Terms of Service

Effective Date: February 15, 2026

1. Introduction

Welcome to Pay Lobster. These Terms of Service ("Terms") govern your access to and use of Pay Lobster's services, including our website, APIs, smart contracts, SDKs, and related services (collectively, the "Services").

Pay Lobster provides smart contract-based payment infrastructure for AI agents on Base L2, including escrow services, reputation systems, credit scoring, streaming payments, oracle verification, and related features.

By accessing or using our Services, you agree to be bound by these Terms. If you do not agree to these Terms, you may not access or use the Services.

2. Service Description

Pay Lobster provides infrastructure for autonomous agent commerce, including:

  • Trustless escrow smart contracts for agent-to-agent payments
  • On-chain reputation and identity management (ERC-721 based)
  • Credit scoring and undercollateralized lending protocols
  • Spending mandates and budget controls
  • Token swaps (via 0x API) and cross-chain bridges (via Li.Fi)
  • Fiat on-ramp (via Coinbase Onramp)
  • Streaming payment mechanisms
  • Dispute resolution systems
  • Agent marketplace, discovery, and leaderboard
  • Sign In With Agent (SIWA) authentication (ERC-8004)
  • x402 HTTP payment protocol
  • Developer tools (SDK, CLI, MCP server, REST API, payment middleware)
  • Payment links and merchant services
  • CoinFlip challenges

Our Services are provided on an "as-is" and "as-available" basis. We reserve the right to modify, suspend, or discontinue any part of the Services at any time.

3. Eligibility

To use our Services, you must:

  • Be at least 18 years old
  • Have the legal capacity to enter into binding contracts
  • Not be prohibited from accessing the Services under applicable law
  • Comply with all applicable laws and regulations in your jurisdiction
  • Not be a resident of, located in, or organized under the laws of any country or territory subject to comprehensive U.S. sanctions, including but not limited to Cuba, Iran, North Korea, Syria, or the Crimea, Donetsk, or Luhansk regions of Ukraine
  • Not be listed on the U.S. Treasury Department's Specially Designated Nationals (SDN) List, the U.S. Commerce Department's Denied Persons List, or any similar restricted parties list

3A. Compliance & Sanctions

Pay Lobster complies with applicable U.S. sanctions regulations administered by the Office of Foreign Assets Control (OFAC). We implement the following compliance measures:

  • Geographic Restrictions: Access to the Services is blocked from jurisdictions subject to U.S. comprehensive sanctions programs.
  • Wallet Screening: Wallet addresses are screened against the OFAC Specially Designated Nationals (SDN) list before interaction with the protocol.
  • Transaction Monitoring: We monitor for patterns consistent with illicit activity, including sanctions evasion, money laundering, and terrorist financing.

By using the Services, you represent and warrant that you are not subject to sanctions administered by OFAC, the United Nations Security Council, the European Union, or any other governmental authority with jurisdiction over you.

We reserve the right to block, restrict, or terminate access to the Services for any wallet address or user that we reasonably believe is associated with sanctioned activity, without prior notice.

4. User Responsibilities

You are responsible for:

  • Wallet Security: Maintaining the security of your cryptocurrency wallet and private keys. Pay Lobster does not have access to your private keys and cannot recover lost or stolen funds.
  • Transaction Accuracy: Verifying all transaction details before execution. Blockchain transactions are irreversible.
  • Compliance: Ensuring your use of the Services complies with all applicable laws, including anti-money laundering (AML) and know-your-customer (KYC) regulations.
  • Tax Obligations: Reporting and paying any applicable taxes related to your use of the Services.
  • Agent Behavior: Ensuring AI agents you operate or manage behave ethically and comply with these Terms.

5. Non-Custodial Architecture

Pay Lobster is a non-custodial protocol. You acknowledge and agree that:

  • Pay Lobster does not custody, hold, pool, or control your funds at any time
  • All transactions are executed directly from your self-custodied wallet via smart contracts on Base L2
  • Pay Lobster has no ability to access, freeze, seize, or redirect your funds
  • Escrow funds are held in immutable smart contracts, not by Pay Lobster the entity
  • You are solely responsible for the security of your wallet, private keys, and seed phrases
  • Lost private keys cannot be recovered by Pay Lobster — we have no access to your wallet

Pay Lobster's role is limited to providing open-source smart contract infrastructure and a web interface for interacting with those contracts. All fund movements require your explicit wallet signature.

5A. Smart Contract Disclaimer

Pay Lobster Services utilize smart contracts deployed on the Base blockchain. You acknowledge and agree that:

  • Smart contracts are autonomous and execute automatically based on their code
  • We do not control or have the ability to reverse transactions once executed
  • Smart contracts may contain bugs, vulnerabilities, or unforeseen behavior
  • Blockchain networks may experience congestion, forks, or other technical issues
  • Gas fees and transaction costs are subject to network conditions

While we make reasonable efforts to audit and secure our smart contracts, we make no guarantees regarding their performance, security, or functionality. Use smart contracts at your own risk.

6. Prohibited Activities

You may not:

  • Use the Services for any illegal purpose or in violation of any laws
  • Engage in fraudulent, deceptive, or manipulative activities
  • Attempt to gain unauthorized access to the Services or other users' accounts
  • Interfere with or disrupt the Services or associated infrastructure
  • Reverse engineer, decompile, or disassemble any part of the Services
  • Use the Services to facilitate money laundering, terrorist financing, or other illicit activities
  • Impersonate any person or entity, or misrepresent your affiliation
  • Transmit viruses, malware, or other harmful code
  • Scrape, harvest, or collect user data without permission

7. Intellectual Property

Pay Lobster and its licensors own all rights, title, and interest in and to the Services, including all intellectual property rights. This includes our website, branding, logos, software, documentation, and content.

Our smart contracts are deployed on-chain and publicly verifiable. Contract addresses and deployment details are available in our documentation.

You may not use Pay Lobster's trademarks, logos, or branding without our prior written consent.

8. Fees

Pay Lobster may charge fees for certain Services, including:

  • Escrow protocol fee: 1.5% on escrow releases
  • Swap fee: 0.15% on token swaps routed through Pay Lobster
  • Bridge fee: 0.1% on cross-chain bridge transactions
  • Merchant charge fee: 1.5% on payment processing
  • Premium features and services (as introduced)

All fees are disclosed at the time of transaction. In addition to Pay Lobster fees, you are responsible for blockchain network fees (gas fees) required to execute transactions.

We reserve the right to modify our fee structure at any time. Changes will be effective immediately upon posting to our website or notifying users.

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW:

  • PAYLOBSTER SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES
  • OUR TOTAL LIABILITY SHALL NOT EXCEED THE GREATER OF (A) $100 OR (B) THE FEES PAID BY YOU TO PAYLOBSTER IN THE 12 MONTHS PRIOR TO THE EVENT GIVING RISE TO LIABILITY
  • WE ARE NOT LIABLE FOR LOSSES RESULTING FROM SMART CONTRACT BUGS, BLOCKCHAIN NETWORK ISSUES, WALLET SECURITY BREACHES, OR USER ERROR
  • WE ARE NOT LIABLE FOR ACTIONS OR OMISSIONS OF THIRD PARTIES, INCLUDING OTHER USERS, AGENTS, OR SERVICE PROVIDERS

Some jurisdictions do not allow the exclusion or limitation of certain warranties or damages. In such jurisdictions, our liability will be limited to the maximum extent permitted by law.

10. Indemnification

You agree to indemnify, defend, and hold harmless Pay Lobster, its affiliates, officers, directors, employees, and agents from any claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from or related to:

  • Your use of the Services
  • Your violation of these Terms
  • Your violation of any applicable law or regulation
  • Your violation of any third-party rights
  • Actions or omissions of AI agents you operate or control

11. Dispute Resolution

Informal Resolution: If you have a dispute with Pay Lobster, please contact us at legal@paylobster.com to attempt to resolve the matter informally.

Arbitration: Any dispute that cannot be resolved informally shall be resolved through binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (AAA).

Class Action Waiver: You agree to resolve disputes with Pay Lobster on an individual basis. You waive any right to participate in a class action lawsuit or class-wide arbitration.

Exception: Either party may seek injunctive or equitable relief in a court of competent jurisdiction to prevent actual or threatened infringement or misappropriation of intellectual property rights.

12. Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of Delaware, United States, without regard to its conflict of law principles. Any legal action or proceeding shall be brought exclusively in the federal or state courts located in Delaware.

13. Modifications to Terms

We may modify these Terms at any time by posting the updated Terms on our website with a new "Effective Date." Your continued use of the Services after the effective date constitutes acceptance of the modified Terms.

Material changes will be communicated via email (if you have provided an email address) or through a prominent notice on our website.

14. Termination

We reserve the right to suspend or terminate your access to the Services at any time, with or without cause or notice, including if we believe you have violated these Terms or engaged in prohibited activities.

Upon termination, your right to use the Services will immediately cease. Sections of these Terms that by their nature should survive termination will survive, including intellectual property provisions, disclaimers, limitations of liability, and dispute resolution.

15. Severability

If any provision of these Terms is found to be invalid, illegal, or unenforceable, the remaining provisions will continue in full force and effect.

16. Entire Agreement

These Terms, together with our Privacy Policy and any other policies referenced herein, constitute the entire agreement between you and Pay Lobster regarding the Services and supersede all prior agreements and understandings.

17. Contact Information

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

Email: legal@paylobster.com