Terms of Service

Effective Date: June 9, 2025

Company: paradot Co., Ltd. (“Company”, “we”, “us”, “our”)

Service: Carat generative AI platform and related services provided via the mobile app, web app, and website at https://carat.im (collectively, the “Service”).

These Terms of Service (“Terms”) set forth the rights and obligations between the Company and members (“Members”), and among Members, as well as the conditions for using the Service.

Chapter 1. General Provisions

Article 1 (Purpose)

These Terms stipulate the fundamental matters—including the rights, obligations, responsibilities, and conditions of use—in connection with the Company’s provision of the Service.

Article 2 (Definitions)

  1. “Carat” means the virtual storefront, platform, or service space (including the mobile app, web app, and website) established by the Company to provide the Service.
  2. “Service” means all services provided by the Company through Carat, including platforms, content, and auxiliary services (e.g., customer support).
  3. “Member” means an individual or entity that agrees to these Terms, whose application is accepted by the Company, and that uses the Service.
  4. “General Member” means an individual aged 13 or older or a legal entity that can use purchase services provided by the Company, including the purchase of filters.
  5. “Account” means a login account based on an email address and password required to use the Service.
  6. “Paid Services” means digital content and ancillary services provided for a fee by the Company (e.g., filters and related features).
  7. “Subscription” means a paid usage method under which the fee for a monthly or annual period is regularly billed through a payment method pre-registered by the Member, and the period renews automatically.
  8. “Subscription Plan” means the service plan selected by a Member to use Paid Services. Detailed benefits and conditions may be set out in a separate annex or plan page.
  9. “Usage Allowance” means the number of AI function uses provided monthly to Members using Paid Services, which may vary by plan and function type.
  10. “Additional Use” means using Paid Services by purchasing additional Usage Allowance for a fee after the monthly allowance under the Member’s current plan has been exhausted.
  11. “Subscription Cancellation” means a Member cancels payment for a Paid Service and discontinues its use; refunds are governed by these Terms.
  12. “Filter” means digital content such as photo filters produced by the Company and provided within the Service for Members to use, paid or free.
  13. “App Store Operator” means an e-commerce provider enabling installation of mobile apps or in-app purchases (including in-Service payments), e.g., Google Play Store, Apple App Store.
  14. “Content” means any information, text, graphics, photos, images, audio, video, or other materials uploaded, downloaded, generated, or displayed within the Service by a Member.

Undefined terms shall be interpreted under applicable law and standard industry usage.

Article 3 (Effect and Amendment of the Terms)

  1. The Company posts these Terms in the Service so Members can easily review them; details may be viewed via a linked page.
  2. These Terms take effect when a Member agrees to them and uses the Service. If a Member does not agree, the Member may rescind the service relationship.
  3. The Company may amend these Terms to the extent permitted by applicable law.
  4. For any amendment, the Company will post the effective date, changes, and reasons at least 7 days in advance (or 30 days in case of unfavorable changes). Amendments take effect on the stated effective date.
  5. Members may reject amended Terms by ceasing use and withdrawing their account.
  6. If we clearly announce that inaction constitutes consent and you do not expressly refuse by the effective date, or you continue to use the Service after the effective date, you are deemed to have agreed to the amended Terms.

Article 4 (Matters Not Specified)

  1. Matters not set forth herein and the interpretation of these Terms shall be governed by applicable law.
  2. The Company may establish separate terms or operating policies for specific features (“Supplemental Terms”). In case of conflict, the Supplemental Terms prevail for the relevant feature.

Article 5 (Notices to Members)

  1. Unless otherwise provided, the Company may notify Members via email, SMS, or in-app push notifications.
  2. Notices to all Members may be given by posting on the Service home screen or notices board for at least 7 days; matters that materially affect a specific Member’s transaction will be notified individually.

