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Is this standalone, as in: an actual file format people can use? From their website it looks like it won't work without using their service or hosting something yourself?

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Yes, there is a standalone compiler for typst that you can use offline for free. Source code is here https://github.com/typst/typst/

Looks like you can compile files as shown here: https://github.com/typst/typst?tab=readme-ov-file#usage

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