LocalAI

Legal

Terms of Service

Effective Date: May 15, 2026

1.Introduction

Welcome to LocalAI. These Terms of Service ("Terms") govern your use of the LocalAI platform, including our web application, storefront, AI marketing tools, inventory management, and all related services (collectively, the "Service") operated by LocalAI ("we", "us", or "our").

By creating an account or using any part of our Service, you agree to be bound by these Terms. If you do not agree to these Terms, please do not use our Service.

These Terms are governed by the laws of the Federal Republic of Nigeria.

2.Eligibility

You may use LocalAI if:

  • You are at least 18 years of age
  • You are operating a legitimate business in Nigeria or intend to do so
  • You have the legal authority to enter into this agreement
  • Your use of the Service does not violate any applicable law or regulation

We reserve the right to refuse service to anyone for any reason at any time.

3.Your Account

3.1 Account Registration

To access most features of LocalAI, you must create an account. You agree to:

  • Provide accurate, current, and complete information during registration
  • Maintain and promptly update your account information
  • Keep your password secure and confidential
  • Accept responsibility for all activities that occur under your account
  • Notify us immediately of any unauthorised use of your account

3.2 Account Suspension

We reserve the right to suspend or terminate your account at any time if:

  • You violate any provision of these Terms
  • We determine, in our sole discretion, that your use of the Service poses a risk to us, our users, or third parties
  • You use the Service for any illegal or fraudulent purpose
  • You fail to pay any applicable fees

4.Services Provided

LocalAI provides Nigerian small business owners with the following core services:

  • Business Dashboard — Order management, inventory tracking, revenue analytics, and team management
  • Public Storefront — A unique store link with product listings, WhatsApp checkout, and Paystack web payments
  • AI Marketing Engine — AI-generated captions, hashtags, and WhatsApp messages in 8 Nigerian writing tones
  • Analytics — Sales insights, order trends, and business performance data

We reserve the right to modify, suspend, or discontinue any feature of the Service at any time, with or without notice.

5.Acceptable Use

You agree to use LocalAI only for lawful purposes. You must NOT:

  • Use the Service to sell illegal, counterfeit, or prohibited goods or services
  • Violate any applicable Nigerian federal, state, or local law or regulation
  • Impersonate any person or entity or misrepresent your affiliation
  • Upload or transmit viruses, malware, or any other malicious code
  • Attempt to gain unauthorised access to any part of the Service
  • Use the Service to send unsolicited commercial messages (spam)
  • Reverse engineer, decompile, or disassemble any part of the Service
  • Use the Service in any way that could damage, disable, or impair it

Violation of these rules may result in immediate suspension or termination of your account without refund.

6.Subscription Plans and Payments

6.1 Plans

LocalAI offers the following subscription plans:

  • Starter Plan — Free forever. No credit card required. Includes 20 AI credits per month and access to core features.
  • Growth Plan — NGN 5,000 per month. Includes 150 AI credits, advanced analytics, inventory alerts, and branded storefront.
  • Pro Plan — NGN 15,000 per month. Includes 500 AI credits, team member access, and priority support.

6.2 Billing

Paid subscriptions are billed monthly in advance. All prices are in Nigerian Naira (NGN). Payments are processed securely through Paystack. By subscribing to a paid plan, you authorise us to charge your payment method on a recurring monthly basis.

6.3 Auto-Renewal

Subscriptions automatically renew at the end of each billing period unless cancelled before the renewal date. You may cancel your subscription at any time through your account settings.

6.4 Price Changes

We reserve the right to change our pricing at any time. We will notify you of any price changes at least 30 days before they take effect. Continued use of the Service after the price change constitutes your acceptance of the new pricing.

7.Refund and Cancellation Policy

Please refer to our separate Refund and Cancellation Policy document for full details. In summary:

  • The Starter (free) plan has no charges and therefore no refunds applicable
  • Paid subscriptions can be cancelled at any time
  • Cancellations take effect at the end of the current billing period
  • We do not offer refunds for partial months or unused AI credits

8.Intellectual Property

8.1 Our Property

LocalAI and its original content, features, and functionality are and will remain the exclusive property of LocalAI and its licensors. Our trademarks, logos, and service names may not be used without our prior written consent.

8.2 Your Content

You retain ownership of all content you upload or create using LocalAI, including product listings, store information, and business data. By using our Service, you grant us a limited, non-exclusive licence to use, store, and process your content solely to provide and improve the Service.

You represent and warrant that you own or have the necessary rights to all content you upload, and that your content does not violate any third-party rights.

8.3 AI-Generated Content

Content generated by our AI marketing engine is provided for your commercial use. We make no warranty regarding the originality or uniqueness of AI-generated content. You are solely responsible for reviewing, editing, and using any AI-generated content.

9.Third-Party Services

LocalAI integrates with third-party services to deliver our platform. These include:

  • Supabase — Database and authentication infrastructure
  • Groq AI — Artificial intelligence and content generation
  • Paystack — Payment processing for subscriptions and storefront transactions

Your use of these integrated services is also subject to their respective terms of service and privacy policies. We are not responsible for the actions, content, or policies of these third-party providers.

10.Disclaimer of Warranties

The Service is provided on an "AS IS" and "AS AVAILABLE" basis without warranties of any kind, either express or implied. We do not warrant that:

  • The Service will be uninterrupted, error-free, or completely secure
  • The results obtained from use of the Service will be accurate or reliable
  • Any errors in the Service will be corrected

We disclaim all warranties, express or implied, including but not limited to implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

11.Limitation of Liability

To the fullest extent permitted by Nigerian law, LocalAI shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including but not limited to:

  • Loss of revenue, profits, or business
  • Loss of data or business information
  • Business interruption
  • Any other commercial damages or losses

Our total liability to you for any claims arising out of or relating to these Terms or your use of the Service shall not exceed the amount you paid us in the 3 months immediately preceding the claim.

12.Indemnification

You agree to defend, indemnify, and hold harmless LocalAI and its officers, directors, employees, and agents from and against any claims, damages, obligations, losses, liabilities, costs, and expenses arising from:

  • Your use of the Service
  • Your violation of these Terms
  • Your violation of any third-party rights, including intellectual property rights
  • Any content you upload or transmit through the Service

13.Governing Law and Dispute Resolution

These Terms shall be governed by and construed in accordance with the laws of the Federal Republic of Nigeria. Any dispute arising from or relating to these Terms or your use of the Service shall first be attempted to be resolved through good-faith negotiation. If unresolved, disputes shall be subject to the jurisdiction of the courts of Nigeria.

14.Changes to These Terms

We reserve the right to modify these Terms at any time. We will notify you of significant changes by:

  • Sending an email to your registered email address
  • Displaying a notice on the LocalAI platform

Your continued use of the Service after changes become effective constitutes your acceptance of the revised Terms. We encourage you to review these Terms periodically.

15.Contact Us

If you have any questions about these Terms of Service, please contact us: