Terms of Service
Last updated: February 19, 2026
1. Acceptance of Terms
By accessing or using Stratus X1, the Stratus API, or any services provided by Formation AI Labs ("Formation", "we", "us", or "our") through stratus.run (collectively, the "Service"), you agree to be bound by these Terms of Service ("Terms"). If you do not agree, do not use the Service.
These Terms constitute a legally binding agreement between you and Formation AI Labs. You must be at least 18 years of age to use the Service. By using the Service, you represent and warrant that you meet this age requirement.
2. Service Description
Stratus X1 is an action-conditioned world model for AI agents. The Service accepts an agent's current environment state and a proposed action, then returns a predicted resulting state. The Service is accessed via API and is designed to be integrated into autonomous agent systems, development tools, and other software applications.
Stratus X1 predictions are probabilistic forecasts, not guarantees of outcomes. The Service is intended as a planning and decision-support tool for AI agents and developers. It does not execute actions in any environment on your behalf.
3. Beta Program
Stratus X1 is currently in beta. During the beta period, the Service is provided on an "as-is" and "as-available" basis. We make no guarantees regarding uptime, availability, accuracy, or performance during the beta period. The Service may be modified, suspended, or discontinued at any time without notice.
Beta access may be granted on an invitation-only basis at our sole discretion. We reserve the right to revoke beta access at any time. Service Level Agreements (SLAs) will be offered when the Service moves beyond the beta phase.
4. Accounts & API Access
To use the Service, you must create an account and obtain API credentials. You are responsible for maintaining the confidentiality of your API keys and account credentials, and for all activity that occurs under your account.
During the beta period, API keys are issued to individual users and may not be shared with others. Team-based access may be available under a team subscription plan, subject to a separate agreement. You must notify us immediately of any unauthorized use of your account or API keys.
5. Data Practices & Action Tracing
To improve the accuracy and performance of Stratus X1, we collect and use action trace data from API interactions. Action traces consist of:
- Environment state — a representation of the current environment (for example, the DOM of a web application, or the URL and endpoint of an API).
- Action taken — a natural-language description of the action and the tool(s) used to execute it.
- Resulting environment — the updated environment state after the action was executed.
This data is used solely to train and improve the Stratus X1 world model. By using the Service, you grant Formation a non-exclusive, worldwide, royalty-free license to use action trace data for model training and improvement purposes.
What we do NOT collect or store:
- We do not collect, store, or access any LLM prompts, completions, or inference text generated by your agents or language models.
- We do not collect personally identifiable information (PII) from action traces. If your environment state inadvertently contains PII, you are responsible for redacting it before sending it to our API.
- We do not sell action trace data to third parties or use it for any purpose other than improving the Service.
6. Acceptable Use
You agree not to use the Service to:
- Violate any applicable law, regulation, or the rights of others.
- Build agents that cause harm to persons, property, or infrastructure.
- Reverse-engineer, decompile, or attempt to extract the model weights, architecture, or training data of Stratus X1.
- Circumvent rate limits, access controls, or security measures.
- Use the Service for any activity that violates U.S. export controls or sanctions, including providing access to individuals or entities on the FinCEN sanctions list or other restricted parties lists.
- Resell, redistribute, or sublicense access to the Service without our written consent.
- Transmit malicious code, exploits, or intentionally malformed inputs designed to disrupt the Service.
We reserve the right to suspend or terminate your access if we determine, in our sole discretion, that you have violated these Terms.
7. Billing & Credits
The Service is offered through credit-based and subscription-based pricing models. Specific pricing, credit packages, and subscription tiers are described on the Website and may be subject to a separate billing agreement at the time of purchase.
Credits are non-refundable and non-transferable unless otherwise stated. Unused credits may expire according to the terms specified at the time of purchase. We reserve the right to modify pricing at any time, with notice to existing subscribers.
8. Intellectual Property
Our IP: Stratus X1, its world model, architecture, training methodology, API, brand, documentation, and all related intellectual property are and remain the exclusive property of Formation AI Labs. Nothing in these Terms grants you ownership of or license to any Formation IP except the limited right to use the Service as described herein.
Your IP: You retain all rights to the software, agents, and applications you build using the Service. Formation claims no ownership over your code, products, or creative output.
