Compare liability limitation governance provisions between Midjourney and Stability-Ai. Provisions are extracted from monitored governance documents and classified by severity.
The liability structure creates bounded financial exposure for the service provider while establishing user responsibility for third-party claims. The 12-month payment cap defines the maximum recoverable amount in any liability scenario, and the indemnification clause allocates defense costs and settlement obligations to users for claims connected to their service use or compliance breaches.
Consumer impact
Users waive recovery for categories of damages classified as indirect or consequential and accept a maximum recovery limit equal to amounts paid in the preceding 12 months. Additionally, users assume financial responsibility for defending Midjourney against third-party claims related to their use of the service or violations of the terms, including payment of legal fees.
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Actual clause text
You understand and agree that we will not be liable to You or any third party for any loss of profits, use, goodwill, or data, or for any incidental, indirect, special, consequential or exemplary damages, however they arise. Our aggregate liability under this Agreement will not exceed the amount You paid for the Services that gave rise to the claim during the 12 months before the claim. [...] To the extent permitted by law, you will indemnify and hold us harmless, our affiliates, and our personnel, from and against any costs, losses, liabilities, and expenses (including attorneys' fees) from third party claims arising out of or relating to your use of the Services and Assets or any violation of these Terms.
AI-extracted from source document. Verify against original for legal use.
No Liability Limitation clause found in our archive for this platform.
AI Difference AnalysisProfessional
Stripe's arbitration clause is narrower than Amazon's in one key respect: it includes a small claims court carve-out that Amazon's clause does not. PayPal's clause is the most aggressive of the three, explicitly waiving jury trial rights in addition to class action rights. From a compliance perspective, Amazon presents the lowest risk for B2B contracts while PayPal creates the highest exposure for consumer-facing applications subject to CFPB oversight.