Terms of Service

1. Definitions

For the purposes of these Terms of Service (“Terms”), the following definitions apply:

1.1 “DropHammer™,” “we,” “us,” or “our” refers to DropHammer Technologies LLC, an Arkansas limited liability company, with its principal place of business in Hot Springs, Arkansas.

1.2 “Service” means the DropHammer AI-powered field service management platform, including all software, applications (mobile and web), application programming interfaces (APIs), AI features, integrations, documentation, and related services provided by DropHammer.

1.3 “User,” “you,” or “your” refers to the individual or legal entity that registers for and uses the Service, including all Authorized Users on the account.

1.4 “Authorized Users” means the individuals whom the User has authorized to access and use the Service under the User’s account, including employees, contractors, and team members, subject to the seat limits of the applicable Subscription Plan.

1.5 “Customer Data” means all data, information, content, and materials that a User or its Authorized Users submit, upload, transmit, or otherwise make available through the Service. Customer Data includes, but is not limited to: CRM contacts, client records, job information, invoices, quotes, voice recordings, call recordings, voice notes, GPS location data, financial data, email data, and any other business data processed through the Service.

1.6 “AI Features” means all functionality within the Service that uses artificial intelligence, machine learning, or automated decision-making, including but not limited to: natural language understanding and processing, business intelligence and analysis, document generation (including collection reminders, lien affidavits, and other business documents), scheduling suggestions, lead scoring, follow-up recommendations, collections management and escalation recommendations, theft-of-services analysis, weather-schedule conflict analysis, AI receptionist and phone answering, voice-to-text transcription, and text-to-speech responses.

1.7 “AI Outputs” means any text, documents, analysis, recommendations, suggestions, scores, summaries, or other content generated by the AI Features of the Service.

1.8 “Subscription Plan” means the specific service tier selected by the User (Founding, Solo, Solo Pro, Crew, or Operations), which determines available features, usage limits, number of Authorized Users, and pricing.

1.9 “Subscription Period” means the duration of the User’s subscription, either monthly or annual, as selected at the time of purchase.

1.10 “Integration Partners” means third-party services that connect to DropHammer, including but not limited to Jobber, ServiceTitan, Housecall Pro, QuickBooks, Stripe, Gmail, and other field service management, accounting, or business tools.

1.11 “Effective Date” means the date on which these Terms become effective, as stated above.

2. Account Terms

2.1 Eligibility. You must be at least eighteen (18) years of age and have the legal capacity to enter into a binding contract to use the Service. If you are using the Service on behalf of a business entity, you represent and warrant that you have the authority to bind that entity to these Terms.

2.2 Registration. To access the Service, you must create an account by providing accurate, current, and complete information as requested during the registration process. You agree to update your account information promptly to keep it accurate, current, and complete.

2.3 Account Security. You are responsible for maintaining the confidentiality of your account credentials, including your password and any API keys. You are solely responsible for all activities that occur under your account, whether or not authorized by you. You agree to immediately notify DropHammer of any unauthorized use of your account or any other breach of security.

2.4 Authorized Users. You may invite Authorized Users to access the Service under your account, subject to the seat limits of your Subscription Plan. You are responsible for ensuring that all Authorized Users comply with these Terms. Any violation of these Terms by an Authorized User will be treated as a violation by you.

2.5 One Account Per Entity. Each business entity may maintain only one active account. Creating multiple accounts to circumvent usage limits, plan restrictions, or these Terms is prohibited.

2.6 Account Accuracy. You represent and warrant that all information you provide to DropHammer is truthful, accurate, and not misleading. Providing false information is grounds for immediate termination of your account.

3. Grant of License

3.1 License. Subject to your compliance with these Terms and payment of all applicable fees, DropHammer grants you a limited, non-exclusive, non-transferable, non-sublicensable, revocable license to access and use the Service during the Subscription Period solely for your internal business purposes.

3.2 Restrictions. You shall not, and shall not permit any third party to: (a) copy, modify, or create derivative works of the Service; (b) reverse engineer, disassemble, decompile, or otherwise attempt to derive the source code, algorithms, models, training data, or underlying structure of the Service, whether manually or through automated tools (including AI-assisted decompilation or analysis tools), except to the extent expressly permitted by applicable law that cannot be waived by contract; (c) sublicense, lease, rent, sell, resell, distribute, or otherwise make the Service available to any third party; (d) use the Service to build a competitive product or service; (e) remove, alter, or obscure any proprietary notices or labels on the Service; or (f) access the Service in order to benchmark it against a competing product or service.

3.3 Trade Secret Acknowledgment

You acknowledge that the Service contains valuable trade secrets of DropHammer Technologies LLC, including but not limited to its proprietary algorithms, models, processing methods, and analytical systems. You agree that any unauthorized access to, reverse engineering of, or extraction of such trade secrets constitutes a breach of the duty of confidentiality established by these Terms and may be pursued as misappropriation of trade secrets under applicable federal and state law, including the Defend Trade Secrets Act (18 U.S.C. § 1836).

4. Subscription Plans and Billing

4.1 Subscription Plans. DropHammer offers the following Subscription Plans:

Annual billing is available at a discount. Exact feature sets and pricing for each plan are described on the DropHammer website and may be updated from time to time in accordance with Section 4.8.

4.2 Payment. All fees are payable in United States Dollars (USD). Payment is due in advance at the beginning of each Subscription Period. We accept payment via credit card, debit card, or other payment methods supported by our payment processor, Stripe, Inc. By providing a payment method, you authorize DropHammer to charge all fees associated with your Subscription Plan to that payment method.

4.3 Auto-Renewal. Your subscription will automatically renew at the end of each Subscription Period for successive periods of the same duration unless you cancel your subscription before the renewal date. For monthly subscriptions, you must cancel at least one (1) day before the next billing date. For annual subscriptions, we will endeavor to send a renewal reminder notice to your registered email address at least thirty (30) days before the renewal date, including the renewal amount and instructions for cancellation. You must cancel at least thirty (30) days before the next billing date. You may cancel your subscription at any time through your account settings. The cancellation process will require no more steps than the subscription process.