Predictions & outputs: The predicted states returned by the API are generated by our model based on your inputs. You may use these outputs in your applications without restriction, but you may not use them to train competing world models or replicate the functionality of Stratus X1.
9. Hackathon Terms
If you participate in a Formation-sponsored hackathon (including the OpenClaw + Stratus Hackathon), the following additional terms apply:
- Ownership: You own everything you build during the hackathon. Formation does not claim any ownership or license over hackathon submissions, except that you grant Formation the right to showcase your project name, description, and demo for promotional purposes.
- No claim on our IP: Participation in the hackathon does not grant you any rights to Formation's intellectual property, including Stratus X1, its model, or training data.
- Prizes: Prize amounts and conditions are described on the hackathon page. Prizes may be awarded as cash, Stratus API credits, or a combination of both, at the sole discretion of the judging panel. Formation reserves the right to modify prize structures with advance notice.
- Eligibility: You must be 18 years or older and not located in a jurisdiction where participation would be prohibited. Individuals and entities on the FinCEN sanctions list are ineligible.
10. Limitation of Liability
Please read this section carefully. It limits our liability to you.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, FORMATION AI LABS, ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO YOUR USE OF THE SERVICE, INCLUDING BUT NOT LIMITED TO:
- Losses resulting from actions taken by AI agents based on Stratus X1 predictions, including but not limited to data loss, financial loss, property damage, or reputational harm.
- Inaccurate, incomplete, or misleading predictions generated by the Service.
- Service interruptions, downtime, or data loss during the beta period or otherwise.
- Unauthorized access to your account or API keys resulting from your failure to maintain their confidentiality.
STRATUS X1 PREDICTIONS ARE PROBABILISTIC FORECASTS AND SHOULD NEVER BE TREATED AS GUARANTEES OF OUTCOME. YOU ARE SOLELY RESPONSIBLE FOR THE ACTIONS YOUR AGENTS TAKE, WHETHER OR NOT THOSE ACTIONS WERE INFORMED BY STRATUS X1 PREDICTIONS. FORMATION BEARS NO RESPONSIBILITY FOR THE CONSEQUENCES OF AGENT BEHAVIOR IN ANY ENVIRONMENT.
IN NO EVENT SHALL FORMATION'S TOTAL LIABILITY TO YOU FOR ALL CLAIMS ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICE EXCEED THE AMOUNT YOU PAID TO FORMATION IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.
11. Indemnification
You agree to indemnify, defend, and hold harmless Formation AI Labs and its affiliates, officers, directors, employees, and agents from and against any claims, damages, losses, liabilities, and expenses (including reasonable attorneys' fees) arising out of or related to:
- Your use of the Service.
- Actions taken by agents you build or operate using the Service.
- Your violation of these Terms.
- Your violation of any applicable law or the rights of any third party.
- Any PII or sensitive data you transmit to the Service in violation of Section 5.
12. Geographic & Sanctions Restrictions
The Service is subject to U.S. export controls and sanctions laws. You may not use the Service if you are located in, or a national or resident of, any country subject to comprehensive U.S. sanctions, or if you are listed on the FinCEN sanctions list, the U.S. Treasury Department's Specially Designated Nationals (SDN) list, or any other applicable restricted parties list. You represent and warrant that you are not subject to any such restrictions.
13. Termination
We may suspend or terminate your access to the Service at any time, with or without cause, and with or without notice. You may discontinue use of the Service at any time. Upon termination, your right to use the Service ceases immediately. Sections 5 (Data Practices), 8 (Intellectual Property), 10 (Limitation of Liability), and 11 (Indemnification) survive termination.
14. Modifications to Terms
We may update these Terms from time to time. Material changes will be communicated via the email address associated with your account or through a notice on the Website. Your continued use of the Service after changes are posted constitutes acceptance of the revised Terms. If you do not agree with the updated Terms, you must stop using the Service.
15. Governing Law & Disputes
These Terms are governed by the laws of the State of Delaware, United States, without regard to conflict of law principles. Any disputes arising under these Terms shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association, conducted in the State of Delaware. You waive any right to a jury trial or to participate in a class action.
16. Contact
If you have questions about these Terms, contact us at legal@formation.cloud.