Case file · notes
Obsidian
Dynalist Inc. · agreement captured 2026-07-11
Obsidian's terms are unusually generous for a software license (free personal, nonprofit, and even commercial use, no forced arbitration, and you keep your own content), but the liability cap effectively zeroes out for free users and a few discretionary clauses deserve a second look before you rely on it for anything mission-critical.
What you're agreeing to
This agreement covers Dynalist Inc.'s Obsidian app and related services. It grants you a fairly permissive, free license to use Obsidian for personal, nonprofit, or even commercial purposes, and you keep ownership of your own notes and content — the company doesn't claim a broad license over what you create, aside from limited rights needed to operate features like Obsidian Publish.
On the downside, the company can restrict or terminate your access to parts of obsidian.md 'in its sole discretion... without notice,' and it can delete your content and data after your term ends, with only 'archive cycle' retention as a backstop. Your data may also be shared with third-party service providers (for hosting/processing) and with third-party integrations you choose to connect, and it can be transferred internationally for storage.
Liability is capped at whatever you've paid the company in the past 12 months — which for anyone using the free tiers means the company's maximum financial responsibility is effectively $0, even for serious issues like data loss. There's also a one-year window to bring any legal claim, which is shorter than many default statutes of limitations.
Importantly, disputes go to regular courts in Ontario, Canada rather than mandatory arbitration, and there's no class-action waiver — a meaningfully more consumer-friendly setup than many SaaS agreements. Commercial users who get a logo/name usage license for marketing can opt out by emailing support.
The charges
1 high · 3 medium · 3 low · 7 total
Liability cap can be effectively $0
HighSince Obsidian is free to use for personal, nonprofit, and even commercial purposes, the company's total liability — capped at fees paid in the past 12 months — could be zero even if you suffer serious harm like data loss.
IN NO EVENT WILL THE COMPANY’S OR ITS SUPPLIERS’ TOTAL LIABILITY EXCEED IN AGGREGATE THE AMOUNT ACTUALLY PAID OR PAYABLE BY CUSTOMER TO THE COMPANY FOR THE SERVICES IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.
Discretionary termination without notice
MedThe company can cut off your access to parts of the service at any time, for any reason, without warning, and without liability to you.
In its sole discretion, in addition to any other rights or remedies available to the Company and without any liability whatsoever, at any time and without notice may terminate or restrict your access to any component of obsidian.md.
Shortened time limit to sue
MedYou must bring any legal claim within one year of it arising, which is shorter than the statute of limitations in many jurisdictions and could bar valid claims discovered later.
No cause of action arising hereunder or relating hereto may be brought more than one (1) year after it first accrues.
Data shared with third-party providers and integrations
MedYour content and data can be shared with third-party service providers for hosting/processing, and with any third-party integrations you enable, expanding who has access to your information.
You expressly permit us to share Customer Content in conjunction with the Third Party Services and Customer Data with Third Party Service providers.
Content deletion after term ends
LowOnce your term ends, the company can delete all of your content and data, with only limited archival retention, so you should back up your own data.
At the end of the Term, the Company shall have the right to delete all of Customer Content and Customer Data at any time and cancel your Account with us.
Logo/name usage for marketing (opt-out available)
LowCommercial licensees automatically grant Obsidian rights to use their company name and logo in marketing, though you can opt out by contacting support.
By purchasing a Commercial Use license, you grant us a worldwide, non-exclusive, royalty-free license to use your company name and logo for promotional and marketing purposes.
Foreign governing law and venue
LowAny dispute must be litigated in Ontario, Canada under Canadian/Ontario law, which could be inconvenient and costly for users elsewhere, though there's no arbitration or class-action waiver.
Any action or proceeding arising from or relating to this Agreement may only be brought in the courts located in Kitchener, Ontario and each party irrevocably submits to such exclusive jurisdiction and venue.
On the record — category grades
No graded alternative yet