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Legal Considerations

This document outlines the legal considerations, liability boundaries, and terms acknowledgment for using Lightning Enable's AI spending capabilities.

Architecture​

Lightning Enable is API middleware software that connects your platform to OpenNode.

What Lightning Enable Does​

  • Provides MCP tools that interact with your wallet
  • Forwards payment requests to your configured wallet provider
  • Enforces budget limits you configure
  • Tracks payment history for transparency

What Lightning Enable Does NOT Do​

  • Hold, custody, or control any Bitcoin (OpenNode does this)
  • Generate, store, or access private keys
  • Process payments (OpenNode does this)
  • Make spending decisions on your behalf
  • Guarantee payment success or reversal

How It Works​

Lightning Enable = API Middleware (connects your platform to OpenNode)
OpenNode = Payment Processor / Custodian (handles funds)
You = OpenNode Account Holder

Lightning Enable forwards API requests to OpenNode. OpenNode processes payments and handles custody. Consult with legal counsel regarding your specific regulatory obligations.

Liability Boundaries​

User Responsibilities​

By using the pay_invoice tool, you acknowledge responsibility for:

  1. Authorizing AI Spending

    • You are explicitly authorizing an AI agent to initiate payments
    • You understand the AI may make payments based on its interpretation of your requests
    • You accept that AI systems can make mistakes

  2. Configuration

    • Setting appropriate budget limits
    • Using a dedicated wallet with limited funds
    • Securing your API keys
    • Monitoring spending activity

  3. Oversight

    • Reviewing payments made by AI agents
    • Detecting and reporting unauthorized activity
    • Maintaining adequate supervision

  4. Funds

    • All funds in your wallet are at risk
    • You accept potential loss up to your wallet balance
    • You will not hold Lightning Enable liable for spent funds

Lightning Enable Does NOT Accept Liability For​

  • Payments made by AI agents, intended or unintended
  • Misinterpretation of user intent by AI systems
  • Prompt injection or social engineering attacks
  • API key compromise or unauthorized use
  • Budget bypass exploits or software bugs
  • Third-party service failures (OpenNode, Lightning Network)
  • Loss of funds due to any cause
  • Consequential damages from AI spending activity

Risk Acknowledgment​

Using pay_invoice involves inherent risks:

RiskDescription
AI MisinterpretationAI may pay invoices you didn't intend
Prompt InjectionMalicious content may trigger payments
Key CompromiseStolen API keys enable unauthorized spending
Software BugsEdge cases may bypass budget limits
Network IssuesPayments may fail or be delayed
IrreversibilityLightning payments cannot be reversed

Terms of Use​

Explicit Acknowledgment​

By configuring and using the pay_invoice tool, you explicitly acknowledge:

  1. Voluntary Authorization

    • You are voluntarily authorizing automated spending
    • You can revoke this at any time by removing your API key
    • Continued use constitutes continued authorization

  2. Assumption of Risk

    • You understand and accept all risks described in this document
    • You are using AI spending capabilities at your own risk
    • You have been warned and proceed with informed consent

  3. Budget Limits

    • Budget limits are advisory safeguards, not guarantees
    • Edge cases, race conditions, or bugs may allow spending beyond limits
    • You accept this possibility and have limited your wallet balance accordingly

  4. No Recourse

    • You waive claims against Lightning Enable for spent funds
    • You will not seek recovery from Lightning Enable for any loss
    • Your recourse is limited to your relationship with OpenNode

  5. Age and Capacity

    • You are of legal age to enter contracts in your jurisdiction
    • You have legal capacity to make financial decisions
    • You are not using this service where prohibited

Jurisdictional Considerations​

  • Bitcoin and Lightning Network may be regulated in your jurisdiction
  • AI spending may have tax implications
  • You are responsible for compliance with local laws
  • Lightning Enable makes no representations about legality in any jurisdiction

Recommendations​

For Individual Users​

  1. Use only discretionary funds you can afford to lose completely
  2. Start with minimal amounts (< $10 equivalent)
  3. Increase slowly as you gain experience
  4. Never use funds needed for bills, savings, or obligations
  5. Consult a financial advisor if unsure

For Businesses​

  1. Create separate accounts for AI spending
  2. Implement internal controls and spending approval workflows
  3. Document all AI spending authorization
  4. Audit AI spending regularly
  5. Consult legal counsel about liability exposure
  6. Consider insurance for potential losses

For Developers​

  1. Test with testnet before mainnet
  2. Use minimal budgets in production
  3. Log all payment attempts for debugging
  4. Handle failures gracefully
  5. Implement circuit breakers for anomalous spending

Indemnification​

You agree to indemnify, defend, and hold harmless Lightning Enable, its officers, directors, employees, and agents from any claims, damages, losses, or expenses (including attorney fees) arising from:

  • Your use of AI spending tools
  • Payments made through your configured wallet
  • Violation of these terms
  • Unauthorized use of your API keys
  • Your negligence or willful misconduct

Contact​

For questions about these legal considerations: