Update LICENSE

LICENSE

@@ -1,75 +1,146 @@
-MIT License (API Code) + LFM-1.0 (AI Model)
-====================================================
+DUAL LICENSE: MIT (API Code) + LFM Open License v1.0 (AI Model)
+================================================================
 
-This repository contains two layers with distinct licenses.
-By cloning, duplicating, or using this project, you agree to abide by
-both licenses described below.
+This repository contains two distinct layers with different licenses.
+By cloning, duplicating, or using this project, you agree to comply
+with both licenses described below.
 
 
+═══════════════════════════════════════════════════════════════════
 1. API CODE (Infrastructure)
----------------------------------
-All source code contained in this repository (including, but not
-limited to: app.py, Dockerfile, requirements.txt, README.md, and
-configuration scripts) is licensed under the MIT License:
+═══════════════════════════════════════════════════════════════════
+
+All source code in this repository (including but not limited to:
+app.py, Dockerfile, requirements.txt, README.md, and configuration
+scripts) is licensed under the MIT License:
 
 MIT License
 
 Copyright (c) 2026 Edu014 and contributors
 
-Permission is hereby granted, free of charge, to any person obtaining a copy
-of this software and associated documentation files (the "Software"), to deal
-in the Software without restriction, including without limitation the rights
-to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
-copies of the Software, and to permit persons to whom the Software is
-furnished to do so, subject to the following conditions:
+Permission is hereby granted, free of charge, to any person obtaining
+a copy of this software and associated documentation files (the
+"Software"), to deal in the Software without restriction, including
+without limitation the rights to use, copy, modify, merge, publish,
+distribute, sublicense, and/or sell copies of the Software, and to
+permit persons to whom the Software is furnished to do so, subject to
+the following conditions:
 
-The above copyright notice and this permission notice shall be included in all
-copies or substantial portions of the Software.
+The above copyright notice and this permission notice shall be
+included in all copies or substantial portions of the Software.
 
-THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
-IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
-FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
-AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
-LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
-OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
-SOFTWARE.
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,
+EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF
+MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.
+IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY
+CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT,
+TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE
+SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
 
 
+═══════════════════════════════════════════════════════════════════
 2. AI MODEL (Weights and GGUF Files)
-----------------------------------------
-The weights for the "LiquidAI/LFM2.5-Embedding-350M" model (including any
-GGUF file downloaded during the Docker build) are the property of
-Liquid AI and are licensed under the LFM-1.0 License (Liquid Foundation
-Model License). - Full license: https://huggingface.co/LiquidAI/LFM2.5-Embedding-350M/blob/main/LICENSE
-- Official repository: https://huggingface.co/LiquidAI/LFM2.5-Embedding-350M
+═══════════════════════════════════════════════════════════════════
+
+The "LiquidAI/LFM2.5-Embedding-350M" model weights (including any
+GGUF files downloaded during Docker build) are owned by Liquid AI,
+Inc. and licensed under the **LFM Open License v1.0**.
+
+📄 Full License Text:
+   https://huggingface.co/LiquidAI/LFM2.5-Embedding-350M/blob/main/LICENSE
+
+📦 Official Repository:
+   https://huggingface.co/LiquidAI/LFM2.5-Embedding-350M
+
+┌─────────────────────────────────────────────────────────────────┐
+│ ⚠️ CRITICAL: COMMERCIAL USE THRESHOLD                           │
+├─────────────────────────────────────────────────────────────────┤
+│                                                                 │
+│ Commercial use is PERMITTED only if your Legal Entity's total   │
+│ annual revenue does NOT exceed $10,000,000 USD (ten million     │
+│ US dollars).                                                    │
+│                                                                 │
+│ If your entity exceeds this threshold, you must obtain a        │
+│ separate commercial license from Liquid AI, Inc.                │
+│                                                                 │
+│ Qualified Non-Profit Organizations (501(c)(3) or equivalent)    │
+│ are exempt from this threshold for non-commercial/research use. │
+│                                                                 │
+└─────────────────────────────────────────────────────────────────┘
+
+By using this project in production, you assume full responsibility
+for compliance with the LFM Open License v1.0, including but not
+limited to:
+
+✅ PERMITTED:
+   - Using the API to generate embeddings for RAG applications
+   - Integration in commercial products (under the $10M threshold)
+   - Academic research and non-commercial projects
+   - Personal projects and experimentation
+
+⚠️ REQUIRES ATTENTION:
+   - Entities with >$10M annual revenue must contact Liquid AI
+   - Redistribution of model weights requires preserving all
+     copyright notices and including the full license text
+   - Modified model files must carry prominent change notices
+
+🚫 PROHIBITED:
+   - Using Liquid AI trademarks ("Liquid AI", "LFM", etc.) to
+     promote your product without permission
+   - Patent litigation against Liquid AI (triggers license
+     termination under Section 3)
+   - Use for training competing foundation models
+
+
+═══════════════════════════════════════════════════════════════════
+3. DISCLAIMER OF WARRANTY
+═══════════════════════════════════════════════════════════════════
+
+THIS PROJECT IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND.
+
+The authors and contributors are not responsible for:
+   - Misuse of the model in violation of LFM Open License v1.0
+   - Damages arising from use in critical applications
+   - Interruptions, bugs, or inaccuracies in generated embeddings
+   - Legal consequences of exceeding the commercial threshold
+
+You are solely responsible for determining the appropriateness of
+using this project and assume all risks associated with your
+exercise of permissions under these licenses.
+
+
+═══════════════════════════════════════════════════════════════════
+4. CREDITS AND ATTRIBUTION
+═══════════════════════════════════════════════════════════════════
 
