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Privacy Policy

Last updated: March 2026

Yarn is operated by Prosody Labs Pty Ltd (ABN pending), based in Perth, Western Australia. This policy describes how we collect, use, store, and protect your personal information when you use the Yarn platform, including our chat interface, API, and account portal.

1. Information we collect

We collect the following categories of information:

  • Account information: your name, email address, and hashed password when you create an account.
  • Usage metrics: token counts, request timestamps, model selections, and response latencies. These are used for billing, rate limiting, and service improvement.
  • Conversation data: the content of your conversations with AI models, stored in an Australian-hosted PostgreSQL database. You can delete your conversations at any time through the chat interface.
  • API request metadata: if you use the Yarn API, we log request metadata (timestamps, token counts, model used) but do not retain request or response bodies beyond what is needed for the active session.

2. How your requests are processed

Yarn provides access to two categories of AI models, each with different data handling:

Sovereign models

Models such as Mistral 7B run on Australian hardware owned and operated by Prosody Labs (currently an NVIDIA RTX 4090 in Perth, WA). Your prompts and responses for sovereign models are processed entirely within Australia and never leave Australian infrastructure.

Global models

Models such as GPT-4o (OpenAI) and Claude (Anthropic) are accessed via their respective APIs. When you use a global model, your prompt is sent to the provider's servers, which are located in the United States. These requests are subject to the provider's own privacy policies:

Both providers offer API terms that exclude your data from model training. Yarn does not send any personally identifiable information (such as your name or email) to upstream providers — only the content of your prompt.

3. Data residency

All account data, usage metrics, and conversation history are stored on Australian infrastructure. For sovereign model inference, your data never leaves Australia. For global models, prompt content transits through the provider's infrastructure (currently US-based) as described above. We clearly label which models are sovereign and which are global in both the chat interface and API documentation.

4. Cookies

Yarn uses a single session cookie (set by NextAuth) to maintain your login session. We do not use tracking cookies, analytics cookies, or any third-party advertising cookies. No cookie consent banner is required because we only use cookies that are strictly necessary for the service to function.

5. Data retention

  • Account data is retained for as long as your account is active. You can request deletion at any time.
  • Conversations can be deleted by you at any time through the chat interface. Deleted conversations are permanently removed from our database.
  • Usage metrics are retained for billing and service improvement purposes. Aggregated, anonymised metrics may be retained indefinitely.
  • API logs are retained for 90 days for debugging and abuse prevention, then automatically purged.

6. Third parties

We share data with the following third parties only as needed to provide the service:

  • OpenAI and Anthropic — receive prompt content when you use their respective models (GPT-4o, Claude).
  • Stripe — processes payments. Prosody Labs does not store credit card numbers; payment information is handled entirely by Stripe.

We do not sell, rent, or share your personal information with any other third parties.

7. Your rights

Under the Australian Privacy Act 1988 and the Australian Privacy Principles (APPs), you have the right to:

  • Access the personal information we hold about you.
  • Correct any inaccurate or incomplete information.
  • Delete your account and associated data.
  • Complain to the Office of the Australian Information Commissioner (OAIC) if you believe your privacy has been breached.

To exercise any of these rights, contact us at jordan@prosodylabs.com.au.

8. Security

We take reasonable steps to protect your personal information from misuse, interference, loss, and unauthorised access. All data in transit is encrypted via TLS. Passwords are hashed and never stored in plain text. Infrastructure access is restricted to authorised personnel.

9. Changes to this policy

We may update this privacy policy from time to time. If we make material changes, we will notify you by email or by posting a notice on the platform. Your continued use of Yarn after changes are posted constitutes acceptance of the updated policy.

10. Contact

If you have questions about this privacy policy or how we handle your data, contact us at:

jordan@prosodylabs.com.au

Prosody Labs Pty Ltd, Perth, Western Australia