As if there is a place where it can't possibly collide with anything! Oh, your Lily divebombed into the ground? Well, you shouldn't have launched it near the ground!
I just tried to contribute with relevant information and got two sarcastic replies in return. Well done, folks.
Thank you very much for pointing the clause in the terms out.
I sent an e-mail to the contact us link with the same questions I listed above, and the developers replied with this information and the note that the user can hit the center button on the wearable tag to put the UAV into hover mode to prevent collision.