Terms of Service

1. Acceptance of Terms

By accessing, browsing, or using the FractalAI platform, including any associated websites, applications, smart contracts, blockchain nodes, APIs, and related services (collectively, the "Platform"), you acknowledge that you have read, understood, and agree to be bound by these Terms of Service ("Terms"). If you do not agree to these Terms in their entirety, you must immediately cease all use of the Platform.

These Terms constitute a legally binding agreement between you ("User," "you," or "your") and the FractalAI open-source project and its contributors ("FractalAI," "we," "us," or "our"). Your continued use of the Platform following the posting of any changes to these Terms shall constitute your acceptance of such changes.

These Terms apply to all users of the Platform, including without limitation users who are node operators, validators, stakers, token holders, smart contract deployers, liquidity providers, compute providers, and any other participants in the FractalAI ecosystem.

2. Definitions

The following terms shall have the meanings set forth below when used in these Terms of Service:

• "Platform" refers to the FractalAI decentralized blockchain network, including all associated software, protocols, smart contracts, APIs, websites, and interfaces.
• "FRAC Token" refers to the native utility token of the FractalAI network, used for transaction fees, staking, governance, and accessing platform services.
• "Smart Contract" refers to self-executing code deployed on the FractalAI blockchain that automatically enforces and executes the terms of an agreement when predetermined conditions are met.
• "Wallet" refers to a cryptographic key pair consisting of a public address and a private key that allows a User to interact with the FractalAI blockchain, hold tokens, and authorize transactions.
• "Node" refers to any computer or server running the FractalAI client software that participates in the network by validating transactions, maintaining a copy of the blockchain ledger, or providing compute resources.
• "User" refers to any individual or entity that accesses or uses the Platform in any capacity, whether as a token holder, developer, validator, compute provider, or end user.
• "Validator" refers to a Node operator who has staked FRAC Tokens and participates in the consensus mechanism to validate transactions and produce blocks.
• "Staking" refers to the process of locking FRAC Tokens within the protocol to participate in network validation, governance, or to earn rewards.
• "DEX" refers to the decentralized exchange functionality within the Platform, which enables peer-to-peer token swaps through automated market maker (AMM) liquidity pools.
• "AI Compute Services" refers to the decentralized marketplace for artificial intelligence and machine learning compute resources provided by network participants.

3. Eligibility

You must be at least eighteen (18) years of age, or the age of legal majority in your jurisdiction, whichever is greater, to use the Platform. By using the Platform, you represent and warrant that you meet these age requirements and have the legal capacity to enter into a binding agreement.

The Platform is not available to Users located in, incorporated in, or citizens of any jurisdiction where the use of blockchain technology, cryptocurrency, or decentralized finance services is prohibited, restricted, or requires licensing that the Platform does not possess. It is your sole responsibility to determine whether your use of the Platform is lawful in your jurisdiction.

You represent and warrant that you are not (a) listed on any government list of prohibited or restricted parties, (b) located in or a resident of any country subject to comprehensive sanctions by the United States, the European Union, or the United Nations, or (c) otherwise prohibited from accessing or using the Platform under applicable laws and regulations.

4. Account & Wallet Security

The Platform operates on a decentralized, non-custodial basis. You are solely and exclusively responsible for the generation, storage, and security of your wallet private keys, seed phrases, and any other authentication credentials. FractalAI does not store, have access to, or have the ability to recover your private keys or seed phrases under any circumstances.

If you lose access to your private keys or seed phrases, your tokens and any assets associated with your wallet will be permanently and irretrievably lost. FractalAI shall bear no responsibility or liability for any loss of tokens, assets, or access resulting from lost, stolen, or compromised private keys or seed phrases.

You agree to implement and maintain reasonable security measures to protect your wallet credentials, including but not limited to the use of hardware wallets, secure offline backups, strong unique passwords, and two-factor authentication where available. You are responsible for all activity that occurs through your wallet, whether or not authorized by you.

5. Use of the Platform

You may use the Platform for its intended purposes, including but not limited to sending and receiving FRAC Tokens, deploying and interacting with smart contracts, participating in staking and validation, providing and consuming AI compute services, providing liquidity to DEX pools, and participating in governance.