4.4 Cancellation. You may cancel your subscription at any time through your account settings or by contacting us at the address provided in Section 25. Upon cancellation, your subscription will remain active through the end of the current paid Subscription Period. No prorated refunds will be issued for the unused portion of a Subscription Period, except as required by applicable law.

4.5 Refund Policy. All fees are non-refundable except in the following circumstances: (a) if DropHammer materially fails to provide the Service as described and does not cure such failure within thirty (30) days of written notice; (b) if required by applicable law; or (c) at DropHammer’s sole discretion. Refund requests must be submitted in writing within thirty (30) days of the charge in question.

4.6 Payment Failure. If a payment fails, we will notify you and provide a grace period of seven (7) days to update your payment information. If payment is not received within the grace period, your account may be suspended. If payment is not received within thirty (30) days of the original due date, your account may be terminated.

4.7 Taxes. All fees are exclusive of applicable taxes, including sales tax, use tax, value-added tax, and withholding taxes. You are responsible for all applicable taxes, except for taxes based on DropHammer’s net income. If DropHammer is required to collect or pay any taxes on your behalf, such taxes will be added to your invoice.

4.8 Price Changes. DropHammer may change its pricing at any time. We will provide at least thirty (30) days’ advance written notice of any price increase to your registered email address. Price increases will take effect at the beginning of your next Subscription Period following the notice period. If you do not agree to the new pricing, you may cancel your subscription before the new pricing takes effect.

Notwithstanding the foregoing, approved Founding subscribers receive a 24-month rate lock on their initial base subscription fee, subject to continuous service and the annual prepayment terms agreed at signup. This rate lock does not apply to overage charges, add-on features, professional services, or features introduced after the Founding offer was established.

5. Free Trial

5.1 Trial Period. DropHammer may offer a free trial period of fourteen (14) days for new accounts. During the trial period, you will have access to the features of the Subscription Plan you selected. Founding offers may be excluded from any free trial program.

5.2 Credit Card Required. A valid credit card or other accepted payment method is required to begin a free trial. You will not be charged during the trial period unless you exceed any applicable usage limits that incur overage charges.

5.3 Conversion. At the end of the trial period, your account will automatically convert to a paid subscription at the rate of the selected Subscription Plan, and your payment method will be charged. If you do not wish to continue, you must cancel before the trial period ends.

5.4 Trial Limitations. DropHammer reserves the right to limit the features available during the trial period, to limit the number of trial accounts per individual or entity, and to modify or discontinue the trial offer at any time without notice.

6. AI Features and Disclaimers

THIS SECTION CONTAINS IMPORTANT LIMITATIONS AND DISCLAIMERS REGARDING THE AI FEATURES OF THE SERVICE. PLEASE READ IT CAREFULLY.

6.1 AI Outputs Are Informational Only. The AI Features of the Service generate recommendations, suggestions, analysis, draft documents, and other outputs using artificial intelligence. All AI Outputs are provided for informational purposes only and are intended to assist, not replace, your independent professional judgment. AI Outputs may contain errors, omissions, inaccuracies, or outdated information.

6.2 No Professional Advice. DropHammer is not a law firm, accounting firm, financial advisor, or licensed professional service provider. The Service does not provide and AI Outputs do not constitute:

• (a) Legal advice. AI-generated documents, including but not limited to lien affidavits, collection letters, certified mail notices, lien warning letters, and theft-of-services analyses, are DRAFTS and TEMPLATES only. They do NOT constitute legal advice, legal representation, or the practice of law. All AI-generated legal documents MUST be reviewed by a licensed attorney before filing, sending, or acting upon them.
• (b) Financial advice. AI-generated recommendations regarding invoicing, collections timing, quote pricing, pipeline analysis, and lead scoring do not constitute financial, accounting, or investment advice.
• (c) Criminal justice advice. The theft-of-services analysis feature provides an informational assessment of factual elements against statutory criteria. It does NOT constitute a determination that a crime has been committed, a legal opinion, or a recommendation to file a police report or pursue criminal charges. Filing a false police report is a criminal offense. You MUST consult a licensed attorney before taking any legal or criminal justice action based on AI Outputs.
• (d) Professional service recommendations. AI-generated scheduling recommendations, weather conflict analyses, and business intelligence summaries are suggestions only and do not replace the judgment of qualified professionals.

6.3 User Responsibility. YOU ARE SOLELY RESPONSIBLE FOR REVIEWING, VERIFYING, AND APPROVING ALL AI OUTPUTS BEFORE USING, RELYING UPON, FILING, OR SENDING THEM. DropHammer shall have no liability for any actions you take, or fail to take, based on AI Outputs. You assume all risk associated with your use of AI Outputs, including any consequences arising from errors, omissions, or inaccuracies in such outputs.

6.4 No Guarantees of Accuracy. DropHammer does not warrant or guarantee the accuracy, completeness, reliability, timeliness, or suitability of any AI Outputs. AI technology is inherently probabilistic and may produce different results for the same or similar inputs. AI Features may occasionally generate content that is incorrect, misleading, or inappropriate.

6.5 AI-Generated Document Safeguards. All documents generated by the AI Features are watermarked as “DRAFT — NOT FOR FILING WITHOUT PROFESSIONAL REVIEW” and require your affirmative confirmation before generation. You acknowledge that these safeguards exist for your protection and agree not to circumvent, remove, or modify them.

