I'm not sure why it would be different from any other hosting provider. They do clarify what they consider abuse / forbidden content, and their operational policies though:

[1]: https://pico.sh/abuse

[2]: https://pico.sh/ops#code-of-content-publication

This is the challenge. This is tiny and delightful, but most hosting systems are monsters from a compliance perspective not because of a hunger for bureaucracy but that content moderation is SUPER hard.

Good question.

Right now we run some ML models to check for illegal content and then respond immediately with the ban hammer.

We also monitor content published on our platform with some admin tools we built.

Could be useful to have a tool similar to https://git.0x0.st/mia/0x0#moderation-ui

And that's why no one can offer this sustainably for $2/month. There is a cost of policing for illegal stuff as well as outright terrible stuff that requires fair bit of effort.