Table of Contents

  • 1. Acceptance of Terms
  • 2. Service Description
  • 3. User Accounts and Registration
  • 4. Subscription and Billing
  • 5. Acceptable Use Policy
  • 6. Intellectual Property
  • 7. Third-Party Integrations
  • 8. Data and Privacy
  • 9. AI and Automated Services
  • 10. Service Availability and Support
  • 11. Limitation of Liability
  • 12. Termination
  • 13. General Provisions

Terms of Service

UsefulAI by Phenomenon Labs, Inc.

Last Updated: August 27, 2025 | Effective Date: August 27, 2025

1. Acceptance of Terms

These Terms of Service ("Terms") constitute a legally binding agreement between you ("User," "you," or "your") and Phenomenon Labs, Inc. ("Company," "we," "our," or "us") regarding your use of the UsefulAI platform and related services (the "Service").

Bot Disclosure (California SB 1001): UsefulAI uses artificial intelligence and automated systems. When you interact with our AI Specialists, you are communicating with AI-powered tools, not human agents, unless explicitly stated otherwise. This disclosure is required under California Business and Professions Code Section 17940.

By accessing, registering for, or using UsefulAI, you agree to be bound by these Terms and our Privacy Policy, which is incorporated herein by reference. If you do not agree to these Terms, you must not use our Service.

Important: These Terms include provisions that limit our liability and require dispute resolution through arbitration rather than court proceedings. Please read these Terms carefully.

We may modify these Terms at any time by providing notice as described in Section 13.8. Your continued use of the Service after such notice constitutes acceptance of the modified Terms.

1.1 Eligibility

You must be at least 18 years old or the age of majority in your jurisdiction to use our Service. If you are under 18, you may only use the Service with parental consent and supervision.

1.2 Business Users

If you register an account on behalf of a company or organization, you represent and warrant that you have the authority to bind that entity to these Terms and that such entity agrees to be bound by these Terms.

2. Service Description

2.1 Overview

UsefulAI provides specialized AI tools ("AI Specialists") that integrate with existing AI assistants such as Claude, ChatGPT, and Microsoft Copilot. Our Service enables you to:

  • Deploy AI Specialists that enhance your AI assistant capabilities
  • Connect and integrate with third-party services and data sources
  • Automate data analysis, reporting, and workflow tasks
  • Access professional mentoring and development tools through AI
  • Maintain persistent memory across AI interactions and tools

2.2 Service Components

  • AI Specialist Deployment: Creation and management of MCP (Model Context Protocol) servers
  • Integration Hub: Secure OAuth connections to third-party services
  • Memory System: Persistent, stateful memory across conversations and tools
  • Usage Analytics: Monitoring and reporting of Service usage
  • Customer Support: Technical assistance and account management

2.3 AI-Powered Features

Our Service incorporates artificial intelligence and machine learning technologies to:

  • Process and analyze your data according to your instructions
  • Optimize service performance and user experience
  • Provide intelligent recommendations and insights
  • Automate routine tasks and workflows
  • Detect security threats and anomalies
AI Limitations: AI-generated outputs may be incorrect, inappropriate, or unreliable. You are responsible for reviewing and validating all AI-generated content before use. We recommend human oversight for important decisions or content.

2.4 Service Evolution

We continuously develop and improve our Service. We may add, modify, or discontinue features with reasonable notice. We are not obligated to provide any specific features or maintain backward compatibility indefinitely.

3. User Accounts and Registration

3.1 Account Creation

To use UsefulAI, you must create an account by providing accurate, current, and complete information. You are responsible for:

  • Maintaining the confidentiality of your account credentials
  • All activities that occur under your account
  • Immediately notifying us of any unauthorized use of your account
  • Keeping your account information current and accurate
  • Using strong passwords and enabling two-factor authentication when available

3.2 Account Requirements

  • You must be at least 18 years old or the age of majority in your jurisdiction
  • You must provide a valid email address
  • You must not have been previously banned from the Service
  • You must comply with all applicable laws and regulations
  • You may only maintain one personal account (business accounts are separate)

3.3 Business Accounts

If you register an account on behalf of a company or organization:

