diff --git a/arrow-libs/core/arrow-core/build.gradle.kts b/arrow-libs/core/arrow-core/build.gradle.kts
index 279f19ef2c1..2e616680e98 100644
--- a/arrow-libs/core/arrow-core/build.gradle.kts
+++ b/arrow-libs/core/arrow-core/build.gradle.kts
@@ -1,3 +1,5 @@
+import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
+
 plugins {
   id(libs.plugins.kotlin.multiplatform.get().pluginId)
   alias(libs.plugins.arrowGradleConfig.kotlin)
@@ -40,3 +42,8 @@ kotlin {
     }
   }
 }
+
+// enables context receivers for Jvm Tests
+tasks.named<KotlinCompile>("compileTestKotlinJvm") {
+  kotlinOptions.freeCompilerArgs += "-Xcontext-receivers"
+}
diff --git a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffect.kt b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffect.kt
index b140456c51a..6af3702ba07 100644
--- a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffect.kt
+++ b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffect.kt
@@ -18,7 +18,7 @@ import kotlin.coroutines.RestrictsSuspension
  * An [effect] computation interoperates with an [EagerEffect] via `bind`.
  * @see Effect
  */
-public interface EagerEffect<R, A> {
+public interface EagerEffect<out R, out A> {
 
   /**
    * Runs the non-suspending computation by creating a [Continuation] with an [EmptyCoroutineContext],
@@ -91,12 +91,12 @@ public interface EagerEffect<R, A> {
    * [fold] the [EagerEffect] into an [Option]. Where the shifted value [R] is mapped to [Option] by the
    * provided function [orElse], and result value [A] is mapped to [Some].
    */
-  public fun toOption(orElse: (R) -> Option<A>): Option<A> =
+  public fun toOption(orElse: (R) -> Option<@UnsafeVariance A>): Option<A> =
     fold(orElse, ::Some)
 
   public fun <B> map(f: (A) -> B): EagerEffect<R, B> = flatMap { a -> eagerEffect { f(a) } }
 
-  public fun <B> flatMap(f: (A) -> EagerEffect<R, B>): EagerEffect<R, B> = eagerEffect {
+  public fun <B> flatMap(f: (A) -> EagerEffect<@UnsafeVariance R, B>): EagerEffect<R, B> = eagerEffect {
     f(bind()).bind()
   }
 
@@ -104,11 +104,11 @@ public interface EagerEffect<R, A> {
     kotlin.runCatching { bind() }
   }
 
-  public fun handleError(f: (R) -> A): EagerEffect<Nothing, A> = eagerEffect {
+  public fun handleError(f: (R) -> @UnsafeVariance A): EagerEffect<Nothing, A> = eagerEffect {
     fold(f, ::identity)
   }
 
-  public fun <R2> handleErrorWith(f: (R) -> EagerEffect<R2, A>): EagerEffect<R2, A> =
+  public fun <R2> handleErrorWith(f: (R) -> EagerEffect<R2, @UnsafeVariance A>): EagerEffect<R2, A> =
     eagerEffect {
       toEither().fold({ r -> f(r).bind() }, ::identity)
     }
diff --git a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffectScope.kt b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffectScope.kt
index ffafc43cb3f..a0be9e206bf 100644
--- a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffectScope.kt
+++ b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EagerEffectScope.kt
@@ -13,7 +13,7 @@ import kotlin.coroutines.RestrictsSuspension
 
 /** Context of the [EagerEffect] DSL. */
 @RestrictsSuspension
-public interface EagerEffectScope<R> {
+public interface EagerEffectScope<in R> {
 
