# LAJKTO ENGINE – LICENSE AND COMMERCIAL TERMS

**Terms version:** 1.1 / 31 August 2026  
**Controlling language:** Czech  
**Licensor:** **Jiří Holý, Business ID (IČO) 06230181, Uralská 689/7, 160 00 Prague 6 - Bubeneč, Czech Republic**, contact **admin@lajkto.eu**.  
**Website:** https://lajkto.eu

> These terms are a production click-wrap license draft for Lajkto Engine. The Licensor is identified above and in `LICENSE_OWNER.txt`. Review by Czech counsel is recommended before broad public commercial deployment; no agreement can guarantee that a court will never interpret, limit, invalidate or moderate an individual provision.

## 1. Acceptance
By installing, launching, clicking **“I Agree / Accept License”**, using Lajkto Engine, or distributing a product made with Lajkto Engine (a “Product”), the user (“Licensee”) enters into this license agreement with the Licensor. A person acting for a company represents that they have authority to bind it.

Commercial use is permitted only under these terms. The contractual-penalty provisions are intended primarily for business/commercial Licensees; mandatory consumer rights remain unaffected.

## 2. Definitions
“Engine” includes Lajkto Engine Core, editor, runtime, first-party APIs/tools, documentation, first-party modules and the modified LNAR/ACE-Step integration supplied by the Licensor. “Engine Core” includes the Licensor's rendering, editor, runtime, physics, networking and other proprietary core code.

A “Third-Party Plugin” is a separable optional third-party component such as AMD FidelityFX/FSR, NVIDIA DLSS/Streamline, Steamworks or a future external SDK.

## 3. License grant
Subject to compliance, the Licensor grants a non-exclusive worldwide license to use the Engine to develop the Licensee's games and interactive products; to create and modify the Licensee's game content, scripts, scenes, models, materials, plugins and assets through documented interfaces; and to distribute compiled Products.

No ownership of Engine Core is transferred. The Licensee retains its own original game content to the extent it does not incorporate Engine Core or third-party material subject to separate rights.

## 4. Free tier, Royalty Base and lifetime tiers
Each separate Product is measured by its **cumulative Royalty Base over the entire commercial lifetime of that Product (Lifetime Royalty Base)**. The Royalty Base **does not reset at the end of a calendar or fiscal year** and does not restart because the distributor, publisher, platform, sales channel, owner, operator or related entity changes. A transfer of the Product or of a company therefore does not by itself create a new free allowance or new tiers.

No Engine royalty is due on the first **CZK 100,000** of cumulative Royalty Base for a particular Product.

### 4.1 Royalty Base = actual net receipts from the Product
“Royalty Base” means **net amounts actually received** by the Licensee or its related persons that are directly attributable to the particular Product. It includes, without limitation, receipts from game sales, licenses, subscriptions, DLC, season passes, microtransactions, in-game payments, paid access, physical copies containing the Product, bundle allocations, advertising or sponsorship monetization directly tied to the Product, publisher licenses and payments, distribution agreements, minimum guarantees, advances and comparable direct monetization of the Product.

If a sales-channel report starts from the amount paid by the customer before deductions, the Royalty Base may deduct **only actual, documented and directly related**: (a) VAT, sales tax and similar taxes collected for government, (b) actual customer refunds and chargebacks, (c) fees of an independent marketplace/store/platform or distributor directly withheld from Product revenue, and (d) fees of an independent payment processor directly tied to the transaction. An amount already reported as net settlement proceeds may not be reduced by the same items a second time.

The following are **not deductible**, including without limitation: team wages or compensation, development costs, marketing or advertising, hardware, software, offices, travel, servers or hosting, accounting or legal services, interest or financing, general overhead, internal costs, depreciation, related-party charges or other business expenses unless expressly listed as a permitted deduction in the preceding paragraph.

### 4.2 One economic receipt is counted only once
The same economic payment must **not be included in the Royalty Base more than once** merely because it passes through a platform, publisher, distributor, the Licensee or a related person. Internal transfers between the Licensee and its related persons do not by themselves create additional Royalty Base.