6.6 Collections and Invoice Management. When using the AI Features for collections management, including invoice reminders, collection notices, and escalation recommendations:

• (a) All automated communications require your approval before sending. The Service will not send any communication to your clients or customers without your explicit confirmation.
• (b) You are responsible for verifying the accuracy of all information (recipient, amount, dates) before approving any automated communication.
• (c) You are responsible for compliance with all applicable federal and state debt collection laws, including the Fair Debt Collection Practices Act (FDCPA), state consumer protection statutes, the Telephone Consumer Protection Act (TCPA), and the CAN-SPAM Act, to the extent they apply to your activities. You are responsible for obtaining all consents required by the TCPA and applicable state telemarketing laws before using DropHammer to send automated communications (including appointment reminders, collection notices, and follow-up messages) to any telephone number. DropHammer provides consent-tracking tools but does not verify that you have obtained adequate consent.
• (d) DropHammer is not a debt collection agency and does not provide legal advice. AI-generated collection communications are templates that you must review, customize, and ensure comply with the Fair Debt Collection Practices Act (FDCPA), your state’s collection laws, and any applicable regulations before sending. You are solely responsible for the content and timing of collection communications sent through the Service.

6.7 Lien Documents. When using the AI Features to generate lien-related documents:

• (a) Mechanics lien laws vary by state and are strictly construed. An improperly filed lien can be declared invalid and may expose you to liability for slander of title.
• (b) AI-generated lien documents are DRAFTS only. You MUST have all lien documents reviewed by a licensed attorney in the applicable jurisdiction before filing.
• (c) DropHammer does not guarantee that AI-generated lien documents comply with the specific requirements of any jurisdiction, including but not limited to content requirements, filing deadlines, delivery methods, or notarization requirements.
• (d) You acknowledge that you have been advised to consult a licensed attorney before filing any lien document, and you assume all risk and liability associated with filing AI-generated documents.

6.8 AI-Generated Legal Document Disclaimer. AI-generated legal documents (including lien affidavits, collection letters, and theft-of-services analyses) are informational templates only and do NOT constitute legal advice or the practice of law. DropHammer strongly recommends that you have all legal documents reviewed by a licensed attorney in your jurisdiction before filing or sending them. DropHammer is not a law firm and does not provide legal services.

6.9 Scheduling and Appointment Management. AI-generated scheduling recommendations, appointment reminders, and calendar management features are suggestions that require your review and confirmation. DropHammer is not responsible for missed appointments, scheduling conflicts, or other consequences arising from reliance on AI-generated scheduling information.

7. Call Recording and AI Receptionist

7.1 AI Receptionist. The Service includes an AI-powered phone answering feature (“AI Receptionist”) that answers incoming calls on behalf of your business via our telephony infrastructure. The AI Receptionist uses artificial intelligence to provide information to callers, take messages, and route calls.

7.2 AI Disclosure and Multi-Tier Recording Consent. The AI Receptionist discloses its AI nature and recording status at the beginning of every call. DropHammer implements a three-tier consent system based on the call recording laws of the caller’s state, as described in our Privacy Policy (Section 6.3):

• Tier 1 (One-Party Consent States): A recording disclosure is played. No additional caller action is required.
• Tier 2 (All-Party Consent States — Implied Consent): The same disclosure is played. The caller’s continuation of the call constitutes implied consent to recording.
• Tier 3 (Strict All-Party Consent States): The disclosure is played, followed by a prompt: “To consent to recording, please press 1 or say ‘yes.’ If you do not wish to be recorded, press 2 or say ‘no,’ and your call will continue without recording.” If the caller declines, the call continues without recording but the AI Receptionist still functions normally.

If you have enabled Tier 2 voice data sharing under the Training Data Privacy Policy, the disclosure also states: “This call may also be used to improve our voice recognition technology.”

The applicable tier is determined automatically by the caller’s phone number area code. If the state cannot be determined, Tier 3 (strictest) is applied. If your business is located in a Tier 3 state, all calls are treated as Tier 3. See our Privacy Policy, Section 6.3–6.7, for the complete state classification table and detection methodology. You agree not to disable, modify, or circumvent this disclosure or the tiered consent mechanism.

7.3 Call Recording. Calls handled by the AI Receptionist are recorded and stored for the purpose of transcription, quality assurance, and business record-keeping. Recordings are processed using speech-to-text transcription services.

7.4 Recording Consent — Your Obligations. Call recording laws vary by jurisdiction. Some states require the consent of all parties to a conversation before recording, and some require express (affirmative) consent rather than implied consent by continuation. DropHammer’s multi-tier consent framework (described in Section 7.2 and Privacy Policy Section 6.3) is designed to address these variations automatically. You acknowledge and agree that:

• (a) You are responsible for understanding and complying with all applicable federal, state, and local laws regarding call recording in your jurisdiction and the jurisdictions of your callers.
• (b) DropHammer provides a multi-tier recording consent system that applies different consent procedures based on the caller’s state (as determined by area code). While this system is designed to be legally defensible, it has not been tested in litigation and area-code-based state detection has inherent limitations (including number portability and VOIP).
• (c) You should consult with legal counsel regarding whether DropHammer’s tiered consent system is sufficient for your specific business, jurisdiction, and caller base.
• (d) DropHammer shall not be liable for any claims, penalties, or damages arising from your failure to comply with applicable call recording laws, including any claims arising from limitations of the area-code-based state detection method.
• (e) If your business is located in a Tier 3 (strict all-party consent) state as identified in the Privacy Policy, all calls handled by your AI Receptionist will be treated as Tier 3 regardless of the caller’s area code.

7.5 AI Receptionist Limitations. The AI Receptionist is designed to collect information and route inquiries. It is NOT authorized to make binding commitments, price quotes, scheduling guarantees, or warranty representations on behalf of your business. You are responsible for configuring the AI Receptionist’s responses and FAQ to reflect accurate information about your business. DropHammer implements guardrails to prevent the AI from making unauthorized commitments, but no AI system is infallible. You should review AI Receptionist interactions regularly. Callers are informed that they are speaking with an AI assistant, not a human representative. The AI Receptionist may provide inaccurate, incomplete, or misleading information to callers. DropHammer is not responsible for any representations made by the AI Receptionist to callers on your behalf.