-Use of the model is subject to the terms of the LFM-1.0, which include (but are
-not limited to):
-* Permission for commercial use for inference
-* Restrictions regarding use for training competing models
-* User scale limits (see the license for details)
-* Attribution obligations
+Base Model: Liquid AI (https://www.liquid.ai)
+Inference Engine: llama.cpp (https://github.com/ggerganov/llama.cpp)
+Web Framework: FastAPI (https://fastapi.tiangolo.com)
+Hosting: Hugging Face Spaces (https://huggingface.co/spaces)
 
-By using this project in production, you assume responsibility for
-fully complying with the LFM-1.0 terms set by Liquid AI.
+Architecture and collaborative development with AI assistance:
+   • Qwen3.7 Max (DevOps architecture and optimization)
+   • Gemini 3.1 Pro (code review and validation)
 
 
-3. DISCLAIMER
-----------------------------------------
-This project is provided "as is," without warranties of any kind.
-The authors are not liable for:
-* Misuse of the model in violation of the LFM-1.0
-* Damages arising from the use of the API in critical applications
-* Interruptions, bugs, or inaccuracies in the generated embeddings
+═══════════════════════════════════════════════════════════════════
+5. COMPLIANCE CHECKLIST
+════════════════════════════════════════���══════════════════════════
 
+Before deploying this project in production, verify:
 
-4. CREDITS AND ATTRIBUTION
--------------------------
-- Base model: Liquid AI (https://www.liquid.ai)
-- Inference engine: llama.cpp (https://github.com/ggerganov/llama.cpp)
-- Web framework: FastAPI (https://fastapi.tiangolo.com)
-- Hosting: Hugging Face Spaces (https://huggingface.co/spaces)
-
-Architecture and collaborative development with assistance from:
-* Qwen3.7 Max (DevOps architecture and optimization)
-* Gemini 3.1 Pro (code review and validation)
+[ ] Your entity's annual revenue is under $10M USD, OR you have
+    obtained a commercial license from Liquid AI
+    
+[ ] You have read and understood the full LFM Open License v1.0
+
+[ ] If redistributing, you have included this LICENSE file and
+    preserved all copyright notices
+
+[ ] You are not using Liquid AI trademarks to promote your product
+
+[ ] You understand that violations result in automatic license
+    termination (Section 11)
+
+For questions about commercial licensing above the threshold,
+contact: https://www.liquid.ai