Friend in the Cloud — AI Policy

Version: 1.0 Last updated: April 2026 Effective date: April 23, 2026 Incorporated by reference into: Terms and Conditions

Why This Policy Exists

Friend in the Cloud ("FITC") provides AI-powered companion services, AI avatars, AI-generated content, and AI-enabled features. These capabilities raise specific legal, ethical, and practical considerations that benefit from clear articulation in a dedicated policy.

This AI Policy supplements our Terms and Conditions and Privacy Policy and governs your use of AI features within the Service.

1. AI Avatars, Companions, and Digital Entities

1.1 What AI Avatars are

The Service enables Users to interact with, create, customize, train, and in some cases sell AI-based digital entities including:

• AI companions (pre-built by FITC);
• Specialist avatars (domain-specific, built by FITC or community creators);
• User-created avatars (built by users within the platform's tools);
• Derived instances ("Clones") purchased through the Marketplace.

We collectively refer to these as "AI Avatars" or "Avatars."

1.2 Infrastructure and control

All AI Avatars operate within the infrastructure, models, and systems owned and controlled by FITC.

FITC retains all rights, title, and interest in and to:

• The underlying AI models and their weights;
• Training methodologies and datasets;
• Behavioral frameworks and prompt engineering;
• Derivative intelligence associated with Avatars;
• Platform architecture, APIs, and system design;
• All Marketplace and Clone mechanics.

1.3 User rights to Avatars

Subject to your compliance with these Terms:

• You may use, customize, and train Avatars within the Service as enabled by platform features;
• Where supported by the platform, you may monetize your own user-created Avatars through the Marketplace;
• Any such rights are limited, non-exclusive, revocable, and non-transferable except as expressly provided.

Rights to monetize Avatars may be modified, restricted, or revoked at FITC's sole discretion, subject to reasonable notice and preservation of amounts already owed to you.

1.4 No ownership claim

You acknowledge that AI Avatars:

• Are generated using system-wide models and incorporate generalized knowledge, patterns, and behaviors not unique to any individual User;
• Do not constitute separate legal entities;
• Do not give rise to any ownership interest in FITC or equity right unless explicitly agreed in writing by FITC;
• Do not create any ongoing royalty entitlement except through the Marketplace revenue-sharing mechanism as defined in the Terms.

1.5 Data Handling for AI Conversations

Your conversations with any AI companion on FITC are treated as private. The full content of every message, and the title of every saved conversation, is encrypted at rest with a key unique to your account. When the Memory feature ships, the notes your companion banks about you will be encrypted under the same key.

Some data is not encrypted because the platform needs it to function: your email and password hash for sign-in, subscription tier for feature gating, public profile fields you choose to share, audit logs, and conversation metadata (when started, which companion, which folder). Our full encryption scope, including how we respond to legal requests, is described on our Privacy & Transparency page.

2. The Cloning and Lineage System (Marketplace)

2.1 Creator rights

A creator of an AI Avatar may, subject to eligibility and platform mechanics:

• List their Avatar in the Marketplace at one or more growth stages;
• Set pricing from available platform price tiers;
• Receive 70% of subscription revenue generated (with 30% retained by FITC);
• Retain their original Avatar regardless of Marketplace activity.

2.2 Buyer rights

When a buyer purchases a Clone of a creator's Avatar:

• The buyer receives a fresh instance starting at the purchased growth stage;
• The Clone evolves independently based on the buyer's usage;
• The buyer may use the Clone for personal use within the Service;
• The buyer does NOT receive rights to resell, transfer, or redistribute the Clone.

2.3 Descendant provisions

If the platform supports "descendant" publications (buyers publishing their evolved version of a purchased Clone):

• Descendants must be substantially developed beyond the purchased Clone;
• Descendants must be renamed;
• Descendants display a visible "Descended from: [Original Name]" lineage badge;
• The original creator receives a 20% royalty on descendant sales (from the 70% creator share);
• Descendants cannot be forked further — only one generation of derivative publication is permitted.

2.4 Buyer transparency requirement

At the point of purchase of a Clone, the buyer acknowledges by checkbox or equivalent:

"I understand this Clone cannot be resold, transferred, or further forked. I am receiving a fresh instance that will evolve with my use."

3. AI Outputs and Commercial Use

3.1 License to use AI Outputs

Subject to your compliance with these Terms and the AI Policy, FITC grants you a limited, non-exclusive, revocable right to use AI Outputs generated for you by the Service for personal or commercial purposes, except where expressly prohibited.

3.2 Nature of AI Outputs

You acknowledge and agree that:

• AI Outputs are generated dynamically and may not be unique to you;
• Similar or identical outputs may be generated for other users;
• FITC does not guarantee exclusivity or ownership of AI Outputs;
• AI Outputs are probabilistic and may vary across sessions and users;
• You are solely responsible for ensuring that your use of AI Outputs does not infringe third-party rights or violate applicable laws.

3.3 No warranty of non-infringement

FITC does not warrant that AI Outputs will not infringe third-party rights. You agree to independently verify and bear sole responsibility for any third-party rights implications of your use of AI Outputs.

3.4 Prohibited commercial uses

You may not use AI Outputs to:

• Train, build, or improve competing AI systems;
• Create content that infringes third-party intellectual property;
• Generate content that violates the prohibited uses in the Terms;
• Represent AI Outputs as human-created work in contexts where such representation would be deceptive or unlawful.

4. Summary-Based Content and Third-Party Materials

4.1 What the Service provides

The Service may generate content based on books, publications, courses, or other third-party works. Such content is limited to:

• Transformative summaries (restated in the Service's own expression);
• Key insights and takeaways;
• Interpretations and analyses;
• Educational commentary;
• Generalized knowledge representations.

4.2 What the Service does NOT provide

FITC:

• Does not reproduce verbatim or substantially similar copies of copyrighted works;
• Does not distribute full texts of third-party publications;
• Does not provide AI outputs as a substitute for original publications;
• Does not claim rights to third-party works referenced.

4.3 Fair use and educational purpose

Content derived from third-party works is generated for transformative educational purposes. Users are encouraged to purchase and read original works. All intellectual property rights in third-party works remain with their respective owners.

4.4 User uploads of training materials

If you upload copyrighted content (e.g., books, courses, PDFs) as training material for your Avatars:

• You represent and warrant that you own the content or hold written license to redistribute it for training purposes;
• You indemnify FITC against any claims arising from your uploads;
• FITC reserves the right to remove uploaded content that appears to violate third-party rights;
• By default, uploaded copyrighted content is used to train your Avatar's behavior but is not redistributed in Clones except where you have affirmatively attested ownership/license.

5. Ideas, Suggestions, and Platform Improvements

5.1 Feedback waiver

If you submit ideas, suggestions, feature proposals, or other feedback ("Ideas") to FITC — whether through the platform, community channels (including Telegram, Discord, email), calls, meetings, or any other means — you acknowledge that:

• Your Ideas are provided voluntarily;
• Your Ideas are provided without expectation of compensation or confidentiality;
• FITC has full rights to use, modify, implement, and commercialize your Ideas without restriction or obligation.

5.2 License granted

You grant FITC a perpetual, irrevocable, worldwide, royalty-free, sub-licensable right to use, modify, implement, and commercialize such Ideas.

5.3 Waiver of claims

You expressly waive any claims, including but not limited to:

• Claims for compensation;
• Claims for equity, ownership, or profit participation;
• Claims for attribution or credit;
• Claims under joint venture, partnership, or unjust enrichment theories;
• Claims for reasonable value of your contribution.

5.4 Gintoz credits as consideration

FITC may, at its sole discretion, reward Users with Gintoz credits, community badges, or public recognition (including leaderboards, "Golden Tree" features, or similar) for valuable Ideas.

Such rewards:

• Constitute full and final consideration for the Ideas, if any consideration is given;
• Are determined at FITC's sole discretion;
• Do not create any contractual, financial, equity, or continuing obligation;
• Have no cash value.

6. AI System Limitations

6.1 Probabilistic nature

AI systems used in the Service generate outputs probabilistically. You acknowledge that:

• AI Outputs may be inaccurate, incomplete, or outdated;
• AI Outputs may vary between sessions, even for identical prompts;
• AI systems may produce unexpected, inconsistent, or erroneous results;
• AI systems may exhibit biases reflecting their training data.