Chapter 2. Service Use Agreement

Article 6 (Formation of the Agreement; Eligibility)

  1. A service use agreement is concluded when an applicant (“Applicant”) agrees to these Terms, applies for membership, and the Company accepts the application. The Company may request identity verification if necessary.
  2. If an Applicant signs up by linking external services (e.g., Kakao, Google, Apple), the agreement is concluded when the Applicant consents to these Terms and the Privacy Policy, and to the Company’s access to/use of the Applicant’s external account information for Service provision, and the Company accepts the application.
  3. Applicants must provide accurate information; providing false information may restrict Service use, and related disadvantages and liabilities rest with the Member who provided such information.
  4. The Company may refuse acceptance, or after acceptance restrict use or terminate the agreement, if any of the following applies:
    1. The environment does not meet service requirements or it is technically impossible to provide the Service;
    2. Information provided upon sign-up contains falsehoods, omissions, or errors, or fails to meet criteria;
    3. The name used is not that of the Applicant;
    4. The Applicant is under 13 years of age;
    5. Duplicate sign-up while already registered;
    6. Prior loss of membership eligibility;
    7. Use of a false or another person’s identity; or
    8. Acceptance is impossible due to the Applicant’s fault, or the application violates laws, these Terms, or other Company rules.
  5. The Company provides each registered Member with an Account including a nickname and unique ID. Paid features may require legal capacity or consent of a legal representative under local law.

Article 7 (Member’s Termination)

  1. A Member may terminate the service relationship at any time via the withdrawal process provided by the Company.
  2. Upon withdrawal, the Account and related records (e.g., filter purchases, subscription history) and personal information are handled per the Privacy Policy and cannot be restored. Before giving notice, the Member must settle all amounts owed to the Company. Disadvantages from rescission or cancellation of transactions due to such termination are borne by the Member.
  3. The agreement terminates when the Company receives the Member’s termination notice; if settlement is pending, termination occurs upon completion.
  4. After withdrawal, a Member may re-register. However, if re-registration is sought for an improper purpose (e.g., duplicative participation in restricted events), the Company may restrict re-registration for a period.

Article 8 (Company’s Termination)

The Company may terminate the agreement if any of the following occurs:

  1. A ground for refusal under Article 6 is confirmed;
  2. The Member registers content inappropriate for the Service, or commits/attempts acts contrary to public order or morals;
  3. The Member infringes rights, reputation, credit, or other legitimate interests of the Company or others;
  4. The Member obstructs or attempts to obstruct the Service;
  5. Insolvency-related events (e.g., bankruptcy or guardianship proceedings, dissolution, default) that make normal use difficult;
  6. The Member violates these Terms or any termination ground specified herein arises.

Chapter 3. Protection of Personal Information

Article 9 (Protection and Management of Personal Information)

  1. The Company endeavors to protect Members’ personal information.
  2. The Company collects personal information necessary to provide the Service.
  3. Personal information is handled in accordance with applicable data protection laws and the Company’s Privacy Policy. The Privacy Policy does not apply to sites linked outside Carat’s app and official website.

Article 10 (Member’s Account Management Obligations)

  1. Members must diligently manage their IDs, passwords, and other Account information and are responsible for damages arising from negligent management or consenting to third-party use.
  2. The Company bears no responsibility for processing personal information exposed due to a Member’s fault.
  3. If a Member’s Account is stolen or used by a third party, the Member must promptly notify the Company and follow its guidance; the Company is not liable for disadvantages arising from failure to notify or follow guidance.
  4. The Company is not liable for damages arising from loss, theft, or disclosure of Account information, except where caused by the Company’s intent or negligence.

Article 11 (Changes to Member Information)

  1. Members may access, correct, or delete information provided during Service use via methods designated by the Company (e.g., in-app personal information settings).
  2. If information provided at sign-up changes, the Member must update it or notify the Company; the Company is not responsible for disadvantages arising from failure to do so.
  3. Upon request, the Member must promptly provide supporting documents regarding such changes.

Chapter 4. Use of the Service

Article 12 (Service Content)

  1. The Company provides, among others, the following services:
    1. Search and results services for AI filter content provided by the Company;
    2. Storage, editing, and AI training functions for Member-submitted Content;
    3. AI-generated content services (e.g., AI-based profiles);
    4. AI image synthesis services using apparel under brand partnerships;
    5. AI content generation via the Company’s own models or integrated external AI model APIs;
    6. Community services;
    7. At the Member’s choice, services that make Member-submitted or generated Content viewable to other Members;
    8. E-commerce for digital content sold by the Company; and
    9. Other services additionally developed by the Company or provided through partnerships.
  2. To provide the Service, the Company may use its own cloud servers (e.g., AWS) or external AI service providers’ APIs.
  3. The Company may also provide ancillary services in addition to those specified herein.
  4. The Company may classify Member tiers and differentiate usage hours, frequency, and scope of services provided.

