1. Definitions

For the purpose of these Terms:

”Company” – CapsuLabs Dynamics Ltd (Co. No. 517329447), a limited liability company registered in Israel.
“Client” / “User” – any individual or entity using the services.
“Services” – inspections, ERMI testing, monitoring, AI analysis, reporting, hardware deployment.
“ERMI” – Environmental Relative Moldiness Index.
“CapsuleAI” – CapsuLabs’ automated probabilistic AI data engine.
“Report” – any written, digital, or visual output provided.

2. Acceptance & Binding Agreement

By using the Services, booking an inspection, authorizing an installation, or accessing any CapsuLabs system, you categorically:

Confirm unquestionable legal capacity to contract.
Accept these Terms in full, constituting the entire agreement.
Agree that this forms a binding contract governed strictly by Israeli contract law (חוק החוזים).

3. Nature of Services – Strict Limitation

CapsuLabs provides non-invasive diagnostic environmental data ONLY.

3.1 No Guarantee of Conditions

Services reflect a point-in-time assessment ONLY.
We do NOT guarantee past, present, or future environmental, structural, or biological conditions.

3.2 Absolute Waiver of Medico-Engineering Services

CapsuLabs emphatically does NOT provide:

Mold removal, tear-outs, or physical remediation.
Structural, architectural, or engineering evaluations.
Health, medical, or toxicological advice.

3.3 Professional Standard

⚠️

Services are performed according to reasonable diagnostic standards. NO SPECIFIC OUTCOME, DISCOVERY, OR TIMELINESS IS GUARANTEED.

3.4 No Insurance Reliance

Reports cannot be used as the sole basis for filing, supporting, or denying insurance claims, calculating premiums, or determining insurability. Insurance carriers requiring environmental assessments should commission their own scope-defined inspection. CapsuLabs is not a licensed adjuster, claims-investigation firm, or insurance professional.

3.5 No Real-Estate Reliance

Reports cannot be used as the sole basis for purchase, sale, lease, or pre-purchase due-diligence decisions, nor to satisfy mandatory disclosure obligations under the Sale (Apartments) Law, 5733-1973, or any analogous regulation. Real-estate transactions involve risks beyond the scope of indoor-air-quality assessment; engage a licensed surveyor and legal counsel.

3.6 No Habitability or Building-Code Verdict

CapsuLabs does not certify habitability under §60 of the Tenant Protection Law (Combined Version) 5732-1972, structural soundness, or compliance with the Planning and Building Law 5725-1965 / building codes. Those determinations are reserved for licensed industrial hygienists, structural engineers, and municipal building inspectors.

4. ERMI Testing – Legal & Scientific Disclaimer (CRITICAL)

4.1 Nature of ERMI

ERMI is solely a statistical research-based index developed for population-level comparative analysis, NOT definitive diagnostic proof of contamination.

4.2 Not a Health or Safety Certification

Does NOT certify a property as safe or unsafe.
Does NOT determine habitability.
Does NOT replace comprehensive industrial hygiene assessments.

4.3 Volatility of Sampling

Client formally acknowledges dust samples represent highly localized conditions dependent on cleaning history, airflow, occupant behavior, and surface topography. ERMI results frequently underestimate or exponentially overestimate actual active mold presence.

4.4 Laboratory Dependency & Waiver

CapsuLabs disclaims all liability for third-party lab PCR errors, transit delays, false positives, false negatives, or scientific variability in sequence interpretation.

4.5 Legal Nullity of ERMI

ERMI results are NOT legally binding, are NOT recognized as an actionable standard in Israeli real estate/environmental regulation, and CANNOT be weaponized as definitive sole-source evidence in judicial proceedings.

5. AI System (CapsuleAI) – Advanced Legal Disclaimer

CapsuleAI is a strictly probabilistic algorithm processing incomplete, generalized models.

👉

AI outputs shall NEVER be exclusively relied upon for decisive actions affecting property value, structural condemnation, human health, lease termination, or legal claims.

