Terms of Service

Last updated: 3/25/2026

1. Acceptance of Terms

By accessing and using Pencil.AI, you accept and agree to be bound by these Terms of Service and all applicable laws and regulations. If you do not agree with any of these terms, you are prohibited from using our services.

2. Description of Service

Pencil.AI is an AI-powered video generation platform that allows users to create videos from text prompts, images, and reference materials.

  • Text-to-video generation using advanced AI models
  • Image-to-video animation capabilities
  • Reference-based video enhancement
  • Credit-based usage and subscription plans

3. User Responsibilities

As a user of Pencil.AI, you agree to use our services responsibly and in accordance with these terms.

You agree not to:

  • Generate content that is illegal, harmful, threatening, abusive, or defamatory
  • Upload images or prompts that violate intellectual property rights
  • Attempt to circumvent credit systems or usage limitations
  • Use the service for spam, fraud, or malicious purposes
  • Reverse engineer or attempt to extract our AI models

4. Credits and Payments

Pencil.AI operates on a credit-based system with optional subscription plans.

Purchase: Credits can be purchased in packages or through monthly/yearly subscriptions. Prices are displayed on our pricing page.

Expiration: Credit packages have expiration dates as specified at purchase. Subscription credits reset each billing period.

Refunds: Refunds are handled on a case-by-case basis. Technical issues that prevent service delivery may qualify for credit refunds.

5. Content and Intellectual Property

Platform Content

Pencil.AI, our technology, and our branding are owned by us and protected by intellectual property laws.

Your Content

You retain ownership of content you provide (prompts, images). You grant us a license to use this content solely to provide our services.

Generated Videos

You own the videos generated using your credits and may use them for commercial purposes. However, you must ensure your use complies with applicable laws.

6. Termination

We reserve the right to suspend or terminate your access to Pencil.AI at our sole discretion, without prior notice, for conduct that we believe violates these Terms or is harmful to other users, us, or third parties, or for any other reason.

Voluntary: You may terminate your account at any time through your account settings.

Involuntary: We may terminate accounts for violations of these terms, fraudulent activity, or extended periods of inactivity.

7. Disclaimer of Warranties

Pencil.AI is provided "as is" and "as available" without warranties of any kind, either express or implied.

  • We do not guarantee uninterrupted or error-free service
  • AI generation results may vary and cannot be guaranteed to meet your expectations
  • We are not responsible for the content users generate

8. Limitation of Liability

In no event shall Pencil.AI be liable for any indirect, incidental, special, consequential, or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses.

9. Indemnification

You agree to indemnify and hold harmless Pencil.AI from any claims, damages, or expenses arising from your use of our services or violation of these terms.

10. Governing Law

These Terms shall be governed by and construed in accordance with the laws of the jurisdiction in which Pencil.AI is registered, without regard to its conflict of law provisions.

11. Changes to Terms

We reserve the right to modify these terms at any time. We will provide notice of significant changes. Your continued use of the service after changes constitutes acceptance.

12. Contact Information

For questions about these Terms of Service, please contact us: