Terms of Service

These Terms of Service ("Terms") are a binding contract between you ("you," "your," or "Customer") and Clarity Books AI, LLC, a Connecticut limited liability company ("Clarity Books," "we," "us," or "our"). By creating an account, accessing, or using the Clarity Books AI website, application, SMS service, or any related service (collectively, the "Service"), you agree to these Terms and our Privacy Policy. If you do not agree, do not use the Service.

You represent that you are at least 18 years of age, that you have authority to bind the business or entity on whose behalf you are signing up, and that the information you provide is accurate.

2.1 What the Service is

Clarity Books AI is an automated, AI-assisted bookkeeping tool. It connects to bank and credit-card accounts through Plaid, applies an AI model (provided by Anthropic) to suggest categories for transactions, produces reports, and sends you SMS messages when it needs input.

2.2 What the Service is NOT

• Clarity Books AI is not a licensed accounting firm, CPA, tax preparer, financial advisor, fiduciary, or attorney. We do not provide tax, legal, accounting, investment, or financial advice. Nothing the Service produces is advice.
• Clarity Books AI is not a substitute for a CPA, bookkeeper, or tax professional. You are responsible for engaging qualified professionals to review your books, prepare and file your taxes, and advise you on financial decisions.
• Clarity Books AI does not audit, reconcile, verify, or validate the accuracy or completeness of your financial records. We do not monitor your books. No human at Clarity Books reviews your data in the ordinary course of business.
• Clarity Books AI does not provide a "bookkeeper review" regardless of plan. All plans are self-serve and AI-powered. Human review is not included, implied, or promised at any pricing tier.
• Clarity Books AI is not a bank, money-transmitter, or payment processor. We cannot move, hold, or transfer your funds. Our Plaid connection is read-only.
• Clarity Books AI does not guarantee IRS, state, or local tax compliance. Compliance is your responsibility.

Because the Service is automated and un-monitored, you are fully responsible for the state of your books. You agree that:

• You will connect every bank, credit-card, and financial account that is relevant to the business you are tracking, and keep those connections current. We cannot see accounts you do not connect.
• You will review every AI-assigned category before relying on any report for tax, compliance, lending, or financial-decision purposes. AI models make mistakes. Categorizations are suggestions, not determinations.
• You will promptly correct any error you discover (category, amount, duplicate, missing transaction, or misclassified transfer) using the override tools in the app.
• You will retain your own copies of bank statements, receipts, and supporting documentation. The Service is not a system of record of first instance. You should keep original source documents in line with IRS and state retention requirements (generally 3–7 years).
• You will verify reports (Profit & Loss, year-end summary, 1099 exports, etc.) before filing with the IRS, submitting to a lender, or relying on them for any financial decision.
• You will keep your account credentials confidential and you are responsible for all activity under your account. Notify us immediately at brayden@claritybooksai.com if you suspect unauthorized access.
• You will provide accurate business information (entity type, state, tax year, etc.). If the information is wrong, reports built on it will be wrong.

You — not Clarity Books AI — are solely responsible for the accuracy, completeness, and lawfulness of your financial records, tax filings, and business decisions. Any loss that results from an un-reviewed categorization, a missing account connection, or a report used without verification is your responsibility.

The Service uses a large-language-model AI (currently Anthropic Claude) to categorize transactions. AI output is inherently probabilistic. It may be wrong, inconsistent, incomplete, or miscategorize transfers, refunds, personal expenses, capital expenditures, or one-off items. The AI does not understand your tax strategy, depreciation schedule, entity structure, or jurisdiction-specific rules.

Confidence scores and auto-posting thresholds are convenience features, not guarantees of accuracy. A "high-confidence" auto-post may still be wrong. You are required to review.

We make no warranty that AI categorizations will be correct, complete, consistent, Schedule-C-compliant, audit-proof, or suitable for any particular purpose.

The Service relies on third-party providers, including Plaid, Anthropic, Supabase, Vercel, Stripe, and Twilio. We are not responsible for:

• Outages, bugs, data loss, latency, or incorrect output caused by any third-party service.
• Missing, delayed, duplicated, or incorrect bank data returned by Plaid or by your financial institution.
• SMS delivery failures or mis-delivery by Twilio or the carriers.
• Changes to third-party terms, pricing, or functionality that affect the Service.

If a third party stops providing service to us on acceptable terms, we may modify or discontinue the affected feature with reasonable notice.

Plans, prices, and features are described on the Pricing page. Subscription fees are billed monthly or annually in advance and are non-refundable except where required by law. Your first month is free after we catch your books up to date, as described on the Pricing page at the time of signup.

You can cancel at any time from Settings; cancellation takes effect at the end of the current billing period. We do not provide prorated refunds for partial periods.

