🦞 Terms of Service

Effective Date: July 1, 2025  |  Last Updated: July 1, 2025
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Summary: LobsterPod is a distributed AI compute marketplace. These terms govern your use of our platform as a Consumer (API user) or Contributor (compute provider). By using LobsterPod, you agree to these terms. If you don't agree, please don't use the service.

Table of Contents

  1. Definitions
  2. Acceptance of Terms
  3. Description of Services
  4. Accounts & Registration
  5. Consumer Terms
  6. Contributor Terms
  7. Payment Terms
  8. Acceptable Use Policy
  9. Intellectual Property
  10. Privacy
  11. Disclaimers & Liability
  12. Termination
  13. Dispute Resolution
  14. Changes to Terms
  15. Contact

1. Definitions

  • "Platform" refers to the LobsterPod distributed AI compute marketplace, including all APIs, websites, dashboards, and associated services.
  • "Consumer" refers to any person or entity that accesses AI model inference through the Platform API.
  • "Contributor" refers to any person or entity that provides compute resources to the Platform by running a LobsterPod daemon.
  • "API Key" refers to the authentication credential (prefixed lp_live_) issued to Consumers.
  • "Contributor Token" refers to the authentication credential (prefixed lpc_) issued to Contributors.
  • "Content" refers to any data, prompts, completions, or other material processed through the Platform.

2. Acceptance of Terms

By creating an account, generating an API key, running a contributor daemon, or otherwise accessing the Platform, you agree to be bound by these Terms. If you are accepting these Terms on behalf of a company or other legal entity, you represent that you have the authority to bind that entity.

You must be at least 18 years old (or the age of majority in your jurisdiction) to use the Platform.

3. Description of Services

LobsterPod operates a decentralized AI compute marketplace that:

  • Provides an OpenAI-compatible API for Consumers to access multiple AI models (GPT-4, Claude, Gemini, etc.)
  • Enables Contributors to monetize their existing AI API keys and compute capacity by serving Consumer requests
  • Handles routing, load balancing, quality scoring, and billing transparently
  • Offers Swarm Mode for multi-agent collaboration across the distributed pool

The Platform does not itself run AI models. It connects Consumers who need inference with Contributors who provide it.

4. Accounts & Registration

4.1 Consumer Accounts

Consumers register via POST /api/v1/consumers/register and receive an API key. You are responsible for keeping your API key secure. You must not share your API key publicly or embed it in client-side code.

4.2 Contributor Accounts

Contributors register by running the LobsterPod daemon CLI, which generates a contributor token. Contributors must provide valid AI provider API keys (e.g., OpenAI, Anthropic) to serve requests. These keys are stored locally in an encrypted vault on the Contributor's machine and are never transmitted to or stored on the Platform.

4.3 Account Security

You are responsible for all activity under your account. Notify us immediately at [email protected] if you suspect unauthorized access. We reserve the right to suspend accounts that show signs of compromise.

5. Consumer Terms

5.1 API Usage

Consumers may use the Platform API to submit chat completion requests. The Platform will route requests to available Contributors and return results. Response quality and latency depend on pool availability.

5.2 No Guarantee of Availability

The Platform routes requests to a distributed pool of Contributors. While we employ redundancy and quality scoring, we do not guarantee 100% uptime, specific latency targets, or the availability of any particular AI model at any given time.

5.3 Rate Limits

Default rate limits are 60 requests/minute, 1,000 requests/hour, with a burst allowance of 10 requests/second. Rate limit headers are included in every response. Exceeding limits results in HTTP 429 responses.

5.4 Content Responsibility

Consumers are solely responsible for the content of their prompts and for how they use model outputs. The Platform does not monitor, filter, or moderate Content beyond basic input sanitization for security purposes.

6. Contributor Terms

6.1 Compute Provision

Contributors agree to serve inference requests routed by the Platform using their own AI provider API keys. Contributors pay the upstream provider costs for each request they serve.

6.2 Key Security

The Platform employs a zero-knowledge key architecture. Contributor API keys remain on the Contributor's local machine in an encrypted vault. The Platform never requests, transmits, or stores Contributor API keys. Contributors are responsible for the security of their local environment.

6.3 Quality Standards

Contributors are scored on uptime, response latency, success rate, and output quality. Contributors whose quality scores fall below Platform thresholds may be temporarily or permanently removed from the active pool. The tier system (Lobster → Alpha Lobster → Pod Leader) rewards consistent quality with higher payout rates.

6.4 Honest Participation

Contributors must not manipulate the Platform by fabricating responses, misreporting capabilities, running automated quality-gaming scripts, or attempting to inflate their earnings fraudulently. Such activity will result in immediate account termination and forfeiture of pending payouts.