You agree that you shall not use the Platform for any of the following prohibited activities:

• Money laundering, terrorist financing, or any other financial crime
• Fraud, phishing, or social engineering attacks against other Users
• Deploying malicious smart contracts designed to exploit or deceive other Users
• Attempting to manipulate the consensus mechanism, including but not limited to double-spending attacks, selfish mining, or network disruption
• Launching denial-of-service attacks against Nodes or network infrastructure
• Circumventing or attempting to circumvent any security features, access controls, or technical limitations of the Platform
• Using the Platform to distribute malware, viruses, or other harmful software
• Engaging in market manipulation, wash trading, or artificially inflating token prices or trading volumes
• Violating the intellectual property rights of any third party through the Platform
• Using the AI Compute Services to generate content that is illegal, harmful, or violates the rights of others
• Operating sybil nodes or creating multiple identities to circumvent staking requirements or governance mechanisms
• Any activity that violates applicable local, state, national, or international laws and regulations

FractalAI reserves the right to cooperate with law enforcement authorities and comply with valid legal processes. Violations of these Terms may result in the restriction or termination of your access to certain Platform services to the extent technically feasible on a decentralized network.

6. FRAC Token

The FRAC Token is a utility token designed to facilitate operations on the FractalAI network. FRAC Tokens are used for paying transaction fees (gas), staking to participate in network validation, accessing AI compute services, participating in governance votes, and interacting with smart contracts deployed on the Platform.

FRAC Tokens are not intended to constitute securities, investment contracts, or any form of financial instrument in any jurisdiction. The purchase, holding, or use of FRAC Tokens does not represent an investment in FractalAI or confer any equity, ownership, dividend, profit-sharing, or voting rights in any legal entity. No guarantee is made regarding the future value, utility, or liquidity of FRAC Tokens.

The value of FRAC Tokens may fluctuate significantly due to market conditions, regulatory developments, technological changes, and other factors beyond the control of FractalAI. You acknowledge that acquiring or holding FRAC Tokens involves substantial risk and that you may lose the entire value of your tokens. You should not acquire FRAC Tokens with the expectation of profit or financial return.

7. Staking & Validation

Users who stake FRAC Tokens to participate as Validators are subject to the protocol rules governing the consensus mechanism. Staked tokens are locked for a minimum period as defined by the protocol parameters and cannot be withdrawn or transferred during the locking period. The specific locking duration, minimum stake requirements, and reward structures are determined by the protocol and may be modified through governance processes.

Validators are subject to slashing conditions, which may result in the partial or total loss of staked tokens. Slashing may occur due to, but is not limited to: double-signing blocks, extended downtime or unresponsiveness, attempting to manipulate the consensus process, or violating other protocol rules. You acknowledge and accept the risk of slashing when participating as a Validator.

Staking rewards are distributed according to the protocol rules and are not guaranteed. Reward rates may vary based on network participation levels, total tokens staked, protocol inflation schedules, and governance decisions. Past reward rates are not indicative of future performance. FractalAI makes no guarantees regarding the consistency, amount, or value of staking rewards.

8. Smart Contracts

Smart contracts deployed on the FractalAI blockchain execute autonomously according to their programmed logic. Once deployed, smart contract code is immutable unless the contract has been specifically designed with upgrade mechanisms. The principle of "code is law" applies: the execution of a smart contract is determined solely by its code, and the outcome of such execution is final and binding.

FractalAI does not review, audit, endorse, or guarantee the correctness, security, or functionality of any smart contract deployed by Users on the Platform. Users who deploy smart contracts are strongly encouraged to engage independent third-party security auditors and conduct thorough testing on testnets before deploying to the mainnet. Users who interact with smart contracts should review the contract code and understand its functionality before executing any transactions.

You acknowledge that smart contracts may contain bugs, vulnerabilities, or unintended behaviors that could result in the loss of tokens or other assets. You interact with all smart contracts entirely at your own risk. FractalAI shall not be liable for any losses, damages, or claims arising from the deployment of, interaction with, or reliance upon any smart contract on the Platform.