CapsuLabs does NOT guarantee the detection of existing environmental hazards nor the prediction of imminent biological blooms. AI algorithms are inherently vulnerable to missing spatial data and localized sensor obfuscation.

6. Monitoring & IoT Systems

Continuous hardware telemetry strictly depends on client-furnished Internet connectivity, uninterrupted high-voltage power, and factory sensor tolerances.

6.1 Interruptions Are Unavoidable

Data gaps, catastrophic sensor failure, server downtime, and false alerts are formally anticipated and unavoidable. CapsuLabs offers NO guarantee of 100% uptime, real-time accuracy, or data permanence.

7. Client Responsibilities & Assumption of Risk (STRICT)

Client covenants to provide totally accurate information, ensure safe access to property devoid of undisclosed hazards (asbestos, lead), and fundamentally maintain hardware integrity.

COMPLETE ASSUMPTION OF RISK

THE CLIENT EXPRESSLY ASSUMES ALL RISK ASSOCIATED WITH INDOOR AIR QUALITY, MOLD EXPOSURE, BIOLOGICAL HAZARDS, AND PROPERTY DEGRADATION. CAPSULABS ACTS MERELY AS A DATA-GATHERING VENDOR AND ASSUMES NO INHERENT DUTY OF CARE, STEWARDSHIP, OR CUSTODIANSHIP OVER THE PREMISES OR THE OCCUPANTS THEREIN. ANY FAILURE BY THE CLIENT TO COMPLY WITH PROTOCOLS INSTANTLY SEVERS ANY THEORETICAL LIABILITY.

7.1 Tenant / Occupant Consent for IoT Sensors

Where the Client is a landlord, property manager, REIT, or other entity deploying CapsuLabs sensors in a tenant- or third-party-occupied unit, the Client warrants that they have obtained the occupant's informed written consent for sensor installation, environmental data collection, and any incidental capture of activity patterns prior to installation. Occupants retain independent privacy rights under the Israeli Privacy Protection Law, 5741-1981, and (where applicable) GDPR. CapsuLabs has no privity with occupants and bears no duty arising from the Client's failure to obtain or document such consent. The Client shall indemnify CapsuLabs against any claim by an occupant alleging non-consensual sensor deployment.

8. Reports & Third-Party Reliance Prohibition

Reports are licensed solely to the contracted client for localized, internal risk assessment. They are utterly non-transferable.

🚫

PROHIBITION OF RELIANCE: Any third party whatsoever (subsequent buyers, realtors, landlords, tenants, courts, insurers) CANNOT rely on the Report. CapsuLabs explicitly bears zero duty, privity, or liability toward third parties.

9. DISCLAIMER OF ALL WARRANTIES (AS IS)

EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, ALL SERVICES, HARDWARE, SOFTWARE, AI MODELS, AND REPORTS ARE PROVIDED ON AN ABSOLUTE "AS IS" AND "AS AVAILABLE" BASIS. CAPSULABS EXPRESSLY AND CATEGORICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. WE DO NOT WARRANT THAT THE SERVICES WILL BE ERROR-FREE, UNINTERRUPTED, OR THAT ANY SPECIFIC ENVIRONMENTAL DISASTER WILL BE PREDICTED OR AVERTED.

10. LIMITATION OF LIABILITY & EXCLUSIVE REMEDY (CRITICAL)

To the maximum extent permitted by immutable Israeli law:

10.1 Financial Cap (with Mandatory-Law Carve-outs)

Subject to §10.3 below, CapsuLabs' total aggregate liability arising out of or related to these Terms or the Services, regardless of the theory of liability (contract, tort, negligence, strict liability), shall not exceed the greater of (a) the actual amount paid by the Client to CapsuLabs for the specific Service giving rise to the claim in the twelve (12) months preceding the incident, or (b) ILS 5,000.