7.6 Call Data. Call recordings, transcripts, and associated metadata are part of your Customer Data and are subject to the data handling provisions of these Terms and our Privacy Policy.

7.7 Illinois Biometric Information Restrictions. Certain voice data features of the Service are restricted for Illinois residents and Illinois-based businesses in accordance with the Illinois Biometric Information Privacy Act (740 ILCS 14/1 et seq.). Specifically: (a) Tier 2 voice recording collection (as described in the Training Data Privacy Policy) is not available to Illinois residents or businesses with a principal place of business in Illinois; (b) the training data incentive program is not available to Illinois residents or Illinois-based businesses; (c) DropHammer does not extract, store, or use voiceprints, vocal pattern templates, or other biometric identifiers from AI Receptionist calls, including calls involving Illinois residents; and (d) call recordings involving Illinois residents are retained as standard business records and are not used for biometric identification or voice model training. See the Illinois Biometric Information section of our Privacy Policy and the Biometric Data Retention & Destruction Policy for full details.

8. Data Ownership and Handling

8.1 Customer Data Ownership. You retain all right, title, and interest in and to your Customer Data. DropHammer does not claim any ownership rights in your Customer Data.

8.2 License to Customer Data. You grant DropHammer a limited, non-exclusive, worldwide license to use, process, store, reproduce, and display your Customer Data solely for the purpose of providing, maintaining, and improving the Service, and as otherwise described in these Terms and our Privacy Policy.

8.3 AI Output Ownership. AI Outputs generated by the Service based on your Customer Data are provided to you under a perpetual, royalty-free license for your business use. DropHammer makes no warranty of originality, accuracy, or fitness for any particular purpose with respect to AI Outputs.

8.4 Aggregated Data. DropHammer may collect and use anonymized, aggregated data derived from your use of the Service (“Aggregated Data”) for purposes including product improvement, benchmarking, analytics, and research. Aggregated Data will not identify you or any individual and is not considered Customer Data.

8.5 Data Processing. Your Customer Data is processed by the Service in accordance with our Privacy Policy, which is incorporated into these Terms by reference. By using the Service, you acknowledge that you have read and understood our Privacy Policy.

8.6 Data Security. DropHammer implements administrative, technical, and physical safeguards appropriate for an early-stage service to protect Customer Data from unauthorized access, disclosure, alteration, or destruction. These safeguards are described in further detail in our Privacy Policy.

8.7 Data Isolation. Your Customer Data is strictly isolated from other customers’ data. DropHammer implements row-level security and logical data separation to ensure no customer can access another customer’s data through the Service, API, or any other means. This isolation applies to all Customer Data including contacts, call recordings, financial records, location data, and AI conversation history.

8.8 Data Processing by Third Parties. The Service uses third-party sub-processors to provide certain functionality, including but not limited to AI processing, voice synthesis, call handling, payment processing, and field service management integration. By using the Service, you consent to the transfer of relevant portions of your Customer Data to these sub-processors for the purpose of providing the Service. A current list of sub-processors is maintained at drophammer.ai/subprocessors.

8.9 Data Processing Agreement. DropHammer is developing a standard Data Processing Agreement (DPA). Until a DPA is available, the data processing terms in this Section 8 and our Privacy Policy govern how Customer Data is processed. Contact legal@drophammer.ai to discuss data processing requirements. DropHammer acts as a data processor (or “service provider” under CCPA) with respect to Customer Data processed on your behalf. DropHammer acts as a data controller (or “business” under CCPA) with respect to aggregated, anonymized data used for product improvement and analytics. This dual role is reflected in our Privacy Policy.

9. Third-Party Integrations

9.1 Integration Requirements. Certain features of the Service require active accounts with third-party Integration Partners (e.g., Jobber, ServiceTitan, Housecall Pro, QuickBooks, Gmail). You are responsible for maintaining valid accounts with these providers and for authorizing DropHammer to access your data through their APIs.

9.2 Integration Authorization. When you connect an Integration Partner to the Service, you authorize DropHammer to access, retrieve, and synchronize data from that Integration Partner on your behalf. You represent and warrant that you have the right to authorize such access and that your use of the integration complies with the Integration Partner’s terms of service.

9.3 Third-Party Service Availability. DropHammer does not control and is not responsible for the availability, accuracy, security, or performance of any Integration Partner’s services. If an Integration Partner experiences an outage, discontinues its service, changes its API, or terminates its relationship with DropHammer, the related features of the Service may be degraded or unavailable. DropHammer shall not be liable for any such disruption.

9.4 Third-Party Terms. Your use of Integration Partners is governed by the terms and conditions of those Integration Partners. DropHammer is not a party to any agreement between you and an Integration Partner, and DropHammer does not endorse, warrant, or assume any responsibility for any Integration Partner’s services.

10. GPS and Location Data

10.1 Location Features. The Service may include features that use GPS or other location data from your mobile device, including job tracking, mileage tracking, geofencing, and location-based notifications.

10.2 Consent. Location data is collected only with your explicit consent. You may enable or disable location tracking at any time through your device settings or the Service’s settings.

10.3 Location Data Use. Location data is used solely for the purposes described in our Privacy Policy, including providing location-based features of the Service. Location data is not sold to third parties or used for advertising purposes.

10.4 Authorized User Location Data. If you are an account administrator and your Authorized Users enable location tracking, you may have access to their location data through the Service. You are responsible for: (a) obtaining any required consent from your Authorized Users before enabling location tracking; (b) complying with all applicable employment and privacy laws regarding employee location monitoring; and (c) informing your Authorized Users of how their location data will be collected, used, and accessed.

