Terms of Use

Effective Date: May 18, 2026

Welcome to Pencil, a product by High Agency, Inc. By using Pencil, you agree to these Terms of Use. Please read them carefully.

1. What Pencil is

Pencil is a software tool that helps people design, build, or enhance content using AI. It's currently available as a Cursor extension and may include future web or desktop versions.

Distribution via third-party registries

Our extensions may be distributed through third-party registries (e.g., Open VSX, VS Code/Cursor marketplaces). Registry terms may also apply, and you must comply with them. Distribution via a registry does not grant any additional rights beyond this Agreement and our EULA. Registries are not parties to this Agreement and have no obligation to provide support, maintenance, or warranties for our extensions. We may update, suspend, or remove the extension from any registry at any time. If there is a conflict, this Agreement and our EULA govern your use of Pencil, while the registry's terms govern your use of the registry platform.

2. Your account

You'll need to provide accurate information during onboarding — your email address, a password (or other authentication credential), and your role. These are the only personal data we transmit to and store on High Agency, Inc. servers in connection with your account.

You're responsible for keeping your account secure and for all activity under it.

3. Acceptable use

You agree not to:

  • Use Pencil for unlawful, harmful, or abusive purposes
  • Try to hack, reverse-engineer, or interfere with the service
  • Use outputs in ways that violate laws or others' rights

We may suspend or terminate your access if you violate these terms.

Anti-scraping and model building

You must not scrape, crawl, bulk-export, or otherwise extract datasets from the Services or Outputs, and you must not use the Services or Outputs to develop, train, or improve any model or service that competes with ours, except under a separate written agreement with High Agency, Inc.

High-risk data

You are solely responsible for any data you submit, generate, or process through Pencil, including ensuring compliance with applicable laws and regulations. Because Inputs and Outputs are exchanged directly between your device and third-party AI providers and do not pass through High Agency, Inc. servers, you alone control what data is shared with those providers.

You must not use Pencil to submit, process, or generate high-risk data — including payment card data, bank or government ID numbers, health information, biometric identifiers/templates, precise geolocation, minors' data, or GDPR special-category data — without ensuring appropriate safeguards (e.g., encryption in transit/at rest, strict access controls, data minimization) and compliance with the terms of the relevant third-party AI provider.

If you require a signed DPA/BAA or similar agreement for use of Pencil in a regulated environment, please contact us at hq@pencil.dev.

4. AI-generated content

Pencil is provided on an "as is" and "as available" basis, with no warranties or guarantees of any kind. You are solely responsible for reviewing, validating, and deciding whether to use any Outputs or suggestions.

Pencil enables you to connect your device directly to third-party AI providers (such as Anthropic and OpenAI) to generate content or suggestions. AI outputs can be imperfect, biased, or unexpected. You are responsible for how you use them.

We do not guarantee that any output is accurate, appropriate, or fit for a particular purpose.

Inputs and Outputs are exchanged directly between your device and the relevant third-party AI provider. They do not pass through, and are not stored, recorded, or otherwise accessible to, High Agency, Inc. servers at any time.

4a. Third-party image services & stock content

Certain features use third-party services to generate or source images, including Reve Image (reve.art), Google Gemini Nano Banana, and Unsplash. We may change or add providers over time.

Image generation features operate differently from Pencil's other AI features. When you use image-related features, your request and any content you intentionally submit for image generation are transmitted through High Agency, Inc. servers to the relevant third-party image provider. This transmission is the minimum technically necessary to fulfill your request. We do not store, record, log, or cache this content on our servers — it is forwarded to the third-party provider and not retained.

Third-party services and content are subject to their own terms, and you are responsible for complying with those terms (including any attribution or usage requirements). We disclaim responsibility for third-party content and do not guarantee the accuracy, legality, availability, or non-infringement of third-party images.

5. Intellectual property

All rights, title, and interest in Pencil (and all related materials) belong to High Agency, Inc.

Inputs. You retain ownership of any content you create or submit through Pencil ("Inputs"). Inputs from text-based AI features are exchanged directly between your device and third-party AI providers and do not pass through High Agency, Inc. servers. To the limited extent any technical processing on our infrastructure is necessary to facilitate image generation features, you grant us a limited, non-exclusive license for that sole purpose.

Outputs. As between you and us, you own the AI-generated outputs produced for you ("Outputs"), subject to any third-party rights. Because Outputs are generated by the underlying third-party AI provider, you should also review the applicable provider's terms of service. We do not guarantee that Outputs are unique or non-infringing, and you are responsible for reviewing and using them lawfully.

Inputs/Outputs storage. Text-based Inputs and Outputs never reach High Agency, Inc. servers and are therefore not stored, recorded, logged, or cached by us at any time. Image generation requests and content transit through our infrastructure in real time but are not stored, recorded, logged, or cached. Any local storage of Inputs or Outputs occurs solely on your device (e.g., browser localStorage or OS filesystem) for your convenience.