  • You represent that you have the authority to bind that entity to these Terms
  • The entity agrees to be bound by these Terms
  • You agree to provide accurate business information
  • You acknowledge that business data is subject to the same privacy protections as individual data

3.4 Account Security

You agree to:

  • Use a strong, unique password for your account
  • Enable two-factor authentication when available
  • Keep your login credentials confidential
  • Log out from shared or public devices
  • Report suspicious account activity immediately

4. Subscription and Billing

4.1 Subscription Plans

UsefulAI offers multiple subscription tiers with different features and usage limits:

Plan Monthly Price Key Features Usage Limits
Free Trial $0.00/month Memory resets every 30 days, Community Support 100 interactions/month
Professional $29.99/month Unlimited Memory, Priority support, Grandfathering, Events 1,000 interactions/month + $0.10/additional
Enterprise $199.99+/month Team collaboration, Custom integrations, Dedicated support Unlimited interactions

4.2 Trial Periods

New users may be eligible for a trial period. Trial terms:

  • Duration and availability may vary and are subject to change
  • Limited to one per user and may require valid payment information
  • Automatically convert to paid subscription unless cancelled
  • Full access to trial plan features during trial period

4.3 Billing and Payment

  • Subscription fees are charged monthly or annually in advance
  • All fees are non-refundable unless otherwise specified or required by law
  • You authorize us to charge your payment method for all applicable fees
  • Failed payments may result in service suspension or termination
  • Automatic renewal unless cancelled before billing cycle ends

4.4 Usage-Based Charges

If you exceed your plan's usage limits:

  • Additional charges may apply at $0.15 per interaction over your monthly allowance
  • Usage-based charges will be added to your next billing cycle
  • You will receive usage notifications as you approach limits
  • You can upgrade your plan to avoid overage charges

4.5 Price Changes

We may change subscription prices with 30 days' notice. Price changes:

  • Will not affect your current billing cycle
  • Will apply to subsequent renewals unless you cancel
  • May include grandfathering provisions for existing users
  • Will be communicated via email and account notifications

4.6 Taxes and Fees

  • You are responsible for all applicable taxes, duties, and governmental fees
  • We may add applicable taxes to your bill where required by law
  • International transactions may incur additional fees from your payment provider
  • Business accounts may be subject to different tax treatment

4.7 Refunds and Cancellation

  • You may cancel your subscription at any time
  • Cancellation takes effect at the end of your current billing period
  • No refunds for partial months unless required by applicable law
  • Enterprise accounts may have different cancellation terms

5. Acceptable Use Policy

5.1 Permitted Uses

You may use UsefulAI for legitimate business, professional, and personal purposes consistent with these Terms and applicable laws, including:

  • Business automation and workflow optimization
  • Data analysis and reporting
  • Professional development and learning
  • Integration with authorized third-party services
  • Creative and educational projects

5.2 Prohibited Uses

You may not use UsefulAI to:

5.2.1 Illegal or Harmful Activities

  • Violate any laws, regulations, or third-party rights
  • Generate, distribute, or facilitate illegal, harmful, or offensive content
  • Engage in fraud, phishing, or deceptive practices
  • Harass, threaten, or harm others
  • Promote violence, hatred, or discrimination

5.2.2 Technical Violations

  • Attempt to reverse engineer, decompile, or access unauthorized parts of the Service
  • Interfere with or disrupt the Service or connected networks
  • Use the Service to compete with or harm our business
  • Share access credentials or allow unauthorized account access
  • Exceed usage limits or attempt to circumvent service restrictions
  • Use the Service for cryptocurrency mining or similar resource-intensive activities

5.2.3 Prohibited Content

  • Child exploitation or abuse content
  • Non-consensual intimate imagery
  • Terrorist or extremist content
  • Spam or unsolicited commercial communications
  • Malware, viruses, or other harmful code

5.3 Content Responsibility

You are solely responsible for:

  • All data, content, and instructions you provide to or through the Service
  • Ensuring you have necessary rights to use and process data
  • Compliance with applicable data protection and privacy laws
  • Reviewing and validating AI-generated content before use
  • Any consequences of using AI-generated content

5.4 Compliance with Third-Party Terms

When using third-party integrations, you must comply with:

