Terms of Service and User Agreement

Last Updated: January 04, 2026

1. Agreement to Terms

These Terms of Service ("Terms") constitute a legally binding agreement between you ("Client", "User", "you", or "your") and Fraction Labs ("Company", "we", "us", or "our"), operating out of Bengaluru, Karnataka, India, regarding your access to and use of our AI Business Operating System, AI Agents, Workflow Automation services, and related engineering solutions (collectively, the "Services").

By accessing our website, booking a discovery call, or signing a service agreement, you acknowledge that you have read, understood, and agree to be bound by these Terms.

2. Service Description

Fraction Labs is an AI infrastructure and engineering partner providing:

• The AI Business OS: A unified AI infrastructure integrating websites, chatbots, and backend operations.

• AI Agents: Autonomous digital workers for support, sales, and operations.

• Custom Engineering: Development of proprietary models, RAG pipelines, and automation workflows.

• Generative AI: Tools & pipelines for video generation, image generation and editing, audio generation, and other synthetic media workflows.

We may update the Services from time to time to enhance features, security, or compliance.

Some of our services operate on a credit-based consumption model with subscription tiers designed for individual creators, small businesses, and enterprise users.

3. User Accounts and Security

To access certain features of our AI Business OS, you may be required to create an account. You are responsible for:

• maintaining the confidentiality of your API keys and login credentials;

• all activities that occur under your account; and

• ensuring authorized access only by your designated team members.

You agree to notify us immediately at support@fractionlabs-ai.com of any unauthorized use of your account.

4. Fees and Payment Terms

Unlike consumer credit models, our services are structured as follows:

4.1. Subscriptions (SaaS/Business OS)

• Recurring fees for the use of our pre-built platforms or ongoing maintenance are billed in advance on a monthly or annual basis.

• Subscription fees are non-refundable unless otherwise stated in a specific Service Agreement.

4.2. Professional Services (Custom Builds)

• Fees for custom engineering (e.g., building a specific Agent or Pipeline) are defined in your specific Statement of Work (SOW) or Invoice.

• Payments are due as per the schedule outlined in your specific contract (e.g., 50% upfront, 50% upon delivery).

4.3. Taxes All fees are exclusive of applicable taxes. You are responsible for paying all taxes, including Goods and Services Tax (GST), associated with your use of the Service.

5. Intellectual Property Rights

5.1. Your Data (Ring-Fenced) You retain all rights to the proprietary data, text, and files ("Client Data") you upload to our system. We do not use your proprietary Client Data to train our public foundation models without your explicit written consent.

5.2. Company Platform IP Fraction Labs retains all rights, title, and interest in and to our pre-existing technology, the "AI Business OS" platform, underlying algorithms, base code, and general AI methodologies used to deliver the Service.

5.3. Deliverables Upon full payment, ownership of custom-developed deliverables (e.g., specific workflows or output configurations) shall be transferred to you, subject to the license of any underlying background technology owned by Fraction Labs.

6. Acceptable Use Policy

You agree not to use our Service to:

• Generate content that is illegal, defamatory, or promotes violence/hate speech.

• Reverse engineer, decompile, or attempt to extract the source code of our Agents.

• Use our infrastructure to launch denial of service attacks or spam campaigns.

• Input sensitive personal data (PII) unless the specific Service is configured to handle such data in a compliant manner.

Violation of this policy may result in immediate suspension of your access.

7. Confidentiality

In the course of this engagement, both parties may exchange confidential information.

• We agree to keep your business logic, customer data, and trade secrets strictly confidential.

• You agree not to disclose our pricing structures, architectural blueprints, or technical methodologies to third parties.

8. Service Availability & SLAs

We strive to maintain 99.5% uptime for our hosted services. However, strictly unless defined in a separate Service Level Agreement (SLA), the Services are provided on an "AS IS" and "AS AVAILABLE" basis. We reserve the right to perform scheduled maintenance with reasonable prior notice.

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, FRACTION LABS SHALL NOT BE LIABLE FOR:

• ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES.

• LOSS OF PROFITS, REVENUE, DATA, OR BUSINESS OPPORTUNITIES.

• DAMAGES RESULTING FROM YOUR INTEGRATION OF OUR AI AGENTS INTO THIRD-PARTY PLATFORMS (e.g., if an Agent hallucinates due to poor input data).

OUR TOTAL LIABILITY SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY YOU TO US IN THE SIX (6) MONTHS PRECEDING THE CLAIM.

10. Indemnification

You agree to indemnify and hold harmless Fraction Labs and its officers against any claims, damages, or expenses arising from:

• Your violation of these Terms;

• Your use of the Services in violation of applicable laws; or

• Any claim that your Client Data infringes the intellectual property rights of a third party.

11. Termination

• By You: You may stop using the Services at any time. For fixed-term contracts, termination clauses in your specific agreement will apply.

• By Us: We may suspend or terminate your access immediately if you breach these Terms (e.g., non-payment or violating the Acceptable Use Policy).

12. Governing Law and Jurisdiction

These Terms are governed by the laws of India. Any disputes arising out of or relating to these Terms or the Service shall be subject to the exclusive jurisdiction of the courts located in Bengaluru, Karnataka.

13. Changes to Terms

We reserve the right to modify these Terms. Material changes will be communicated via email or a notification on our platform. Continued use of the Service after such changes constitutes acceptance.

14. Contact Information

For legal inquiries or support, please contact us at:

Email: support@fractionlabs-ai.com

Location: Bengaluru, Karnataka, India.