   /** Short-circuit the [EagerEffect] computation with value [R].
    *
diff --git a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/Effect.kt b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/Effect.kt
index ed311c6cd60..aefc254347d 100644
--- a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/Effect.kt
+++ b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/Effect.kt
@@ -568,7 +568,7 @@ import kotlin.coroutines.resume
  * ```
  * <!--- KNIT example-effect-guide-13.kt -->
  */
-public interface Effect<R, A> {
+public interface Effect<out R, out A> {
   /**
    * Runs the suspending computation by creating a [Continuation], and running the `fold` function
    * over the computation.
@@ -637,7 +637,7 @@ public interface Effect<R, A> {
    * [fold] the [Effect] into an [Option]. Where the shifted value [R] is mapped to [Option] by the
    * provided function [orElse], and result value [A] is mapped to [Some].
    */
-  public suspend fun toOption(orElse: suspend (R) -> Option<A>): Option<A> = fold(orElse, ::Some)
+  public suspend fun toOption(orElse: suspend (R) -> Option<@UnsafeVariance A>): Option<A> = fold(orElse, ::Some)
 
   /**
    * [fold] the [Effect] into an [A?]. Where the shifted value [R] is mapped to
@@ -654,11 +654,11 @@ public interface Effect<R, A> {
     }
   }
 
-  public fun handleError(recover: suspend (R) -> A): Effect<Nothing, A> = effect {
+  public fun handleError(recover: suspend (R) -> @UnsafeVariance A): Effect<Nothing, A> = effect {
     fold(recover, ::identity)
   }
 
-  public fun <R2> handleErrorWith(recover: suspend (R) -> Effect<R2, A>): Effect<R2, A> = effect {
+  public fun <R2> handleErrorWith(recover: suspend (R) -> Effect<R2, @UnsafeVariance A>): Effect<R2, A> = effect {
     fold({ recover(it).bind() }, ::identity)
   }
 
diff --git a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EffectScope.kt b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EffectScope.kt
index f13b904c1bb..5a1f7d23d6d 100644
--- a/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EffectScope.kt
+++ b/arrow-libs/core/arrow-core/src/commonMain/kotlin/arrow/core/continuations/EffectScope.kt
@@ -11,7 +11,7 @@ import kotlin.contracts.ExperimentalContracts
 import kotlin.contracts.contract
 
 /** Context of the [Effect] DSL. */
-public interface EffectScope<R> {
+public interface EffectScope<in R> {
   /**
    * Short-circuit the [Effect] computation with value [R].
    *
diff --git a/arrow-libs/core/arrow-core/src/jvmTest/kotlin/arrow/core/continuations/EffectUsage.kt b/arrow-libs/core/arrow-core/src/jvmTest/kotlin/arrow/core/continuations/EffectUsage.kt
new file mode 100644
index 00000000000..b61c79d6db7
--- /dev/null
+++ b/arrow-libs/core/arrow-core/src/jvmTest/kotlin/arrow/core/continuations/EffectUsage.kt
@@ -0,0 +1,56 @@
+package arrow.core.continuations
+
+import kotlinx.coroutines.runBlocking
+import kotlinx.coroutines.Dispatchers
+
+sealed interface MyError
+sealed interface SubError : MyError
+sealed interface OtherError : MyError {
+  object Actual : OtherError
+}
+
+context(EffectScope<SubError>)
+  suspend fun subprogram(): Unit =
+  println("Hello SubProgram!")
+
+context(EffectScope<OtherError>)
+  suspend fun otherprogram(): Unit =
+  println("Hello OtherProgram!")
+
+context(EffectScope<OtherError>)
+  suspend fun fail(): MyResponse =
+  shift(OtherError.Actual)
+
+fun main() =
+  runBlocking(Dispatchers.Default) {
+    effect<MyError, Unit> {
+      subprogram()
+      otherprogram()
+      fail()
+    }.fold(::println) { }
+    // Hello SubProgram!
+    // Hello OtherProgram!
+    // OtherError$Actual@7cd62f43
+  }
+
+sealed interface MyResponse
+object EmptyResponse : MyResponse
+data class ErrorResponse(val error: Throwable) : MyResponse
+data class BodyResponse(val body: String) : MyResponse
+
+context(EffectScope<SubError>)
+  suspend fun respondWithBody(): BodyResponse =
+  BodyResponse("Hello Program!")
+
+context(EffectScope<OtherError>)
+  suspend fun attemptOrError(): MyResponse =
+  ErrorResponse(RuntimeException("Oh no!"))
+
+fun respond(): Effect<MyError, MyResponse> =
+  effect {
+    when (attemptOrError()) {
+      is BodyResponse -> respondWithBody()
+      EmptyResponse -> EmptyResponse
+      is ErrorResponse -> fail()
+    }
+  }