11. SMS Text Message Communications

11.1 SMS Services. The Service includes SMS (text message) communication features that allow businesses using the DropHammer platform to send text messages to their clients, and that allow DropHammer Technologies LLC to send text messages directly to users and prospective users. By providing your phone number and opting in to receive text messages, you consent to receive automated text messages at the number you provide.

11.2 Types of Messages. SMS messages sent through the Service fall into two categories:

• (a) Transactional / Informational Messages: Appointment reminders, job status updates, estimate and quote notifications, invoice and payment notifications (including overdue invoice reminders), payment confirmations, account updates, and responses to inquiries.
• (b) Promotional / Marketing Messages: Review requests after completed work, promotions, special offers, seasonal reminders, product announcements, and founding member invitations. Marketing messages require separate, explicit consent and are limited to no more than 10 per month.

11.3 Consent. You must provide explicit consent before receiving any SMS messages. Consent is collected through one or more of the following methods: (a) checking a consent checkbox on the DropHammer website, client portal, or opt-in page; (b) verbal consent recorded by your service provider at the time of service booking; or (c) texting a keyword (e.g., START) to our messaging number. Consent to receive text messages is not a condition of purchasing any goods or services.

11.4 Opt-Out. You may opt out of text messages at any time by:

• (a) Replying STOP to any text message you receive from us (also accepts: UNSUBSCRIBE, CANCEL, END, QUIT, STOPALL).
• (b) Updating your SMS preferences in the client portal profile page.
• (c) Contacting support@drophammer.ai.

After sending STOP, you will receive a one-time confirmation message. No further messages will be sent unless you opt in again by replying START or updating your preferences.

11.5 Help. Reply HELP to any text message for assistance and support information, or contact support@drophammer.ai or call 877-318-5081.

11.6 Message Frequency and Rates. Message frequency varies based on your service activity and account settings. Standard carrier message and data rates may apply. DropHammer is not responsible for messaging or data charges imposed by your carrier. Carriers are not liable for delayed or undelivered messages.

11.7 Phone Number Privacy. We will not sell, rent, or share your phone number with third parties for their marketing purposes. Your phone number is used solely for the communication purposes described in this section and for account verification.

11.8 TCPA Compliance. If you are a business using the DropHammer platform to send SMS messages to your clients, you are responsible for: (a) obtaining proper consent from each recipient before sending messages through the Service; (b) maintaining records of consent; (c) honoring opt-out requests promptly; and (d) complying with all applicable federal and state laws, including the Telephone Consumer Protection Act (TCPA), CAN-SPAM Act, and state telemarketing regulations. DropHammer provides consent-tracking and opt-out management tools but does not verify that you have obtained adequate consent from your recipients.

For full details about our SMS practices and opt-in procedures, visit legal.drophammer.ai/sms-optin.

12. Acceptable Use Policy

12.1 General. You agree to use the Service only for lawful purposes and in accordance with these Terms. You agree not to use the Service in any way that violates any applicable federal, state, local, or international law or regulation.

12.2 Prohibited Activities. You shall not, and shall not permit any Authorized User or third party to:

• (a) Use the Service to facilitate any illegal activity, including but not limited to fraud, extortion, harassment, stalking, or money laundering.
• (b) Use AI-generated collection reminders or communications to harass, threaten, or intimidate any person, or to contact any person in violation of applicable debt collection laws.
• (c) Use the Service to generate fraudulent lien affidavits, forged documents, false legal filings, or other deceptive materials.
• (d) Represent AI-generated documents or AI Outputs as attorney-reviewed legal advice or professional opinions when they have not been reviewed by a qualified professional.
• (e) Use the theft-of-services analysis feature to file false police reports, pursue frivolous criminal charges, or harass any person.
• (f) Upload, store, or process data that you do not have the legal right to use, or scrape data from third-party sources in violation of those sources’ terms of use.
• (g) Attempt to reverse engineer, decompile, disassemble, or extract the underlying algorithms, models, training data, weights, prompts, or source code of the Service, whether through manual analysis, automated tools, AI-assisted decompilation, prompt extraction, model inversion, or any other means, except to the extent expressly permitted by applicable law that cannot be waived by contract.
• (h) Engage in automated bulk requests, API abuse, denial-of-service attempts, or any activity intended to disrupt, overload, or circumvent the rate limits or security measures of the Service.
• (i) Use the AI Receptionist to impersonate a real person without disclosure, or to misrepresent the nature of the interaction to callers.
• (j) Present AI-generated analysis as certified professional advice, including but not limited to legal, financial, engineering, or medical advice.
• (k) Use skip trace features or contact lookup features to stalk, harass, or locate individuals for purposes unrelated to legitimate business operations.
• (l) Resell access to the Service, AI Outputs, or any component of the Service as a competing service without prior written authorization from DropHammer.
• (m) Use the Service to send unsolicited commercial communications (spam) or to violate the TCPA, CAN-SPAM Act, or similar laws.
• (n) Exceed the usage limits or Authorized User limits of your Subscription Plan without upgrading to an appropriate plan.

12.3 Enforcement. DropHammer may investigate any suspected violation of this Acceptable Use Policy and may take any action it deems appropriate, including:

• (a) First violation: Written warning and temporary restriction of specific features.
• (b) Second violation: Suspension of the account for up to thirty (30) days.
• (c) Third violation, or any single severe violation: Immediate termination of the account without refund.
• (d) DropHammer reserves the right to report any suspected illegal activity to the appropriate law enforcement authorities.

12.4 HIPAA Disclaimer. The Service is not designed for and must not be used to process, store, or transmit protected health information (PHI) as defined by the Health Insurance Portability and Accountability Act (HIPAA). You agree not to submit PHI to the Service. If you are a HIPAA-covered entity or business associate, you must not use the Service for any purpose involving PHI unless you have executed a separate Business Associate Agreement with DropHammer. Contact legal@drophammer.ai to discuss healthcare-related use cases.

12.5 FCRA and Skip Trace Disclaimer. DropHammer is not a consumer reporting agency as defined by the Fair Credit Reporting Act (FCRA). Skip trace and contact lookup features use information you provide and publicly available data. Results must not be used for credit decisions, employment screening, tenant screening, insurance underwriting, or any purpose requiring FCRA compliance. You are solely responsible for ensuring your use of skip trace features complies with all applicable laws.

13. Intellectual Property

13.1 DropHammer IP. The Service, including all software, code, algorithms, models, user interface designs, documentation, trademarks, trade names, logos, and other intellectual property embodied in or associated with the Service, is and shall remain the exclusive property of DropHammer and its licensors. Nothing in these Terms grants you any right, title, or interest in any DropHammer intellectual property, except for the limited license expressly granted in Section 3.

13.2 Feedback. If you provide DropHammer with any suggestions, ideas, enhancement requests, feedback, or other recommendations regarding the Service (“Feedback”), you grant DropHammer a perpetual, irrevocable, worldwide, royalty-free, fully paid-up, non-exclusive license (sublicensable solely to DropHammer’s sub-processors for the purpose of providing the Service) to use, reproduce, modify, create derivative works from, distribute, and otherwise exploit such Feedback for the purpose of developing, improving, and marketing the Service and DropHammer’s related products, without any obligation to you.

13.3 Trademarks. “DropHammer” and associated logos are trademarks of DropHammer Technologies LLC. You may not use DropHammer’s trademarks without prior written permission, except as reasonably necessary to identify the Service in the ordinary course of your business.

14. Confidentiality

14.1 Confidential Information. Each party acknowledges that it may receive confidential information from the other party in connection with the Service. “Confidential Information” includes Customer Data, business plans, pricing, technical information, and any other information that is marked as confidential or that a reasonable person would understand to be confidential.

14.2 Obligations. Each party agrees to: (a) hold the other party’s Confidential Information in confidence; (b) not disclose such information to any third party except as permitted by these Terms or with the other party’s written consent; and (c) use such information only for the purposes of fulfilling its obligations under these Terms.

14.3 Exceptions. Confidential Information does not include information that: (a) is or becomes publicly available through no fault of the receiving party; (b) was rightfully in the receiving party’s possession before disclosure; (c) is independently developed by the receiving party without use of the Confidential Information; or (d) is rightfully received from a third party without restriction.

14.4 Required Disclosure. A party may disclose the other party’s Confidential Information to the extent required by law, regulation, or court order, provided that the disclosing party gives the other party prompt written notice (to the extent permitted by law) and reasonable assistance in opposing or limiting such disclosure.

15. Indemnification

15.1 Your Indemnification of DropHammer. You agree to indemnify, defend, and hold harmless DropHammer, its officers, directors, employees, agents, and affiliates from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or relating to:

• (a) Your use of the Service, including your use of AI Outputs without independent professional review.
• (b) Your filing of AI-generated legal documents (including lien affidavits and collection notices) without attorney review.
• (c) Your violation of applicable debt collection laws, call recording laws, or other laws and regulations.
• (d) Your violation of these Terms, including the Acceptable Use Policy.
• (e) Your Customer Data, including any claim that your Customer Data infringes the rights of a third party.
• (f) Any actions taken by you based on AI Outputs, including the theft-of-services analysis feature.
• (g) Claims by any third party (including your clients, customers, or callers) arising from your use of the Service or communications sent through the Service.

15.2 DropHammer’s Indemnification of You. DropHammer agrees to indemnify, defend, and hold harmless you from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or relating to:

• (a) Any claim that the Service itself (excluding Customer Data and third-party integrations) infringes a valid United States patent, copyright, or trademark of a third party.
• (b) Any data breach caused by DropHammer’s gross negligence or willful misconduct in securing the Service.
• (c) DropHammer’s gross negligence or willful misconduct in providing the Service.

15.3 Indemnification Procedures. The party seeking indemnification must: (a) provide prompt written notice of the claim to the indemnifying party; (b) grant the indemnifying party sole control of the defense and settlement of the claim; and (c) provide reasonable cooperation and assistance to the indemnifying party at the indemnifying party’s expense. Failure to provide prompt notice will not relieve the indemnifying party of its obligations except to the extent that such failure materially prejudices the defense.

16. Limitation of Liability

16.1 Cap on Liability. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE TOTAL CUMULATIVE LIABILITY OF DROPHAMMER AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS, ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICE, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, SHALL NOT EXCEED THE TOTAL FEES PAID BY YOU TO DROPHAMMER DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

16.2 Exclusion of Certain Damages. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL DROPHAMMER BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, REVENUE, GOODWILL, DATA, OR BUSINESS OPPORTUNITIES, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE OR WHETHER DROPHAMMER WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

16.3 AI Output Liability. WITHOUT LIMITING THE FOREGOING, DROPHAMMER SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY DAMAGES, LOSSES, OR CLAIMS ARISING FROM YOUR RELIANCE ON, USE OF, OR ACTIONS TAKEN BASED ON AI OUTPUTS, INCLUDING BUT NOT LIMITED TO:

• (a) Errors, omissions, or inaccuracies in AI-generated documents, analysis, or recommendations.
• (b) Consequences of filing AI-generated legal documents without attorney review.
• (c) Consequences of acting on AI-generated business recommendations.
• (d) Consequences of acting on theft-of-services analysis outputs.
• (e) Misrepresentations made by the AI Receptionist to callers.
• (f) Financial losses resulting from AI-generated scheduling, collections, or business intelligence suggestions.

16.4 Exceptions to Limitation. The limitations of liability in this Section 16 shall not apply to: (a) either party’s indemnification obligations under Section 15 for intellectual property infringement; (b) either party’s breach of confidentiality obligations under Section 14; (c) DropHammer’s obligations arising from a data breach caused by DropHammer’s gross negligence or willful misconduct; or (d) any liability that cannot be limited or excluded under applicable law.

