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Top 14% contract ranking
Contract
Ranking
Top 14%
Ranking

The vendor's agreements were benchmarked against thousands of vendor forms and are in the top 14% for customer favorability.

0
Deal Breakers

70% customer favorability, based on 750 plus contract signals powered by Certify.

70%
Customer Favorable

Indicates balanced, low-risk terms favorable to the customer.

Verified

Top 14% IT contract. No structural blockers. Procurement-ready.

Risk Summary

A concise snapshot of key risks, their impact, and priority concerns.

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Topic
Rating
Details
Liability and Risk Allocation
80% Vendor Favorable

Insurance

Insurance requirements

  • Figma is not required to carry any form of insurance

Summary

Liability cap

  • Figma's liability is capped at 12 months' fees
  • There is no secondary cap on Figma's liability
  • Customer's liability is capped at 12 months' fees
  • There is no secondary liability cap on Customer's liability

Exceptions to the liability cap

  • Claims related to violations of Customer's IP rights are excluded from the cap on Figma's liability
  • Claims related to gross negligence or recklessness are excluded from the cap on Figma's liability
  • Claims related to fraud or willful misconduct are excluded from the cap on Figma's liability
  • Claims related to violations of Figma's IP rights are excluded from the cap on Customer's liability
  • Claims related to gross negligence and/or recklessness are excluded from the cap on Customer's liability
  • Claims related to fraud and/or willful misconduct are excluded from the cap on Customer's liability

Excluded damages

  • One or more forms of indirect damages are excluded from Figma's liability
  • One or more forms of indirect damages are excluded from Customer's liability

Exceptions to excluded damages

  • The damages excluded from Figma's liability do not include claims related to violations of Customer's IP rights
  • The damages excluded from Figma's liability do not include claims related to gross negligence or recklessness
  • The damages excluded from Figma's liability do not include claims related to fraud or willful misconduct
  • The damages excluded from Customer's liability do not include claims related to gross negligence or recklessness
  • The damages excluded from Customer's liability do not include claims related to fraud and/or willful misconduct
  • The damages excluded from Customer's liability do not include claims related to violation of Figma's intellectual property rights

Timing of claims

  • There are no limits on when claims must be brought by Customer
  • There are no limits on when claims must be brought by Figma

Claims

  • Figma indemnifies Customer for claims based on third-party IP infringement
  • Customer indemnifies Figma for claims based on Customer's content, data, and/or materials
  • Customer indemnifies Figma for claims based on Customer's use of the service

Scope of obligations

  • Not all types of IP are covered by Figma's IP indemnification
  • Figma's IP indemnification covers copyright claims
  • Figma's IP indemnification covers trade secret claims
  • Figma's IP indemnification covers trademark claims
  • Figma's indemnification obligations are the exclusive remedy for indemnified claims
  • Figma's indemnification includes the obligation to provide a defense
  • Figma's indemnification does not include the obligation to hold harmless
  • Customer's indemnification obligations are limited to third-party claims
  • Customer's indemnification obligations are not the exclusive remedy for indemnifiable claims
  • Customer's indemnification includes the obligation to provide a defense
  • Customer's indemnification does not include the obligation to hold harmless

Limitations, conditions, or exclusions

  • Obligations include conditions regarding Customer's cooperation or Figma's control of the defense
  • Obligations include conditions regarding Customer's use of the services in breach of the contract
  • Figma's IP indemnity does not cover claims resulting from modifications, combinations, or use of an outdated version of the service
  • Figma's indemnity obligations include conditions regarding settlements
  • There are time constraints on when Customer must notify Figma of an indemnifiable claim
  • Obligations include conditions regarding Figma's cooperation or Figma's control of the defense
  • Customer's indemnity obligations include conditions regarding settlements
  • There are time constraints on when Figma must notify Customer of an indemnifiable claim

Warranties Offered

SLAs

  • Figma does not offer an SLA regarding uptime
  • Figma does not offer any other form of SLA

Implied warranties

  • Figma disclaims some or all implied warranties
Data & Privacy
90% Customer Favorable

Data Rights

Data provided by Customer

  • Figma does not claim ownership of any data provided by Customer
  • Figma does not receive usage rights in any data provided by Customer beyond what is necessary to improve or provide the services