10.3 Carve-outs: Cap Does Not Apply

The cap in §10.1 and the exclusions in §10.2 do not apply to: (i) personal-injury or wrongful-death claims arising from CapsuLabs' negligence; (ii) gross negligence or wilful misconduct; (iii) breach of confidentiality or data-protection obligations to the extent statutory data-subject claims under GDPR Art. 82, the Israeli Privacy Protection Law, or other mandatory law impose higher liability; (iv) liability that cannot be excluded under Israeli consumer-protection law; (v) IP infringement indemnities expressly granted by CapsuLabs.

10.2 Global Exclusion of Damages

CapsuLabs shall NEVER be liable for any of the following damages under any circumstance:

× Indirect & Special Damages

× Consequential Damages

× Loss of Rent / Eviction Costs

× Real Estate Devaluation

× Commercial Interruption

× Medical / Toxicological Claims

11. Indemnification & Legal Fees

Client agrees to defend, indemnify, and hold harmless CapsuLabs from claims brought by third parties (including related government entities, tenants, or successors), misuse of reports, or falsified access data provided by the Client. This indemnification does not extend to claims arising from CapsuLabs' gross negligence, wilful misconduct, or breach of mandatory-law obligations.

The Client agrees to reimburse CapsuLabs for reasonable attorney's fees incurred in defending against meritless claims that target CapsuLabs for conditions inherently residing in the Client's property.

11A. Third-Party Remediator Referrals

CapsuLabs is an inspection and lab company; we do not perform mold remediation. When asked, we may share names of locally-licensed remediators as a courtesy. This is informational only.

CapsuLabs does not vet, certify, or supervise the work of any remediator and makes no representation as to their qualifications, insurance, bonding, or quality.
CapsuLabs does not receive referral fees, commissions, or equity stakes in any remediator. Recommendations are not steered by financial incentive.
The Client must independently verify a remediator's credentials, licensing, and insurance before engaging them. Any dispute with a remediator is solely between the Client and that remediator. CapsuLabs has no contractual relationship with the remediator and assumes no liability for their performance, negligence, or non-performance.

11B. CapsuleAI Accuracy, 3D Simulation & Forecasting Disclaimer

CapsuleAI combines IoT sensor telemetry, a 3D hygrothermal simulation engine, and AI-based image classification of mold species. All marketing figures (including any stated species-classification accuracy percentage) reflect controlled internal validation against certified lab reference data; real-world performance varies with image quality, sensor placement, environmental complexity, and species rarity.

Probabilistic, not guaranteed: Simulation outputs and risk forecasts are mathematical estimates of elevated condensation and colonisation risk. They are not guarantees that mold will, or will not, appear, and they do not detect mold that already exists outside sensor or image coverage (e.g., interior wall cavities, ducting, sub-floors, areas without sensors).
AI species detection is supplementary: Confidence scores assist field inspectors but do not replace certified-lab identification. Remediation decisions must be confirmed by lab analysis where species identity is dispositive.
Reliance limits: CapsuleAI outputs are provided for informational purposes. They are not medical diagnoses, structural-engineering assessments, habitability verdicts, or legally-defensible expert evidence. Critical decisions (medical, legal, real-estate) must be made with input from a licensed professional in the relevant field.
Forecast horizon: Predictions degrade with time and as inputs change (weather, occupancy, ventilation). CapsuLabs makes no representation about accuracy beyond seven (7) days from the simulation timestamp.

12. Payment, Pricing & Adjustments

Quotes are non-binding estimates. Final pricing may adjust post-inspection relative to spatial volume, hidden rooms, and laboratory surcharges.

CapsuLabs reserves the unilateral right to suspend IoT datastreams, pause AI access, and embargo laboratory reports indefinitely upon any default of payment.

13. Cancellation, Cooling-Off & No-Show Policy

Consumer (B2C) cooling-off: Per the Israeli Consumer Protection Law, 5741-1981 §14C, B2C clients booking via distance-sale (website, phone) have fourteen (14) days from the booking date to cancel for a full refund, except where the inspection has already been performed at the Client's request prior to the cooling-off period elapsing. For Clients who are senior citizens, persons with disabilities, or new immigrants per §14C1 of the law, the cooling-off period extends to four (4) months.