16.5 Basis of the Bargain. The limitations of liability in this Section 16 are a fundamental element of the basis of the bargain between you and DropHammer. DropHammer would not provide the Service at the prices charged without such limitations.

17. Disclaimer of Warranties

17.1 “As Is” Service. THE SERVICE, INCLUDING ALL AI FEATURES AND AI OUTPUTS, IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED.

17.2 Disclaimer. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DROPHAMMER EXPRESSLY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING BUT NOT LIMITED TO: (A) WARRANTIES OF MERCHANTABILITY; (B) WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE; (C) WARRANTIES OF NON-INFRINGEMENT; (D) WARRANTIES OF ACCURACY, RELIABILITY, OR COMPLETENESS OF AI OUTPUTS; (E) WARRANTIES THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, SECURE, OR FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS; AND (F) WARRANTIES ARISING FROM COURSE OF DEALING, USAGE, OR TRADE PRACTICE.

17.3 No Professional Service Warranty. DROPHAMMER DOES NOT WARRANT THAT AI OUTPUTS WILL COMPLY WITH ANY LEGAL REQUIREMENTS, PROFESSIONAL STANDARDS, OR INDUSTRY REGULATIONS. AI OUTPUTS ARE NOT A SUBSTITUTE FOR PROFESSIONAL LEGAL, FINANCIAL, OR OTHER EXPERT ADVICE.

18. Termination

18.1 Termination by You. You may terminate your account and these Terms at any time by canceling your subscription through your account settings or by contacting us. Termination will be effective at the end of the current paid Subscription Period.

18.2 Termination by DropHammer. DropHammer may terminate or suspend your account and access to the Service, in whole or in part, at any time and for any reason, including but not limited to: (a) your breach of these Terms; (b) your failure to pay applicable fees; (c) your violation of the Acceptable Use Policy; (d) if required by law; or (e) if DropHammer discontinues the Service. DropHammer will provide at least sixty (60) days’ written notice before terminating your account without cause, during which period you may export your data and transition to an alternative service. If DropHammer terminates your account without cause, you will receive a prorated refund for any prepaid fees covering the remainder of your billing period.

18.3 Termination for Breach. If either party materially breaches these Terms, the non-breaching party may terminate these Terms upon thirty (30) days’ written notice, provided that the breaching party does not cure the breach within that thirty-day period. Notwithstanding the foregoing, DropHammer may immediately terminate or suspend your account without prior notice in cases of: (a) severe or repeated violations of the Acceptable Use Policy; (b) activity that poses a security risk to the Service or other users; or (c) activity that may subject DropHammer to legal liability.

18.4 Effect of Termination. Upon termination: (a) your license to use the Service immediately terminates; (b) you must cease all use of the Service; (c) you remain liable for all fees incurred prior to the effective date of termination; and (d) the provisions of these Terms that by their nature should survive termination shall survive, including Sections 6 (AI Disclaimers), 8 (Data Ownership), 13 (IP), 14 (Confidentiality), 15 (Indemnification), 16 (Limitation of Liability), 17 (Disclaimer of Warranties), 19 (Data Export), 21 (Dispute Resolution), and 22 (Governing Law).

19. Data Export and Post-Termination

19.1 Data Export. You may request export of your Customer Data at any time during the term of your subscription by contacting support@drophammer.ai. We will fulfill export requests within thirty (30) days. Export formats include CSV and JSON for contacts, interactions, calls, and other data. Audio files (call recordings, voice notes) are exported in their original format. For clarity, “Customer Data” that you may export means data you input into or generate through normal use of the Service. It does not include DropHammer’s proprietary derived data, trained model weights, classification systems, aggregated analytics, or any output of DropHammer’s proprietary AI processing pipelines. DropHammer’s training data, models, and analytical systems are DropHammer’s exclusive intellectual property and trade secrets, and are not subject to data portability or export requests.

19.2 Post-Termination Data Retention. Following termination or cancellation of your account, DropHammer will retain your Customer Data for a period of ninety (90) days to allow you to export your data. During this period, you may request a data export by contacting us at the address provided in Section 25.

19.3 Data Deletion. After the ninety (90) day post-termination data retention period, DropHammer will delete or anonymize your Customer Data in accordance with our standard data deletion procedures and our Privacy Policy. Certain data may be retained as required by law, for legitimate business purposes (e.g., billing records), or as part of Aggregated Data that does not identify you or any individual.

19.4 No Obligation to Retain. DropHammer shall have no obligation to retain your Customer Data beyond the ninety (90) day post-termination period, and shall not be liable for the deletion of your Customer Data after that period.

20. Service Modifications

20.1 Right to Modify. DropHammer reserves the right to modify, update, or discontinue any feature or aspect of the Service at any time, with or without notice. We will endeavor to provide reasonable advance notice of material changes that reduce core functionality.

20.2 Material Changes. If DropHammer makes a material change to the Service that substantially reduces the core functionality of your Subscription Plan, you may cancel your subscription within thirty (30) days of the change and receive a prorated refund for the unused portion of your current Subscription Period.

20.3 Discontinuation. If DropHammer decides to discontinue the Service entirely, we will provide at least ninety (90) days’ advance notice and a prorated refund for the unused portion of your current Subscription Period.

21. Dispute Resolution and Arbitration

PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY TRIAL.

21.1 Informal Resolution. Before initiating any formal dispute resolution proceeding, you agree to contact DropHammer at the address provided in Section 25 and attempt to resolve the dispute informally for at least thirty (30) days.

21.2 Binding Arbitration. If the dispute is not resolved informally within thirty (30) days, either party may initiate binding arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules. The arbitration shall be conducted by a single arbitrator.

21.3 Arbitration Location. The arbitration may be conducted remotely by videoconference, or, if both parties agree, in person in Garland County, Arkansas.

