Last Updated: March 17, 2026

Welcome to Neon Bay. Please read these Terms of Service ("Terms") carefully before using our service. By accessing or using Neon Bay, you agree to be bound by these Terms.

1. Acceptance of Terms

By creating an account or using Neon Bay ("Service"), you agree to these Terms and our Privacy Policy. If you do not agree, do not use the Service.

2. Eligibility and Age Restriction

You must be at least 18 years old to use Neon Bay. By using the Service, you represent and warrant that:

You are at least 18 years of age
You have the legal capacity to enter into these Terms
You are not prohibited from using the Service under applicable law

Geographic Scope: This Service is intended for users in the United States. While we do not actively block access from other countries, the Service is designed for and governed by United States law. Users outside the United States access the Service at their own risk and are responsible for compliance with their local laws.

We reserve the right to terminate accounts of users we reasonably believe are under 18. If you are a parent or guardian and believe your child has accessed the Service, please contact us immediately.

3. Nature of the Service

Neon Bay provides AI-powered virtual characters (companions) for entertainment purposes. You acknowledge and agree that:

3.1 Companions Are Not Real People

Companions are fictional characters powered by artificial intelligence. They are not real people, do not have feelings, and cannot form genuine relationships. Any perceived personality, emotions, or attachment is simulated.

3.2 Entertainment Only

The Service is for entertainment purposes only. Companions do not provide and should not be relied upon for:

Medical, psychological, or mental health advice
Legal, financial, or professional advice
Emergency services or crisis intervention
Factual accuracy or truthful information

If you are experiencing a mental health crisis, please contact a licensed professional or emergency services immediately.

3.3 AI-Generated Content

All responses from companions are automatically generated. We do not control, endorse, or guarantee the accuracy, appropriateness, or quality of AI-generated content. Companions may produce content that is inaccurate, nonsensical, or offensive.

4. Mature Themes

Neon Bay may contain mature themes and a wide range of conversational topics. By using the Service, you:

Confirm you are at least 18 years old
Acknowledge that companions may discuss a broad range of topics
Understand that AI-generated responses are not curated or pre-screened
Accept responsibility for your interactions with companions

You are solely responsible for ensuring your use of the Service complies with applicable laws in your jurisdiction.

5. Your Account

5.1 Account Security

You are responsible for maintaining the confidentiality of your account credentials and for all activities under your account.

5.2 Accurate Information

You agree to provide accurate information during registration and to update it as necessary.

5.3 One Account Per Person

You may only maintain one account. We reserve the right to terminate duplicate accounts.

6. Virtual Credits

6.1 Nature of Credits

Neon Bay uses a virtual credit system ("Credits") to access premium features within the Service. Credits are a virtual, in-app currency only. Credits are not real currency, do not hold any real-world monetary value, and are not redeemable for cash, gift cards, or any form of legal tender. Credits are not your property and are non-transferable except as expressly permitted within the Service.

6.2 Purchasing Credits

Credits may be purchased through the Service. All purchases of Credits are final and non-refundable, except as required by applicable law. We reserve the right to modify the pricing, availability, and functionality of Credits at any time without prior notice.

6.3 Creator Rewards

Creators who publish AI companions ("companions") on the Service may receive Credits when other users interact with their creations ("Creator Rewards"). You acknowledge and agree that:

Creator Rewards are paid exclusively in Credits
Creator Rewards do not constitute wages, salary, income, or any form of monetary compensation
Creator Rewards cannot be converted, cashed out, withdrawn, or exchanged for real-world currency, cryptocurrency, or any other form of payment
We reserve the right to modify, suspend, or discontinue Creator Rewards, including reward rates, at any time and at our sole discretion
The receipt of Creator Rewards does not create an employment, partnership, or independent contractor relationship between you and Neon Bay

6.4 No Monetary Value

TO THE FULLEST EXTENT PERMITTED BY LAW, CREDITS HAVE NO MONETARY VALUE AND DO NOT CONSTITUTE PROPERTY. WE ARE NOT A BANK, PAYMENT PROCESSOR, OR MONEY TRANSMITTER. THE PURCHASE OR RECEIPT OF CREDITS DOES NOT CREATE A DEPOSIT ACCOUNT, STORED VALUE ACCOUNT, OR ANY FINANCIAL INSTRUMENT.

6.5 Expiration and Forfeiture

Credits may expire or be forfeited upon account termination, suspension, or deactivation. We are under no obligation to compensate you for any unused or expired Credits.

6.6 Subscriptions

Neon Bay offers optional paid subscription plans that provide recurring Credits and premium features. By purchasing a subscription, you acknowledge and agree that:

Subscriptions automatically renew at the end of each billing period (monthly or annually, as selected) at the then-current price unless canceled before the renewal date
You may cancel your subscription at any time through your device's subscription management settings (Apple App Store, Google Play Store) or through the Service's subscription management page for web purchases
Cancellation takes effect at the end of the current billing period — you retain access to subscription benefits until that date
No refunds are provided for partial billing periods, except as required by applicable law or the refund policies of the Apple App Store or Google Play Store
We reserve the right to modify subscription pricing with reasonable advance notice; continued subscription after a price change constitutes acceptance of the new pricing

For purchases made through the Apple App Store or Google Play Store, the respective platform's terms and refund policies apply.

6.7 Referral Rewards

You may receive Credits for referring new users to the Service through your personal referral code ("Referral Rewards"). Referral Rewards are subject to the same terms as Credits (Sections 6.1 and 6.4) and:

Referral Rewards may be subject to time-limited campaigns with varying bonus rates
We reserve the right to modify, suspend, or discontinue the referral program at any time
Referral Rewards obtained through fraud, self-referral, or abuse may be revoked

6.8 Gifting Credits

You may send Credits to AI companions as gifts within conversations. Gift messages, including any accompanying notes, become part of your conversation history and are subject to the same data retention policies as other messages. Gifted Credits are non-refundable once sent.

7. Acceptable Use

You agree NOT to use the Service to:

Violate any applicable law or regulation
Attempt to access the Service if you are under 18
Share account access with minors
Attempt to extract, reverse-engineer, or manipulate the AI systems
Use the Service to generate content that exploits minors in any way
Harass, threaten, or harm other users or third parties
Interfere with or disrupt the Service
Use automated systems to access the Service without permission
Attempt to circumvent any security or access controls
Upload, submit, or create content that infringes any third-party intellectual property rights, including copyrights, trademarks, or rights of publicity
Create companions based on real people (celebrities, public figures, or private individuals) without their explicit written consent
Upload images you do not own or have the right to use
Use copyrighted characters, logos, or branded content without authorization

We reserve the right to terminate your account for any violation of these Terms.

8. Content Moderation

8.1 Zero Tolerance Policy

Neon Bay maintains a zero tolerance policy for objectionable content and abusive users. Objectionable content includes, but is not limited to, content that is sexually explicit involving minors, harassing, threatening, hateful, violent, or otherwise harmful. Users who post objectionable content or engage in abusive behavior toward other users will have the offending content removed and their accounts terminated. We act on reports of objectionable content within 24 hours.

8.2 Our Approach

We use a combination of automated systems and human review to monitor content and enforce these Terms. Our moderation efforts aim to maintain a safe environment while respecting user privacy.

8.3 Automated Moderation

We employ automated tools to detect potential violations, including content that may be illegal, harmful, or in violation of these Terms. Automated systems may flag, filter, or restrict content before or after it is generated.

8.4 Human Review

Flagged content may be reviewed by our team. We may also conduct periodic reviews of content and accounts to ensure compliance with these Terms.

8.5 Reporting and Blocking

Every companion and message in the app includes controls to report objectionable content and block abusive users. You may also report content or behavior that you believe violates these Terms by emailing [email protected]. Include as much detail as possible, including relevant screenshots or descriptions. We review all reports and take action on confirmed violations within 24 hours.

8.6 Email Reports

If you encounter content or behavior that you believe violates these Terms, please report it to us at [email protected]. Include as much detail as possible, including relevant screenshots or descriptions.

8.7 Moderation Actions

When we determine that a violation has occurred, we may take one or more of the following actions at our sole discretion:

Issue a warning to the user
Temporarily restrict access to certain features
Remove or modify content
Suspend the account temporarily
Terminate the account permanently
Report the matter to law enforcement if we believe illegal activity has occurred

We are not obligated to provide notice before taking moderation actions, though we may do so when appropriate.

8.8 Appeals

If you believe a moderation action was taken in error, you may contact us at [email protected] to request a review. You may also use our public appeals guidance page at /help/moderation-appeals.