We may change prices with at least 30 days' notice before your next renewal. Continued use after the price change takes effect constitutes acceptance of the new price.

Chargebacks, reversals, or failed payments may result in immediate suspension of the Service. You are responsible for any fees, interest, taxes, or collection costs arising from non-payment.

You agree not to:

• Use the Service for any unlawful purpose, or to record transactions that are not genuine business or personal financial activity.
• Use the Service to launder money, evade taxes, commit fraud, finance terrorism, or violate any sanctions list.
• Upload malware, probe, scan, or attempt to breach security or circumvent authentication.
• Reverse-engineer, decompile, scrape, or attempt to extract the source code of the Service.
• Resell, sublicense, or make the Service available to third parties as a service without our written consent.
• Use the Service in a way that could damage, disable, overburden, or impair the infrastructure.
• Submit data that infringes someone else's rights, or that you do not have the right to submit.

We may suspend or terminate your account immediately if you violate this section or if your use poses a security, legal, or reputational risk to us.

We retain all right, title, and interest in the Service, the software, the AI models, the learned-rules engine, the reports, the UI, the underlying code, and the brand. You retain ownership of your financial data and the transactions you input ("Customer Data").

You grant us a non-exclusive, worldwide, royalty-free license to host, process, transmit, and display your Customer Data for the limited purpose of operating and improving the Service. We may use aggregated, de-identified data to improve our models and to publish anonymized statistics — never in a form that identifies you or your business.

You may delete your account at any time from Settings or by emailing us. Upon deletion, we will remove your personal and financial data in accordance with our Privacy Policy — generally within 48 hours from live systems and within 30 days from encrypted backups — except records we are required to retain by law (for example, tax and payment records, which we may retain for up to 7 years).

We may suspend or terminate your account with or without notice for violation of these Terms, non-payment, risk of fraud, or if the Service is discontinued. Sections that by their nature should survive termination (including Sections 3, 4, 5, 10, 11, 12, 13, 14, 15, 16, and 17) will survive.

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, QUIET ENJOYMENT, AND ANY WARRANTIES ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE.

WITHOUT LIMITING THE FOREGOING, WE DO NOT WARRANT THAT: (a) THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, OR SECURE; (b) THE RESULTS OBTAINED FROM THE SERVICE WILL BE ACCURATE, COMPLETE, OR RELIABLE; (c) AI CATEGORIZATIONS, REPORTS, OR SUMMARIES WILL MEET ANY TAX, REGULATORY, OR ACCOUNTING STANDARD; (d) DEFECTS WILL BE CORRECTED WITHIN ANY PARTICULAR TIMEFRAME; OR (e) THE SERVICE IS FIT FOR USE AS A SYSTEM OF RECORD FOR TAX OR LEGAL PURPOSES.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL CLARITY BOOKS AI, LLC, ITS AFFILIATES, OWNERS, OFFICERS, MEMBERS, EMPLOYEES, CONTRACTORS, OR LICENSORS BE LIABLE FOR:

• Any indirect, incidental, special, consequential, exemplary, or punitive damages.
• Loss of profits, revenue, goodwill, data, customers, or business opportunity.
• Tax penalties, interest, fines, back-taxes, audit costs, professional fees, or enforcement actions imposed by the IRS, any state or local tax authority, or any regulator.
• Consequences of AI miscategorization, missing transactions, missed tax deadlines, or incorrect reports.
• Damages arising from a third-party service (Plaid, Anthropic, Supabase, Vercel, Stripe, Twilio, your bank, your CPA, etc.).
• Any claim brought more than one (1) year after the event giving rise to it.

OUR AGGREGATE LIABILITY FOR ANY AND ALL CLAIMS ARISING OUT OF OR RELATED TO THE SERVICE WILL NOT EXCEED THE GREATER OF (i) THE AMOUNT YOU PAID US IN THE TWELVE (12) MONTHS BEFORE THE EVENT GIVING RISE TO THE CLAIM, OR (ii) ONE HUNDRED U.S. DOLLARS ($100).

These limitations apply even if a remedy fails of its essential purpose, and they apply regardless of the theory of liability (contract, tort, negligence, strict liability, or otherwise). Some jurisdictions do not allow the exclusion of certain warranties or the limitation of certain damages; in those jurisdictions, our liability is limited to the greatest extent permitted by law.

You agree to defend, indemnify, and hold harmless Clarity Books AI, LLC, its owners, officers, members, employees, contractors, and affiliates from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or related to:

• Your use of the Service;
• Your financial records, tax filings, or business decisions — including any IRS, state, or local tax authority audit, assessment, or enforcement action;
• Any inaccuracy, omission, or error in categorizations or reports that you did not review and correct;
• Your violation of these Terms or any law;
• Your infringement of any third party's rights;
• A dispute between you and your CPA, lender, business partner, or any third party.

