Risk Score
0 = very fair · 100 = very risky
Summary
This is a SaaS Terms of Service for Cursor, an AI-powered coding tool made by Anysphere, Inc. The document is moderately fair for a software-as-a-service product, with some notably user-protective clauses (such as explicit opt-out of AI training and content ownership assignment). However, it contains standard aggressive provisions including mandatory arbitration with class action waiver, broad unilateral modification rights, liability caps, and the ability to delete account data upon termination. Overall, the terms lean toward the provider's interests but include several meaningful user protections compared to industry norms.
Flagged Clauses
If you have a dispute with Cursor, you cannot sue them in court or join a class action lawsuit. Disputes go to a private arbitrator instead. You do have 30 days from account creation (or from any terms update) to opt out by emailing legal@cursor.com.
“You agree that any and all disputes or claims...will be resolved exclusively through final and binding arbitration, rather than a court...you and Anysphere are each waiving the right to a trial by jury or to participate in a class action.”
You cannot band together with other users to bring a group lawsuit or class action against Anysphere, which can make pursuing small or moderate claims economically impractical.
“YOU AND ANYSPHERE AGREE THAT EACH OF US MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE ACTION OR PROCEEDING.”
Anysphere can change the terms at any time. Simply continuing to use the service counts as agreeing to the new terms, even if you didn't actively review them. There is no requirement for explicit re-consent.
“We may, from time to time, change these Terms...All modifications will be effective when they are posted, and your continued accessing or use of the Service will serve as confirmation of your acceptance of those modifications.”
Anysphere can suspend or shut down your access at any time, potentially without warning, and owes you no compensation for doing so except for pro-rata refunds on subscriptions (unless terminated for Terms violations).
“We reserve the right to modify, suspend, or discontinue the Services or your access to the Services, in whole or in part, at any time without notice to you...We will not be liable for any change to or any suspension or discontinuation of the Services.”
When your account is terminated for any reason, Anysphere may permanently delete all your data and content. The document advises you to keep your own copies.
“Upon termination of these Terms, a Subscription Service, or your access to the Service, we may at our option delete any Content or other data associated with your account.”
If your credit card expires or a payment fails, Anysphere can delete your entire account and all associated data with no compensation or liability on their part.
“If your payment method is no longer valid at the time a renewal Subscription Fee is due, then Anysphere reserves the right to delete your account and any information associated with your account without any liability to you.”
Your subscription automatically renews and you will be charged for the next period unless you cancel at least 24 hours before the renewal date. Missing this window means you are billed for another full period.
“The Subscription Service...will automatically renew for successive periods of the same duration...You must cancel your Subscription Service at least 24 hours before it renews in order to avoid billing of the next periodic Subscription Fee.”
Anysphere can raise prices and continuing to use the service after being notified counts as agreement to pay the higher price.
“Anysphere may change the fees for any feature of the Service, including additional fees or charges, if Anysphere gives you advance notice of changes before they apply through the Service user interface, a pop-up notice, email, or through other reasonable means. Your continued use of the Service after the price change becomes effective constitutes your agreement to pay the changed amount.”
Fees are generally non-refundable. If Anysphere terminates your subscription without cause, you get a pro-rata refund, but if you cancel voluntarily or violate the terms, you typically do not.
“Unless otherwise specifically provided for in these Terms, all fees are in U.S. Dollars and are non-refundable, except as required by law.”
You own what you put in (your code/inputs) and Anysphere assigns ownership of the AI-generated suggestions to you as well. This is a user-friendly provision.
“You retain all of your right, title, and interest that you have in Inputs, and Anysphere hereby assigns to you all of our right, title, and interest if any in and to any Suggestions.”
Any feedback, suggestions, or improvement ideas you share with Anysphere become theirs to use freely, with no obligation to compensate you.
“If you choose to provide input and suggestions regarding existing functionalities, problems with or proposed modifications or improvements to the Service ('Feedback'), then you grant Anysphere the right to exploit the Feedback without restriction or compensation to you.”
Anysphere collects usage data (logs, interaction data, but not your actual content) and can share it with third parties only in anonymized/aggregated form. Personal usage data is not sold individually to third parties.
“Anysphere may...collect, analyze, and otherwise process Usage Data internally for its business purposes, including for security and analytics, to enhance the Service, and for other development and corrective purposes; and disclose Usage Data to third parties only in an aggregated and/or de-identified form.”