Data Security

Subprocessor obligations

  • The contract does not list subprocessors
  • Figma is required to ensure that subprocessors are bound by data or privacy requirements similar to those in this contract

Security commitments

  • Figma makes contractually binding data security commitments

Third party audits, standards, or certifications

  • Figma commits to comply with at least one third-party data security audit, standard, or certification
  • Figma commits to complying with one or more NIST frameworks
  • Figma commits to some other audits, standards, or certifications which TermScout was unable to classify - see citation
  • There are no qualifications and/or limitations to Figma's commitments to comply with third-party data security audits, standards, or certifications

Data breach notification policy

  • Figma commits to notifying Customer of a security breach impacting Customer's data

Summary

Vendor's confidential information

  • Customer must provide some protection of Figma's confidential information

Customer's confidential information

  • Figma must provide some protection of Customer's confidential information
  • Figma explicitly commits not to disclose Customer's confidential information, except as necessary to provide the services
  • Figma explicitly commits not to use Customer's confidential information, except as necessary to provide the services

Mutuality

  • All commitments concerning confidential information are mutual

Residuals clause

  • There is no residuals clause

Warranties Offered

Compliance with documentation/specifications

  • Figma warrants that the services will comply with certain documentation and/or specifications, but the warranty has some conditions or qualifications

Other warranties

  • Figma provides warranties regarding malware, malicious code, spyware, viruses, or similar
Commercial & Payment Terms
60% Balanced Favoring Customer

Payment Terms

Late payment penalties

  • There are penalties for late payments

Payments due

  • Customer has at least 30 days to pay

Vendor's expenses

  • Figma does not reserve the right to bill Customer for any expenses incurred by Figma
Term, Termination, & Control
70% Customer Favorable

Summary

Customer's termination rights

  • Customer has certain rights to terminate for cause

Refunds

  • Customer's termination rights include the right to a refund

Auto-renewal

  • The contract and/or any order under it does not auto-renew

Vendor's termination and suspension rights

  • Figma does not receive the right to terminate the contract for convenience
  • Customer has between 11 and 30 days to cure a breach before Figma can terminate for cause
  • Figma may suspend Customer's access to the service for payment-related issues
  • Figma may suspend Customer's access to the service for violation of Figma's policies and/or guidelines
  • Figma may suspend Customer's access in the event of IP infringement
IP & Ownership
50% Balanced

Customer's IP

Licenses to Customer IP

  • Figma receives a right to Customer's suggestions and/or feedback

Assignment of Customer IP or work product

  • Customer does not assign any work product or other IP to Figma

Warranties Offered

Other warranties

  • Figma provides warranties regarding its authority to enter into this contract and/or the validity of this contract
Restrictions & Controls
70% Customer Favorable

Summary

Non-compete

  • There are no restrictions on Customer's ability to compete as long as Customer doesn’t violate the agreement or use the services to compete

Non-solicit

  • There are no restrictions on Customer's right to solicit

Exclusivity

  • There are no restrictions on Customer's ability to procure similar products or services from other vendors

Vendor's assignment rights

  • Figma is allowed to assign in the event of a merger or acquisition
  • Figma is allowed to assign in the event of a corporate reorganization
  • There are consent requirements restricting Figma's ability to assign the contract
  • Consent requirements do not apply in the event of a merger or acquisition
  • Consent requirements do not apply in the event of a corporate reorganization
  • There are no notice requirements restricting Figma's ability to assign the contract
  • There are no restrictions or conditions on Figma's right to assign to a competitor of Customer

Customer's assignment rights

  • Customer is allowed to assign in the event of a merger or acquisition
  • Customer is allowed to assign in the event of a corporate reorganization
  • There are consent requirements restricting Customer's ability to assign the contract
  • Consent requirements do not apply in the event of a merger or acquisition
  • Consent requirements do not apply in the event of a corporate reorganization
  • There are no notice requirements restricting Customer's ability to assign the contract
  • There are no restrictions or conditions on Customer's right to assign to a competitor of Figma

Access the complete methodology and detailed breakdown by downloading the full report for in depth insights

Why this Matters

See value, risks, and position at a glance for better decisions.

A certified contract gives buyers an immediate signal that the agreement has already been independently reviewed against objective standards, so they do not need to start from a blank slate. That means procurement and legal can focus on any truly exceptional issues instead of re-litigating the whole paper, helping the vendor get to usage faster.

When a contract is benchmarked and certified as Balanced or Customer Favorable, buyers know the core terms are already aligned with market norms and defined fairness criteria. That reduces the instinct to redline broadly, because the agreement has already cleared a credibility threshold before negotiation begins.

Certification gives internal stakeholders a common, data-backed basis for approval, which lowers the time spent debating whether the contract is “acceptable”. In practice, that lets procurement, legal, and finance move from review mode to decision mode much faster.

A certified contract signals transparency: the vendor is willing to have its terms independently assessed and publicly displayed as fair, balanced, and market-aligned. That kind of external proof reduces suspicion about hidden risk and makes buyers more comfortable moving forward.

Because certification removes uncertainty early, buyers can spend less time negotiating standard terms and more time deciding whether the product is the right fit. TermScout positions this as a way to cut negotiation friction and accelerate time to signature, which directly shortens the overall deal cycle.

How TrustMark™ Works?

1

Data Extraction

Scans and converts legal text into structured data.

2

Objective Scoring

Clauses benchmarked against market data.

3

Deal Breakers

Risks and non-negotiables flagged early.

4

Benchmarking

Compares your contract to market standards.

5

Certification

Contract validated after meeting risk and score thresholds.

Based on 750 plus contract signals benchmarked against market data.

Certified Contract Reports, Explained

Verified™ contract reviews are reviews of contracts that have been carefully checked by contract experts. This review is designed to help users understand the rights and obligations associated with the Software Services Agreement ("SSA") for Figma, Inc.. We looked at the issues found in 'Term Sheets' and did not look for any other issues.

For more information on TermScout's contract review process, visit our methodology page.

In order to qualify for Certification, a contract must meet the following criteria:

  • Achieve a TermScout rating of Balanced or Customer Favorable, and
  • Be free of all designated Deal Breaker clauses.

The difference between certified Balanced and certified Customer Favorable is the TermScout favorability rating achieved by the contract. Each of these criteria is more fully described below.

A contract is balanced when it allocates risks between the parties in a roughly equal manner, as determined by TermScout's two-step, data-driven analysis. First, we use our proprietary AI to abstract over 750 defined data points from each contract we analyze. Then, we use an algorithm to objectively score that data. Because TermScout looks at the exact same set of data points and uses the exact same scoring algorithm in every contract analysis we conduct, you can now compare contracts on an apples-to-apples basis. (You can read more about the data points that TermScout analyzes in every IT contract here.)

This enables us to objectively rate contracts at both the agreement level and by key topic area (e.g., limitations of liability, indemnification, warranties, etc.) and show you which contracts are vendor favorable, which are customer favorable, and which are balanced.

Not all risks are created equal. Even if a contract shifts only a single risk to the buyer, the contract still may not merit certification if that risk is material enough. Examples of these types of Deal Breakers include exclusivity, complete disclaimers of liability, etc. Accordingly, TermScout will not certify a contract if it contains any of the following Deal Breaker clauses,² which TermScout identified by reference to market data and input from prominent buy-side and sell-side legal experts from TermScout's Innovation Advisory Council:

This makes it nearly impossible for a customer to recover from a vendor, no matter what goes wrong - even if the vendor violates other provisions of the contract.

Signing non-competes means contractually promising not to engage in a certain line of business. This is something most businesses want to avoid where possible.

Agreeing not to solicit a vendor's employees, customers, or vendors sounds reasonable, but it places challenging burdens on the customer to ensure they comply.

Agreeing not to procure similar services from other companies can severely hinder a company's ability to do business.

Privacy laws require companies to follow strict rules with respect to how they handle certain types of data. This clause presents major risks to a company's ability to comply with such laws.

It's extremely rare for a customer to need to assign IP rights to an IT vendor. Doing so can materially jeopardize a company's rights in its own IP.

Since most IT services today are delivered "as a service", customers often upload wide varieties of information onto vendors' servers. Confidentiality commitments are expected by most customers.

The goal of TermScout's reports is to provide users with the data necessary to make an informed decision about whether they can accept the terms. The data provided in TermScout's reports includes:

  • Term Sheet: A full report of the key rights and obligations contained in the agreement.
  • Overall Ratings: TermScout's overall impression of the favorability of the contract vis a vis the parties. These ratings are algorithmic approximations of favorability that are based on market data and the subject views of contract experts with experience in the specific type of contract.
  • Rare Clause Radar: TermScout identifies and surfaces a list of the most rare and material clauses that favor your counterparty.
  • Playbooks: Playbooks are a way of programming into TermScout's software a specific set of acceptance criteria for a contract type. All accounts have access to sample Playbooks for select templates, and Pro accounts have the ability to build custom Playbooks.
  • Comparable Contracts: We'll show a list of contracts sorted by favorability ratings and allow for the comparison of similar contracts based on position, industry, and contract type.
  • Market Data: Any right or obligation in a contract can be compared to market data for similar contract types, including data from TermScout's Contract Market Database™ of thousands of public contracts and anonymized and aggregated data from hundreds of negotiated contracts.

Certified Contract Reports contain only a subset of the above data. To access all of the data available, create a free account here and search for the desired contract in Triage.

Please note that this report focuses on the identification of terms from the contract documents listed under 'Scope of Review' and compares them against a defined set of criteria. Certain services may be subject to additional terms not available to TermScout, such as purchase orders and other deal-specific documents. You should always review the terms associated with the specific service you are using and know that TermScout's ratings generally do not cover (a) services purchased through a reseller, (b) offline variants of any of the Agreements, (c) service-specific terms that override any of the terms discussed here, or (d) free services. You also should consult your legal counsel if you have any questions about the meaning, significance or assessment of any agreement or provision.

TermScout prepared this report with an average use-case customer in mind and operated under the assumptions listed below (the "Key Assumptions"). To the extent that provisions in a contract vary based on specific circumstances that differ from the Key Assumptions, TermScout ignores those variations. Additional contract-level assumptions, if any, are disclosed in 'Notes to Customer'.

Key Assumptions

  1. Customer is an average "end user" of the service (i.e. not a partner, distributor, or developer).
  2. Customer is not a government entity.
  3. Customer is a US-based company and is using the service in the US.
  4. Customer is a paying user (i.e. not a user of free services).
  5. Customer is not using beta services.
  6. Unless otherwise noted, service-specific terms that may override or supersede the terms of the Agreement are not reviewed by TermScout.

We reviewed the SSA for Figma and any documents specifically listed under 'Scope of Review'. For purposes of this report, "Customer" means the party contracting with Figma and "Vendor" means Figma.

References herein to the "Agreement" are to the following documents:

TermScout did not review any documents other than those listed above. If other documents form part of this Agreement, the answers provided by TermScout may be incomplete or incorrect. TermScout's accuracy commitments only cover documents specifically identified in this section.

No additional notes to customer for this report.

View a full breakdown of our contract certification deal breakers.

Frequently Asked Questions

Find quick answers to the most common questions about our platform, process, and agreements.

Contact Us

Enterprise buyers frequently challenge agreements that heavily limit vendor accountability despite the platform being deeply integrated into software development, deployment, or operational workflows. Friction increases when liability caps remain low relative to the potential impact of code corruption, deployment failures, security incidents, or service outages affecting production systems. Enterprise review teams generally expect risk allocation structures to reflect the operational dependency created by the developer platform rather than relying on heavily vendor-favorable defaults.

Buyers typically compare liability frameworks against vendors supporting similar engineering, CI/CD, infrastructure automation, or source-code management functions. Agreements tend to appear more market aligned when they preserve meaningful accountability for confidentiality breaches, operational disruptions, and security incidents tied directly to the platform’s core functionality. Contracts may attract additional scrutiny when vendors broadly disclaim responsibility for failures affecting code integrity, deployment reliability, or engineering productivity.

Developer platforms frequently affect multiple operational domains simultaneously, including engineering, security, legal, procurement, and infrastructure operations. Additional review is common when the agreement creates uncertainty around remediation obligations, incident recovery responsibilities, or downstream operational exposure following service failures. Buyers often escalate contracts when the proposed allocation of risk appears inconsistent with the level of access or operational influence granted to the vendor.

Enterprise buyers often flag agreements that combine broad vendor protections with limited customer remedies, particularly in areas involving source-code handling, deployment workflows, or operational continuity. Additional concern arises when contracts exclude meaningful accountability for subcontractor failures, security incidents, or platform disruptions directly tied to the vendor’s services. These patterns frequently signal elevated governance and operational risk during procurement and legal review.

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