Terms of Service

Punch — AI Companion Application (18+)

Effective 5 August 2026 · Version 1.0 · info@model-group.si

MODEL 5 podjetje za organizacijo, izvedbo, posredovanje d.o.o., Poljanski nasip 12, 1000 Ljubljana, Slovenia — reg. no. 2264994000, VAT SI 72347422. ("Company", "we", "us", "our") operates the "Punch" artificial-intelligence companion application (the "App" or "Service").

1. Eligibility — 18+ only

The Service is offered only to individuals who are at least 18 years old (or the age of majority in their jurisdiction, if higher) and can form a binding contract. By using the App you represent that you meet this requirement. We do not knowingly allow minors to use the Service; if we learn a user is a minor, we will suspend and delete the account.

2. Nature of the Service — AI, not a human, not a professional

CORE DISCLOSURE: The App is an artificial-intelligence conversational companion. Every response is generated by software. You are not communicating with a human being. The companion is not a friend, therapist, counsellor, physician, psychologist, lawyer, financial adviser, or any licensed professional, and has no professional duty of care to you.

AI-generated responses may be inaccurate, incomplete, outdated, offensive, or otherwise inappropriate. You are solely responsible for how you use and act on any output. The Service is for personal entertainment, general information, and companionship-style interaction only.

3. Not medical, legal, financial, or crisis advice

The Service does not provide medical, mental-health, psychological, legal, financial, or other professional advice, and must not be used as a substitute for it. Never disregard professional advice or delay seeking it because of something the companion said. For any decision with legal, medical, or financial consequences, consult a qualified professional.

4. Accounts and security

You must provide accurate registration information and keep your credentials confidential. You are responsible for activity under your account and must notify us immediately of any unauthorised use. We may refuse, suspend, or terminate accounts at our discretion, including for breach of these Terms.

5. Subscriptions, billing, and auto-renewal

The App is offered on a paid subscription basis. By subscribing you authorise us (or the applicable app store) to charge the then-current fees and applicable taxes to your payment method.

• Auto-renewal. Subscriptions renew automatically for successive periods at the then-current price until cancelled. We (or the app store) charge your payment method at the start of each renewal term.
• Cancellation. You may cancel at any time; cancellation takes effect at the end of the current billing period. For app-store purchases, cancel through that store's subscription settings.
• Price changes. We may change prices prospectively with advance notice; changes apply from the next renewal.
• Refunds. Except where required by law, fees are non-refundable. App-store purchases follow the store's refund policy.
• Consumer rights. Statutory consumer rights (including any EU right of withdrawal and US state auto-renewal disclosures, e.g. California ARL) are unaffected and prevail where applicable.

6. Acceptable use

You agree not to use the Service to, and not to attempt or encourage the companion to:

• Generate or solicit content that sexualises minors, or any child sexual abuse material — an absolute, zero-tolerance prohibition;
• Generate content facilitating serious violence, terrorism, weapons, or other unlawful acts;
• Harass, defame, or infringe the rights (including IP and privacy) of others;
• Circumvent safety filters, age-gating, or usage limits, or reverse-engineer or scrape the Service;
• Input others' personal or sensitive data without a lawful basis, or upload malware; or
• Use outputs to build a competing model or for unlawful automated decision-making.

We may remove content and suspend or terminate accounts for violations, and report unlawful content to authorities where required. See the Acceptable Use Policy.

7. User content and conversations

You retain ownership of the content you submit ("User Content"). You grant us a worldwide, non-exclusive, royalty-free licence to host, process, and use User Content to operate, secure, and improve the Service, as described in the Privacy Policy. You represent that you have the rights necessary to grant this licence. Do not submit content you are not entitled to share.

8. Intellectual property

The App, its software, models, look and feel, and trademarks are owned by or licensed to the Company and protected by law. Subject to these Terms, we grant you a limited, revocable, non-transferable, non-exclusive licence to use the App for personal, non-commercial purposes. All rights not expressly granted are reserved.

9. AI output — ownership and no reliance

Subject to these Terms and applicable law, we assign to you such rights as we hold in the specific outputs generated for you, except to the extent they contain pre-existing or third-party material. Output may be non-unique: similar prompts may produce similar output for other users. Output may be wrong; independently verify anything you rely on.

10. Third-party services

The App relies on third-party providers (including hosting and third-party AI model providers) and may link to third-party services. We are not responsible for third-party services; your use of them is governed by their terms.

