Legal

Terms of service.

The ground rules for working with Faction AI — including the honest truths about AI output.

Faction AI is a trading style of Max Faction Limited, registered in England & Wales. These terms are entered into with Max Faction Limited ("we", "us", "our").

1. Engagement

Each project is governed by a separate Statement of Work ("SOW") signed by both parties. These terms apply unless the SOW says otherwise, in which case the SOW wins.

2. Payment

Invoices are due net-14 from issue unless the SOW specifies otherwise. Late payments accrue interest at the Bank of England base rate plus 8% per annum, as permitted by the Late Payment of Commercial Debts (Interest) Act 1998.

3. AI services & outputs

We design and deploy AI systems using third-party large language models (LLMs), automation platforms, and APIs. Because of how these systems work, you must understand and accept the following:

  • AI outputs can be inaccurate.Large language models can produce plausible-sounding but factually incorrect content (commonly called "hallucinations"). Outputs are statistical predictions, not facts.
  • Outputs are not professional advice. Nothing produced by systems we build constitutes legal, medical, financial, tax, or other regulated advice. You are solely responsible for verifying AI outputs before relying on them.
  • You are responsible for review. You must implement appropriate human review, testing, and quality controls before AI outputs are shared with end customers, acted on, or published.
  • Third-party dependencies. Our systems use services from providers including but not limited to Anthropic, OpenAI, Google, and Meta. Their terms, availability, and pricing may change without notice and flow through to your system.
  • No guarantee of results. AI performance varies based on input data, prompts, model versions, and external context. We cannot guarantee specific outcomes, conversion rates, cost reductions, or quality thresholds unless explicitly agreed in the SOW.
  • Bias & edge cases. Models can reflect biases present in their training data and behave unpredictably on inputs outside their training distribution. We will reasonably tune and test systems, but we cannot guarantee bias-free output.

4. Your data & model training

We use providers that operate on no-training or opt-out bases for paid API usage (e.g. Anthropic, OpenAI paid APIs). However, you are responsible for ensuring any data you submit to us — or which flows through systems we build — is data you have the right to share and process under UK GDPR. Do not submit special category personal data, payment card data, or health records through systems we build unless the SOW explicitly provides for it.

5. Intellectual property

Deliverables created specifically for you (custom code, prompts, system designs, content templates) become yours on final payment. Our pre-existing tools, frameworks, and internal platforms — including Faith OS and associated agent designs — remain ours. You receive a perpetual, non-exclusive licence to use them as integrated into systems we deploy for you.

Where AI outputs form part of deliverables, ownership is limited to the extent the underlying models' terms permit. You may not claim copyright over AI-generated text or images in jurisdictions that do not recognise such copyright.

6. Confidentiality

We keep information you share in confidence and use it only to deliver the engagement. You keep our methods, pricing, and the contents of any SOW in confidence. This clause survives termination.

7. Warranties & disclaimers

We warrant that our services will be performed with reasonable care and skill. Except as expressly stated in the SOW, all other warranties, conditions, and terms — whether express or implied by statute, common law, or otherwise — are excluded to the fullest extent permitted by law.

In particular, we do not warrant that AI outputs will be accurate, complete, fit for any particular purpose, non-infringing, or free from errors or bias.

8. Liability

Our total aggregate liability on any engagement — whether in contract, tort (including negligence), for breach of statutory duty, or otherwise — is capped at the fees paid by you for that engagement in the 12 months immediately preceding the event giving rise to the claim.

We are not liable for:

  • Loss of profit, revenue, business, goodwill, or anticipated savings;
  • Loss or corruption of data arising from AI model behaviour, third-party API failures, or your own use of outputs;
  • Consequential, indirect, or special losses;
  • Outcomes resulting from AI outputs that you (or your agents, employees, or customers) acted on without appropriate review;
  • Downtime, rate limits, or changes imposed by third-party model providers.

Nothing in these terms limits liability for death or personal injury caused by negligence, fraud, or any other liability that cannot be limited by English law.

9. Indemnity

You will indemnify us against all claims, losses, costs, and expenses arising from your use of deliverables or AI outputs outside the scope of the SOW, or from your failure to implement reasonable human review before relying on, publishing, or acting on such outputs.

10. Termination

Either party may terminate an engagement on 30 days' written notice unless the SOW specifies otherwise. On termination, you pay for all work completed up to the termination date. Clauses on IP, confidentiality, liability, and indemnity survive termination.

11. Changes to these terms

We may update these terms from time to time. Material changes will be communicated with reasonable notice. Continuing to engage us after notice constitutes acceptance.

12. Governing law

These terms are governed by the laws of England and Wales. Disputes are subject to the exclusive jurisdiction of the courts of England and Wales.

Last updated: 18 April 2026.