# Terms of Service

**Last Updated:** June 2026

Welcome to PrivacyGuard AI. These Terms of Service ("Terms") govern your access to and use of our business-to-business (B2B) AI Software-as-a-Service application (the "Platform"). By using our Platform, your enterprise ("the Client") agrees to be bound by these Terms.

## 1. Acceptance of Terms & Contract Formation
These Terms form a legally binding contract between PrivacyGuard AI Ltd ("the Platform", "we", "us") and the corporate entity using the services ("the Client"). Consumer rights legislation does not apply to this B2B agreement.

## 2. Service Architecture: Bring-Your-Own-Key (BYOK)
The Platform operates on a Local-First, Bring-Your-Own-Key (BYOK) paradigm. The Platform provides the workflow orchestration layer and local processing interface. The Client is solely responsible for procuring, configuring, and maintaining active API keys with third-party inference providers (e.g., Mistral AI, OpenAI) and bears all downstream inference costs. We accept no liability for the failure, suspension, or cost of third-party API services.

## 3. Intellectual Property Rights (IPR)
**Client Data:** The Client retains all right, title, and interest in and to all data, text, and documents inputted into the Platform ("Client Data"). The Client grants the Platform a limited, non-exclusive, royalty-free, worldwide licence to host, cache, and transmit Client Data solely to the extent necessary to provide the requested services during the active session.

**Platform IP:** All rights, title, and interest in the generative software, algorithms, user interfaces, vector embeddings, and underlying architecture remain solely and exclusively with PrivacyGuard AI Ltd. No transfer of intellectual property regarding the Platform is implied or granted.

## 4. Limitation of Liability
To the maximum extent permitted by applicable United Kingdom law, the Platform's aggregate liability arising out of or in connection with this agreement, whether in contract, tort (including negligence), or otherwise, shall be strictly limited to the total fees paid by the Client to the Platform in the twelve (12) months preceding the event giving rise to the claim, or £5,000, whichever is lower.

Under no circumstances shall the Platform be liable for any indirect, consequential, special, or economic loss, including but not limited to loss of profits, loss of business opportunity, business interruption, or data corruption.

## 5. AI Output & Hallucination Disclaimer
> "The Platform utilizes advanced algorithmic models to generate data interpretations, text outputs, and workflow recommendations (collectively, 'Outputs'). The Client acknowledges that machine learning systems are subject to inherent statistical variance and may produce erroneous, incomplete, or anomalous results ('Hallucinations'). Outputs are provided on an 'as-is' and 'as-available' basis. The Platform gives no warranty, express or implied, regarding the accuracy, completeness, or operational safety of such Outputs. The Client retains sole responsibility for verifying all Outputs via human-in-the-loop audit protocols before executing any business, commercial, or legal decisions based thereon."

## 6. Indemnity
The Client agrees to indemnify and hold harmless PrivacyGuard AI Ltd, its directors, employees, and agents from any claims, damages, or legal proceedings arising from the Client's misuse of the Platform, including the submission of unredacted personal data in violation of applicable data protection laws, or reliance on unverified AI Outputs for critical business operations.

## 7. Governing Law & Jurisdiction
These Terms shall be governed by and construed in accordance with the laws of England and Wales. Any disputes arising under or in connection with these Terms shall be subject to the exclusive jurisdiction of the courts of England and Wales.