  • The terms of service and acceptable use policies of those services
  • Data sharing and privacy requirements
  • API usage limits and restrictions
  • Any additional obligations imposed by integrated services

5.5 Monitoring and Enforcement

We reserve the right to:

  • Monitor use of the Service for compliance with these Terms
  • Remove content that violates these Terms
  • Suspend or terminate accounts for violations
  • Report illegal activities to appropriate authorities
  • Cooperate with law enforcement investigations

6. Intellectual Property

6.1 Our Rights

UsefulAI, including all software, algorithms, text, images, trademarks, and other content, is owned by Phenomenon Labs, Inc. and protected by intellectual property laws. We retain all rights not expressly granted to you.

6.2 License to Use

Subject to these Terms, we grant you a limited, non-exclusive, non-transferable, revocable license to use UsefulAI for your personal or business purposes. This license does not include the right to:

  • Resell, redistribute, or sublicense the Service
  • Modify, adapt, or create derivative works
  • Access source code or proprietary methods
  • Remove or modify intellectual property notices
  • Use our trademarks or branding without permission

6.3 Your Content and Data

You retain ownership of content and data you upload or create using the Service. However, you grant us:

  • A limited license to use, process, and transmit your content as necessary to provide the Service
  • The right to create backups and ensure service availability
  • Permission to use anonymized, aggregated data for service improvement
  • The right to display your content within the Service as directed by you

6.4 AI-Generated Content

Regarding AI-generated outputs:

  • You own content you create using AI tools, subject to applicable law
  • AI outputs may not be eligible for copyright protection in all jurisdictions
  • You are responsible for ensuring AI-generated content doesn't infringe third-party rights
  • We make no warranties about the originality or non-infringement of AI outputs

6.5 Feedback and Suggestions

Any feedback, suggestions, or ideas you provide about UsefulAI:

  • May be used by us without compensation or attribution
  • Become our property to use for service improvement
  • Are provided voluntarily and without obligation on our part

6.6 DMCA Policy

We respect intellectual property rights. If you believe content on our Service infringes your copyright:

  • Contact us at legal@usefulai.ai with the required DMCA notice information
  • Include sufficient detail to identify the allegedly infringing content
  • Provide contact information and a statement of good faith belief
  • We will respond in accordance with the Digital Millennium Copyright Act

6.7 Trademark Policy

You may not use our trademarks, trade names, or service marks without our prior written consent. This includes:

  • The UsefulAI name and logo
  • Phenomenon Labs branding
  • Any confusingly similar marks
  • Use that suggests endorsement or affiliation without permission

7. Third-Party Integrations

7.1 Integration Services

UsefulAI integrates with third-party services including but not limited to:

  • Google Workspace (Gmail, Calendar, Drive, Sheets, etc.)
  • Microsoft 365 (Outlook, OneDrive, Teams, etc.)
  • Salesforce and other CRM platforms
  • AI platforms (Claude, ChatGPT, Microsoft Copilot)
  • Other business and productivity tools

These integrations are subject to the terms and availability of the respective third-party providers.

7.2 OAuth Authorization

When you connect third-party services:

  • You authorize us to access specific data and functionality as described during OAuth authorization
  • You can review and modify these permissions at any time
  • You may revoke authorization through your account settings or the third-party service
  • We store access tokens securely and use them only for authorized purposes

7.3 Third-Party Terms

Your use of integrated third-party services is governed by:

  • Their respective terms of service and privacy policies
  • API usage limits and restrictions
  • Data sharing and processing requirements
  • Any additional obligations they impose

We are not responsible for third-party service availability, functionality, or compliance with their terms.

7.4 Integration Limitations

  • We cannot guarantee continuous availability of third-party integrations
  • Third-party service changes may affect integration functionality
  • We may discontinue integrations with reasonable notice
  • Integration performance may depend on third-party service performance
  • Some features may require premium third-party service accounts

7.5 Data Processing with Third Parties

When using third-party integrations:

  • Data may be processed by both UsefulAI and the third-party service
  • Each service's privacy policy applies to their processing
  • You are responsible for ensuring compliance with applicable data protection laws
  • We implement appropriate safeguards for data transfers

7.6 Integration Security

We implement security measures for third-party integrations:

  • Secure storage of access tokens and credentials
  • Regular security reviews of integration partners
  • Monitoring for suspicious activity
  • Prompt revocation of compromised credentials

8. Data and Privacy

8.1 Data Handling

Our collection, use, and protection of your data is governed by our Privacy Policy, which is incorporated into these Terms by reference. By using the Service, you agree to our data practices as described in the Privacy Policy.