Article 13 (Use of the Service)

  1. The Service may be used immediately after the Company approves the application.
  2. To use content designated as paid, Members must purchase and pay the fees specified in the manner requested by the Company.
  3. Absent special business or technical impediments, the Service is provided on a commercially reasonable efforts basis 24/7, year-round.
  4. The Company may temporarily suspend the Service for operations such as regular system maintenance, with prior notice where feasible; if prior notice is not feasible, notice may be given afterward.
  5. If necessary due to planning/operations or urgent circumstances, the Company may discontinue all or part of the Service after prior notice; if due to reasons beyond the Company’s control, notice may be given afterward.
  6. Beta Features. Any beta or experimental features are provided “AS IS” and may be modified, suspended, or discontinued at any time.
  7. Termination for Convenience. The Company may terminate or suspend the Service or your access for any reason upon reasonable notice, and where required by law, with a pro-rata refund of prepaid fees for the unused portion of the current term.

Article 14 (Changes to the Service)

  1. The Company may modify, add, end, or otherwise change all or part of the services for operational or technical reasons.
  2. The Company will notify Members of changes or discontinuation pursuant to Article 5.
  3. The Company may modify, suspend, change, or terminate any free service at its discretion for policy or operational needs and, unless required by law, without compensation.

Article 15 (Company’s Obligations)

  1. The Company shall not engage in acts prohibited by these Terms or applicable law and will use best efforts to provide continuous, stable services. In case of failure or loss, the Company will repair or restore without undue delay absent unavoidable circumstances.
  2. Where a Member’s opinions or complaints are objectively legitimate, the Company will endeavor to process them promptly within a reasonable period; if prompt handling is difficult, the Company will notify the Member of reasons and schedule.

Article 16 (Member’s Obligations)

Members shall not use the Service for purposes other than its intended use, nor engage in any of the following:

  1. Impersonating another person or the Company/personnel, or misappropriating another’s information;
  2. Providing false information or otherwise disrupting operations;
  3. Transferring or sharing a Company-provided Account;
  4. Infringing copyrights, IP rights, portrait rights, or other rights of the Company or third parties;
  5. Defaming others by stating facts or falsehoods for slander;
  6. Posting or selling fraudulent, obscene, gambling-related, or hateful content;
  7. Posting obscene or violent messages, images, audio, or other information contrary to public morals;
  8. Posting vulgar or obscene data, text, software, music, photos, or videos;
  9. Posting content without lawful rights;
  10. Distributing false information to obtain benefits or cause harm;
  11. Collecting, storing, distributing, or posting others’ personal information without consent;
  12. Manipulating data abnormally to disrupt the Service;
  13. Transmitting materials containing viruses or code designed to disrupt/destroy systems;
  14. Altering the Service via hacking, data leakage, bugs, or using the Service in unauthorized ways;
  15. Violating applicable laws, these Terms, operating policies, or notices;
  16. Engaging in for-profit activities without consent, or posting unauthorized ads/promotions;
  17. Misappropriating the Company’s IP;
  18. Accessing non-public portions of systems;
  19. Scraping, crawling, spidering, using automated means to access the Service, bypassing technical protections or rate limits, benchmarking or reverse engineering except to the extent such restrictions are prohibited by law;
  20. Otherwise violating public order/morals or engaging in illegal or improper conduct;
  21. Inciting violence or undermining human dignity based on origin, race, appearance, disability/disease, socioeconomic status, religion, age, sex, gender identity, sexual orientation, or other identity factors.

If a Member engages in any of the above, the Company may delete or temporarily remove relevant digital content (e.g., filters), restrict use, terminate the agreement, permanently expel the Member, and/or take civil/criminal measures, and may recover damages suffered by the Company.

Article 17 (Disclaimers)

  1. Except as expressly provided in these Terms, the Service and all content are provided “AS IS” and “AS AVAILABLE” without warranties of any kind, whether express, implied, or statutory (including warranties of merchantability, fitness for a particular purpose, and non-infringement).
  2. The Company is not responsible for the truthfulness, legality, or rights-clearance of Content posted by Members or materials at third-party URLs linked by Members.

