Terms of Service

Effective Date: Apr 7, 2026

Last Updated: Apr 7, 2026

PLEASE READ THESE TERMS OF SERVICE CAREFULLY BEFORE CREATING AN ACCOUNT OR USING THE GRADY PLATFORM. BY CLICKING “I AGREE,” CREATING AN ACCOUNT, OR OTHERWISE ACCESSING OR USING THE SERVICE, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND AGREE TO BE LEGALLY BOUND BY THESE TERMS. IF YOU DO NOT AGREE, YOU MAY NOT USE THE SERVICE.

These Terms of Service (“Terms”) constitute a legally binding agreement between you (“Instructor,” “you,” or “your”) and Determinant Technologies, Inc. (“Grady,” “Company,” “we,” “us,” or “our”), operator of the Grady automated grading and feedback platform accessible at https://gradyai.com and related services (collectively, the “Service” or “Platform”). These Terms govern your individual, standalone access to the Platform as an instructor. They do not govern institutional or enterprise access, which is subject to a separate agreement.

1. Description of the Service

Summary: Grady is an AI-powered assignment feedback and grading platform for university instructors. Standalone accounts are for individual instructor use only.

Grady provides an AI-powered automated grading and pedagogical feedback platform designed for university and college instructors and Teaching Assistants (“Instructors”). The Platform's core features include, without limitation:

  • Adaptive Grading — AI-generated, rubric-aligned grading and individualized written feedback on student assignment submissions.
  • Assignment Creation and Management — tools to build, configure, and manage graded assignments, including rubric construction and point-weighting.
  • Credit-Based Processing — a prepaid credit system that governs the volume of grading and feedback operations available to your account.
  • Grade Management and Override — the ability to review, accept, modify, or override AI-generated grades and feedback before they are finalized or returned to students.
  • Analytics and Reporting — cohort-level grade distribution, assignment performance insights, and grade acceptance/override reporting.
  • LMS Integration (where enabled) — a student-facing applet designed for integration with supported Learning Management Systems (“LMS”), enabling students to view rubric-aligned feedback directly within the LMS environment.

Grady reserves the right to add, modify, suspend, or discontinue any feature of the Platform at any time, with or without notice, in its sole discretion.

2. Eligibility

Summary: You must be at least 18 years old and an active instructor, professor, or teaching professional to use the Service.

To create a Standalone Account and use the Service, you must meet all of the following eligibility requirements:

  • You are at least eighteen (18) years of age.
  • You are a current instructor, professor, teaching assistant, lecturer, or other academic professional employed by or affiliated with an accredited educational institution.
  • You have the legal capacity to enter into a binding contract in the jurisdiction where you reside.
  • You are not subject to any legal prohibition on receiving services originating from the United States.
  • You are not located in a country subject to a U.S. Government embargo or on any U.S. Government denied-parties list.

Grady reserves the right to verify your eligibility and to refuse access to any person who does not satisfy these requirements. If you are accessing the Service on behalf of your institution under an institutional agreement, these Terms do not apply; please contact us at partnerships@gradyai.com.

3. Account Registration

Summary: You are responsible for your account credentials and all activity on your account.

To access the Platform, you must register for a Standalone Instructor Account. When registering, you agree to provide accurate, current, and complete information and to update that information promptly if it changes. You represent and warrant that all registration information you provide is truthful and that you have the authority to create the account.

3.1 Account Security

You are solely responsible for maintaining the confidentiality and security of your account credentials. You agree to:

  • Use a strong, unique password that you do not use for other services.
  • Notify Grady immediately of any suspected unauthorized use of your account at security@gradyai.com.
  • Log out of your account at the end of each session, particularly on shared or public devices.

Grady will not be liable for any loss or damage arising from unauthorized use of your account caused by your failure to safeguard your credentials. You are liable for all activity that occurs under your account, whether or not authorized by you.

3.2 One Account Per Instructor

Each instructor may maintain only one active Standalone Account at a time. Creating duplicate accounts to circumvent credit limits, suspensions, or any other restriction is a material breach of these Terms and may result in immediate termination of all associated accounts.

4. Credits and Payment

Summary: The Service uses a prepaid credit system. Credits are non-refundable once consumed. We may change pricing with notice.

4.1 Credit-Based Model

Access to the Platform's grading and feedback features is governed by a credit system (“Credits”). Credits are provided in advance and are consumed each time the Platform processes a student submission for grading, feedback generation, or other AI-powered operations, as more specifically described in your account dashboard. Instructors can receive free credits by contacting support@GradyAI.com.

5. Student Data and FERPA Compliance

Summary: You control what student data enters the Platform. Grady's architecture is designed to minimize identifiable student data. You are responsible for ensuring your use complies with FERPA and your institution's policies.

5.1 Your Responsibility as the Instructor

As a Standalone Account holder, you are using the Service in your individual capacity as an instructor. You acknowledge and agree that:

  • You are solely responsible for determining whether your use of the Platform complies with the Family Educational Rights and Privacy Act (“FERPA”), 20 U.S.C. § 1232g, your institution's data governance policies, and any other applicable privacy laws or regulations.
  • Because this is a standalone, individual-instructor account (not an institutional account subject to a Data Processing Agreement), you should not upload or transmit student assignments or submissions that contain Personally Identifiable Information (“PII”) as defined under FERPA without first anonymizing or de-identifying such submissions consistent with FERPA's de-identification standards.
  • Grady's Platform is architected to support client-side PII redaction. While you, as the Instructor, are responsible for ensuring that any student PII is redacted or de-identified before submission, Grady will process and redact student identifying information in the client before uploading and processing.

5.2 Grady's Commitments Regarding Student Data

To the extent that student-related content is submitted to the Platform, Grady commits to the following:

  • Grady will not sell, rent, or trade any student data or submission content to any third party for commercial purposes.
  • Grady will not use student submission content for the purpose of advertising or targeting.
  • Grady will treat all submission content as confidential and will only access it as necessary to provide the Service or as required by law.
  • Grady will not use student submission content to train, fine-tune, or develop AI models, except on an aggregated, de-identified, non-attributable basis, and only to improve the Platform's grading accuracy.

5.3 Institutional Accounts

If you are using the Platform in a capacity requiring an institutional Data Processing Agreement or FERPA School Official designation, you must contact Grady at hello@gradyai.com to enter into an appropriate institutional agreement. These Terms do not create a FERPA School Official relationship between Grady and your institution.

6. User Content

Summary: You own the content you upload. You grant us a limited license to process it to provide the Service. You are responsible for ensuring you have the right to upload any content.

6.1 Your Content

“User Content” means all content you submit, upload, post, or transmit through the Platform, including assignment prompts, rubrics, grading criteria, student submissions (in accordance with Section 5), and any other materials. You retain all ownership rights in your User Content.

6.2 License Grant to Grady

By submitting User Content to the Platform, you grant Grady a limited, non-exclusive, royalty-free, worldwide license to access, store, process, reproduce, and use your User Content solely for the purpose of:

  • Providing, operating, and improving the Service for you;
  • Generating AI-powered grading and feedback in response to your instructions;
  • Complying with applicable law or responding to lawful legal process.

This license does not grant Grady the right to sell, sublicense, or publicly disclose your User Content, except as expressly set forth in these Terms or required by law. Upon termination of your account, Grady will cease processing your User Content, subject to retention obligations described in Section 15.

6.3 Your Representations Regarding User Content

By uploading User Content, you represent and warrant that:

  • You have all rights, licenses, consents, and permissions necessary to submit such content and to grant the license above.
  • Your User Content does not infringe any third-party intellectual property, privacy, or other rights.
  • You have complied with all applicable laws, including FERPA, in connection with any student data included in User Content.
  • Your User Content does not contain malicious code, viruses, or other harmful components.

6.4 AI-Generated Feedback

AI-generated grades and feedback produced by the Platform in response to your User Content (“AI Outputs”) are provided for your professional review and use. Grady does not warrant that AI Outputs are accurate, complete, or free from error. You are solely responsible for reviewing, editing, and approving all AI Outputs before communicating them to students or recording them as official grades. Final grading decisions remain your professional responsibility at all times.

7. Intellectual Property

Summary: Grady owns the Platform and all technology underlying it. You own your content. Neither party may use the other's intellectual property without permission.

7.1 Grady's Intellectual Property

The Platform, including all underlying software, AI models, algorithms, source code, interfaces, trademarks, logos, and documentation (collectively, “Grady IP”), is and remains the exclusive property of Grady Labs, Inc. and its licensors. Nothing in these Terms transfers any ownership interest in Grady IP to you.

You may not, without prior written consent from Grady:

  • Copy, reproduce, distribute, or create derivative works of any Grady IP.
  • Reverse engineer, decompile, disassemble, or attempt to extract source code from the Platform.
  • Use the Platform's AI Outputs or behavioral insights to develop, train, fine-tune, or benchmark any competing automated grading or feedback system.
  • Remove or obscure any copyright, trademark, or proprietary notices on the Platform.

7.2 Feedback

If you provide Grady with suggestions, ideas, or feedback about the Platform (“Feedback”), you grant Grady an unrestricted, royalty-free, perpetual license to use such Feedback for any purpose, without any obligation of attribution or compensation to you.

7.3 Prohibited Uses of AI Outputs

You may not use AI Outputs generated by the Platform to train, fine-tune, or improve any machine learning model, large language model, or automated grading system other than Grady's own Platform, whether for commercial, academic, or research purposes, without Grady's express prior written consent.

8. Prohibited Activities

Summary: You agree to use the Platform lawfully and professionally. Misuse may result in immediate account termination.

You agree not to use the Platform to:

  • Violate any applicable local, state, national, or international law or regulation.
  • Upload content that is unlawful, defamatory, harassing, or that infringes any third-party rights.
  • Introduce viruses, malware, or any code designed to disrupt, damage, or gain unauthorized access to the Platform or related systems.
  • Use automated scripts, bots, spiders, or other automated tools to access, query, or interact with the Platform in a manner that exceeds normal instructional use.
  • Scrape, harvest, or collect data from the Platform, including AI Outputs, for the purpose of building a competing product or service.
  • Impersonate any person or entity or misrepresent your affiliation with an institution.
  • Circumvent, disable, or interfere with any security feature, access control, or authentication mechanism of the Platform.
  • Share your account credentials with any other person or allow any other person to access the Platform through your account.
  • Misuse the Platform's credit system, including attempting to exploit errors in credit pricing or consumption calculations.
  • Use the Platform in any manner that could damage Grady's reputation or business relationships.

9. Privacy

Summary: Our Privacy Policy governs how we collect and use your information. By using the Service, you agree to our Privacy Policy.

Grady's collection, use, and disclosure of your personal information is governed by the Grady Privacy Policy, available at https://gradyai.com/privacy (“Privacy Policy”), which is incorporated into these Terms by reference. By using the Service, you consent to the data practices described in the Privacy Policy.

Key privacy commitments include:

  • We will not sell your personal information or your User Content to third parties.
  • We do not permit third-party advertising based on your activity on the Platform.
  • We use commercially reasonable security measures to protect your data.
  • You may request deletion of your account and associated data as described in the Privacy Policy.

10. Confidentiality

Summary: The Platform and its outputs are confidential and proprietary. Do not disclose non-public aspects of the Platform to competitors or unauthorized parties.

You acknowledge that non-public aspects of the Platform — including its AI models, scoring logic, rubric interpretation methodology, and system behavior — constitute confidential and proprietary information of Grady (“Confidential Information”). You agree not to disclose, reproduce, or use Confidential Information for any purpose other than your authorized use of the Service.

This obligation does not apply to information that (a) is or becomes publicly available through no fault of yours, (b) you already knew before receiving it from Grady, or (c) you receive from a third party with no restriction on disclosure.

11. Third-Party Services and Links

Summary: The Platform may integrate with third-party LMS and tools. Grady is not responsible for third-party services.

The Platform may contain links to, or integrations with, third-party websites, applications, or services — including Learning Management Systems (“LMS”) — that are not owned or controlled by Grady. Grady does not endorse and assumes no responsibility for any third-party content, products, or services. Your use of any third-party service is subject to that service's own terms and privacy policy.

If you enable LMS integration features, you are solely responsible for ensuring that your use of the LMS integration complies with your institution's policies and any applicable vendor agreements with your LMS provider.

12. Disclaimer of Warranties

Summary: The Platform is provided AS IS. We do not guarantee that AI-generated grades or feedback are accurate or error-free.

THE SERVICE AND ALL CONTENT, AI OUTPUTS, AND FEATURES ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, GRADY EXPRESSLY DISCLAIMS ALL WARRANTIES, INCLUDING WITHOUT LIMITATION IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, AND ANY WARRANTIES ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE.

WITHOUT LIMITING THE FOREGOING, GRADY DOES NOT WARRANT THAT: (A) THE SERVICE WILL MEET YOUR REQUIREMENTS OR EXPECTATIONS; (B) AI-GENERATED GRADES OR FEEDBACK WILL BE ACCURATE, COMPLETE, OR APPROPRIATE FOR ANY PARTICULAR STUDENT OR ASSIGNMENT; (C) THE SERVICE WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE; OR (D) ANY ERRORS IN THE SERVICE WILL BE CORRECTED. YOU ASSUME FULL RESPONSIBILITY FOR ALL GRADING DECISIONS MADE USING THE PLATFORM.

13. Limitation of Liability

Summary: Grady's liability is limited. We are not liable for indirect or consequential damages, and our total liability is capped.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL GRADY, ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, CONTRACTORS, OR LICENSORS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, REVENUE, DATA, GOODWILL, OR OTHER INTANGIBLE LOSSES, ARISING OUT OF OR RELATED TO YOUR USE OF OR INABILITY TO USE THE SERVICE, EVEN IF GRADY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

IN NO EVENT SHALL GRADY'S TOTAL CUMULATIVE LIABILITY TO YOU FOR ALL CLAIMS ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICE EXCEED THE GREATER OF: (A) THE TOTAL AMOUNT PAID BY YOU TO GRADY IN THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM, OR (B) ONE HUNDRED U.S. DOLLARS ($100.00).

Some jurisdictions do not allow the exclusion or limitation of incidental or consequential damages; in such jurisdictions, Grady's liability shall be limited to the greatest extent permitted by law.

14. Indemnification

Summary: You agree to defend and hold Grady harmless if your misuse of the Platform causes Grady harm or legal liability.

You agree to defend, indemnify, and hold harmless Grady, Grady Labs, Inc., and their respective affiliates, officers, directors, employees, and agents from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or related to:

  • Your use of or access to the Service in violation of these Terms;
  • Your User Content, including any student data you upload or transmit;
  • Your violation of any applicable law, regulation, or third-party right (including FERPA);
  • Any unauthorized use of your account;
  • Your willful misconduct or negligence.

15. Term and Termination

Summary: You may delete your account at any time. Grady may suspend or terminate your account for violations of these Terms. Certain provisions survive termination.

15.1 Term

These Terms commence when you create your account and remain in full force and effect until your account is terminated, either by you or by Grady.

15.2 Termination by You

You may terminate your account at any time by visiting your account settings and selecting the account deletion option, or by emailing support@gradyai.com. Termination does not entitle you to a refund of any unused Credits unless Grady determines otherwise in its sole discretion.

15.3 Termination by Grady

Grady may suspend or terminate your account and access to the Service, with or without notice, for any of the following reasons:

  • Material breach of these Terms, including the prohibited activities in Section 8;
  • Failure to pay amounts due;
  • Conduct that Grady reasonably believes exposes Grady or users to legal liability;
  • Upon request from a law enforcement or regulatory authority;
  • Extended inactivity (defined as no login or credit activity for twenty-four (24) consecutive months), with at least thirty (30) days' prior notice.

15.4 Effect of Termination

Upon termination: (a) your license to use the Service terminates immediately; (b) you must cease all use of the Platform; and (c) Grady will retain your account data for a period of sixty (60) days to allow you to export any content, after which it may be permanently deleted. Grady may retain aggregated, de-identified data derived from your use indefinitely.

15.5 Survival

The following sections survive termination: Section 6.3 (Representations), Section 7 (Intellectual Property), Section 10 (Confidentiality), Section 12 (Disclaimer), Section 13 (Limitation of Liability), Section 14 (Indemnification), and Section 17 (Governing Law and Dispute Resolution).

16. Digital Millennium Copyright Act (DMCA)

Summary: If you believe content on the Platform infringes your copyright, please notify us using the procedure below.

Grady respects intellectual property rights. If you believe that content available on or through the Platform infringes your copyright, please notify Grady's designated Copyright Agent in writing with the following information (per 17 U.S.C. § 512(c)(3)):

  1. An electronic or physical signature of the person authorized to act on behalf of the copyright owner;
  2. Identification of the copyrighted work you claim has been infringed;
  3. Identification of the allegedly infringing material and where it is located on the Platform;
  4. Your contact information (address, telephone number, and email address);
  5. A statement that you have a good faith belief that the use is not authorized by the copyright owner, its agent, or law;
  6. A statement, made under penalty of perjury, that the information in your notice is accurate and that you are the copyright owner or authorized to act on behalf of the owner.