Our standard moderation appeals response windows are:

Initial acknowledgment within 24 hours of receiving the appeal
First human review decision within 72 hours
Complex cases requiring cross-functional investigation resolved within 7 calendar days (with interim updates every 72 hours)
Critical account-lockout or urgent safety-impacting edge cases receive same-day triage, with a human owner assigned within 4 hours

Appeals are reviewed by Trust & Safety personnel, with escalation to Legal where appropriate. Review outcomes may include upheld, reversed, or partially reversed decisions. Repeated SLA misses or high-severity rights-impacting disputes are escalated to executive leadership for oversight.

9. Intellectual Property

9.1 Our Property

The Service, including all software, AI models, 3D models, designs, text, graphics, and other content provided by Neon Bay, is owned by or licensed to us and protected by intellectual property laws.

9.2 Limited License

We grant you a limited, non-exclusive, non-transferable, revocable license to use the Service for personal, non-commercial purposes in accordance with these Terms.

9.3 Your Conversations

You retain no ownership rights in conversations with companions. We may use conversation data to improve the Service, subject to our Privacy Policy.

9.4 Feedback

If you provide us with feedback, suggestions, ideas, or recommendations regarding the Service ("Feedback"), you grant us a perpetual, irrevocable, worldwide, royalty-free license to use, modify, and incorporate such Feedback into the Service without any obligation to compensate you. You waive any rights you may have in such Feedback.

10. User-Generated Content

The Service allows you to create, upload, and share content, including but not limited to Neon Bay configurations, descriptions, personality traits, images, and other materials ("User Content"). This section governs your rights and responsibilities regarding User Content.

10.1 Your Representations and Warranties

By submitting User Content, you represent and warrant that:

You own or have obtained all necessary rights, licenses, and permissions to submit the User Content
The User Content does not infringe, misappropriate, or violate any third-party intellectual property rights, privacy rights, publicity rights, or other legal rights
The User Content does not contain likenesses of real people (including celebrities, public figures, or private individuals) without their explicit written consent
The User Content does not include copyrighted characters, trademarks, logos, or branded content owned by third parties without authorization
The User Content complies with all applicable laws and these Terms
You have the legal right to grant the licenses described in this section

10.2 License Grant to Neon Bay

By submitting User Content, you grant Neon Bay a perpetual, irrevocable, worldwide, royalty-free, sublicensable, and transferable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, publicly perform, and publicly display your User Content in any media format and through any media channels, for any purpose, including but not limited to:

Operating and providing the Service
Promoting the Service
Improving our AI systems and models
Creating new features and services

This license continues even if you stop using the Service or delete your account.

10.3 No Obligation to Use or Maintain

We have no obligation to use, display, or maintain any User Content. We may, at our sole discretion and without notice:

Refuse to accept or publish any User Content
Remove, edit, or disable access to any User Content for any reason
Delete User Content at any time without liability to you

10.4 No Endorsement

User Content does not reflect the views of Neon Bay. We do not endorse any User Content or any opinion, recommendation, or advice expressed therein.

10.5 Your Responsibility

You are solely responsible for your User Content and the consequences of posting or publishing it. We are not responsible for any User Content, including its accuracy, usefulness, safety, or intellectual property compliance.

10.6 Monitoring

We are not obligated to monitor User Content, but we reserve the right to do so. We may use automated tools and human review to screen User Content for potential violations of these Terms.

10.7 Public Availability

User Content you submit may be visible to other users of the Service. Do not submit User Content that you wish to keep confidential.

10.8 Persistence of User Content After Account Deletion

User Content you create, including AI companions ("companions"), will remain on the Service even after you delete or deactivate your account. This policy exists because:

Other users may be actively interacting with AI companions you created
Removing AI companions abruptly would disrupt those users' experiences and conversations
The license you grant in Section 10.2 is perpetual and irrevocable

If you wish to have specific User Content removed after account deletion, you may submit a request to [email protected]. We will consider such requests but are not obligated to remove User Content, as stated in Section 10.3.

11. Copyright and DMCA

11.1 Respect for Intellectual Property

We respect the intellectual property rights of others and expect our users to do the same. We will respond to notices of alleged copyright infringement that comply with applicable law.

