This analysis describes what Leonardo AI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This limitation structures the financial risk allocation between Leonardo AI and users by defining a maximum recovery threshold tied to prior 12-month payments. The cap reduces the company's potential liability exposure and affects the economics of dispute resolution by capping compensatory damages regardless of actual harm.
Users' ability to recover damages from Leonardo AI is restricted to an amount equal to fees paid in the preceding 12 months, meaning recovery cannot exceed this defined ceiling even if actual damages exceed that sum. This limitation applies to most claims arising under the terms, subject to stated exceptions for excluded liability categories.
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TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DUOLINGO SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS OR REVENUES, WHETHER INCURRED DIRECTLY OR INDIRECTLY, OR ANY LOSS OF DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESUL...
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"clause 12 (Liability) which sets out exclusions and limitations to our liability under these Terms.— Excerpt from Leonardo AI's Leonardo AI Terms of Service
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This limitation structures the financial risk allocation between Leonardo AI and users by defining a maximum recovery threshold tied to prior 12-month payments. The cap reduces the company's potential liability exposure and affects the economics of dispute resolution by capping compensatory damages regardless of actual harm.
Users' ability to recover damages from Leonardo AI is restricted to an amount equal to fees paid in the preceding 12 months, meaning recovery cannot exceed this defined ceiling even if actual damages exceed that sum. This limitation applies to most claims arising under the terms, subject to stated exceptions for excluded liability categories.
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