2.1 Phractal (Phi)

Phractal (Phi) provides conversational AI capabilities through intelligent model routing, extended reasoning modes, multi-modal understanding, web-enhanced responses, and contextual memory management. The platform analyzes queries to select optimal AI model variants, enables configurable thinking depth for complex problems, processes text and visual inputs, integrates real-time information retrieval, and maintains conversation continuity across extended interactions.

2.2 Mozaic

Mozaic delivers infinite canvas generation capabilities supporting visual narrative creation, interactive diagram construction, conceptual framework development, and multimedia presentation assembly. The platform employs AI-powered content generation across multiple formats (images, flowcharts, mindmaps, diagrams, charts, videos), intelligent spatial layout optimization, collaborative editing infrastructure, and high-resolution export functionality.

2.3 Snowflake

Snowflake provides Retrieval-Augmented Generation (RAG) infrastructure enabling organizations to deploy AI systems grounded in proprietary knowledge bases. The platform implements automated document ingestion pipelines, semantic search with vector embeddings, hybrid retrieval combining neural and lexical approaches, intelligent context management with reranking, response grounding verification, hallucination detection mechanisms, and granular access control ensuring data security and compliance.

2.4 Service Modifications

We continuously evolve our Services through feature additions, performance improvements, and capability expansions. We reserve the right to modify, suspend, or discontinue any aspect of the Services at any time, with or without notice, though we will make commercially reasonable efforts to provide advance notice of material changes affecting core functionality. We do not guarantee backward compatibility across all service updates, though we prioritize maintaining stability for enterprise deployments.

3.1 Account Creation

Certain Services require account registration providing accurate, complete, and current information including email address, authentication credentials, and organizational affiliation where applicable. You are responsible for maintaining the confidentiality of account credentials and for all activities occurring under your account. You must immediately notify us of any unauthorized access or security breaches.

3.2 Account Security

You agree to use strong, unique passwords, enable multi-factor authentication where available, maintain secure computing environments free from malware and unauthorized access, and refrain from sharing credentials with third parties. We implement industry-standard security measures including encryption at rest and in transit, regular security audits, intrusion detection systems, and access logging, but cannot guarantee absolute security. You acknowledge and accept the inherent risks of internet-based services.

3.3 Account Verification

We reserve the right to verify account information, request additional documentation for identity confirmation, suspend accounts pending verification, and reject or terminate accounts that fail verification. This right exists to prevent fraud, ensure compliance with applicable regulations, and maintain service integrity. Enterprise accounts may require additional verification including business registration documentation and authorized signatory confirmation.

4.1 Permitted Uses

The Services are designed for legitimate business, educational, research, and creative applications. Permitted uses include knowledge work and analysis, creative content generation, research and development, educational instruction, problem-solving and decision support, and organizational knowledge management, provided such uses comply with applicable laws and these Terms.

4.2 Prohibited Activities

You agree not to use the Services to: generate, distribute, or facilitate illegal, harmful, fraudulent, defamatory, or infringing content; create malware, conduct hacking, engage in unauthorized access attempts, or compromise system security; harass, threaten, impersonate, or violate the privacy rights of individuals; manipulate, deceive, or mislead through deepfakes, misinformation, or fraudulent schemes; circumvent rate limits, usage restrictions, or technical safeguards; reverse engineer, decompile, or attempt to extract model weights or training data; engage in automated scraping, bulk downloading, or systematic data extraction without authorization; or violate applicable laws including export controls, sanctions, privacy regulations, or intellectual property statutes.

4.3 Content Moderation

We implement automated and manual content moderation mechanisms to detect and prevent prohibited uses. These systems may flag, filter, or block content that violates our policies. We reserve the right to review flagged content, investigate potential violations, remove offending material, suspend or terminate accounts engaged in prohibited activities, and report illegal conduct to appropriate authorities. You acknowledge that moderation systems may produce false positives, and we provide appeal mechanisms for erroneous enforcement actions.

4.4 Resource Limits

To ensure fair access and system stability, we impose reasonable usage limits including message quotas, rate limiting, computational resource caps, and storage constraints. These limits vary by subscription tier and are subject to modification with notice. Systematic attempts to circumvent usage limits constitute violations of these Terms and may result in service suspension or account termination.

5.1 Our Intellectual Property

The Services, including all software, algorithms, model architectures, training methodologies, user interfaces, documentation, trademarks, and related intellectual property, are owned by Recursive Labs or our licensors and are protected by copyright, patent, trademark, trade secret, and other intellectual property laws. These Terms grant you a limited, non-exclusive, non-transferable, revocable license to access and use the Services in accordance with these Terms. No other rights are granted.

5.2 User Content

You retain all intellectual property rights in content you input to the Services ("User Content"), including prompts, documents, images, and other materials. By providing User Content, you grant us a worldwide, non-exclusive, royalty-free license to process, store, and transmit such content solely for purposes of providing the Services, improving service quality, and ensuring safety and compliance. This license terminates when you delete User Content, subject to reasonable retention periods for backup and legal compliance purposes.