11.2 Filing a DMCA Notice

If you believe that your copyrighted work has been copied in a way that constitutes copyright infringement, please provide our designated copyright agent with the following information:

A physical or electronic signature of the copyright owner or authorized representative
Identification of the copyrighted work claimed to have been infringed
Identification of the material that is claimed to be infringing, with enough detail to locate it
Your contact information (address, telephone number, and email address)
A statement that you have a good faith belief that use of the material is not authorized by the copyright owner, its agent, or the law
A statement, made under penalty of perjury, that the information in the notice is accurate and that you are the copyright owner or authorized to act on behalf of the owner

Send DMCA notices to:

Lumetra LLC
c/o Scarff Law Firm, PLLC
3035 Island Crest Way Ste 201
Mercer Island, WA 98040
Attn: DMCA Agent
Email: [email protected]

11.3 Counter-Notification

If you believe that your content was removed or disabled by mistake or misidentification, you may submit a counter-notification containing:

Your physical or electronic signature
Identification of the material that was removed and its location before removal
A statement under penalty of perjury that you have a good faith belief the material was removed by mistake or misidentification
Your name, address, and telephone number
A statement that you consent to the jurisdiction of the federal court in your district (or King County, Washington if outside the U.S.) and that you will accept service of process from the person who filed the original DMCA notice

11.4 Repeat Infringers

We maintain a policy of terminating, in appropriate circumstances, the accounts of users who are repeat infringers of copyrighted materials.

11.5 User Content Takedowns

In addition to DMCA notices for copyright infringement, we will remove User Content that infringes trademarks, rights of publicity, or other intellectual property rights upon receipt of a valid complaint. Contact [email protected] for all intellectual property concerns.

12. Data and Privacy

Our collection and use of personal information is governed by our Privacy Policy, which is incorporated into these Terms by reference. By using the Service, you consent to our data practices as described in the Privacy Policy.

We retain account and Service data while your account is active and process it as described in the Privacy Policy to operate, secure, and improve the Service. If you request account deletion, we provide a 30-day grace period during which deletion may be canceled; after the grace period, personal data is permanently deleted except where retention is required or permitted by law (for example, fraud prevention, dispute resolution, or tax/legal obligations). Financial records needed for those obligations may be retained in anonymized form for up to 7 years. Anonymized or aggregated data that cannot reasonably identify you may be retained.

California Residents: You have rights under the California Consumer Privacy Act (CCPA/CPRA), including rights to request access, deletion, and correction, subject to statutory exceptions. See our Privacy Policy for details on how to submit and verify requests.

13. Service Modifications and Availability

13.1 Changes to Service

We reserve the right to modify, suspend, or discontinue the Service (or any part thereof) at any time, with or without notice. This includes modifying or removing companions.

13.2 No Guarantee of Availability

We do not guarantee that the Service will be available at all times or without interruption. You acknowledge that companions may be modified, replaced, or removed without notice.

13.3 Changes to Terms

We may update these Terms at any time. Continued use of the Service after changes constitutes acceptance of the modified Terms.

13.4 Force Majeure

We shall not be liable for any failure or delay in performing our obligations under these Terms to the extent such failure or delay results from circumstances beyond our reasonable control, including but not limited to natural disasters, acts of government, war or terrorism, pandemics, labor disputes, power or internet outages, failures of third-party services or infrastructure, or cyberattacks.

14. Disclaimers

14.1 "As Is" Service

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR ACCURACY.

14.2 No Warranty of AI Behavior

WE DO NOT WARRANT THAT COMPANIONS WILL BEHAVE IN ANY PARTICULAR WAY, PRODUCE APPROPRIATE CONTENT, OR MEET YOUR EXPECTATIONS. COMPANION BEHAVIOR MAY CHANGE WITHOUT NOTICE.

14.3 Third-Party Services

The Service may integrate with third-party services (such as authentication providers). We are not responsible for the availability, accuracy, or practices of third-party services.

14.4 User Content

WE DO NOT WARRANT OR ENDORSE ANY USER CONTENT. USER-CREATED COMPANIONS AND OTHER USER CONTENT MAY BE INACCURATE, OFFENSIVE, OR INFRINGING. WE ARE NOT LIABLE FOR ANY USER CONTENT.

15. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW:

15.1 No Consequential Damages

IN NO EVENT SHALL NEON BAY, ITS OFFICERS, DIRECTORS, EMPLOYEES, OR AGENTS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO:

Loss of profits, data, or goodwill
Emotional distress or psychological harm
Service interruption
Any damages arising from your use of or inability to use the Service

15.2 Maximum Liability

OUR TOTAL LIABILITY FOR ANY CLAIMS ARISING FROM THESE TERMS OR YOUR USE OF THE SERVICE SHALL NOT EXCEED THE AMOUNT YOU PAID US IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM, OR ONE HUNDRED DOLLARS ($100), WHICHEVER IS GREATER.

