Terms of Service
Terms of Service (ToS) sets the rules. "Don't hack us. We aren't liable if you lose money. We own the IP." Without it, you are naked in court.
What is Limitation of Liability?
Limitation of Liability is A clause that sets a maximum amount you can be sued for.
The 3 Core Benefits
Ban Hammer
ToS gives you the legal right to ban users for abuse. Without it, you could face breach of contract claims.
IP Protection
State that you own the code. Prevent users from claiming ownership of your platform innovations.
Low Risk
Force arbitration to avoid class-action lawsuits. This saves massive legal fees.
How to Build Your ToS
Use a Template
Do not write it yourself. Use Y Combinator or Stripe Atlas templates. They are battle-tested.
Define Content
State who owns uploaded data. Claim a license to display it. Keep it simple.
Pick a Law
Choose your home state for governing law. Delaware is the standard for startups.
Copy-Paste vs. Standard Template
| Feature | Copy-Paste | Standard Template |
|---|---|---|
| Safety | Low | High |
| Cost | $0 | $0 |
Frequently Asked Questions
Can I copy a competitor?
It is copyright infringement. Use a free template instead.
Do users need to sign?
A checkbox at signup is usually enough.
Ready for traffic from trusted founders?
Go back home