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SaaSGuard Risk Report

DigitalOcean

digitalocean.com

Generated May 4, 2026

Grade D

Score: 40 / 100

Executive summary

We analyzed DigitalOcean’s Terms of Service across 8 risk dimensions and found 18 flagged clauses across 8 categories.

Flagged clauses by category

AI training on your data (3)

  • Severity 4 · material

    We do not warrant the accuracy, reliability, or fitness for a particular purpose of AI-generated outputs. To the maximum extent permitted by law, we disclaim liability for any decisions made, actions taken, or failures to act based on AI-generated outputs.

    DigitalOcean does not guarantee the accuracy or reliability of AI-generated outputs and disclaims liability for decisions made based on them.

    You cannot hold DigitalOcean responsible if you suffer losses due to inaccurate AI-generated content.

  • Severity 3 · notable

    We may make available automated, artificial intelligence, and generative AI features and functionality as part of or in connection with the Services (“AI Features”), including features that generate suggestions, insights, recommendations, or outputs based on your inputs or other signals.

    DigitalOcean provides AI features that generate suggestions, insights, recommendations, or outputs based on your inputs.

    You may receive AI-generated content that is not guaranteed to be accurate or reliable.

  • Severity 3 · notable

    You are solely responsible for the prompts, inputs, and other materials used to generate outputs through AI Features, and for evaluating AI Feature outputs and making all decisions regarding any actions taken, configurations applied, or changes implemented based on such outputs before relying on or using them.

    You are solely responsible for all inputs used with AI features and for evaluating and acting on any AI-generated outputs.

    You bear full responsibility for any consequences arising from your use of AI-generated content.

Auto-renewal traps (1)

  • Severity 3 · notable

    By entering into this TOS and using the Services, you agree to be billed on a recurring basis and to be automatically charged by us or our Payment Processors using your Payment Methods upon invoicing.

    DigitalOcean will automatically charge you on a recurring basis using your saved payment methods upon invoicing.

    You will be automatically billed for services without needing to reauthorize payment each time.

Surprise price hikes (1)

  • Severity 4 · material

    DigitalOcean reserves the right to update, change or otherwise modify this TOS on a going-forward basis at any time and in DigitalOcean’s sole discretion.

    DigitalOcean may change the Terms of Service at any time at its sole discretion.

    DigitalOcean can alter the contract terms without your explicit consent, potentially impacting your rights and obligations.

Data residency (2)

  • Severity 3 · notable

    When purchasing Services, you may specify the geographic region and jurisdiction in which your Services Content will be stored. You consent to the storage of your Services Content in, and transfer of your Services Content into, the geographic region and jurisdiction you select.

    You consent to DigitalOcean storing your content in the geographic region and jurisdiction you select.

    Your data will be stored in the location you choose, subject to DigitalOcean's terms.

  • Severity 3 · notable

    Unless otherwise agreed in writing between you and DigitalOcean, you agree that DigitalOcean may transfer and store your Services Content in other geographic regions or jurisdictions at its sole discretion.

    DigitalOcean may transfer and store your content in other geographic regions or jurisdictions at its sole discretion.

    Your data may be moved to different locations than initially selected, potentially affecting compliance with local regulations.

Termination friction (4)

  • Severity 3 · notable

    You are responsible for downloading or otherwise exporting your data prior to termination or closure of your respective Services or Account.

    You must download or export your data before terminating your account or services.

    You are solely responsible for retrieving your data before it is permanently deleted by DigitalOcean.

  • Severity 3 · notable

    DigitalOcean shall have no obligation to make Services Content available upon closure of your Account, and will delete Services Content upon termination in accordance with its standard Account closure practices.

    DigitalOcean will delete your content upon account closure and has no obligation to make it available.

    DigitalOcean will permanently remove your data after account closure, so you must back it up beforehand.

  • Severity 3 · notable

    While we prefer to give advance notice of termination, we reserve the right, in our sole discretion, to terminate your access to all or any part of the Websites and/or Services at any time, with or without notice, effective immediately.

    DigitalOcean can terminate your access to services at any time, with or without notice.

    Your access to the services and your data can be cut off abruptly without prior warning.

  • Severity 3 · notable

    Any such termination may result in the immediate forfeiture and destruction of data associated with your Account.

    Termination of your account may result in the immediate destruction of your data.

    You risk losing all data associated with your account if it is terminated.

Liability caps (4)

  • Severity 4 · material

    To the fullest extent permitted by law, in no event will we be liable to you for any indirect, incidental, special, consequential, or punitive damages (including damages for loss of profits, goodwill, or any other intangible loss) arising out of or relating to your access to or use of, or your inability to access or use, the Websites and Services or any materials or content on the Websites and Services, whether based on warranty, contract, tort (including negligence), statute, or any other legal theory, and whether or not we have been informed of the possibility of damage.

    DigitalOcean disclaims all liability for indirect, consequential, or punitive damages related to your use of the services.

    You cannot recover certain types of damages, such as lost profits, from DigitalOcean if issues arise with the services.

  • Severity 4 · material

    To the fullest extent permitted by law, you agree we will have no liability for any data that may be destroyed, lost or otherwise rendered inaccessible, whether because you failed to backup your data or for any other reason.

    DigitalOcean will not be liable for any data that is destroyed or lost, regardless of the reason.

    You cannot hold DigitalOcean responsible if your data is lost or destroyed, even if you failed to back it up.

  • Severity 4 · material

    DigitalOcean shall have no liability for claims, damages, or losses arising from your negligent, improper, unauthorized, unlawful, or irresponsible use of AI Features.

    DigitalOcean is not liable for claims arising from your negligent, improper, unauthorized, unlawful, or irresponsible use of AI features.

    You are responsible for any damages or losses resulting from your misuse of AI features.

  • Severity 3 · notable

    Except as provided in Section 13 and to the fullest extent permitted by law, our aggregate liability to you for all claims arising out of or relating to this TOS or the Websites and Services, whether in contract, tort, or otherwise, is limited to the amount you have paid to us for the Services at issue in the month prior to the event or circumstance giving rise to the claim.

    DigitalOcean's total liability for all claims related to the services is capped at the amount you paid in the prior month.

    Your ability to recover financial losses from DigitalOcean is limited to the fees you paid in the preceding month.

Indemnification (1)

  • Severity 3 · notable

    To the fullest extent permitted by law, you are responsible for your use of the Websites and Services, and you shall defend, indemnify, and hold harmless us and our employees, officers, directors, agents, contractors, and representatives from all liabilities, claims, and expenses, including reasonable attorneys’ fees and costs, that arise from or relate to your Services Content, User Content, your End Users, or your access to or use of the Websites and Services, including your breach of this TOS or applicable law, willful misconduct, negligence, illegal activity, breach of security or data, unauthorized access to or use of your Account, or infringement of a third party’s rights, including any intellectual property, confidentiality, property, or privacy right.

    You will defend and pay for any claims or expenses arising from your content, use of services, or breach of terms.

    You must cover DigitalOcean's legal costs and damages if their liability arises from your actions or content.

Right to silently change terms (2)

  • Severity 4 · material

    DigitalOcean reserves the right to update, change or otherwise modify this TOS on a going-forward basis at any time and in DigitalOcean’s sole discretion.

    DigitalOcean reserves the right to modify the Terms of Service at any time in its sole discretion.

    DigitalOcean can change the contract terms unilaterally, and continued use signifies your agreement to the new terms.

  • Severity 4 · material

    Updates will be effective on the date specified in the notice. By continuing to access or use the Websites or Services after the date specified in the notice or updated TOS, you are agreeing to accept and be bound by the updated TOS and all of the terms incorporated therein.

    DigitalOcean will notify you of updated Terms of Service, and your continued use after the effective date binds you to the new terms.

    By continuing to use the services after updates, you automatically agree to the revised terms without explicit consent.

Methodology

SaaSGuard uses an automated pipeline: a daily Playwright crawler captures each vendor’s public Terms of Service, Privacy Policy, and DPA. Google’s Gemini 2.5 Flash classifies each clause into one of 8 risk categories with a severity score (1–5). Clauses are cross-referenced against a curated database of real lawsuits and FTC actions via embedding-based similarity matching. Grades are computed from per-category max severity; full source code is available on request.

Built for educational and informational purposes. Not legal advice. Always have your own counsel review SaaS contracts before signing.

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