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stpvoice

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Hello,

Yes, that counts as file hosting, which is prohibited on the free service.
Terms of Service said:
* File Hosting Every file on your site must have to do with the website you put up, we are not a file storage service and we strictly prohibit scripts such as torrentflux or rapidleech.
 

stpvoice

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The servers are located in the US, so they follow US law.
File hosting is not permitted on premium either, however you could use a VPS: http://x10vps.com/terms.php
 
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