A publisher advance, advance payment or minimum guarantee is included when it is actually received and attributable to the Product. Later sales or royalties used only to recoup an advance already included, and which do not result in new receipts by the Licensee or a related person, are not counted a second time. New amounts actually paid above the previously included advance are included when received.

Actual later refunds or chargebacks may be reflected in the quarter in which they occur. If this creates an overpayment of royalties previously paid, the overpayment is carried forward as a credit against future royalties for the same Product; a cash refund by the Licensor arises only by separate agreement or where mandatory law requires it.

### 4.3 Excluded receipts
The Royalty Base excludes equity investment into a company, loans or credit, grants or subsidies that are not consideration for distribution or commercial exploitation of the Product, genuine donations that provide no right to the Product or related digital benefit, and sales of standalone physical merchandise that neither contains the Product nor grants a right to use it.

### 4.4 All platforms and channels for one game are aggregated
The Royalty Base is **platform- and channel-neutral**. Receipts are included regardless of whether the Product is sold or monetized through Steam, Epic Games Store, GOG, Microsoft Store, PlayStation, Xbox, Nintendo, Apple App Store, Google Play, the Licensee's own website/store, another marketplace, a publisher, distributor, subscription service, cloud service, physical retail or any other current or future sales channel.

For tier purposes, ports, regional versions, standard/deluxe/ultimate editions, remasters or renamed variants are treated as the same Product where they are economically and substantively the same title, together with that title's DLC, season passes and in-game monetization. A genuine sequel or substantively separate game has its own lifetime tiers. Artificially splitting the same Product across companies, accounts, distributors, SKUs or editions to reduce royalties does not change the calculation.

### 4.5 Foreign currencies
Receipts in another currency are converted to CZK before being allocated to a tier. If a platform, publisher, bank or payment service provides a documented settlement report showing the actual conversion into CZK, that rate is used. Otherwise the Czech National Bank exchange rate applicable on the date the relevant payment is credited or actually received is used; for an aggregated platform payout, the payout date may be used. For a currency for which the Czech National Bank does not publish a rate, the documented rate used by the bank/payment provider or another reasonable official reference rate is used. The chosen method must be applied consistently and may not be switched selectively to manipulate tier placement.

## 5. Progressive royalty
The royalty is calculated **marginally by tier**. A higher rate applies only to the portion of cumulative Royalty Base falling within that higher tier. Crossing a threshold **does not retroactively apply the higher rate** to receipts already earned in lower tiers.

| Cumulative Royalty Base for one Product | Rate on the portion within this tier |
| ---: | ---: |
| CZK 0 to 100,000 | **0%** |
| above CZK 100,000 to CZK 1,000,000 | **2%** |
| above CZK 1,000,000 to CZK 10,000,000 | **3%** |
| above CZK 10,000,000 to CZK 50,000,000 | **4%** |
| above CZK 50,000,000 to CZK 100,000,000 | **5%** |
| above CZK 100,000,000 to CZK 250,000,000 | **7.5%** |
| above CZK 250,000,000 to CZK 500,000,000 | **10%** |
| above CZK 500,000,000 | **15%** |

Example: if a Product reaches CZK 120,000,000 of lifetime Royalty Base, each tier is calculated separately. The Licensee does not owe 7.5% on the full CZK 120,000,000; the 7.5% rate applies only to the portion above CZK 100,000,000 up to CZK 120,000,000.

When a Product crosses another tier during its commercial lifetime, new receipts within that tier are charged at the new rate. **Previously accumulated lifetime Royalty Base is never cancelled, reset or restarted.**

Accounting is quarterly. Within 30 days after each calendar quarter in which a royalty is due, the Licensee must provide for each affected Product its cumulative lifetime Royalty Base, the increase during that quarter, the allocation of that increase across tiers, the resulting royalty calculation, and pay the amount due at the same time.

The first mandatory royalty report is due for the quarter in which a Product's cumulative Royalty Base first exceeds CZK 100,000. Reporting repeats for later quarters in which the Product generates new receipts or Royalty Base adjustments. The Licensor may provide a standard form or electronic reporting interface; using it does not change the economic calculation under this agreement.