Article 18 (Copyrights in Content)

  1. Copyrights in Content created through the Service or posted in the Service belong to the respective authors. Copyright protection for AI-generated content may not be legally recognized in some jurisdictions, and any resulting limitations or liabilities rest with the Member.
  2. Members must not infringe others’ rights; Members bear responsibility for IP-related disputes arising during use.
  3. The Company may de-identify or anonymize Content provided by Members during Service use and utilize it for AI training, AI model improvement, and statistical purposes; if personal information is involved, it is handled per the Privacy Policy.
  4. The Company may display Member-provided Content in search results or for Service-related promotion/marketing globally and may modify, reproduce, or edit within the necessary scope for such display; Members may request deletion, exclusion from search results, or privacy settings via support or in-Service controls.
  5. For promotional purposes involving media coverage of Content containing a Member’s personal information, the Company will not provide such personal information without separate consent.
  6. If the Company intends to use Content beyond paragraphs 3–5, it will provide prior notice to the Member at the registered email address.

Article 19 (Management of Content)

  1. The Company may hide or delete Content without notice in the following cases:
    1. Violation of applicable law (including IP and data protection laws);
    2. Defamation or infringement of others’ rights;
    3. Violation of public order or morals;
    4. Content posted solely for commercial advertising;
    5. Violation of these Terms.
  2. Content may be lost or deleted due to force majeure or system errors; the Company provides no separate compensation for resulting damages.
  3. If a Member terminates the agreement or the agreement ends lawfully, the Company may delete Content posted by that Member.
  4. Upon receiving a claim that specific Content infringes rights, the Company may immediately suspend provision of such Content and will notify the posting Member of the temporary measure.
  5. The Member may file an objection within thirty (30) days under procedures established by the Company; if justified, the Company will promptly resume provision.

Article 20 (Company’s Intellectual Property)

  1. All rights, including copyrights and IP rights, in services provided to Members belong to the Company.
  2. The Company grants Members only a right to use IDs, Accounts, and Content per conditions set by the Company; Members may not transfer, sell, or encumber such rights.
  3. All IP rights in the Company’s trademarks, logos, filters and other digital content, advertisements, and other materials produced or provided by the Company belong to the Company.

Article 21 (Advertisements; Third-Party Services)

  1. To maintain the Service, the Company may display advertisements within the Service.
  2. The Company bears no responsibility for loss or damage from a Member’s participation in, or transactions arising from, third-party advertisements or third-party services integrated with or linked from the Service.
  3. With prior consent, the Company may provide marketing information via email and in-app push; Members may opt out at any time, and the Company will stop such communications upon confirmation.
  4. Open Source. The Service may include open-source components licensed under their own terms; those terms govern the use of such components.

Chapter 5. Paid Services and Payments

Article 22 (Subscriptions, Pricing, and Changes)

  1. To use paid filters or other paid information, a Member must apply for a Subscription and pay the fee in the manner set by the Company.
  2. Paid Services are provided as auto-renewing Subscriptions billed monthly or annually via the Member’s pre-registered payment method. Plan benefits and conditions (usage counts, Usage Allowance, Additional Use, etc.) are specified on the plan page.
  3. Subscriptions may be purchased via Carat mobile web or app; app-store pricing or policies may differ by App Store Operator.
  4. The Paid Service period starts on each billing date and ends the day before the next period begins.
  5. The Company may request additional personal information necessary for billing; Members must provide accurate information.
  6. Changes to Pricing/Plans. We may modify pricing, plans, or features on prior notice; unless expressly stated, changes apply to the next billing cycle.

Article 23 (Payment of Subscription Fees; Taxes and Chargebacks)

  1. By applying for a Subscription, the Member agrees to recurring billing and must provide payment information.
  2. Unless cancelled, the usage period auto-extends on each billing date and the fee is charged accordingly. If payment fails, the period does not extend and Paid Services may be suspended.
  3. The Company is not responsible for damages arising from suspension due to reasons attributable to the Member (e.g., non-payment).
  4. For renewal and fee charging, the Company may retain payment information for a period necessary to process recurring payments in accordance with the Privacy Policy.
  5. Chargebacks. If a Member initiates a chargeback or reversal, the Company may suspend the Account and pass through any related fees reasonably incurred.

Article 24 (Provision of Paid Services and Additional Use)

  1. Members may use Paid Services within the monthly Usage Allowance provided under their plan; allowances may vary by AI function. Allowances reset on each billing date and do not roll over.
  2. After exhausting the monthly allowance, Members may purchase Additional Use for a fee.

Article 25 (Subscription Cancellation and Refunds)

  1. Members may cancel their Subscription via account details, plan management menus, or customer support. Upon cancellation, auto-billing ceases from the next period.
  2. Refunds upon cancellation are provided as follows (subject to applicable consumer law):

    A. Monthly Billing

    (1) No usage: Full refund if cancelled within 7 days of payment; after 7 days, refund the total payment minus a 10% cancellation fee.