5.3 AI-Generated Content

Content generated by the Services in response to your inputs ("Generated Content") is provided to you under a permissive license allowing commercial and non-commercial use, modification, and distribution, subject to compliance with these Terms and applicable law. You are solely responsible for determining the suitability, accuracy, and legal compliance of Generated Content. We make no representations regarding intellectual property clearance of Generated Content and recommend independent legal review for commercial applications.

5.4 Feedback and Suggestions

Any feedback, suggestions, ideas, or other information you provide regarding the Services ("Feedback") becomes our property. You grant us an unrestricted, perpetual, irrevocable, worldwide, royalty-free license to use, modify, create derivative works from, and commercialize Feedback without compensation or attribution. This enables us to incorporate user insights into product improvements while avoiding legal ambiguities regarding ownership.

6.1 Subscription Plans

We offer various subscription tiers including free limited-access plans, individual paid subscriptions, and enterprise custom agreements. Subscription terms, pricing, features, and usage limits are detailed on our pricing page and are subject to change with 30 days notice for existing subscribers. New pricing applies to renewals following the notice period.

6.2 Payment Terms

Paid subscriptions are billed in advance on a monthly or annual basis as selected during subscription. Payment is processed through our third-party payment processors (Stripe or equivalent) and subject to their terms of service. You authorize us to charge your designated payment method for all fees incurred. Failure to pay results in service suspension or termination. You are responsible for all applicable taxes, duties, and governmental charges.

6.3 Refunds

Subscription fees are generally non-refundable except where required by law or at our sole discretion. If you are dissatisfied with the Services, you may cancel your subscription to prevent future charges, but previously charged amounts will not be refunded. For annual subscriptions, we may provide pro-rated refunds during an initial 30-day evaluation period if you cancel and provide feedback regarding deficiencies.

6.4 Cancellation

You may cancel your subscription at any time through account settings or by contacting support. Cancellation takes effect at the end of the current billing period. You will retain access to paid features until the subscription expires. We do not provide partial refunds for unused portions of subscription periods except as noted above.

7.1 Privacy Policy

Our collection, use, storage, and protection of personal data is governed by our Privacy Policy, incorporated by reference into these Terms. You should review the Privacy Policy carefully to understand our data practices. By using the Services, you consent to data processing as described in the Privacy Policy.

7.2 Data Processing

We process User Content solely to provide the Services, improve quality and safety, and comply with legal obligations. We do not use User Content to train AI models without explicit consent, obtained separately through opt-in mechanisms. We implement technical and organizational measures to protect data confidentiality, integrity, and availability, including encryption, access controls, audit logging, and regular security assessments.

7.3 Data Location

Data is stored and processed in data centers located in the United States and other jurisdictions where we or our service providers operate. By using the Services, you consent to international data transfers. For users in the European Economic Area, we implement Standard Contractual Clauses or other approved transfer mechanisms to ensure adequate data protection.

7.4 Data Retention

We retain User Content for as long as necessary to provide the Services or as required by law. Upon account deletion, we delete User Content within 90 days, subject to backup retention periods not exceeding one year. Certain metadata and anonymized usage statistics may be retained indefinitely for analytical and research purposes.

8.1 Service Availability

THE SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. WE DO NOT GUARANTEE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE OPERATION. We strive to maintain high availability but do not warrant that the Services will meet your requirements, be free from defects, viruses, or harmful components, or that results obtained will be accurate or reliable.

8.2 AI Output Limitations

AI-generated content may contain errors, inaccuracies, biases, or inappropriate material despite our safety measures. We do not warrant the accuracy, completeness, reliability, suitability, or legality of Generated Content. You are solely responsible for reviewing, verifying, and validating all outputs before relying upon them for any purpose, particularly in high-stakes domains including healthcare, legal, financial, or safety-critical applications.

8.3 Disclaimer of Warranties

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, ACCURACY, RELIABILITY, AND QUIET ENJOYMENT. Some jurisdictions do not allow warranty disclaimers, so these limitations may not apply to you.

8.4 Third-Party Services

The Services may integrate with or link to third-party services, websites, or content over which we have no control. We do not endorse, warrant, or assume responsibility for third-party offerings. Your use of third-party services is governed by their respective terms and privacy policies. We disclaim all liability arising from third-party interactions.

9.1 Exclusion of Damages

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL RECURSIVE LABS, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR AFFILIATES BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES INCLUDING BUT NOT LIMITED TO LOST PROFITS, LOST REVENUE, LOST DATA, BUSINESS INTERRUPTION, OR LOSS OF GOODWILL ARISING FROM OR RELATED TO THESE TERMS OR USE OF THE SERVICES, REGARDLESS OF THE THEORY OF LIABILITY (CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE) AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

9.2 Liability Cap

OUR TOTAL AGGREGATE LIABILITY ARISING FROM OR RELATED TO THESE TERMS OR THE SERVICES SHALL NOT EXCEED THE GREATER OF (A) $100 USD OR (B) THE AMOUNT YOU PAID US IN THE TWELVE MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY. This limitation applies regardless of the number of claims or the theory of liability.