6.2 No accuracy guarantee

FITC does not guarantee the factual accuracy, completeness, or reliability of AI Outputs. Users should independently verify information before relying on it for any important decision.

6.3 No professional advice

AI Outputs do not constitute:

• Legal advice;
• Financial or investment advice;
• Medical, psychological, or therapeutic advice;
• Professional advice of any regulated kind.

Refer to the Disclaimer for detailed statements on professional advice limitations and crisis resource contacts.

6.4 Service evolution

Features, functionalities, and AI behaviors may change over time. FITC does not guarantee:

• That specific AI Avatars will remain available indefinitely;
• That AI behaviors, personalities, or capabilities will remain consistent;
• That Marketplace features will remain unchanged;
• That any specific AI model provider will remain in use.

7. Safety, Safeguards, and Abuse

7.1 Safety measures

FITC implements safety measures including:

• Content filtering for prohibited content generation;
• Rate limits and anti-abuse mechanisms;
• Crisis resource surfacing where appropriate;
• Moderation of Marketplace listings;
• Review of user-uploaded content.

7.2 User responsibility

You remain responsible for:

• The prompts and inputs you provide;
• Your use of AI Outputs;
• Content you upload to train Avatars;
• Communications you have with AI Avatars;
• Your interpretation and application of AI-generated content.

7.3 Prohibited AI uses

In addition to the prohibited uses in the Terms, you may not use AI features to:

• Create deepfakes or unconsented impersonations of real people;
• Generate sexual content involving minors under any framing or context;
• Generate content to harass, stalk, or defame specific individuals;
• Train AI systems to deceive, manipulate, or exploit vulnerable users;
• Generate material promoting violence, terrorism, or serious criminal activity;
• Extract AI model weights, prompts, or training data through adversarial means.

7.4 Abuse and risk termination

FITC reserves the right to suspend or terminate accounts that:

• Violate this AI Policy or the Terms;
• Pose legal, regulatory, security, or reputational risk;
• Engage in prohibited AI uses;
• Misuse AI Avatars or outputs in harmful ways.

8. Regional AI Compliance

8.1 European Economic Area and United Kingdom (EU AI Act)

For users in the EEA and UK:

• Automated Decision-Making Disclosure: AI features may generate outputs, recommendations, or decisions. These do not constitute legally binding decisions and should not be relied upon without human review where required by applicable law.
• Transparency: Users are informed of AI-generated content through contextual indicators within the Service.
• Right to human review: Users may request human review of automated decisions that produce legal or similarly significant effects.
• Prohibited AI practices: FITC does not deploy AI for social scoring, real-time biometric identification in public spaces, or other EU AI Act prohibited practices.

8.2 United States

For users in the United States:

• FITC does not warrant that AI Outputs comply with state-specific requirements (e.g., California, New York) that may apply to your commercial use of AI content;
• You are responsible for compliance with state consumer protection, privacy, and AI disclosure laws applicable to your use;
• Class action waiver and arbitration provisions in the Terms apply to disputes.

8.3 United Arab Emirates and Middle East

For users in the UAE and Middle East jurisdictions:

• You agree not to use the Service in violation of public morals, religious sensitivities, or applicable content regulations in your jurisdiction;
• FITC reserves the right to restrict access or specific AI features where required by local law.

8.4 Thailand

For users in Thailand:

• FITC operates in compliance with applicable Thai law, including PDPA for data processing;
• AI Outputs must not be used to violate Thai laws including lese-majeste laws, computer crimes laws, and content regulations.

9. Consent and Acknowledgment

By using AI features within the Service, you acknowledge that you have read and understood this AI Policy and agree to its terms.

Your continued use of AI features constitutes ongoing acceptance of this AI Policy and any updates.

10. Changes to This Policy

FITC may update this AI Policy to reflect:

• Changes in AI capabilities and features;
• Changes in applicable AI regulation;
• New platform features (Marketplace evolution, new AI tools);
• Evolving industry practices.

Material changes will be communicated through in-app notifications and email.

11. Contact

Questions about AI features, policies, or this document:

Email: support@friendinthecloud.com Contact: https://friendinthecloud.com/contact

By using AI features within Friend in the Cloud, you acknowledge that you have read and agreed to this AI Policy.