Last updated: October 15, 2026
At a Glance
Overview
The LFM Open License is based on Apache 2.0, granting broad, royalty-free, perpetual rights to use, modify, and distribute our models and their derivatives. The key difference from Apache 2.0 is a commercial use threshold: free commercial use is limited to companies with annual revenue under $10 million USD. Revenue is counted for your Legal Entity, which the license defines to include entities that control, are controlled by, or are under common control with you.Using the Models
You can use, modify, fine-tune, and distribute the models for any purpose, including commercial products and services, subject to the commercial use threshold.Do I have to open-source my modifications?
Do I have to open-source my modifications?
No. The license has no copyleft requirement. You can keep your fine-tuned models proprietary.
Can I license my fine-tuned model under my own terms?
Can I license my fine-tuned model under my own terms?
Yes. Section 4 lets you add your own copyright statement to your modifications and provide additional or different license terms for your modifications, or for the derivative model as a whole. This is allowed only if your own use, reproduction, and distribution of the original models still complies with this license, including the commercial use threshold.
Commercial Use
Companies with annual revenue under $10 million USD can use the models at no cost for commercial purposes. If your company’s annual revenue is $10 million USD or more, commercial use of the models and their derivatives is not licensed under this license. Contact sales@liquid.ai to obtain a commercial license.What counts as commercial use?
What counts as commercial use?
Any use for direct or indirect commercial advantage or monetary compensation. Internal research, testing, and evaluation are permitted without a commercial license. Using the models in your business can constitute commercial use, even if the models are not directly generating revenue. Contact sales@liquid.ai to discuss your use case and whether a commercial license is needed.
How does the threshold apply if I distribute the models to customers?
How does the threshold apply if I distribute the models to customers?
The threshold applies separately to each company using the models commercially. Your company’s revenue determines your right to use and distribute the models commercially. If a downstream customer uses the models commercially, that customer’s own revenue determines whether it needs a commercial license. A customer with annual revenue of $10 million USD or more needs a commercial license from Liquid AI.
Can I get a commercial license that covers my customers or end users?
Can I get a commercial license that covers my customers or end users?
The open license doesn’t automatically cover a downstream customer’s commercial use. If you are interested in a custom commercial license covering your customers or end users, contact sales@liquid.ai to discuss available options.
Research & Nonprofit Use
The revenue threshold only limits commercial use. Section 5(c) also states that the threshold does not apply to a qualified nonprofit (501(c)(3) or equivalent) using the models for non-commercial or research purposes.What qualifies as a nonprofit?
What qualifies as a nonprofit?
Organizations operated exclusively for religious, charitable, scientific, public-safety testing, literary, or educational purposes and exempt under Section 501(c)(3) of the U.S. Internal Revenue Code, or equivalent non-profit or charitable organizations in other jurisdictions.
What about for-profit schools and education companies?
What about for-profit schools and education companies?
For-profit organizations using the models commercially remain subject to the commercial-use threshold.
Distribution Requirements
When distributing the models or derivatives, you must:- Include a copy of the license
- Retain all copyright and attribution notices
- Include the NOTICE file if one is provided with the model
- Mark any files you have modified
Can I say that my product uses Liquid AI models?
Can I say that my product uses Liquid AI models?
Yes. You may say that your product uses Liquid AI models, but the license doesn’t allow broader use of Liquid AI’s trademarks or branding.
Termination
The license terminates automatically and immediately if you fail to comply with any of its terms and conditions (Section 11), not only the commercial use limitation. Upon termination, you must stop using the models and any derivative works and delete all copies in your possession.Comparison to Apache 2.0
The LFM Open License is based on the Apache License 2.0. It differs in the following ways:- Licensor (Section 1): “Licensor” is defined as Liquid AI, Inc., instead of the copyright owner or an entity authorized by the copyright owner.
- New definitions (Section 1): The license adds definitions for “Commercial Use”, “Qualified Non-Profit Organization”, “Non-Commercial or Research Purposes”, and “Threshold” (annual revenue of $10,000,000 or more).
- Conditional license grants (Sections 2 and 3): The copyright and patent grants are subject to the Commercial Use limitation in Section 5.
- Commercial Use Limitation (Section 5): A new section. Commercial use rights depend on you or your Legal Entity not reaching the Threshold. Qualified nonprofits using the models for non-commercial or research purposes are exempt from the Threshold.
- Section renumbering: Because Section 5 is new, Apache 2.0 Sections 5 to 9 (Submission of Contributions, Trademarks, Disclaimer of Warranty, Limitation of Liability, Accepting Warranty or Additional Liability) become Sections 6 to 10.
- Termination (Section 11): A new section. The license terminates automatically if you fail to comply with any of its terms, and you must then stop using the models and any derivative works and delete your copies. Apache 2.0 has no general termination clause.
- Minor wording: The “License” definition refers to the whole document instead of Sections 1 through 9, the “Work” definition drops the reference to the Apache appendix, the Trademarks section uses slightly different wording, and the appendix on how to apply the license is not included.