8.2 Your Data Responsibilities

You are responsible for:

  • Ensuring you have necessary rights to provide data to us
  • Compliance with applicable data protection laws (GDPR, CCPA, PIPEDA, etc.)
  • Obtaining necessary consents for data processing
  • Providing accurate information about data subjects' rights
  • Maintaining appropriate security for your data

8.3 Data Security

While we implement reasonable security measures:

  • You acknowledge that no system is completely secure
  • You are responsible for maintaining the security of your account credentials
  • You should implement appropriate data backup and recovery measures
  • You must report suspected security breaches promptly

8.4 Data Processing for AI

By using AI Specialists, you understand and agree that:

  • Your data may be processed by artificial intelligence systems to provide requested services
  • AI processing occurs according to your instructions and our Privacy Policy
  • We may use aggregated, anonymized data to improve AI services
  • You retain control over which data is processed by AI systems

8.5 Data Portability and Deletion

You have the right to:

  • Export your data in machine-readable formats
  • Request deletion of your personal data
  • Correct inaccurate information
  • Restrict processing in certain circumstances

Data deletion is subject to legal retention requirements and may take up to 90 days to complete fully.

8.6 Cross-Border Data Transfers

Your data may be transferred to and processed in:

  • The United States (our primary processing location)
  • Countries where our service providers operate
  • Locations you authorize through third-party integrations

We implement appropriate safeguards for international data transfers, including Standard Contractual Clauses and other legally recognized mechanisms.

9. AI and Automated Services

9.1 AI Processing Disclosure

Artificial Intelligence Use: UsefulAI extensively uses artificial intelligence and machine learning systems to provide specialized AI tools and services. This includes automated decision-making, pattern recognition, intelligent data analysis, and content generation.

9.2 Types of AI Processing

We use AI for:

  • Service Delivery: AI Specialists that perform tasks according to your instructions
  • Data Analysis: Automated analysis and processing of your data
  • Personalization: Customization of features and recommendations
  • Performance Optimization: System performance and user experience improvements
  • Security Monitoring: Threat detection and anomaly identification
  • Content Generation: Creation of text, analyses, and reports

9.3 AI Limitations and Risks

Important AI Disclaimers:
  • AI outputs may be incorrect, incomplete, biased, or inappropriate
  • AI systems may hallucinate or generate false information
  • AI-generated content may inadvertently infringe third-party rights
  • AI performance may vary based on input quality and context
  • AI systems may reflect biases present in training data

9.4 Your Responsibilities with AI

When using AI-powered features, you agree to:

  • Review and validate all AI outputs before use
  • Not rely solely on AI for critical decisions
  • Implement human oversight for important tasks
  • Ensure AI use complies with applicable laws and regulations
  • Respect intellectual property rights in AI-generated content
  • Not attempt to manipulate AI systems for harmful purposes

9.5 Automated Decision-Making

We use automated processing for:

  • Account security and fraud detection
  • Service personalization and feature recommendations
  • Usage monitoring and performance analytics
  • Content filtering and safety measures
  • Billing and subscription management

9.6 Your Rights Regarding AI

You have the right to:

  • Request information about AI decision-making logic
  • Challenge automated decisions that significantly affect you
  • Request human review of automated decisions
  • Opt-out of non-essential automated processing where feasible
  • Control which of your data is used for AI training (where applicable)

9.7 AI Training and Learning

Regarding AI training:

  • We do not use your personal data to train general AI models without explicit consent
  • We may use anonymized, aggregated data for service improvement
  • AI systems may learn from interactions to improve performance within your account
  • You can request information about how your data is used for AI training

10. Service Availability and Support

10.1 Service Level

We strive to maintain high service availability but cannot guarantee uninterrupted service. We will:

