv().await {} });
                     start_rpc(Arc::new(Mutex::new(sage))).await
                 },
diff --git a/crates/sage-rpc/src/lib.rs b/crates/sage-rpc/src/lib.rs
index ba7e8812..afb8aeb5 100644
--- a/crates/sage-rpc/src/lib.rs
+++ b/crates/sage-rpc/src/lib.rs
@@ -45,9 +45,10 @@ where
                 ErrorKind::Api => StatusCode::BAD_REQUEST,
                 ErrorKind::NotFound => StatusCode::NOT_FOUND,
                 ErrorKind::Unauthorized => StatusCode::UNAUTHORIZED,
-                ErrorKind::Wallet | ErrorKind::Internal | ErrorKind::Nfc => {
-                    StatusCode::INTERNAL_SERVER_ERROR
-                }
+                ErrorKind::DatabaseMigration
+                | ErrorKind::Wallet
+                | ErrorKind::Internal
+                | ErrorKind::Nfc => StatusCode::INTERNAL_SERVER_ERROR,
             };
             (status, error.to_string()).into_response()
         }
diff --git a/crates/sage/src/error.rs b/crates/sage/src/error.rs
index 44b3f19a..17744e70 100644
--- a/crates/sage/src/error.rs
+++ b/crates/sage/src/error.rs
@@ -224,11 +224,11 @@ impl Error {
                 | KeychainError::Bip39(..)
                 | KeychainError::Argon2(..) => ErrorKind::Internal,
             },
+            Self::SqlxMigration(..) => ErrorKind::DatabaseMigration,
             Self::Send(..)
             | Self::Io(..)
             | Self::Client(..)
             | Self::Sqlx(..)
-            | Self::SqlxMigration(..)
             | Self::Bip39(..)
             | Self::TomlDe(..)
             | Self::TomlSer(..)
diff --git a/crates/sage/src/sage.rs b/crates/sage/src/sage.rs
index 53108c12..d8efad5b 100644
--- a/crates/sage/src/sage.rs
+++ b/crates/sage/src/sage.rs
@@ -69,7 +69,6 @@ impl Sage {
         self.setup_logging()?;
 
         let receiver = self.setup_sync_manager()?;
-        self.switch_wallet().await?;
         self.setup_peers().await?;
 
         info!("Sage wallet initialized");
diff --git a/src-tauri/src/commands.rs b/src-tauri/src/commands.rs
index 7b0b2f01..b02548dd 100644
--- a/src-tauri/src/commands.rs
+++ b/src-tauri/src/commands.rs
@@ -146,6 +146,13 @@ pub async fn set_rpc_run_on_startup(
     Ok(())
 }
 
+#[command]
+#[specta]
+pub async fn switch_wallet(state: State<'_, AppState>) -> Result<()> {
+    state.lock().await.switch_wallet().await?;
+    Ok(())
+}
+
 #[command]
 #[specta]
 pub async fn move_key(state: State<'_, AppState>, fingerprint: u32, index: u32) -> Result<()> {
diff --git a/src-tauri/src/lib.rs b/src-tauri/src/lib.rs
index 62607eca..6a5dfd4f 100644
--- a/src-tauri/src/lib.rs
+++ b/src-tauri/src/lib.rs
@@ -114,6 +114,7 @@ pub fn run() {
             commands::stop_rpc_server,
             commands::get_rpc_run_on_startup,
             commands::set_rpc_run_on_startup,
+            commands::switch_wallet,
             commands::move_key,
             commands::download_cni_offercode,
         ])
diff --git a/src/bindings.ts b/src/bindings.ts
index f987566d..a7443794 100644
--- a/src/bindings.ts
+++ b/src/bindings.ts
@@ -278,6 +278,9 @@ async getRpcRunOnStartup() : Promise<boolean> {
 async setRpcRunOnStartup(runOnStartup: boolean) : Promise<null> {
     return await TAURI_INVOKE("set_rpc_run_on_startup", { runOnStartup });
 },
+async switchWallet() : Promise<null> {
+    return await TAURI_INVOKE("switch_wallet");
+},
 async moveKey(fingerprint: number, index: number) : Promise<null> {
     return await TAURI_INVOKE("move_key", { fingerprint, index });
 },
@@ -363,7 +366,7 @@ export type DerivationMode = { mode: "default" } |
 export type DerivationRecord = { index: number; public_key: string; address: string }
 export type DidRecord = { launcher_id: string; name: string | null; visible: boolean; coin_id: string; address: string; amount: Amount; recovery_hash: string | null; created_height: number | null; create_transaction_id: string | null }
 export type Error = { kind: ErrorKind; reason: string }
-export type ErrorKind = "wallet" | "api" | "not_found" | "unauthorized" | "internal" | "nfc"
+export type ErrorKind = "wallet" | "api" | "not_found" | "unauthorized" | "internal" | "database_migration" | "nfc"
 export type FilterUnlockedCoins = { coin_ids: string[] }
 export type FilterUnlockedCoinsResponse = { coin_ids: string[] }
 export type GenerateMnemonic = { use_24_words: boolean }
@@ -427,7 +430,7 @@ export type GetXchCoinsResponse = { coins: CoinRecord[]; total: number }
 export type ImportKey = { name: string; key: string; derivation_index?: number; save_secrets?: boolean; login?: boolean }
 export type ImportKeyResponse = { fingerprint: number }
 export type ImportOffer = { offer: string }
-export type ImportOfferResponse = Record<string, never>
+export type ImportOfferResponse = { offer_id: string }
 export type IncreaseDerivationIndex = { hardened?: boolean | null; index: number }
 export type IncreaseDerivationIndexResponse = Record<string, never>
 export type InheritedNetwork = "mainnet" | "testnet11"
diff --git a/src/contexts/ErrorContext.tsx b/src/contexts/ErrorContext.tsx
index 3a75350f..b700b755 100644
--- a/src/contexts/ErrorContext.tsx
+++ b/src/contexts/ErrorContext.tsx
@@ -110,7 +110,7 @@ export default function ErrorDialog({ error, setError }: ErrorDialogProps) {
       <DialogContent>
         <DialogHeader>
           <DialogTitle>{kind ? `${kind} ` : ''}Error</DialogTitle>
-          <DialogDescription className='break-all'>
+          <DialogDescription className='break-words'>
             {error?.reason}
           </DialogDescription>
         </DialogHeader>
diff --git a/src/hooks/useInitialization.ts b/src/hooks/useInitialization.ts
index f6a68923..8a776218 100644
--- a/src/hooks/useInitialization.ts
+++ b/src/hooks/useInitialization.ts
@@ -1,24 +1,40 @@
 import { commands } from '@/bindings';
 import { useCallback, useEffect, useState } from 'react';
 import { useErrors } from './useErrors';
+import { logoutAndUpdateState } from '@/state';
 
