RapidAPI · RapidAPI Terms of Use · View original document ↗

Limitation of Liability Cap

High severity High confidence Explicitdocumentlanguage Uncommon · 14 of 325 platforms
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What it is

If RapidAPI causes you harm, the most money you can recover from them is whatever you paid them in the three months before the problem occurred.

This analysis describes what RapidAPI'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This cap could leave users with very limited financial recourse even in cases of significant service failure, data loss, or security incidents, particularly for users on free tiers or low-cost plans who may have paid little or nothing.

Consumer impact (what this means for users)

If RapidAPI experiences a serious outage, data breach, or service failure that causes your business substantial financial harm, this clause limits your recovery to a maximum of three months of fees paid, which may be far less than your actual losses.

How other platforms handle this

Anthropic Medium

Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...

Whatnot Medium

TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...

Cohere Medium

In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...

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▸ View Original Clause Language DOCUMENT RECORD
"
IN NO EVENT WILL RAPIDAPI'S TOTAL LIABILITY TO YOU FOR ALL DAMAGES, LOSSES, AND CAUSES OF ACTION ARISING OUT OF OR RELATING TO THESE TERMS OR YOUR USE OF THE SERVICES EXCEED THE AMOUNTS YOU HAVE PAID TO RAPIDAPI IN THE THREE (3) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH LIABILITY.

— Excerpt from RapidAPI's RapidAPI Terms of Use

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Contractual liability caps are widely enforced in US commercial agreements under UCC and common law, though courts may scrutinize caps that are deemed unconscionable, particularly in consumer contexts. In the EU, liability limitations for personal data breaches may conflict with GDPR Article 82, which provides data subjects with a right to compensation that cannot be contractually waived. Consumer protection laws in various states may also limit the enforceability of liability caps against individual consumers. GOVERNANCE EXPOSURE: High for enterprise users. A three-month fee cap is a minimal ceiling in the context of API-dependent production systems where outages or data exposure could cause losses orders of magnitude larger. This is particularly material for organizations that do not pay significant monthly fees but rely heavily on the platform. JURISDICTION FLAGS: EU users affected by personal data incidents may have GDPR-based claims that supersede this contractual cap. California consumers may have additional statutory remedies. Free-tier users face a practical cap of zero, which may create unconscionability arguments in some jurisdictions. CONTRACT AND VENDOR IMPLICATIONS: This clause is a standard but aggressive commercial liability cap. Enterprise procurement teams should negotiate higher caps, particularly if RapidAPI is a critical vendor. Indemnification provisions should be reviewed in conjunction with this cap to understand the full risk allocation. Cyber insurance policies should be assessed to determine whether vendor liability limitations are accounted for. COMPLIANCE CONSIDERATIONS: Organizations in regulated industries, including financial services and healthcare, should evaluate whether this liability cap is compatible with their vendor risk and contractual requirements. Data breach response plans should account for the likelihood that RapidAPI's contractual liability will be minimal in the event of a platform-side incident.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has authority to review whether liability limitation clauses in platform agreements constitute unfair or deceptive practices toward consumers
    File a complaint →
  • State AG
    State attorneys general may have authority over unconscionable or one-sided contractual liability caps under state consumer protection law
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
RapidAPI Terms of Use
Entity
RapidAPI
Document last updated
May 5, 2026
Tracking information
First tracked
May 8, 2026
Last verified
May 10, 2026
Record ID
CA-P-006574
Document ID
CA-D-00679
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
bef64197aebb0347394b2e248a2c8c8790c7bc600f721280ffa67691e34b8085
Analysis generated
May 8, 2026 11:40 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: RapidAPI
Document: RapidAPI Terms of Use
Record ID: CA-P-006574
Captured: 2026-05-08 11:40:10 UTC
SHA-256: bef64197aebb0347…
URL: https://conductatlas.com/platform/rapidapi/rapidapi-terms-of-use/limitation-of-liability-cap/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does RapidAPI's Limitation of Liability Cap clause do?

This cap could leave users with very limited financial recourse even in cases of significant service failure, data loss, or security incidents, particularly for users on free tiers or low-cost plans who may have paid little or nothing.

How does this clause affect you?

If RapidAPI experiences a serious outage, data breach, or service failure that causes your business substantial financial harm, this clause limits your recovery to a maximum of three months of fees paid, which may be far less than your actual losses.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 14 platforms. See the full comparison.

Is ConductAtlas affiliated with RapidAPI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by RapidAPI.