Model training. Inputs and Outputs from text-based AI features are exchanged directly between your device and third-party AI providers and do not pass through our servers; we have no access to them and do not train any models on them. The third-party AI provider's model training and data use practices are governed by their own terms.

Feedback

If you voluntarily provide suggestions, ideas, or feedback about Pencil, you grant High Agency, Inc. a non-exclusive, worldwide, royalty-free license to use, modify, and incorporate them into the Services. This license does not extend to any confidential information you mark as such in writing, or to Inputs or Outputs themselves (which remain governed by the sections above).

5a. Design Assets License (Style Guides, Design Kits, Icons)

Certain design assets may be made available by us within Pencil, including style guides, design kits, UI components, and icons (collectively, "Design Assets"). Design Assets do not include the Pencil software, the Product's user interface, or any other Product features unless we explicitly label them as Design Assets.

Our Design Assets. Only Design Assets that we make available and identify as Design Assets are covered by this section. To the extent we own the rights in the Design Assets and make them available to you within the Product, we release those Design Assets under the Unlicense (public-domain-equivalent). You may use, copy, modify, publish, distribute, sublicense, and/or sell such Design Assets for any purpose, including commercially, without attribution. The full text of the Unlicense is available at https://unlicense.org/.

Third-party Design Assets. Design Assets provided by third parties (including any assets that reference third-party brands, libraries, icon sets, or style systems) are not covered by the Unlicense and remain subject to their own licenses/terms. You are responsible for complying with any applicable third-party license terms (including attribution, redistribution limits, and commercial-use restrictions). If there is a conflict between this Agreement and a third-party license, the third-party license controls for those third-party assets.

No warranty. Design Assets are provided "as is" and we make no warranties regarding non-infringement or fitness for a particular purpose.

6. Future paid plans

Pencil is currently free. In the future, we may introduce paid features or plans.

If we do, we'll clearly describe the terms and pricing before you're charged.

7. Disclaimer of warranties

Pencil is provided "as is" and "as available."

We make no warranties of any kind — express or implied — including fitness for a particular purpose or non-infringement.

AI outputs

AI-generated content may be incorrect, incomplete, or inappropriate. You are responsible for reviewing and validating all outputs before use. Do not rely on the Services or Outputs in safety-critical or life-critical contexts (e.g., medical or clinical use, emergency services, aviation, automotive control systems, industrial control, energy, defense), or in any scenario where failure could result in personal injury, death, or significant property/environmental damage.

8. Limitation of liability

To the maximum extent permitted by law, High Agency, Inc. will not be liable for any indirect, incidental, special, consequential, or punitive damages, or for any loss of profits, revenues, business, goodwill, or data, arising out of or relating to the Services or Outputs. Our total aggregate liability for all claims will not exceed the greater of (a) USD 100 or (b) the amounts you paid to us for the Services during the twelve (12) months before the event giving rise to the claim. This limitation applies to all theories of liability (contract, tort, statute, and otherwise).

This cap does not apply to (i) liability that cannot be limited by applicable law (including death or personal injury caused by negligence, or fraud or willful misconduct), or (ii) your indemnification obligations under this Agreement or any related agreement with High Agency, Inc.

For enterprise or commercial deployments, a separate written agreement may modify this limitation of liability.

9. Indemnification

You will indemnify and hold High Agency, Inc. harmless from claims arising out of your use of the services, your Inputs/Outputs, or your breach of these Terms.

10. DMCA/Takedown

If you believe content infringes your rights, email hq@pencil.dev with the required DMCA details. We may remove content and terminate repeat infringers.

Mailing address:

High Agency, Inc.

440 N BARRANCA AVE #2993

COVINA, CA 91723

USA

11. Export & sanctions

You must comply with applicable export control and sanctions laws and not use Pencil in embargoed jurisdictions or for prohibited end uses.

12. Extension distribution & EULA

The IDE/Editor extension is licensed under this Agreement and the EULA. Certain paid or enterprise features may require a separate written commercial agreement with High Agency, Inc. Distribution via a registry (e.g., Open VSX) does not grant additional rights beyond this Agreement and the EULA.

13. Termination

We may suspend or terminate access for any breach or risk to the service. You may stop using the services at any time.

14. Changes

We may update these Terms from time to time.

If we make major changes, we'll post them here or notify you by email.

If there is any conflict between these Terms and the EULA for our extensions, the EULA controls for the software/extension, and these Terms control for the Services generally. For privacy matters, the Privacy Policy governs.

15. Governing law

These Terms are governed by the laws of the State of Delaware, USA. Exclusive jurisdiction and venue lie in the state or federal courts located in Delaware, USA.

16. Contact us

Questions? Email hq@pencil.dev or visit pencil.dev.

Mailing address:

High Agency, Inc.

440 N BARRANCA AVE #2993

COVINA, CA 91723

USA