Limitation of Liability Cap

What it is

The agreement caps Figma's total aggregate liability for all claims at the greater of $100 or the subscription fees paid by the customer in the 12 months before the liability-triggering event. This cap applies across all legal theories including contract, tort, negligence, strict liability, and warranty claims.

Why it matters (compliance & governance perspective)

This provision establishes that Figma's maximum financial exposure to any customer is capped at the amount that customer paid in the preceding 12 months, or $100 if fees paid are lower. For free-tier users, the effective cap is $100. The cap applies across all legal theories and is stated to apply to the maximum extent not prohibited by law.

Consumer impact (what this means for users)

Under this clause, the maximum amount a customer can recover from Figma for any claim, regardless of the legal theory, is the greater of $100 or 12 months of subscription fees paid. For customers on free plans, the effective monetary cap is $100. The terms state this cap applies to the maximum extent not prohibited by law, acknowledging that applicable law may impose limits on this provision.

Institutional analysis (regulatory & governance intelligence)

(1) REGULATORY LANDSCAPE: Liability limitation clauses in consumer-facing SaaS agreements engage applicable consumer protection law, which in some jurisdictions prohibits limitation of liability for certain types of harm including gross negligence, intentional misconduct, or personal injury. EU consumer protection law may render certain liability limitations unenforceable against consumers. The FTC and State AGs have authority over provisions that may constitute unfair or deceptive limitations on consumer remedies. (2) GOVERNANCE EXPOSURE: Medium. The $100 floor for free-tier users is a standard provision in SaaS agreements, but enterprise customers on high-value subscriptions should note that the cap is based on fees paid in the preceding 12 months, which may be significantly lower than the business impact of a service failure or data incident. The exclusion of consequential damages (Section 7.1) compounds this limitation. (3) JURISDICTION FLAGS: EU consumer law may limit the enforceability of this cap for EU-based consumers. Some US states limit liability caps for specific types of harm. The terms acknowledge applicability limits through the phrase 'to the maximum extent not prohibited by law.' (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers should assess whether the 12-month fee-based cap is commensurate with their operational dependency on the platform and consider whether contractual protections beyond these standard terms are warranted. The terms note that Organization and Enterprise plan customers should refer to the Software Services Agreement, which may contain different liability terms. (5) COMPLIANCE CONSIDERATIONS: Legal teams should confirm that the liability cap and consequential damages exclusion have been assessed in the context of the customer's use case, particularly where Figma is used for operationally critical design workflows. Customers on Starter and Professional plans should note they do not have access to negotiated terms available under the Software Services Agreement.

Applicable agencies

Provision details

Other risks in this policy

• 30-Day Arbitration Opt-Out Right for New Customers high
• Class and Representative Action Waiver high
• Customer Content Use Authorization for Services high
• Customer Indemnification of Figma for Content and Breach high
• Fees Generally Non-Refundable and Non-Decreasable high
• Figma Disclaims All Implied Warranties high