21.4 Arbitration Costs. Each party shall bear its own costs and attorneys’ fees in the arbitration, unless the arbitrator determines that the applicable law or the interests of justice require a different allocation. The filing fees and arbitrator’s fees shall be split equally, except that DropHammer will pay your share of filing fees if your claim is for less than $10,000.

21.5 Class Action Waiver. YOU AND DROPHAMMER AGREE THAT EACH PARTY MAY BRING CLAIMS AGAINST THE OTHER ONLY IN AN INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, COLLECTIVE, CONSOLIDATED, OR REPRESENTATIVE PROCEEDING. The arbitrator shall have no authority to conduct any class, collective, or representative proceeding. If a court of competent jurisdiction finds this class action waiver unenforceable, the remainder of this arbitration agreement shall remain in full force and effect, and any class or representative claims shall proceed in arbitration on a classwide basis.

21.6 Exceptions. Notwithstanding the foregoing, either party may: (a) bring an individual action in small claims court for disputes within the court’s jurisdictional limits; (b) seek injunctive or other equitable relief in a court of competent jurisdiction to prevent the actual or threatened infringement, misappropriation, or violation of intellectual property rights or confidential information; or (c) bring claims that are not subject to arbitration under applicable law. Nothing in this arbitration agreement shall be construed to prevent either party from seeking public injunctive relief in any court of competent jurisdiction.

21.7 Opt-Out. You may opt out of this arbitration agreement by sending written notice to DropHammer at the address provided in Section 25 within thirty (30) days of your first acceptance of these Terms. If you opt out, both you and DropHammer retain the right to pursue disputes in court.

21.8 Survival. This arbitration agreement will survive the termination of your relationship with DropHammer.

22. Governing Law

22.1 Governing Law. These Terms and any disputes arising out of or related to these Terms or the Service shall be governed by and construed in accordance with the laws of the State of Arkansas, without regard to its conflict of laws principles.

22.2 Jurisdiction. For any disputes not subject to arbitration, you agree to the exclusive jurisdiction and venue of the state and federal courts located in Garland County, Arkansas. You waive any objection to jurisdiction and venue in such courts.

23. General Provisions

23.1 Entire Agreement. These Terms, together with the Privacy Policy, the Training Data Privacy Policy, and any other agreements expressly incorporated by reference, constitute the entire agreement between you and DropHammer regarding the Service and supersede all prior and contemporaneous agreements, proposals, and representations, whether written or oral. In the event of a conflict between these Terms and the Privacy Policy, the Privacy Policy shall control with respect to data collection, use, and privacy matters, and these Terms shall control with respect to all other matters.

23.2 Assignment. You may not assign or transfer these Terms, or any rights or obligations hereunder, without DropHammer’s prior written consent. DropHammer may assign these Terms in connection with a merger, acquisition, reorganization, or sale of all or substantially all of its assets, provided that the assignee assumes DropHammer’s obligations under these Terms. Subject to the foregoing, these Terms shall bind and inure to the benefit of the parties and their respective successors and permitted assigns.

23.3 Severability. If any provision of these Terms is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid and enforceable, and the remaining provisions shall continue in full force and effect.

23.4 Waiver. The failure of either party to enforce any provision of these Terms shall not constitute a waiver of that provision or any other provision. A waiver of any provision shall be effective only if made in writing and signed by the waiving party.

23.5 Force Majeure. Neither party shall be liable for any failure or delay in performing its obligations under these Terms to the extent such failure or delay results from events beyond the party’s reasonable control, including but not limited to acts of God, natural disasters, epidemics, pandemics, war, terrorism, riots, government actions, power failures, internet or telecommunications failures, or third-party service outages. The affected party shall provide prompt notice of the force majeure event and use commercially reasonable efforts to mitigate its effects. If a force majeure event renders the Service materially unavailable for more than seven (7) consecutive days, you may terminate your subscription and receive a prorated refund for any prepaid fees covering the period of unavailability and any remaining billing period.

23.6 Notices. All notices required or permitted under these Terms shall be in writing and shall be deemed given when: (a) delivered personally; (b) sent by confirmed email to the email address associated with your account (for notices to you) or to the email address in Section 25 (for notices to DropHammer); or (c) three (3) days after being sent by certified mail, return receipt requested, postage prepaid.

23.7 Independent Contractors. The relationship between you and DropHammer is that of independent contractors. Nothing in these Terms creates a partnership, joint venture, employment, or agency relationship between the parties.

23.8 Third-Party Beneficiaries. These Terms do not confer any rights or remedies upon any person or entity other than the parties to these Terms and their respective successors and permitted assigns.

23.9 Headings. The section headings in these Terms are for convenience only and shall not affect the interpretation of these Terms.

23.10 Electronic Acceptance. By clicking “I Agree,” creating an account, or using the Service, you acknowledge that you have read, understood, and agree to be bound by these Terms. This electronic acceptance has the same legal effect as a physical signature.

24. Changes to These Terms

24.1 Right to Update. DropHammer reserves the right to update or modify these Terms at any time. The “Last Updated” date at the top of these Terms indicates when the most recent changes were made.

24.2 Notice of Material Changes. For material changes to these Terms, DropHammer will provide at least thirty (30) days’ advance notice by: (a) posting the updated Terms on the DropHammer website; (b) sending an email notification to your registered email address; and/or (c) displaying a prominent notice within the Service.

24.3 Acceptance of Changes. Your continued use of the Service after the effective date of any changes to these Terms constitutes your acceptance of the updated Terms. If you do not agree to the updated Terms, you must stop using the Service and cancel your subscription before the changes take effect.

24.4 Version Archive. DropHammer maintains an archive of all prior versions of these Terms, which is available at Previous versions available upon request by contacting legal@drophammer.ai.

25. Contact Information

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

Patent-pending technology. DropHammer is a trademark of DropHammer Technologies LLC.