Liability Cap
A liability cap limits what the company can ever owe you — often to the amount you paid in the last 12 months, or to one dollar.
A limitation-of-liability clause puts a ceiling on damages the company owes you, no matter what went wrong. For subscription services the common formula is 'fees you paid in the twelve (12) months preceding the claim'; for free services it frequently collapses to something like 'one hundred dollars ($100)' or even 'one dollar ($1)'. Free products still cause real harm — lost files, leaked data, wasted migration effort — and this clause prices all of it in advance.
The second half of the clause matters just as much: an exclusion of 'indirect, incidental, special, and consequential damages' deletes everything hard to quantify, including data loss in many drafts. Read together, the two provisions mean that even a breach that is entirely the company's fault yields a refund-sized recovery.
A few carve-outs usually survive — gross negligence, willful misconduct, and in some cases data-breach liability mandated by law. Whether those exceptions apply to your scenario is a question the cap is specifically designed to make expensive to ask.
IN NO EVENT SHALL COMPANY'S TOTAL LIABILITY EXCEED THE GREATER OF ONE HUNDRED DOLLARS ($100) OR THE FEES PAID BY YOU IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.
ToS-TLDR flags liability caps under hidden traps — low absolute caps ($1 or $100) and caps on free tiers are ranked high severity.
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