15.3 Basis of the Bargain

YOU ACKNOWLEDGE THAT THESE LIMITATIONS ARE AN ESSENTIAL BASIS OF THE BARGAIN BETWEEN YOU AND NEON BAY, AND THAT NEON BAY WOULD NOT PROVIDE THE SERVICE WITHOUT THESE LIMITATIONS.

16. Indemnification

You agree to indemnify, defend, and hold harmless Neon Bay and its officers, directors, employees, and agents from any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from:

Your use of the Service
Your violation of these Terms
Your violation of any third-party rights
Any User Content you submit or share through the Service
Any claim that your User Content infringes intellectual property or other rights of any third party

17. Dispute Resolution

17.1 Informal Resolution

Before filing any legal claim, you agree to contact us and attempt to resolve the dispute informally for at least 30 days.

17.2 Binding Arbitration

Any dispute arising from these Terms or your use of the Service shall be resolved through binding arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules. Arbitration shall take place in King County, Washington, unless otherwise agreed.

17.3 Class Action Waiver

YOU AGREE TO RESOLVE DISPUTES WITH US ON AN INDIVIDUAL BASIS ONLY. YOU WAIVE ANY RIGHT TO PARTICIPATE IN A CLASS ACTION, CLASS ARBITRATION, OR REPRESENTATIVE ACTION. This waiver applies to the fullest extent permitted by law.

17.4 Small Claims Court

Notwithstanding the arbitration provisions above, either party may bring an individual action in small claims court for disputes within the court's jurisdictional limits.

17.5 Exceptions

Either party may seek injunctive relief in court for intellectual property infringement or unauthorized access to the Service.

17.6 Opt-Out

You may opt out of the arbitration and class action waiver provisions by sending notice to [email protected] within 30 days of first using the Service. Your notice must include your name, email address associated with your account, and a clear statement that you wish to opt out. Opting out will not affect any other provisions of these Terms.

18. Governing Law

These Terms shall be governed by the laws of the State of Washington, without regard to conflict of law principles. Any litigation not subject to arbitration shall be brought exclusively in the state or federal courts located in King County, Washington.

19. Export Controls

The Service is operated from the United States. You agree to comply with all applicable U.S. export control laws and regulations. You may not access or use the Service if you are:

Located in, or a resident of, any country subject to U.S. trade sanctions (including Cuba, Iran, North Korea, Syria, and the Crimea, Donetsk, and Luhansk regions)
Listed on any U.S. government restricted party list, including the Treasury Department's Specially Designated Nationals List or the Commerce Department's Entity List
Otherwise prohibited from receiving U.S.-origin services under applicable law

You represent and warrant that you are not located in, under the control of, or a national or resident of any such country or on any such list.

20. Termination

20.1 By You

You may delete your account at any time through the Settings page in the app or by contacting us at [email protected]. Account deletion is subject to a 30-day grace period during which you may cancel the request. After the grace period, your personal data will be permanently deleted as described in our Privacy Policy, except legally required financial records retained in anonymized form for up to 7 years. See our Privacy Policy for details on what data is deleted and what is retained.

20.2 By Us

We may suspend or terminate your account at any time, for any reason, with or without notice. Reasons may include, but are not limited to, violation of these Terms or suspected fraudulent or illegal activity.

20.3 Effect of Termination

Upon termination, your right to use the Service ceases immediately. Provisions that by their nature should survive termination shall survive, including Sections 6, 10-11, and 14-19.

20.4 Creator Content

If you have created AI companions ("companions") or other User Content, such content will remain on the Service after your account is terminated (see Section 10.8). Your termination does not affect the license you granted to us in Section 10.2, which is perpetual and irrevocable.

21. General Provisions

21.1 Entire Agreement

These Terms, together with the Privacy Policy, constitute the entire agreement between you and Neon Bay regarding the Service.

21.2 Severability

If any provision of these Terms is found unenforceable, the remaining provisions shall remain in effect.

21.3 No Waiver

Our failure to enforce any provision of these Terms shall not constitute a waiver of that provision.

21.4 Assignment

You may not assign these Terms without our consent. We may assign these Terms without restriction.

22. Contact Us

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

Lumetra LLC
c/o Scarff Law Firm, PLLC
3035 Island Crest Way Ste 201
Mercer Island, WA 98040
Email: [email protected]

By using Neon Bay, you acknowledge that you have read, understood, and agree to be bound by these Terms of Service.