Terms of Service - Compliance AI Shield Limited

Effective Date: 19 April 2026

Entity: Compliance AI Shield Limited (Registered in England and Wales)

1. Acceptance of Terms

These Terms of Service ("Terms") constitute a legally binding agreement between Compliance AI Shield Limited ("$CAIS", "we", "us", or "our") and the corporate entity or professional institution ("Client", "SME", "you") accessing our Institutional Waitlist or utilising our decentralised AI regulatory engine. By submitting your information via our Framer interface or integrating our systems, you acknowledge that you have read, understood, and agree to be bound by these Terms.

2. Scope of Service: The 7-Gate Arsenal

$CAIS provides a proprietary, decentralised AI regulatory wrapper designed to enforce deterministic compliance through sub-20ms logic gates (the "7-Gate Arsenal"). The system is engineered to serve as a Decision Support System for highly regulated sectors, including Law Firms, Independent Financial Advisers (IFAs), and Estate Agencies.

  • Gate 01 - Regulatory Enforcement: EU AI Act (High-Risk Classification)

  • Gate 02 - Cyber/Zero-Trust Identity: NIST / ISO 27001

  • Gate 03 - Financial Compliance: FCA Consumer Duty / AML

  • Gate 04 - HR/Algorithmic Bias: UK Equality Act / AI Act

  • Gate 05 - HSE/Safety Protocols: Health & Safety Executive standards

  • Gate 06 - Data Vault: UK & EU GDPR

  • Gate 07 - RWA/MiCA Shield: Markets in Crypto-Assets (MiCA)

3. Allocation of Responsibility and Human-in-the-Loop (HITL)

While the $CAIS 7-Gate Arsenal provides deterministic, programmatic logic gating to mitigate probabilistic risk, ultimate legal and regulatory accountability remains strictly with the SME’s nominated Compliance Officer. $CAIS acts solely as an advanced technical safeguard and audit processor. Users must enforce Human-in-the-Loop (HITL) protocols for any outputs flagged as "High Risk" by Gate 01 or Gate 04, ensuring human oversight is maintained in accordance with the UK Data Protection Act (Part 2, Chapter 2).

4. Prohibited Use (EU AI Act Article 5 Strict Compliance)

In absolute adherence to Article 5 of the EU AI Act, the deployment of the $CAIS engine for any of the following prohibited AI practices is strictly forbidden. Breach of this clause will result in immediate termination of service and ledger access:

  • The deployment of real-time remote biometric identification systems in publicly accessible spaces.

  • The evaluation or classification of natural persons based on social behaviour or personal characteristics (Social Scoring).

  • The utilisation of AI systems deploying subliminal, manipulative, or deceptive techniques intended to materially distort human behaviour.

  • Exploitation of vulnerabilities of specific vulnerable groups based on age, physical, or mental disability.

5. Gate 03: FCA Consumer Duty Compliance

For institutions regulated by the Financial Conduct Authority (FCA), Gate 03 is calibrated to enforce Consumer Duty mandates. Clients utilising Gate 03 represent and warrant that they actively monitor $CAIS outputs to ensure good outcomes for retail customers, including providing transparent pricing models, fair value, and avoiding foreseeable harm. $CAIS logs product governance events but does not substitute the firm's independent duty of care.

6. Gate 07: RWA and MiCA Integrity

Clients engaging in Tokenised Assets and utilising Gate 07 (RWA/MiCA Shield) acknowledge that $CAIS screens real-world asset (RWA) metadata against global AML/KYC whitelists prior to ledger entry. $CAIS relies on the integrity of the underlying asset data provided by the Client; any obfuscation of asset origin is a material breach of these Terms.

7. Liability & The Immutable Audit Trail

7.1. Single Source of Truth

The $CAIS Blockchain operates as an immutable ledger and the Single Source of Truth for all compliance events processed by the 7-Gate Arsenal. In the event of an inquiry by a competent regulatory authority (e.g., FCA, SRA, ICO), the Client will be provisioned with a cryptographic key to export their respective audit logs.

7.2. Limitation of Liability

$CAIS is not liable for data inaccuracies, omissions, or deliberately misleading information injected into the logic gates by the Client. To the maximum extent permitted by applicable law, $CAIS limits its liability to the total fees paid by the Client to $CAIS in the twelve (12) months preceding the event giving rise to the claim. We explicitly disclaim liability for indirect, consequential, or punitive damages arising from regulatory fines levied against the Client.

8. Data Provisioning and Waitlist Mechanics

During the Institutional Waitlist phase, Client data is captured via Framer and routed to a hardened Google Workspace environment via Zapier webhooks. By submitting your details, you consent to this data flow as outlined in our Privacy Policy. Waitlist placement does not guarantee software provisioning, which remains at the sole discretion of $CAIS pending regulatory suitability checks.

9. Intellectual Property

All rights, title, and interest in the $CAIS platform, the 7-Gate Arsenal, underlying code, deterministic rule sets, and algorithmic methodologies are the exclusive intellectual property of Compliance AI Shield Limited. Clients are granted a limited, non-exclusive, non-transferable licence to interface with the platform during the term of their active agreement.

10. Governing Law and Jurisdiction

These Terms shall be governed by and construed in accordance with the laws of England and Wales. Any disputes arising out of or in connection with these Terms, including disputes relating to the $CAIS blockchain ledger, shall be subject to the exclusive jurisdiction of the courts of London, England.