11. Disclaimers of warranties

TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE", WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, ACCURACY, AND ANY WARRANTY THAT OUTPUT IS RELIABLE, SAFE, OR SUITABLE. WE DO NOT WARRANT UNINTERRUPTED OR ERROR-FREE OPERATION, OR THAT SAFETY MECHANISMS WILL DETECT OR PREVENT ALL HARM.

Some jurisdictions do not allow certain warranty exclusions; there, the above applies to the fullest extent permitted, and mandatory consumer guarantees (e.g. under EU/Slovenian consumer law) are unaffected.

12. Limitation of liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE COMPANY AND ITS OFFICERS, EMPLOYEES, AND SUPPLIERS WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR LOSS OF PROFITS, DATA, GOODWILL, OR EMOTIONAL DISTRESS, ARISING FROM OR RELATED TO THE SERVICE OR ANY OUTPUT, EVEN IF ADVISED OF THE POSSIBILITY.

OUR TOTAL AGGREGATE LIABILITY FOR ALL CLAIMS IN ANY 12-MONTH PERIOD WILL NOT EXCEED THE GREATER OF (A) THE AMOUNTS YOU PAID US FOR THE SERVICE IN THAT PERIOD, OR (B) EUR 100 (OR USD EQUIVALENT).

Nothing excludes or limits liability that cannot be excluded by law (including for death or personal injury caused by negligence, fraud, or mandatory consumer-law liability). These limitations allocate risk and are a fundamental basis of the bargain.

13. Indemnification

You agree to indemnify and hold the Company harmless from claims, damages, and expenses (including reasonable legal fees) arising from your breach of these Terms, your misuse of the Service, or your violation of law or third-party rights, to the extent permitted by applicable law.

14. Suspension and termination

We may suspend or terminate access at any time for breach, legal risk, or safety reasons. You may stop using the Service and delete your account at any time. Provisions that by nature should survive (IP, disclaimers, liability limits, arbitration) survive termination.

15. Changes to the Service and Terms

We may modify the Service and these Terms. Material changes will be notified (in-app or by email) with reasonable notice where required. Continued use after changes take effect constitutes acceptance; if you do not agree, stop using the Service.

16. Governing law

Users outside the United States: these Terms are governed by the laws of the Republic of Slovenia, excluding conflict-of-laws rules and the UN CISG, and the courts of Ljubljana, Slovenia have jurisdiction, without prejudice to mandatory consumer protections entitling a consumer to the protection of, and proceedings in, their country of habitual residence.

Users in the United States: these Terms are governed by the laws of the State of [Delaware/California], and Sections 17–18 apply.

17. Informal dispute resolution

Before starting any proceeding, you agree to contact us at info@model-group.si and attempt to resolve the dispute informally for at least 30 days.

18. Binding arbitration and class-action waiver (U.S. users)

U.S. USERS — PLEASE READ: This Section requires most disputes to be resolved by binding individual arbitration and waives the right to a jury trial and to participate in a class action. You may opt out within 30 days of first accepting these Terms by emailing info@model-group.si; opting out does not affect the other Terms.

If you are a U.S. resident, you and the Company agree that any dispute arising out of or relating to the Service or these Terms will be resolved by binding arbitration administered by the American Arbitration Association (AAA) under its consumer rules, on an individual basis. The arbitrator decides threshold questions of arbitrability, except that a court decides the enforceability of the class-action waiver. Either party may bring an individual claim in small-claims court. This Section is governed by the Federal Arbitration Act.

Class-action waiver. Claims must be brought individually and not as a plaintiff or class member in any class, collective, consolidated, or representative proceeding. If the waiver is unenforceable as to a claim, that claim proceeds in court while the rest remain in arbitration.

19. Consumers in the EU/EEA

Nothing deprives EU/EEA consumers of mandatory protections of their home jurisdiction. EU consumers may use the European Commission's Online Dispute Resolution platform. Statutory rights of withdrawal, warranty, and remedy under Slovenian and EU consumer law prevail over any conflicting provision.

20. Miscellaneous

These Terms, the Privacy Policy, the Acceptable Use Policy, the EULA, and the Safety & Crisis-Response Protocol constitute the entire agreement. If a provision is unenforceable, the rest remains in effect. Our failure to enforce a right is not a waiver. You may not assign these Terms; we may assign to an affiliate or successor. Notices to you may be given in-app or by email.

Contact

MODEL 5 podjetje za organizacijo, izvedbo, posredovanje d.o.o., Poljanski nasip 12, 1000 Ljubljana, Slovenia — reg. no. 2264994000, VAT SI 72347422. info@model-group.si