## 6. Records and verification
The Licensee keeps supporting records for at least five years. The Licensor may request reasonable verification no more than once per calendar year. If an audit finds an underpayment above 5%, the Licensee also pays reasonable audit costs in addition to the shortfall and applicable accessories.

## 7. Contractual penalty
If a due royalty or required quarterly report is not supplied on time, a business/commercial Licensee agrees to a **contractual penalty of CZK 50,000 for each commenced calendar month of continuing default**.

At issue date this is approximately **EUR 2,070 / USD 2,411 per month**. CZK 50,000 controls. The penalty does not replace the underlying royalty, lawful interest/accessories or damages to the extent allowed by law. The parties acknowledge that Czech law may permit a court to reduce a concretely disproportionate contractual-penalty claim; this clause applies to the maximum lawful extent.

## 8. Required attribution
Every publicly distributed Product must reasonably visibly state in credits, About, documentation or equivalent:

**“Powered by Lajkto Engine”**  
**“Lajkto Engine by Lajkto – https://lajkto.eu”**

Where a store/platform provides technology credits, Lajkto Engine must also be listed there. Attribution does not imply endorsement or sponsorship.

## 9. Engine Core protection
Without prior written permission, the Licensee may not publish, sell, sublicense, disclose or transfer Engine Core source code; copy Engine Core into another engine outside this license; remove copyright/license metadata; modify Engine Core outside documented extension/plugin APIs; or use non-public source/implementation information to misappropriate Lajkto Engine or substantial parts of it.

This does not restrict the Licensee's own game code, plugins, assets or content created through permitted APIs, and does not exclude statutory rights that mandatory law does not permit the parties to waive, including interoperability rights to the required extent.

## 10. MCP and AI development
Lajkto MCP Bridge is a first-party interface allowing AI systems to invoke documented editor operations. AI receives no broader authority than the human user. The Licensee is responsible for reviewing AI-made changes, selected AI providers/models and data submitted to them.

## 11. Third-Party Plugins
AMD FidelityFX/FSR, NVIDIA DLSS/Streamline, Steamworks and other external technologies are not owned by the Licensor and are attached as separate plugins. Inclusion does not grant third-party trademark/SDK rights beyond the applicable third-party terms.

The Licensee must review and comply with the vendor's then-current terms before use and before distribution. Vendor terms may change independently. The Licensor has no duty to monitor AMD, NVIDIA, Valve or other vendor terms on behalf of the Licensee and is not liable for the Licensee's failure to comply.

## 12. ACE-Step / LNAR
The modified ACE-Step/LNAR integration is treated as a supplied Engine component, not an AMD/NVIDIA vendor plugin. Applicable upstream copyright and license notices for incorporated components must be retained. The Licensee remains responsible for rights in inputs and generated audio outputs.

## 13. Warranty, hardware and misuse
The Engine is supplied “AS IS” to the maximum extent allowed by law. No warranty is made that it will be uninterrupted, error-free, compatible with every hardware configuration or fit for a particular purpose.

The Licensee is responsible for hardware configuration, cooling, overclocking, drivers, power delivery, experimental GPU/CPU/NPU modes, generative AI and other use. To the maximum extent permitted by law, the Licensor is not liable for hardware damage, data loss, lost profit or consequential loss arising from unsafe, unsuitable, unsupported or abnormal use. Liability that mandatory law does not allow to be excluded remains unaffected.

## 14. Termination
For material breach, the Licensor may terminate after a reasonable cure period; intentional source-code disclosure/theft or intentional royalty evasion may justify immediate termination to the extent permitted by law. Accrued payments, penalties, confidentiality and provisions intended to survive remain effective.

## 15. Governing law, severability and updates
The agreement is governed by Czech law, subject to mandatory rules applicable to a particular Licensee. Czech courts have jurisdiction where legally permitted. If a provision is invalid or unenforceable, the remainder survives and the affected provision applies to the closest lawful extent matching its economic purpose.

A new terms version applies after the Licensee accepts it, unless law permits otherwise. The editor records the accepted terms version.

## 16. Language
The Czech version legally controls. English and German versions are full convenience translations. If they conflict, the Czech wording prevails.