We reserve the right, at our expense, to assume exclusive defense and control of any matter for which you are required to indemnify us; you agree to cooperate with our defense.

The Service is operated by Clarity Books AI, LLC. Under the Connecticut Limited Liability Company Act, the members, managers, officers, employees, and contractors of the LLC are not personally liable for the debts, obligations, or liabilities of the LLC. Nothing in these Terms is intended to, and nothing will be construed to, waive or limit that liability shield. Any claim must be brought against the LLC only, and not against any individual.

Please read this section carefully — it affects your legal rights.

Except for claims that qualify for small-claims court and claims for injunctive relief to protect intellectual property, any dispute, claim, or controversy arising out of or relating to the Service or these Terms will be resolved exclusively by final and binding individual arbitration, administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules, in Hartford County, Connecticut, or at a mutually-agreed location, in English.

You and we each waive the right to a jury trial and the right to bring or participate in a class action, collective action, or representative action. Arbitration will be conducted on an individual basis only. The arbitrator may not consolidate more than one person's claims.

If this Section 14 is found unenforceable in whole or in part, then the entire Section 14 will be null and void — but the rest of these Terms will remain in effect.

You may opt out of this arbitration clause by sending written notice to brayden@claritybooksai.com within 30 days of first accepting these Terms. Your notice must include your name, the email on your account, and a clear statement that you are opting out of arbitration.

These Terms are governed by the laws of the State of Connecticut, without regard to its conflict-of-laws rules. Subject to Section 14, any dispute that is not subject to arbitration must be brought exclusively in the state or federal courts located in Hartford County, Connecticut, and each party consents to personal jurisdiction and venue in those courts.

We will not be liable for any delay or failure to perform caused by events beyond our reasonable control, including acts of God, natural disasters, war, terrorism, labor disputes, government action, internet or telecommunications failure, outages of third-party services (including Plaid, Anthropic, Supabase, Vercel, Stripe, or Twilio), or pandemic.

We may update these Terms from time to time. If we make material changes, we will notify you by email and/or by a notice within the application at least 14 days before they take effect. Continued use of the Service after changes take effect constitutes acceptance of the updated Terms. If you do not agree with a change, you must stop using the Service and may cancel your subscription.

• Entire agreement: these Terms, together with the Privacy Policy, the DPA (where applicable), and any order form, constitute the entire agreement between the parties and supersede all prior agreements relating to the Service.
• Severability: if any provision is held unenforceable, the remaining provisions will remain in effect.
• No waiver: our failure to enforce any right is not a waiver of that right.
• Assignment: you may not assign these Terms without our prior written consent. We may assign these Terms to a successor in connection with a merger, acquisition, financing, or sale of assets.
• Independent contractors: the parties are independent contractors. No partnership, joint venture, employment, agency, or fiduciary relationship is created.
• Export control: you will comply with all applicable export, re-export, and sanctions laws.
• No third-party beneficiaries: these Terms do not create any rights in anyone other than you and us.
• Headings: section headings are for convenience and do not affect interpretation.
• Notices: legal notices to us must be sent to brayden@claritybooksai.com. Notices to you may be sent to the email on your account.

By providing your mobile phone number and opting in during signup, you consent to receive SMS messages from Clarity Books AI as part of our automated bookkeeping service. The terms of that SMS program are below.

• Program name: Clarity Books AI Bookkeeping.
• Program purpose: transactional SMS related to your account, including transaction-categorization questions, receipt-photo requests, monthly book-close notifications, and onboarding confirmations. We do not send marketing or promotional messages through this program.
• Message frequency: varies by account activity, typically up to 1 message per week.
• Message and data rates: may apply. Standard carrier charges apply at your mobile plan's rates. Clarity Books AI does not charge a separate fee for SMS.
• HELP: reply HELP at any time to receive help instructions and our support email.
• STOP: reply STOP at any time to unsubscribe. After replying STOP, you will receive one final confirmation message and no further texts unless you opt back in via your account settings.
• Supported carriers: AT&T, Verizon, T-Mobile, US Cellular, Boost, MetroPCS, Cricket, and most US carriers. Carriers are not liable for delayed or undelivered messages.
• Supported countries: United States only.
• Support: for help with this SMS program, email brayden@claritybooksai.com.

We do not share, sell, or rent phone numbers, opt-in data, or SMS content with third parties for marketing purposes. SMS data is processed only by us and our carrier provider (Twilio) for the purposes of delivering and receiving messages, as described in our Privacy Policy.

Questions about these Terms? Email us at brayden@claritybooksai.com.