Standard cancellation outside cooling-off: Cancellations issued more than 24 hours before the scheduled inspection are processed without penalty. Cancellations within 24 hours of the scheduled inspection trigger a 50% cancellation fee covering allocated travel, equipment, and operator time. No-show events forfeit the deposit; balance owed for performed services remains due. B2B clients are bound by the cancellation terms of the Master Service Agreement (MSA).

14. Force Majeure

CapsuLabs formally waives liability for execution delays or destruction of infrastructure caused by Force Majeure events, explicitly including: acts of war, terrorism, state security escalations (e.g., Home Front Command directives), pandemics, labor strikes, and regional utility blackouts.

15. Intellectual Property & Absolute Data Rights

All Reports, predictive matrices, AI syntax, and algorithms remain the exclusive intellectual property of CapsuLabs.

Acceptable Use & Anti-Scraping: You are strictly prohibited from scraping, reverse-engineering, decompiling, or attempting to extract the source code or proprietary methodology of CapsuleAI or our IoT telemetry interfaces.

👉

Data Use & AI Training: Subject to your explicit opt-in as described in our Privacy Policy §3, you grant CapsuLabs a worldwide, royalty-free license to use anonymised sensor telemetry, ERMI lab data, and aggregated inspection findings to train and improve CapsuLabs-owned AI models, and to publish anonymised aggregate research. CapsuLabs will not license, sell, or transfer those models or your data within them to third parties without 30 days' prior notice and a renewed opt-in. You may withdraw consent at any time by emailing privacy@capsulabs.co.il; previously-trained model weights cannot be unlearned, but no further data of yours will be processed.

16. Miscellaneous: Severability, Waivers, and Modification

Severability: If any provision (e.g., liability caps or statute of limitations) is held totally invalid or unenforceable by a sovereign court, the remaining provisions of these Terms shall remain completely intact, valid, and enforceable.
Waiver of Injunctive Relief: Client irrevocably waives the right to seek injunctive or equitable relief against CapsuLabs. The singular, exclusive remedy for any breach by CapsuLabs is capped monetary damages.
Unilateral Modification: CapsuLabs reserves the unequivocal right to amend these Terms. Continued utilization of the Services signifies absolute consent to the amended Terms.

17. B2B / Enterprise Operations (Annex A)

For REITs, holding companies, and commercial conglomerates:

Liability capped strictly to the monetary value of the isolated localized contract.
Absolute immunity regarding tenant dispute litigations, regulatory OSHA/MoE penalties, or misaligned investment acquisitions.

Pre-signed Master Service Agreements (MSA) exclusively override these baseline Terms ONLY where explicitly written.

18. Governing Law, Jurisdiction & Shortened Statute of Limitations

Governing Body

State of Israel Law

Exclusive Venue

Tel Aviv-Yafo Courts

Statute of Limitations

Any claim arising out of or related to the Services or these Terms must be brought within the time permitted by Israeli law, generally three (3) years from the date the cause of action accrued (Israeli Limitation Law, 5718-1958). Claims not asserted within that period are barred. The parties agree this clause does not, and is not intended to, shorten any statutory period that mandatory consumer-protection law extends to the Client.

Dispute Resolution & Class Actions

The parties agree to attempt good-faith resolution of any dispute for thirty (30) days before filing suit. Disputes are resolved on an individual basis where permitted by law; however, nothing in these Terms shall be construed to waive a Client's right to bring or participate in a class action where Israeli consumer-protection law (including the Class Actions Law, 5766-2006) provides such a right and where contractual waiver would be unenforceable.

19. Governing Language

These Terms are published in English and Hebrew. For Clients ordinarily resident in Israel, the Hebrew version controls; for all other Clients, the version corresponding to the language in which the Client accepted these Terms controls. Where any inconsistency arises, both versions will be read together to give reasonable effect to the parties' intent and the requirements of mandatory law.

Terms of Service