  • Use commercially reasonable efforts to maintain service availability
  • Announce planned maintenance when possible
  • Work promptly to resolve service disruptions
  • Provide status updates during significant outages

10.2 Support Services

Support is provided according to your subscription level:

Plan Level Support Channels Response Time Support Hours
Starter Documentation, Community Best effort Self-service
Individual Email support 48 hours Business hours
Professional Priority email, Chat 24 hours Extended hours
Enterprise Dedicated support, Phone 4 hours 24/7 for critical issues

10.3 Service Modifications

We may modify, suspend, or discontinue any aspect of the Service:

  • With reasonable notice for material changes
  • Immediately for security or legal reasons
  • To comply with legal requirements or court orders
  • To maintain service quality and performance

We will not be liable for any modification, suspension, or discontinuation of the Service, except as required by applicable law.

10.4 Third-Party Dependencies

Our Service depends on third-party providers for:

  • Cloud infrastructure and hosting
  • AI platform integrations
  • Payment processing
  • Third-party service integrations

Service availability may be affected by third-party provider issues beyond our control.

11. Limitation of Liability

11.1 Disclaimer of Warranties

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. WE DO NOT WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, OR COMPLETELY SECURE.

11.2 AI-Specific Disclaimers

AI SERVICES DISCLAIMER: WE MAKE NO WARRANTIES REGARDING THE ACCURACY, COMPLETENESS, OR RELIABILITY OF AI-GENERATED OUTPUTS. AI SYSTEMS MAY PRODUCE INCORRECT, BIASED, OR INAPPROPRIATE RESULTS. YOU USE AI FEATURES AT YOUR OWN RISK AND ARE RESPONSIBLE FOR REVIEWING ALL AI-GENERATED CONTENT.

11.3 Limitation of Damages

TO THE MAXIMUM EXTENT PERMITTED BY LAW, PHENOMENON LABS, INC. SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO:
  • LOSS OF PROFITS, REVENUE, OR BUSINESS OPPORTUNITIES
  • LOSS OF DATA OR INFORMATION
  • BUSINESS INTERRUPTION OR DOWNTIME
  • COST OF SUBSTITUTE SERVICES
  • DAMAGES FROM AI-GENERATED CONTENT

11.4 Liability Cap

OUR TOTAL LIABILITY TO YOU FOR ANY CLAIMS ARISING FROM OR RELATED TO THE SERVICE SHALL NOT EXCEED THE AMOUNT YOU PAID US IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM, OR $100, WHICHEVER IS GREATER.

11.5 Third-Party Content and Services

We are not responsible for:

  • Content, products, or services provided by third parties
  • Third-party service availability or performance
  • Actions taken by third-party AI platforms
  • Data loss or corruption in third-party services
  • Third-party security breaches or privacy violations

11.6 Force Majeure

We will not be liable for any failure to perform due to causes beyond our reasonable control, including:

  • Natural disasters and acts of God
  • War, terrorism, or civil unrest
  • Government actions or regulations
  • Internet or telecommunications failures
  • Third-party service provider outages
  • Pandemic or public health emergencies
Important: Some jurisdictions do not allow the exclusion or limitation of certain warranties or damages. In such jurisdictions, our liability will be limited to the maximum extent permitted by law.

11.7 Indemnification

You agree to indemnify and hold us harmless from any claims, damages, or expenses arising from:

  • Your use of the Service in violation of these Terms
  • Your violation of applicable laws or third-party rights
  • Content you submit or generate using the Service
  • Your use of AI-generated content
  • Unauthorized access to your account

12. Termination

12.1 Termination by You

You may terminate your account at any time by:

  • Using account deletion options in your dashboard
  • Contacting customer support
  • Following instructions in your account settings

Termination will be effective at the end of your current billing period for paid accounts, or immediately for free accounts.