 export default function useInitialization() {
   const { addError } = useErrors();
 
   const [initialized, setInitialized] = useState(false);
 
-  const initialize = useCallback(async () => {
-    commands
-      .initialize()
-      .then(() => setInitialized(true))
-      .catch(addError);
+  const onInitialize = useCallback(async () => {
+    try {
+      await commands.initialize();
+      setInitialized(true);
+      await commands.switchWallet();
+    } catch (error: any) {
+      // Always add the error to be displayed
+      addError(error);
+
+      // Check if this is a database migration, which is recoverable
+      if (error.kind === 'database_migration') {
+        try {
+          await logoutAndUpdateState();
+        } catch (logoutError) {
+          console.error('Error during logout:', logoutError);
+        }
+      } else {
+        console.error('Unrecoverable initialization error', error);
+      }
+    }
   }, [addError]);
 
   useEffect(() => {
     if (!initialized) {
-      initialize();
+      onInitialize();
     }
-  }, [initialized, initialize]);
+  }, [initialized, onInitialize]);
 
   return initialized;
 }
diff --git a/src/pages/Login.tsx b/src/pages/Login.tsx
index 2a5caf00..a1c341ef 100644
--- a/src/pages/Login.tsx
+++ b/src/pages/Login.tsx
@@ -91,8 +91,14 @@ export default function Login() {
   useEffect(() => {
     commands
       .getKey({})
-      .then((data) => data.key !== null && navigate('/wallet'))
-      .catch(addError);
+      .then((data) => {
+        if (data.key !== null) {
+          navigate('/wallet');
+        }
+      })
+      .catch((error) => {
+        addError(error);
+      });
   }, [navigate, addError]);
 
   const [activeId, setActiveId] = useState<UniqueIdentifier | null>(null);
@@ -333,13 +339,17 @@ function WalletItem({ draggable, info, keys, setKeys }: WalletItemProps) {
   const loginSelf = (explicit: boolean) => {
     if (isMenuOpen && !explicit) return;
 
-    loginAndUpdateState(info.fingerprint).then(() => {
-      commands
-        .getKey({})
-        .then((data) => setWallet(data.key))
-        .then(() => navigate('/wallet'))
-        .catch(addError);
-    });
+    loginAndUpdateState(info.fingerprint, addError)
+      .then(() => {
+        commands
+          .getKey({})
+          .then((data) => setWallet(data.key))
+          .then(() => navigate('/wallet'))
+          .catch(addError);
+      })
+      .catch((error) => {
+        addError(error);
+      });
   };
 
   useEffect(() => {
diff --git a/src/state.ts b/src/state.ts
index 256ce1d9..a3fc80a1 100644
--- a/src/state.ts
+++ b/src/state.ts
@@ -6,6 +6,7 @@ import {
   GetSyncStatusResponse,
   KeyInfo,
 } from './bindings';
+import { CustomError } from './contexts/ErrorContext';
 
 export interface WalletState {
   sync: GetSyncStatusResponse;
@@ -85,9 +86,21 @@ events.syncEvent.listen((event) => {
   }
 });
 
-export async function loginAndUpdateState(fingerprint: number): Promise<void> {
-  await commands.login({ fingerprint });
-  await fetchState();
+export async function loginAndUpdateState(
+  fingerprint: number,
+  onError?: (error: CustomError) => void,
+): Promise<void> {
+  try {
+    await commands.login({ fingerprint });
+    await fetchState();
+  } catch (error) {
+    if (onError) {
+      onError(error as CustomError);
+    } else {
+      console.error(error);
+    }
+    throw error;
+  }
 }
 
 // Create a separate function to handle wallet state updates