9.3 Essential Purpose

The limitations of liability set forth in this Section are fundamental elements of the agreement between you and Recursive Labs. The Services would not be provided without such limitations. These limitations shall apply even if any limited remedy fails of its essential purpose.

9.4 Jurisdictional Limitations

Some jurisdictions do not allow exclusion or limitation of incidental or consequential damages, so the above limitations may not apply to you. In such jurisdictions, our liability is limited to the maximum extent permitted by law.

You agree to indemnify, defend, and hold harmless Recursive Labs, its officers, directors, employees, agents, affiliates, and service providers from and against any and all claims, damages, obligations, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from or related to: (a) your use of the Services; (b) your User Content; (c) your violation of these Terms; (d) your violation of any third-party rights including intellectual property, privacy, or other proprietary rights; (e) any claim that your User Content caused damage to a third party; or (f) your violation of any applicable law or regulation.

This indemnification obligation survives termination of these Terms and your use of the Services. We reserve the right to assume exclusive defense and control of any matter subject to indemnification, in which case you agree to cooperate fully with our defense.

11.1 Termination by User

You may terminate these Terms at any time by discontinuing use of the Services and deleting your account through account settings or by contacting support. Termination does not relieve you of obligations to pay accrued fees or satisfy indemnification obligations.

11.2 Termination by Us

We may suspend or terminate your access to the Services immediately, without notice or liability, for any reason including but not limited to: violation of these Terms; fraudulent, illegal, or harmful conduct; non-payment of fees; extended periods of inactivity; or as required by law. We will provide notice of termination when reasonably practicable except where immediate termination is necessary to protect our interests or prevent harm.

11.3 Effects of Termination

Upon termination, your right to access and use the Services immediately ceases. We will delete your User Content within 90 days following termination subject to backup retention periods. Provisions of these Terms that by their nature should survive termination shall survive, including but not limited to intellectual property provisions, disclaimers, limitations of liability, indemnification obligations, and dispute resolution procedures.

12.1 Informal Resolution

Prior to initiating formal dispute resolution procedures, you agree to contact us at legal@recursivelabs.com to attempt informal resolution. We commit to engaging in good faith negotiations for at least 30 days before either party may commence formal proceedings.

12.2 Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of Delaware, United States, without regard to conflict of law principles. The United Nations Convention on Contracts for the International Sale of Goods does not apply.

12.3 Arbitration Agreement

Any dispute, controversy, or claim arising out of or relating to these Terms or the Services that cannot be resolved informally shall be resolved through binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. The arbitration shall be conducted by a single arbitrator, in English, with proceedings located in Delaware unless otherwise agreed. The arbitrator's decision shall be final and binding, and judgment may be entered in any court of competent jurisdiction.

12.4 Class Action Waiver

YOU AGREE THAT DISPUTES WILL BE RESOLVED ON AN INDIVIDUAL BASIS ONLY AND NOT AS PART OF ANY CLASS, CONSOLIDATED, OR REPRESENTATIVE ACTION. You waive any right to participate in class actions, private attorney general actions, or other representative proceedings. This waiver is essential to the arbitration agreement; if found unenforceable, the entire arbitration provision shall be void.

12.5 Exceptions

Either party may seek equitable relief in court to protect intellectual property rights or prevent unauthorized access to systems. Additionally, you may assert claims in small claims court if they qualify and remain in such court.

13.1 Entire Agreement

These Terms, together with our Privacy Policy and any additional agreements executed separately, constitute the entire agreement between you and Recursive Labs regarding the Services and supersede all prior or contemporaneous understandings, agreements, representations, and warranties.

13.2 Severability

If any provision of these Terms is held invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. Invalid provisions shall be modified to the minimum extent necessary to make them valid and enforceable while preserving their intent.

13.3 Assignment

You may not assign or transfer these Terms or any rights hereunder without our prior written consent. We may assign these Terms without restriction including in connection with mergers, acquisitions, corporate reorganizations, or sales of assets. Any attempted assignment in violation of this provision is void.

13.4 Waiver

Our failure to enforce any provision of these Terms shall not constitute a waiver of that provision or our right to enforce it subsequently. Waivers must be in writing and signed by authorized representatives to be effective.

13.5 Force Majeure

We shall not be liable for any failure or delay in performance due to circumstances beyond our reasonable control, including but not limited to acts of God, war, terrorism, riots, embargoes, acts of civil or military authorities, fire, floods, accidents, pandemics, strikes, or shortages of transportation, facilities, fuel, energy, labor, or materials.

13.6 Export Controls

The Services may be subject to export control and sanctions laws of the United States and other jurisdictions. You agree to comply with all applicable export control regulations and not to use the Services in violation of such laws. You represent that you are not located in, under the control of, or a national or resident of any restricted country or on any prohibited party list.

For questions, concerns, or notices regarding these Terms, please contact us at: