Stability AI · Stability AI Terms of Service · View original document ↗

Limitation of Liability

Medium severity Medium confidence Explicitdocumentlanguage Common · 227 of 325 platforms
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Document Record

What it is

Stability AI limits its legal responsibility for losses you experience from using its services, excluding indirect and consequential damages such as lost profits or data, to the maximum extent allowed by law.

This analysis describes what Stability 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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The clause limits the scope of recoverable damages in disputes to exclude categories of loss that would otherwise be available under general liability principles, thereby defining the financial exposure the service provider assumes for service failures or disruptions.

Interpretive note: The enforceability of this limitation against consumers varies by jurisdiction; EU and UK statutory rights may override the contractual exclusion in part or in full.

Consumer impact (what this means for users)

Under this provision, users cannot recover from Stability AI for indirect losses such as lost profits, lost data, or loss of goodwill arising from service failures or AI output issues, to the extent permitted by applicable law in the user's jurisdiction.

How other platforms handle this

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...

DeepSeek Medium

IN NO EVENT WILL DEEPSEEK OR ITS AFFILIATES BE LIABLE UNDER ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT, NEGLIGENCE, PRODUCTS LIABILITY, OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES OR LOST PROFITS, EVEN IF DEEPSEEK OR ITS AFFILIATES HAVE ...

Perplexity AI Medium

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL PERPLEXITY, ITS AFFILIATES, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS O...

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▸ View Original Clause Language DOCUMENT RECORD
"
To the maximum extent permitted by applicable law, in no event shall Stability AI, its directors, employees, partners, agents, suppliers, or affiliates, be liable for any indirect, incidental, special, consequential or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from your access to or use of (or inability to access or use) the Services.

— Excerpt from Stability AI's Stability AI Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

1. REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts may require evaluation under EU Directive 93/13/EEC and the UK Consumer Rights Act 2015, which may limit the enforceability of such clauses against consumers. In the US, limitation of liability clauses in commercial contracts are generally enforceable subject to unconscionability standards and jurisdiction-specific consumer protection statutes. The qualifier 'to the maximum extent permitted by applicable law' acknowledges that statutory consumer rights may override this limitation in some jurisdictions. 2. GOVERNANCE EXPOSURE: Medium. The broad exclusion of indirect and consequential damages is standard in technology service agreements but is operationally significant for enterprise users who rely on Stability AI for business-critical functions. The absence of a financial liability cap stated in absolute terms (such as a multiple of fees paid) leaves the residual scope of liability unclear. 3. JURISDICTION FLAGS: EU and UK consumers retain statutory rights that may not be waivable by contract, meaning this limitation may not be fully enforceable against consumers in those jurisdictions. California and other US states have consumer protection statutes that may limit the scope of liability exclusions. Enterprise users should assess whether the liability limitation is consistent with their own customer-facing service commitments. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams should confirm whether enterprise agreements include a specified financial liability cap and whether the limitation of liability clause is modified for business customers. The absence of carve-outs for gross negligence or willful misconduct is a commercially material omission that procurement teams should address in contract negotiations. 5. COMPLIANCE CONSIDERATIONS: Organizations relying on Stability AI for regulated activities should assess whether the liability limitation is compatible with their own regulatory obligations, particularly in sectors such as financial services, healthcare, or legal services where output accuracy is material. Vendor risk assessments should document the liability exposure created by this clause.

Full compliance analysis

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

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Applicable agencies

  • FTC
    The FTC has consumer protection authority over potentially unfair contract terms, including broad liability exclusions in consumer-facing service agreements.
    File a complaint →
  • State AG
    State attorneys general may have enforcement authority over limitation of liability clauses that conflict with state consumer protection statutes.
    File a complaint →

Applicable regulations

EU AI Act - High Risk Provisions
EU
FTC Act Section 5
United States Federal

Provision details

Document information
Document
Stability AI Terms of Service
Entity
Stability AI
Document last updated
May 5, 2026
Tracking information
First tracked
April 28, 2026
Last verified
May 12, 2026
Record ID
CA-P-001614
Document ID
CA-D-00329
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
c37555e39410017f27d67115f83f8336d2d37d144043b45c3e24b4e7b47ee52a
Analysis generated
April 28, 2026 05:27 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Stability AI
Document: Stability AI Terms of Service
Record ID: CA-P-001614
Captured: 2026-04-28 05:27:04 UTC
SHA-256: c37555e39410017f…
URL: https://conductatlas.com/platform/stability-ai/stability-ai-terms-of-service/limitation-of-liability/
Accessed: May 20, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Stability AI's Limitation of Liability clause do?

The clause limits the scope of recoverable damages in disputes to exclude categories of loss that would otherwise be available under general liability principles, thereby defining the financial exposure the service provider assumes for service failures or disruptions.

How does this clause affect you?

Under this provision, users cannot recover from Stability AI for indirect losses such as lost profits, lost data, or loss of goodwill arising from service failures or AI output issues, to the extent permitted by applicable law in the user's jurisdiction.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 227 platforms. See the full comparison.

Is ConductAtlas affiliated with Stability AI?

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