9. AI Compute Services

The FractalAI Platform includes a decentralized marketplace for AI and machine learning compute resources. Compute providers contribute processing power to the network, and Users may purchase compute capacity to run AI workloads, model training, inference tasks, and other computational operations. Pricing, availability, and performance of compute resources are determined by market dynamics between providers and consumers.

FractalAI does not guarantee the accuracy, reliability, quality, or completeness of any results produced through the AI Compute Services. Compute tasks are executed on decentralized infrastructure operated by independent providers, and performance may vary based on hardware specifications, network conditions, and provider availability. Users are responsible for verifying the outputs of their compute workloads.

Compute providers are solely responsible for the hardware they contribute to the network and must ensure compliance with applicable laws regarding data processing, energy consumption, and export controls. Users of AI Compute Services retain ownership of their input data and model outputs, subject to any applicable open-source licenses. FractalAI does not access, store, or retain User data processed through the compute marketplace beyond what is necessary for protocol operation.

10. Decentralized Exchange (DEX)

The Platform provides decentralized exchange functionality through automated market maker (AMM) liquidity pools. Users may swap tokens, provide liquidity to pools, and earn fees from trading activity. All DEX operations are executed through smart contracts and are non-custodial; at no point does FractalAI take custody of User funds.

Liquidity providers should be aware of the risk of impermanent loss, which occurs when the price ratio of tokens in a liquidity pool diverges from the ratio at the time of deposit. Impermanent loss can result in a lower value of withdrawn assets compared to simply holding the tokens. FractalAI does not guarantee returns for liquidity providers and makes no representations regarding the profitability of providing liquidity.

Token swaps on the DEX are subject to slippage, which is the difference between the expected price of a trade and the actual execution price. Large trades relative to pool liquidity may experience significant slippage. Users are responsible for setting appropriate slippage tolerance parameters. FractalAI does not guarantee execution prices, trade completion, or protection against front-running or sandwich attacks.

11. Intellectual Property

The FractalAI core protocol, client software, and associated developer tools are released as open-source software under the MIT License and Apache License 2.0, as applicable. You are free to use, modify, and distribute the open-source components of the Platform in accordance with the terms of these licenses. The full text of applicable licenses is available in the project repositories.

The FractalAI name, logo, and brand assets are trademarks of the FractalAI project. You may not use these trademarks in a manner that suggests endorsement, affiliation, or sponsorship by FractalAI without prior written consent, except as permitted under applicable trademark fair use doctrines.

Users retain full ownership of all content, data, smart contracts, AI models, and other materials they create, deploy, or upload to the Platform. By deploying content to the public blockchain, you acknowledge that such content will be publicly visible and immutably recorded. FractalAI claims no ownership interest in User-generated content.

12. Limitation of Liability

THE PLATFORM IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS WITHOUT WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE. FRACTALAI EXPRESSLY DISCLAIMS ALL WARRANTIES, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. FRACTALAI DOES NOT WARRANT THAT THE PLATFORM WILL BE UNINTERRUPTED, ERROR-FREE, SECURE, OR FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL FRACTALAI, ITS CONTRIBUTORS, DEVELOPERS, AFFILIATES, OR SERVICE PROVIDERS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, LOSS OF DATA, LOSS OF TOKENS, LOSS OF GOODWILL, BUSINESS INTERRUPTION, OR ANY OTHER INTANGIBLE LOSSES, ARISING OUT OF OR RELATING TO YOUR USE OF OR INABILITY TO USE THE PLATFORM, REGARDLESS OF THE THEORY OF LIABILITY (CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE), EVEN IF FRACTALAI HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE TOTAL AGGREGATE LIABILITY OF FRACTALAI AND ITS CONTRIBUTORS FOR ALL CLAIMS ARISING OUT OF OR RELATING TO THESE TERMS OR THE USE OF THE PLATFORM SHALL NOT EXCEED THE GREATER OF (A) THE AMOUNT OF FRAC TOKENS YOU HAVE PAID IN TRANSACTION FEES DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM, OR (B) ONE HUNDRED UNITED STATES DOLLARS (USD $100.00).

