Privacy Policy

Last Updated: January 04, 2026

1. Introduction

Fraction Labs ("we", "us", or "our"), operating from Bengaluru, Karnataka, is committed to protecting the privacy of our clients and users. This Privacy Policy explains how we collect, use, disclose, and safeguard your information when you access our AI Business Operating System, use our AI Agents, or engage with our engineering services (collectively, the "Service").

We handle your personal and business data in accordance with applicable laws, including the Information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023 (as applicable).

2. Information We Collect

We collect data in two distinct categories: Account Information (data about you) and Client Data (data you process through our AI).

2.1 Account & Professional Information

Identity Data: Name, email address, job title, and company associated with the account.
Business Details: Company Registration Number (CIN), GSTIN, and billing address.
Authentication Data: Login credentials, API keys, and authorized user logs.

2.2 Payment Information

Credit card details, bank account information, or UPI IDs used for billing. These are processed securely by our payment partners (e.g., Stripe/Razorpay) and are not stored on our servers.

2.3 Client Data (Your Proprietary Data)

This encompasses the specific inputs you provide for AI processing, including:

Knowledge Base Uploads: PDFs, CSVs, or text files uploaded to train/contextualize your specific AI Agents.
Agent Workflows: Logic streams, prompt templates, and automation configurations.
Conversation Logs: Interactions between your customers and your deployed AI Agents.

2.4 Technical & Usage Data

Device Data: IP address, browser type, operating system, and crash logs.
Usage Metrics: API call volume, agent active hours, and feature utilization rates.

3. How We Use Your Information

3.1 Service Delivery

To deploy and maintain your AI Agents and Business OS.
To process your inputs and generate the required outputs (text, code, media, or actions).
To manage user access and authentication.

3.2 Billing and Administration

To generate tax-compliant invoices.
To notify you about changes to our terms, services, or policies.

3.3 Product Improvement (With Restrictions)

We use Usage Data (metadata) to improve system performance (e.g., latency, uptime).
Crucial: We DO NOT use your proprietary Client Data to train our general-purpose foundation models without your explicit written consent.

4. AI Model Training & Data Ring-Fencing

This section outlines our specific stance on AI training, which distinguishes us from consumer platforms.

4.1 Data Ownership

You retain full ownership of all Client Data you upload and the specific outputs generated for your business.

4.2 Ring-Fenced Environments

Private Context: Data uploaded to a specific workspace or Agent is vectorized and stored in a siloed environment accessible only by that specific Agent.
No Cross-Contamination: Your business logic or customer data will never be used to answer queries for another Fraction Labs client.

4.3 Foundation Models

Our services interact with foundation models (e.g., OpenAI, Anthropic, Llama). We access these via Enterprise APIs with "Zero-Retention" policies, ensuring that the model providers do not train on your data passed through our system.

5. Data Sharing and Disclosure

We do not sell your data. We share it only in the following "Need-to-Know" circumstances:

Service Providers: With cloud infrastructure providers (e.g., AWS, Azure) and database vendors (e.g., Pinecone, Supabase) strictly for hosting and storage.
Legal Obligations: If required by Indian law, court order, or government regulation.
Business Transfers: In the event of a merger, acquisition, or sale of assets, subject to confidentiality agreements.

6. Data Security

We implement enterprise-grade security measures to protect your data:

Encryption: Data is encrypted in transit (TLS 1.2+) and at rest (AES-256).
Access Control: Strict Role-Based Access Control (RBAC) ensures only authorized personnel can access system internals.
Audits: Regular vulnerability assessments and penetration testing.

7. Data Retention

Active Accounts: We retain your Client Data for as long as your account is active to ensure the continuity of your AI Agents.
Deleted Accounts: Upon subscription cancellation, your proprietary Client Data is deleted from our active servers within 30 days, though backups may be retained for a limited period for disaster recovery.
Legal Retention: Billing and transaction records are retained for 8 years as required by Indian tax laws.

8. Your Rights

Under applicable data protection laws, you have the right to:

Access: Request a copy of the personal data we hold about you.
Correction: Request updates to inaccurate business or personal details.
Deletion: Request the deletion of your account and associated datasets (subject to legal retention requirements).

To exercise these rights, email support@fractionlabs-ai.com.

9. International Data Transfers

While we operate from India, our cloud infrastructure may be distributed globally for redundancy. We ensure that any international transfer of data complies with applicable laws and utilizes standard contractual clauses to ensure data protection.

10. Updates to This Policy

We may update this policy to reflect changes in our technology or legal obligations. Material changes will be notified via email or a prominent notice on your dashboard.