12.2 Termination by Us

We may terminate or suspend your account immediately if you:

  • Violate these Terms or our Acceptable Use Policy
  • Fail to pay applicable fees after notice and cure period
  • Engage in fraudulent, illegal, or harmful activities
  • Pose a security risk to the Service or other users
  • Use the Service in ways that could harm our business or reputation

12.3 Effect of Termination

Upon termination of your account:

  • Your access to the Service will cease immediately
  • All AI Specialist deployments will be deactivated
  • Third-party integration tokens will be revoked
  • Your data will be deleted according to our data retention policy
  • You remain liable for all charges incurred before termination
  • No refunds will be provided unless required by law

12.4 Data Retrieval

Before account termination:

  • You should export any data you wish to retain
  • We may provide a limited grace period for data retrieval
  • After termination, data recovery may not be possible
  • Enterprise customers may have different data retention terms

12.5 Survival

The following sections will survive termination of these Terms:

  • Payment obligations and billing terms
  • Intellectual property provisions
  • Limitation of liability and disclaimers
  • Dispute resolution and arbitration
  • General provisions and governing law

13. General Provisions

13.1 Governing Law

These Terms are governed by the laws of the State of Delaware, United States, without regard to conflict of law principles. Any disputes will be resolved in Delaware unless otherwise specified.

13.2 Dispute Resolution

For disputes arising from these Terms or the Service:

13.2.1 Informal Resolution

Before initiating formal dispute resolution, you agree to contact us at legal@usefulai.ai to attempt informal resolution. We will work in good faith to resolve disputes within 60 days.

13.2.2 Binding Arbitration

If informal resolution fails, disputes will be resolved through binding arbitration:

  • Administered by the American Arbitration Association (AAA)
  • Under AAA's Commercial Arbitration Rules
  • Conducted in English in Delaware, United States
  • Before a single arbitrator
  • Limited discovery to ensure efficiency

13.2.3 Exceptions to Arbitration

The following disputes are not subject to arbitration:

  • Intellectual property disputes
  • Small claims court matters (under jurisdictional limits)
  • Injunctive relief requests
  • Government enforcement actions

13.3 Class Action Waiver

CLASS ACTION WAIVER: You waive any right to participate in class action lawsuits or class-wide arbitration against us. Disputes must be resolved individually.

13.4 Jury Trial Waiver

Both parties waive the right to trial by jury for any disputes not subject to arbitration.

13.5 Severability

If any provision of these Terms is found unenforceable:

  • The remaining provisions will remain in full force and effect
  • The unenforceable provision will be modified to be enforceable while preserving intent
  • The overall agreement remains valid

13.6 Assignment

Regarding assignment of these Terms:

  • We may assign our rights and obligations without your consent
  • You may not assign your rights without our written consent
  • Any attempted unauthorized assignment is void
  • These Terms bind successors and permitted assigns

13.7 Entire Agreement

These Terms, together with our Privacy Policy and any additional terms for specific features, constitute the entire agreement between you and us regarding the Service. They supersede all prior agreements and understandings.

13.8 Changes to Terms

We may modify these Terms by:

  • Providing 30 days' notice via email or through the Service
  • Posting updated Terms on our website
  • Updating the "Last Updated" date
  • Highlighting material changes clearly

Your continued use after the effective date constitutes acceptance of modified Terms. If you disagree with changes, your sole remedy is to terminate your account.

13.9 Waiver

Our failure to enforce any provision of these Terms does not constitute a waiver of that provision or any other provision. Any waiver must be in writing and signed by our authorized representative.

13.10 Interpretation

In interpreting these Terms:

  • Headings are for convenience only
  • Examples are illustrative, not exhaustive
  • References to laws include amendments and replacements
  • Singular includes plural and vice versa

13.11 Language

These Terms are written in English. Any translations are provided for convenience only. In case of conflicts, the English version controls.

13.12 Contact Information

For questions about these Terms, contact us:

Legal Department:
Email: legal@usefulai.ai
Response Time: 10 business days

General Support:
Email: support@usefulai.ai
Response Time: Based on subscription level

Company Information:
Phenomenon Labs, Inc.
1449 S Michigan Ave STE 13239
Chicago, IL 60605
United States

Business Registration:
Delaware Corporation
Federal EIN: [To be provided upon request]

13.13 Effective Date and Updates

These Terms are effective as of the "Effective Date" listed at the top of this document. We maintain a changelog of material changes available upon request.

Thank you for using UsefulAI. By using our Service, you help us build better AI tools that enhance human capabilities while respecting privacy and maintaining security.