Privacy Policy

Last updated: February 2026

1. Overview

Capsule is a local-first audio transcription application for macOS. This privacy policy explains what data stays on your device, what data is processed server-side when you use optional cloud features, and your rights under the GDPR.

2. Data Controller

Ultramoon GmbH
[Address]
Germany
E-Mail: hello@capsule.app

3. Local-Only Data (Never Leaves Your Device)

The following data is processed and stored exclusively on your Mac:

Audio recordings — All recorded audio remains on your local filesystem
Transcriptions — When using local Whisper models, transcripts are generated and stored locally
Intelligence insights — When using local LLM providers (Ollama, vLLM), all analysis stays on-device
Application preferences — Settings are stored in macOS UserDefaults
Feature flag cache — Cached copies of your feature access settings

We cannot access this data. It is never uploaded to our servers unless you explicitly use cloud sync features while signed in.

4. Server-Side Data (Cloud Features)

When you create an account and use cloud features, the following data is processed on our servers (hosted in eu-central-1, Frankfurt, Germany via Supabase):

Data	Purpose	Legal Basis
Email address	Account authentication	Contract performance (Art. 6(1)(b) GDPR)
Subscription status	Plan management, feature access	Contract performance (Art. 6(1)(b) GDPR)
Credit balance & transactions	Metered billing for cloud AI usage	Contract performance (Art. 6(1)(b) GDPR)
Feature flag settings	Feature access control	Contract performance (Art. 6(1)(b) GDPR)
Invoices	Billing records (§14 UStG compliance)	Legal obligation (Art. 6(1)(c) GDPR)
AI request metadata	Usage metering (provider, model, cost)	Contract performance (Art. 6(1)(b) GDPR)

5. Cloud AI Proxy

When you use metered cloud AI features (e.g., cloud transcription or intelligence via OpenAI, Anthropic, etc.), your requests are proxied through our Supabase Edge Functions. This means:

Your request content is forwarded to the selected AI provider
We log the provider, model, and cost for billing — not the content of your request or response
Provider API keys are stored server-side only and never exposed to the client

Local AI processing (Whisper, Ollama, vLLM on your machine or local network) does not go through our proxy and is not metered or logged.

6. Sub-Processors

Supabase (Database & Auth)

Region: eu-central-1 (Frankfurt, Germany)
DPA: supabase.com/legal/dpa

Stripe (Payments)

Used for subscription management, credit purchases, and invoicing.
DPA: stripe.com/legal/dpa

Netlify (Website Hosting)

Static website hosting only. No personal data processed.
DPA: netlify.com/legal/dpa

7. Data Retention

Account data: Retained while your account is active. Deleted within 30 days of account deletion request.
Billing records: Retained for 10 years per German tax law (§147 AO).
Audit logs: Retained for 2 years for security purposes.
Local data: Managed entirely by you on your device.

8. Your Rights (GDPR)

You have the right to:

Access your personal data (Art. 15 GDPR)
Rectify inaccurate data (Art. 16 GDPR)
Erase your data ("right to be forgotten") (Art. 17 GDPR)
Restrict processing (Art. 18 GDPR)
Data portability (Art. 20 GDPR)
Object to processing (Art. 21 GDPR)
Lodge a complaint with a supervisory authority

To exercise these rights, contact us at hello@capsule.app.

9. Cookies & Analytics

The Capsule website does not use tracking cookies or analytics. The macOS app does not collect telemetry data.

10. Changes to This Policy

We may update this privacy policy from time to time. The "Last updated" date at the top indicates the most recent revision.

11. Contact

For privacy-related inquiries:
hello@capsule.app