7. Payment Terms

7.1 Consumer Billing

Consumers are billed per token at published rates (currently 1.3× the upstream provider cost). Pricing for each model is listed on the /v1/models endpoint and the Platform pricing page. We reserve the right to adjust pricing with 30 days' notice.

7.2 Contributor Payouts

Contributors earn a percentage of the Platform fee for each request they serve:

  • Lobster tier: 80% payout rate
  • Alpha Lobster tier: 85% payout rate
  • Pod Leader tier: 90% payout rate

Payouts are processed via Stripe Connect. Contributors must set up a valid Stripe Connect account to receive payouts. Minimum payout threshold is $10.00 USD. Payouts are processed on a rolling basis.

7.3 Taxes

Contributors are solely responsible for reporting and paying all applicable taxes on their earnings. LobsterPod will issue tax documentation (e.g., 1099 forms for US-based Contributors) as required by law. The Platform retains no tax liability for Contributor earnings.

7.4 Refunds

Consumer refunds are handled on a case-by-case basis for verifiable service failures (e.g., billing for requests that returned errors). Contact [email protected] within 30 days of the charge.

7.5 Currency

All prices, billing, and payouts are denominated in United States Dollars (USD). Currency conversion fees, if applicable, are the responsibility of the user.

8. Acceptable Use Policy

You agree NOT to use the Platform to:

  • Generate content that violates applicable law (e.g., CSAM, credible threats of violence)
  • Attempt to reverse-engineer, extract, or steal Contributor API keys
  • Conduct denial-of-service attacks against the Platform or Contributors
  • Submit requests designed to exploit or abuse AI model safety mechanisms
  • Use the Platform for automated scraping, competitive intelligence gathering against the Platform, or reselling access without authorization
  • Impersonate other users or misrepresent your identity
  • Circumvent rate limits, authentication mechanisms, or security controls

Violation of this policy may result in immediate suspension or termination without refund.

9. Intellectual Property

9.1 Platform IP

The Platform, including its software, documentation, branding, and APIs, is the intellectual property of LobsterPod and its licensors. The Platform software is licensed under the MIT License.

9.2 Consumer Content

Consumers retain all rights to their input prompts and own outputs generated through the Platform to the extent permitted by law. The Platform claims no ownership of Consumer Content. We do not use Consumer Content to train models or for any purpose other than fulfilling the specific API request.

9.3 No Training on Content

The Platform does not train AI models. Content is processed in real-time by Contributors and is not stored by the Platform beyond transient processing. The Platform may retain anonymized, aggregated usage metadata (token counts, model usage, latency) for operational purposes.

10. Privacy

Your use of the Platform is also governed by our Privacy Policy, which describes how we collect, use, and protect your data. The Privacy Policy is incorporated by reference into these Terms.

11. Disclaimers & Limitation of Liability

11.1 "AS IS" Provision

THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

11.2 AI Output Disclaimer

AI model outputs routed through the Platform may be inaccurate, biased, harmful, or incomplete. The Platform does not verify, endorse, or guarantee the accuracy of any model output. Users should not rely on Platform outputs for medical, legal, financial, or safety-critical decisions without independent verification.

11.3 Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, LOBSTERPOD 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. OUR TOTAL LIABILITY FOR ANY CLAIMS ARISING FROM YOUR USE OF THE PLATFORM SHALL NOT EXCEED THE AMOUNT YOU PAID TO US IN THE 12 MONTHS PRECEDING THE CLAIM.

11.4 Contributor Liability

The Platform is not liable for actions taken by Contributors, including but not limited to: API key security on Contributor machines, downstream provider outages, or quality of inference results. Contributors operate as independent service providers, not employees or agents of the Platform.

12. Termination

Either party may terminate at any time. Consumers may stop using the API and delete their account. Contributors may disconnect their daemon. We may suspend or terminate accounts for violations of these Terms, with or without notice.

Upon termination:

  • Consumer API keys will be revoked
  • Outstanding Consumer balances are non-refundable except at our discretion
  • Contributor pending payouts above the minimum threshold ($10) will be processed within 30 days
  • Pending payouts below the minimum threshold will be forfeited

13. Dispute Resolution

These Terms are governed by the laws of the State of Delaware, United States, without regard to conflict of law provisions. Any disputes arising from these Terms or your use of the Platform shall be resolved through binding arbitration administered by the American Arbitration Association (AAA), except that either party may seek injunctive relief in any court of competent jurisdiction for violations of intellectual property rights or confidentiality obligations.

14. Changes to Terms

We may update these Terms from time to time. Material changes will be communicated via email (if provided) or a prominent notice on the Platform at least 30 days before taking effect. Continued use of the Platform after changes take effect constitutes acceptance of the updated Terms.

15. Contact

Questions about these Terms? Reach us at:

  • Email: [email protected]
  • Security issues: [email protected]
  • Billing: [email protected]
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