Submit DMCA notices to:

Copyright Agent, Determinant Technologies, Inc.
Email: legal@gradyai.com

UNDER FEDERAL LAW, KNOWINGLY MISREPRESENTING THAT MATERIAL IS INFRINGING CAN RESULT IN CIVIL AND CRIMINAL PENALTIES. Grady may terminate the accounts of repeat infringers.

17. Governing Law and Dispute Resolution

Summary: These Terms are governed by California law. Most disputes must be resolved by binding arbitration on an individual basis.

17.1 Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict-of-laws principles.

17.2 Informal Resolution

Before initiating any formal dispute proceeding, you agree to contact Grady at legal@gradyai.com and attempt to resolve the dispute informally. The parties will negotiate in good faith for at least thirty (30) days from the date of your written notice of the dispute.

17.3 Binding Arbitration

If the parties are unable to resolve a dispute through informal negotiation, the dispute shall be finally and exclusively resolved by binding arbitration administered by the American Arbitration Association (“AAA”) under the AAA Consumer Arbitration Rules (available at www.adr.org), except as otherwise provided herein. The arbitration shall be conducted in San Francisco County, California, unless the parties mutually agree otherwise. The arbitrator shall apply California law. The arbitrator's decision shall be final and binding and may be entered as a judgment in any court of competent jurisdiction.

17.4 Class Action Waiver

ALL CLAIMS MUST BE BROUGHT ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION, COLLECTIVE ACTION, OR REPRESENTATIVE PROCEEDING. THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PERSON'S CLAIMS WITHOUT THE WRITTEN CONSENT OF BOTH PARTIES. BY ACCEPTING THESE TERMS, YOU AND GRADY EACH WAIVE THE RIGHT TO A JURY TRIAL AND TO PARTICIPATE IN A CLASS ACTION.

17.5 Exceptions to Arbitration

Either party may seek emergency injunctive or other equitable relief from a court of competent jurisdiction to prevent actual or threatened infringement of intellectual property rights or breach of confidentiality obligations. Claims within the jurisdictional limits of small claims court may be brought in small claims court without first proceeding through arbitration.

18. Modifications to These Terms

Summary: We may update these Terms. Continued use of the Service after changes take effect constitutes acceptance.

Grady reserves the right to modify these Terms at any time. When changes are material, we will notify you by: (a) sending an email to the address associated with your account, or (b) posting a prominent notice within the Platform, at least fourteen (14) days before the changes take effect. Non-material changes (such as typographical corrections or clarifications) may be made without notice and are effective upon posting.

Your continued use of the Service after the effective date of any changes constitutes your acceptance of the revised Terms. If you do not agree to the revised Terms, you must stop using the Service and may terminate your account pursuant to Section 15.2.

19. General Provisions

19.1 Entire Agreement

These Terms, together with the Privacy Policy and any supplemental agreements you enter into with Grady (such as an institutional agreement), constitute the entire agreement between you and Grady with respect to the Service and supersede all prior agreements and understandings.

19.2 Severability

If any provision of these Terms is found to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be modified to the minimum extent necessary to make it enforceable, and the remaining provisions shall continue in full force and effect.

19.3 Waiver

Grady's failure to enforce any right or provision of these Terms shall not constitute a waiver of such right or provision unless acknowledged in writing by an authorized representative of Grady.

19.4 Assignment

You may not assign or transfer your rights or obligations under these Terms without Grady's prior written consent. Grady may assign these Terms or any of its rights hereunder without restriction, including in connection with a merger, acquisition, or sale of all or substantially all of its assets.

19.5 No Agency

Nothing in these Terms creates a partnership, joint venture, employment, or agency relationship between you and Grady.

19.6 Electronic Communications

You consent to receive communications from Grady electronically (via email or in-platform notifications). Electronic notices satisfy any legal requirement that such communications be in writing.

19.7 Force Majeure

Grady shall not be liable for any delay or failure to perform resulting from causes beyond its reasonable control, including natural disasters, acts of government, internet outages, pandemics, or third-party service failures.

20. Contact Information

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

Determinant Technologies, Inc. d/b/a Grady
Email: legal@gradyai.com
Support: support@gradyai.com
Website: https://gradyai.com

BY CREATING AN ACCOUNT, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND AGREE TO THESE TERMS OF SERVICE.