    (2) Any usage: No rescission/termination/refund for the current month.

    B. Annual Billing

    (1) No usage: Full refund if cancelled within 7 days of payment; after 7 days, refund the total payment minus a 10% cancellation fee.

    (2) Any usage: Service remains available through the end of the month containing the cancellation request; that month’s fee is non-refundable. We refund the total payment minus (i) amounts corresponding to months used (calculated at the undiscounted monthly list price of the plan), and (ii) a 10% cancellation fee.

  3. If a refund is due, the Company will request cancellation with the payment provider and issue the refund to the original payment method within a reasonable time. If that is not possible, the Company may refund by bank transfer after prior notice.
  4. If an overcharge occurs due to the Company, the Company refunds the full amount to the original payment method. If attributable to the Member, reasonable costs for processing the refund may be deducted.
  5. For Paid Services used free of charge through promotions or events without direct payment by the Member, the Company has no refund obligation.
  6. App-store purchases: For Subscriptions purchased via the Carat app, refunds must be requested through the relevant App Store Operator in accordance with its policies, which prevail over these Terms.
  7. The Company may refuse a refund in cases of serious unlawful behavior, abuse of the refund policy, abnormal or bad-faith refund requests, or repeated requests without just cause that violate these Terms or seriously harm operations and result in account restriction or termination. This does not apply if the Member demonstrates that no such conduct occurred.
  8. If a separate policy for a particular service sets different rescission/refund conditions, that policy prevails.

Article 26 (Limitations on Rescission)

Where the Member has generated digital content using AI functions provided by the Paid Service, the value of such content is deemed consumed upon delivery; statutory cooling-off rights may not apply where permitted by law, and rescission due to change of mind is not available.

Article 27 (Minors; Paid Services)

  1. If a Member is under the age of legal majority in their place of residence, the Member must obtain consent from a legal representative before paying subscription fees; absent such consent, Subscriptions may not be purchased.
  2. If a Member misrepresents their age or legal representative’s consent (e.g., by using another person’s identity), they may not unilaterally cancel the Subscription.

Chapter 6. Damages and Disclaimers

Article 28 (Damages; Indemnity)

  1. If a Member breaches these Terms and causes damage to the Company or a third party, the Member shall compensate the Company or such third party for the damage.
  2. Indemnity. The Member will defend, indemnify, and hold harmless the Company and its affiliates from any claims, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to (a) the Member’s Content, (b) the Member’s use of the Service, or (c) the Member’s violation of these Terms or applicable law.

Article 29 (Governing Law and Jurisdiction)

  1. Subject to any non-waivable consumer protections under the law of your place of residence, these Terms and any disputes arising in connection with the Service shall be governed by and construed under the laws of the Republic of Korea, without regard to conflict-of-law principles.
  2. The parties shall first seek to resolve disputes in good faith through consultation; failing that, disputes shall be resolved in the courts of competent jurisdiction.
  3. Exclusive jurisdiction: The Seoul Central District Court shall have exclusive jurisdiction over disputes between the Company and Members.

Chapter 7. Additional Terms

Article 30 (Export Controls and Sanctions)

Members represent that they are not located in, under the control of, or a national/resident of any country or person subject to trade sanctions. Members will comply with applicable export control and sanctions laws and will not use the Service where prohibited.

Article 31 (Assignment)

The Company may assign or transfer these Terms (in whole or in part) without consent as part of a merger, acquisition, corporate reorganization, or sale of assets. Members may not assign or transfer these Terms without the Company’s prior written consent.

Article 32 (Survival)

Sections that by their nature should survive (including fees, refunds, IP, license to content, indemnity, limitation of liability, disclaimers, governing law, jurisdiction, and this Article 33) survive termination.

Article 33 (Severability)

If any provision of these Terms is found unenforceable, the remaining provisions remain in full force and effect.

Article 34 (No Waiver)

No waiver is implied by any failure to enforce any right. Any waiver must be in writing and signed by the waiving party.

Article 35 (Entire Agreement)

These Terms (together with any applicable Supplemental Terms and the Privacy Policy) constitute the entire agreement between the parties regarding the Service and supersede any prior or contemporaneous agreements on the same subject.

Addendum

These Terms take effect on June 9, 2025.