Your actual code and inputs will not be used to train AI models unless you explicitly opt in. This is an opt-in system, which is more protective than many competitors' opt-out systems.
“ANYSPHERE WILL NOT USE CONTENT TO TRAIN, OR ALLOW ANY THIRD PARTY TO TRAIN, ANY AI MODELS, UNLESS YOU'VE EXPLICITLY AGREED TO THE USE OF CONTENT FOR TRAINING.”
Even if Anysphere causes you significant harm, the maximum they can owe you is what you paid in the last 6 months or $100, whichever is more. This is a very low cap for professional coding tools that could affect important software projects.
“The aggregate liability of the Anysphere Entities to you for all claims...is limited to the greater of: (A) the amount you have paid to Anysphere...in the six (6) months prior to the event...or, if greater, (B) $100.”
Anysphere has no liability for lost profits, lost data value, or other downstream harms even if their service fails or causes damage to your software projects.
“IN NO EVENT WILL THE ANYSPHERE ENTITIES BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING DAMAGES FOR LOSS OF PROFITS, GOODWILL, OR ANY OTHER INTANGIBLE LOSS).”
If someone sues Anysphere because of something you did with the service—including if your code inputs are claimed to infringe on someone else's IP—you are responsible for covering Anysphere's legal costs and damages.
“You will defend and indemnify Anysphere...from and against any and all liabilities, claims, damages, expenses (including reasonable attorneys' fees)...arising out of or relating to: (1) your unauthorized use of, or misuse of, the Service; (2) your violation of any portion of these Terms...; and (3) any claim that your Input violates any third-party intellectual property.”
Anysphere makes no guarantees that the service will work correctly, be available, or be secure. You use the AI-generated code suggestions entirely at your own risk.
“THE SERVICE AND SUGGESTIONS ARE PROVIDED 'AS IS' AND ON AN 'AS AVAILABLE' BASIS. ANYSPHERE DISCLAIMS ALL WARRANTIES OF ANY KIND...ANYSPHERE DOES NOT WARRANT THAT THE SERVICE OR SUGGESTIONS WILL BE UNINTERRUPTED, SECURE, OR FREE OF ERRORS, VIRUSES, OR OTHER HARMFUL COMPONENTS.”
Anysphere can remove or change features you paid for at any time without notice and without owing you anything. This includes features you may have specifically subscribed for.
“Anysphere may modify or discontinue all or any portion of the Service at any time (including by limiting or discontinuing certain features of the Service), temporarily or permanently, without notice to you. Anysphere will have no liability for any change to the Service, including any paid-for functionalities of the Service.”
Cancellation is available directly through the billing menu or by email, which is reasonably straightforward. However, you must cancel at least 24 hours before renewal to avoid the next charge.
“You may cancel the Subscription Service by using the cancellation functionality made available in your billing menu or by contacting us at hi@cursor.com.”
Missing Protections
- No explicit data retention or deletion timeline after account termination — only says data 'may' be deleted at Anysphere's option
- No explicit Service Level Agreement (SLA) or uptime guarantee for paid tiers
- No explicit process or timeline for account appeals beyond directing users to email hi@cursor.com
- No explicit portability rights allowing users to export their data before account deletion
- No explicit notification requirement before deleting an account due to payment failure
- No cooling-off or trial cancellation period mentioned for new subscriptions
- No explicit mention of GDPR rights (access, rectification, erasure) within the Terms themselves (deferred entirely to Privacy Policy)
- No cap or clarity on how much usage-based (Add-On) charges can accrue before billing
Fair Terms
- Explicit opt-in (not opt-out) requirement before content is used for AI model training — Section 1.3
- Anysphere assigns ownership of AI-generated Suggestions to the user — Section 5.3
- Users retain full ownership of their Inputs — Section 5.3
- Usage data shared with third parties only in aggregated/de-identified form — Section 5.4
- Pro-rata refund provided if Anysphere terminates a subscription without cause — Section 9
- Arbitration opt-out window of 30 days provided, with a clear mechanism (email to legal@cursor.com) — Section 16.1
- Pre-arbitration dispute resolution step required before formal arbitration can begin — Section 16.3
- Clear age restriction (18+) with no service offered to minors, reducing COPPA complexity — Section 2
- Beta services are clearly labeled and users can choose not to use them — Section 1.6
- Inactive account deletion comes with advance notice (for accounts inactive over one year) — Section 9
Document information only — not legal advice.