13. Indemnification

You agree to indemnify, defend, and hold harmless FractalAI, its contributors, developers, affiliates, officers, agents, and service providers from and against any and all claims, demands, actions, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to: (a) your use of the Platform; (b) your violation of these Terms; (c) your violation of any applicable law, rule, or regulation; (d) your smart contracts or other content deployed on the Platform; (e) any dispute between you and any third party relating to the Platform; or (f) your negligence or willful misconduct.

This indemnification obligation shall survive the termination of these Terms and your use of the Platform. FractalAI reserves the right, at your expense, to assume the exclusive defense and control of any matter for which you are required to indemnify us, and you agree to cooperate with our defense of such claims.

14. Dispute Resolution

Any dispute, controversy, or claim arising out of or relating to these Terms, or the breach, termination, or invalidity thereof, shall be settled by binding arbitration administered in accordance with the rules of the American Arbitration Association ("AAA") then in effect. The arbitration shall be conducted by a single arbitrator, and the seat of arbitration shall be determined by the AAA. The language of the arbitration shall be English.

YOU AND FRACTALAI AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, CONSOLIDATED, OR REPRESENTATIVE ACTION. Unless both you and FractalAI agree otherwise, the arbitrator may not consolidate more than one person's claims and may not otherwise preside over any form of a class, consolidated, or representative proceeding.

Notwithstanding the foregoing, either party may seek injunctive or other equitable relief in any court of competent jurisdiction to prevent the actual or threatened infringement, misappropriation, or violation of intellectual property rights or confidential information. The arbitrator's award shall be final and binding and may be entered as a judgment in any court of competent jurisdiction.

15. Governing Law

These Terms and any dispute arising out of or relating to these Terms or the Platform shall be governed by and construed in accordance with the laws of the State of Delaware, United States of America, without regard to its conflict of law principles.

You agree that any legal action or proceeding not subject to binding arbitration under Section 14 shall be brought exclusively in the federal or state courts located in Wilmington, Delaware, and you consent to the personal jurisdiction and venue of such courts. You waive any objection to the exercise of jurisdiction over you by such courts and to venue in such courts.

16. Termination

Due to the decentralized nature of the Platform, FractalAI cannot unilaterally terminate your access to the underlying blockchain network. However, FractalAI reserves the right to restrict or terminate your access to centralized services, including but not limited to the website, APIs, front-end interfaces, and any other services operated by FractalAI, at any time and for any reason, with or without notice.

You may cease using the Platform at any time. Termination of your use does not release you from obligations incurred prior to termination, including any pending transactions, staking commitments, or smart contract obligations. Tokens locked in staking contracts will remain subject to the protocol's unbonding period regardless of termination.

Sections 4, 6, 8, 12, 13, 14, 15, and 17 of these Terms, together with any other provisions that by their nature are intended to survive, shall survive any termination or expiration of these Terms.

17. Severability

If any provision of these Terms is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid, legal, and enforceable while preserving the original intent of the provision. If such modification is not possible, the provision shall be severed from these Terms, and the remaining provisions shall continue in full force and effect. The invalidity or unenforceability of any provision in one jurisdiction shall not affect the validity or enforceability of that provision in any other jurisdiction.

18. Changes to Terms

FractalAI reserves the right to modify, amend, or replace these Terms at any time at its sole discretion. When material changes are made, FractalAI will update the "Last updated" date at the top of these Terms and make reasonable efforts to notify Users through the Platform interface, official communication channels, or other appropriate means.

Your continued use of the Platform following the posting of revised Terms constitutes your acceptance of and agreement to the updated Terms. If you do not agree to the revised Terms, you must discontinue your use of the Platform. It is your responsibility to review these Terms periodically. Material changes will not apply retroactively to disputes arising before the date of the change.

19. Contact Information

If you have questions, concerns, or feedback regarding these Terms of Service or the FractalAI Platform, you may contact us through the following channels:

• GitHub: github.com/fractalai
• Email: legal@fractalai.network
• Community Forum: community.fractalai.network